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Invoicing for Auto Repair Shops

Written by on October 10, 2022

If you’re an auto repair shop owner, then you know that keeping track of your finances is essential to the success of your business.

One important task in managing your finances is invoicing your customers for the work you’ve done. Not only is invoicing well for tracking payments, but it can also help improve your relationship with clients and boost your business’ reputation.

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In this article, we will discuss the basics of invoicing for auto repair shops and provide some tips on how to make the process as smooth as possible. We’ll also answer some common questions about invoicing for this type of business.

Why Invoicing Matters for Auto Repair Shops

Invoices are important for tracking payments and managing your finances. But there are more benefits to invoicing that you might not know about. For example, invoices can:

  • Help you keep track of the work you’ve completed for a client
  • Make it easier to follow up with clients who haven’t paid
  • Serve as a record of the work you’ve completed in case of a dispute
  • Provide an opportunity to up- or cross-sell your services
  • Remind customers of follow-up work or maintenance

The bottom line is that invoicing is an important part of running a successful auto repair business. Let’s take a look at some basics of how to invoice for this type of business.

Invoicing 101 for Auto Repair Shops

The first step in creating invoices for your auto repair business is knowing what information should be included in your invoice. This will usually include:

  • Your business name, address, and contact information
  • The invoice date
  • The customer’s name and contact information
  • A description of the work completed (including make, model, and year of the vehicle)
  • The total amount due
  • Any applicable discounts or coupons
  • Your preferred method of payment (e.g. cash, check, credit card)

For auto repair shops, though, there are other things that we recommend you include. Adding these items to invoices you issue to your customers will provide full transparency for the service. It can also minimise possible issues down the road.

These include:

  • Record of mileage when the vehicle arrived in the shop, and when the vehicle is released.
  • Full report on all findings from vehicle inspection.
  • All measurements are done, such as brakes, tires, etc.
  • Full report on all services done to the vehicle, including any which were added after inspection. Make sure any parts purchased and installed are clearly listed.
  • Include any recommendations by your technicians which were not done (i.e. by customer request or if they declined).

You can also include recommendations on what work can be done to increase their vehicle’s efficiency and health, or when their next service appointment can be scheduled. This is a great opportunity to offer further services, and including a coupon or discount for future work can seal the deal.

To make your invoice stand out and work double-time for your business, you can also include things like your social media accounts so they can easily contact you. Include the address to your website or blog to easily keep your customers in the loop about your business.

Getting Started with Invoicing for Auto Repair Shops

Invoicing isn’t rocket science – once you know what you need to include, you can easily get started. There are usually a few ways to go about creating invoices for your clients:

#1 Do-It-Yourself

Creating your own invoices might feel daunting, but this can be the cheapest way to give invoices to your customers. Especially if you’re just starting your auto repair business, every little bit helps!

You can use virtually any word processing tool or application to do this. There are also many free online invoice templates for auto repair shops that you can use to get you started with a professional-looking invoice. Usually, these templates will just need some tweaking to add your business information and logo, and you’re ready to go.

#2 Use Invoicing Software

Invoicing software can also be the way to go, especially if you’re scaling up your business. While you’re still in control of what goes into your invoice and how it looks, using invoice software for auto repair shops like InvoiceBerry can make it easier to keep track of payments and invoice history.

Features like online payment processing, payment reminders, and even recurring payment handling can be a big time-saver (and money-saver) for you and your business.

Great Tips for Great Auto Repair Shop Invoices

Now that you know what information to include in your invoice and how to issue invoices to your customers, let’s look at some tips on how to really crank up your invoicing practice to the next level.

Invoicing efficiently can help your auto repair shop business streamline payments.

Tip #1: Schedule the Next Appointment on the Invoice

Vehicles need some regular maintenance to stay in good condition and avoid costly repairs down the line. When a customer brings their car in for service, be sure to include clear instructions on how to schedule the next appointment on the invoice.

You can even add a suggestion on when this next appointment can be done, or a discount to close the deal.

Check if your invoicing software can even send an automated reminder. This can free up a lot of your time chasing previous customers in the hopes of a return customer. This will help ensure that customers bring their vehicles back for regular service and helps you keep track of your workflow.  

Tip #2: Offer a Variety of Payment Options 

Your invoice should provide customers with multiple payment options. This will allow them to choose the option that is most convenient for them, which can help them get paid faster.

The most common payment options are cash, check, and credit card, but you don’t have to stop there.

Offering an online payment option can be a huge plus for your auto repair business since it allows customers to pay their invoice with a click of a button, or even through other services like e-wallets.

Tip #3: Keep it Clean and Professional 

There can be a lot of information on your auto repair shop invoice since you have a lot of technical information included to cover all the bases. While it can be daunting to organise all of this, making sure that your invoice is clean and easy to read will go a long way.

Use clear headings and simple language to make it as easy as possible for customers to understand what they are being charged for. Remember, a professional invoice design can impress your customer and solidify your shop’s reputation.

Tip #4: Allow Some Payment Flexibility

For smaller, quicker services like oil changes, you can usually give your customer the invoice when the work is completed without any issues.

But for more complicated work that requires many hours of service, part changes, and other things, it will be better to provide your client the invoice early as an estimate and start work once a downpayment has been made.

You can then set up when the next payment is due, or even offer a recurring payment option for your customer.

Final Thoughts

Invoicing for your auto repair business is important to ensure you are getting paid for the work you do.

By following these tips, you can streamline your invoicing process and get paid faster. While it may require some work at the start to design and create a great invoice, it will save you time and money in the long run — and even help you snag some repeat customers!

Do you have any other tips for auto repair shop owners when it comes to invoicing? Let us know in the comments below!

Frequently Asked Questions

Q: Do I need an invoice software for auto repair shops? 

A: While you can create invoices from scratch using any word processing software, it may help your business significantly if you use invoicing software for your type of business. Since an auto repair shop requires a significant amount of information on their invoices, using software that can manage your invoices for you can save you a lot of time.

Q: What software is best for auto repair invoices?

A: Different businesses have different invoicing needs, so make sure you find software that is customizable and can grow with your business. If you’re just starting out, you may want to look for an invoice software that offers a free trial so you can test it out before committing to a paid subscription.

Q: What should I include on my auto repair shop invoice?

A: Include important details such as your business name and contact information, the invoice number, the date of service, a description of the work performed, the cost of parts and labour, any applicable taxes, and the total amount due. While it may feel like a chore to include detailed service reports on your invoices, it will help your business significantly in the long run.

Small Business Finance 101

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