Accountants for Mechanics in Alberta & BC

It Took Longer to Find Than to Fix

Did the Invoice Account for That Time?

The fault wouldn't show itself until the engine was warm. One test became three. You fixed it, but the invoice still carried the original labour allowance. The customer drove away happy. Now another car is waiting, and you haven't checked what that extra time cost.

Do billed hours cover the technician time the repair used?
Did the returned alternator become a supplier credit?
How much cash is sitting in parts on the shelf?
Will fleet customers pay before the parts account is due?
Do the shop's invoices and payments agree with the books?

Start with that repair. We compare what was billed with the parts and paid time it used, then check whether the same gap appears elsewhere.

The Labour Allowance Stayed the Same

What Can Two Extra Hours Cost?

Suppose that repair brings in $1,200, with $600 in parts and $240 in direct labour costs. That leaves $360 in gross profit. Another two paid hours at $60 each bring it down to $240, with no change to the approved invoice.

That's one third of the expected gross profit used by those two hours. Future estimates may need a different diagnostic allowance or a clearer point to seek approval for extra work. Accurate records show where to start. An owner working alone needs that comparison too.

Follow That Repair Into the Accounts

Auto Repair Shop Accounting That Explains the Whole Job

Tracking expenses starts with the repair order. We connect parts, paid time, billing and receipts so you can see how the work became revenue and what it cost to deliver.

Start With the Repair Order

Bookkeeping and Job Costing

We match parts and labour costs to the repair, review inventory records and check supplier credits. Bank reconciliation connects customer payments, card settlements and fees to the books. You can see what was earned, what was spent and what is still owed.

See Bookkeeping Support

Then Check the Tax Behind the Repair

Corporate Tax, GST/HST and Tax Planning

Parts on a shelf and a new diagnostic scanner need different accounting treatment. We review business expenses, inventory and equipment for your corporate return and financial statements, with tax planning for instalments, GST/HST and applicable BC PST.

See Corporate Tax Support

Now Put the Hours Into Payroll

Payroll, Owner Pay and T-Slips

An hourly technician, a flat-rate technician and the working owner may be paid differently. We help with managing payroll, deductions, CRA remittances and T4/T5 slips, and review salary or dividends for you. Pay records need to reflect the arrangement you use.

See Payroll and T-Slip Support

Then Work Out What Can Come Home

Personal Tax and Finances for Shop Owners

Your pay also shapes your personal tax return. We review salary, dividends and shareholder records alongside household needs. Personal tax services come through our Nosehill office or a trusted partner, with scope and fees agreed first.

See Personal Tax Support

Check Next Week Before Filling It

Cash Flow Forecasting and Financial Management

A fleet account can bring steady work and a wait for payment. We build cash flow forecasts around supplier terms, wages, rent, tax and expected receipts. Then we can test another technician or hoist against what your auto shop needs to keep running.

See Advisory Services

A Busy Week Is Worth Looking Into

What Would You Change Before Booking Another One?

Auto repair shops can show strong sales while cash is tied up in inventory or unpaid invoices. We review revenue, expenses and the balance sheet together, including liabilities, to explain your financial position before hiring or buying equipment.

What you need to work out	How TNA helps with the decision
Labour sales are up. Is the shop earning more?	Compare billed work with parts costs, paid technician time and comeback repairs to see what each repair leaves.
Why is cash tight when customers have paid?	Review parts inventory, supplier bills and other commitments before treating the bank balance as available money.
Why don't card deposits match the invoices?	Check settlement timing, processing fees, refunds and entries that may have recorded the same sale twice.
Can we afford another technician?	Forecast payroll and other expenses against expected receipts, including the effect of late fleet payments on cash flow.

You Can Start With One Repair

We'll Help You Work Out What Needs Checking

1. Tell Us What You Want Explained

It might be a parts balance or the money left after a busy month. Tell us what you want to work out and mention any approaching tax date. We'll explain which records are needed next.

2. We Review How the Shop Records It

A CPA or bookkeeper reviews your accounting software and invoicing setup. We ask what your team already handles, then explain where TNA could take financial admin off your list.

3. Agree on the Work, Reports and Fee

We confirm the services, review schedule and fixed fee. You know who handles the bookkeeping, who to ask for advice and how to share documents before the work begins.

TALK TO A TNA ACCOUNTANT

Helpful, patient and knowledgeable

It's always a pleasure dealing with our year end at our firm. True North is always so helpful, patient and knowledgeable. Matt and Curtis are always great to deal with, but the whole team is always helpful and great to deal with. I would absolutely recommend them for anyone looking for accounting services for their small business.

Javier

Makes the difficult conversation of taxes and running a small-business easy

True North Accounting makes the difficult conversation of taxes and running a small-business easy. I cannot thank the staff at True North, particularly their accountant Curtis, enough for their willingness to share their knowledge and expertise in a clear and concise way. As a young business owner with many questions to ask, I can say with confidence that True North genuinely cares about their clients, prospective or existing. Kudos to True North!

Ryan G.

Very professional, accommodating and prompt to address any questions

All the folks at True North have always been very professional, accommodating and prompt to address any questions or concerns we've have about our small business financials. I would recommend True North to anyone looking for financial services.

Darren

Before You Get in Touch

Questions About Accounting for Mechanics

What is the best accounting software for a small auto repair shop?

The best accounting software for an auto repair shop depends on its invoicing, inventory and payroll needs. TNA works with Xero and QuickBooks, among other tools. We review the software already in place and how your shop handles invoicing, inventory and payroll before recommending any changes.

Can I keep my shop's invoicing software and use QuickBooks Online?

You may be able to keep your current invoicing software alongside QuickBooks Online. Compatibility depends on the systems, versions and supported connections. We review available integrations or exports, then check how sales, payments and credits reach the books before recommending a change.

Can mechanics write off tools and diagnostic equipment?

Mechanics can claim eligible business expenses, including shop rent, consumables and software subscriptions. Tools, hoists and diagnostic equipment may need capital cost allowance rather than an immediate deduction. We check receipts, ownership and business use before deciding how each purchase is treated.

Do auto repair shops charge PST on labour in BC?

In BC, PST generally applies at 7% to vehicle repair parts and labour. Diagnostic-only services can qualify for an exemption. We check the work supplied, invoice details and tax settings, so auto repair shops apply the right treatment to each charge and keep accurate records for GST and PST reporting.

How much does an accountant cost for an auto repair shop?

Fees for auto repair shop accounting depend on transaction volume, payroll, inventory records and reporting needs. TNA agrees on the scope and fixed fee before work begins. Ask which services, reviews and accounting software costs are covered, and what would change the price as your shop grows.

Can you help if my bookkeeping is months behind?

Yes. TNA can review overdue bookkeeping and price the catch-up work. Start with the last period completed, your existing accounting software and any approaching deadline. We identify missing records and explain the handover, so you can ask for help before tax season without sorting everything first.

SMALL BUSINESS ACCOUNTING FOR MECHANICS

The Car Is Fixed. What Did the Shop Earn?

The repair is finished. There's still a parts credit to check and a pay run to cover. TNA connects bookkeeping, payroll, tax planning and cash flow for your auto repair business, so you can see what the work earned and what next week needs.

• CPA-led support for incorporated repair businesses • Bookkeeping and repair job costing • Payroll and owner pay support • Corporate CRA support within scope • Fixed fees agreed before work begins