By - August 20, 2024
Categories: General
As summer comes to a close, it’s time to shift gears and prepare your mechanic shop for the busy months ahead. Before you know it, your bays will be flooded with customers requiring vehicle maintenance!
While you focus on business strategies to drive revenue after the summer slowdown, it’s also important to ensure your financial health is in check.
Here’s a comprehensive post-summer financial checklist to help you stay on track and ready for a thriving fall season. Bookmark this post so you can return to it as you
Review your financial summer performance.
Begin by analyzing your financial statements. Review your profit and loss, balance sheets, and cash flow statements from May through August. This will give you a clear picture of your shop’s performance so you can make necessary adjustments.
Then, look at your revenue sources and determine which services were the most profitable over the summer. These trends can help you plan fall promotions. You may also want to review the profitable services from the fall of last year.
Lastly, conduct a thorough audit of your expenses. This will help you identify unnecessary or excessive costs and eliminate them. Be sure to review your utility bills, inventory costs, and payroll.
Create an updated budget.
The season is changing, which means your budget will, too. Adjust your budget to reflect the influx of back-to-school vehicle checks and maintenance services!
You will also want to plan for any upcoming expenses so you can allocate funds appropriately without experiencing any financial surprises. Examples of this may be equipment maintenance, shifts in staffing costs, or marketing campaigns.
Implement strategies to optimize cash flow.
The goal of your business is to increase your cash flow. Let’s make it happen this season!
Ensure all summer invoices have been sent out and paid. If you have any open invoices, follow up on outstanding payments. This is crucial for a steady cash flow. You can automate this with programs such as Quickbooks Online.
Review your accounts payable and schedule timely payments to vendors and suppliers. If possible, negotiate payment terms as you kick off the new season!
Prepare a plan for growth.
If you want to experience growth in the last half of 2024, you need to take steps to prepare for it. Business expansion doesn’t happen overnight, although wouldn’t it be nice if it did?
Identify potential investment opportunities that can help you grow. What new equipment can you add to your shop? Can you hire additional staff so you can open more availability? Can you add new services to your menu?
Once you determine any possible investments, allocate a portion of your budget to marketing efforts aimed at attracting new customers and encouraging existing ones to return. Seasonal promotions, social media marketing, and community events can be effective ways to increase your customer base.
Begin tax preparation now.
Ensure that you’re up-to-date with your quarterly payments, sales tax, and payroll tax.
Check in with your records and adjust them accordingly. Staying compliant can present costly penalties.
You can also get ahead of tax season by conducting year-end planning. I know April feels like it’s years away, but it will be here before you know it!
Consult with your accountant or bookkeeper to identify potential deductions and credits that can reduce your tax liability.
This post-summer financial checklist will help your mechanic shop be well-prepared for the fall season. Be sure to bookmark this post so you can return to it while you conduct your financial planning.
If you need support with bookkeeping, financial recommendations, or tax planning, we’d love to help you! Contact us today to learn more about our comprehensive services.
