The current rate of failed independent shops is 11% based on industry statistics. It is estimated that 90% of these shops were solvent at the time of closing. This is a indication of the need for an accurate understanding of automotive accounting; shops earning enough income to preserve solvency without managing to remain viable. Owners and managers need to increase their understanding of automotive accounting.

This seminar provides an introduction to the basic core of accounting principles as they apply to the automotive service industry. Training materials are straightforward, systematically organized, with clear examples and descriptions. At the completion of the course participants will be able to:

• Understand and analyze their accountant's financial reports
• Identify and utilize financial predictors before damage occurs
• Identify and control unnoticed costs
• Institute account numbers to identify assets, equity, sale of goods, costs of goods sold and other expenses
• Determine whether assets, liabilities, receivables and costs are in balance
• Calculate and utilize positive or negative cash flow information
• Structure the balance sheet to achieve incorporation goals
• Track a true accounting of the debt to worth ratio
• Free "frozen cash" for reinvestment in the business
• Calculate an accurate breakeven analysis
• Apply the formula to calculate the gross profit on sales
• Utilize depreciation correctly to lower the net profit
• Apply the formulas, tables and principles of solution to their financial situation
• Understand the advantages of different types of incorporation
• Understand the definition and application of common accounting terms and procedures
• Review a completed chart of accounts and balance sheet
• Understand how to calculate current ratio, acid test ratio, working capital, debt to equity ratio, return on asset ratio, cash flow, and breakeven analysis
• Understand the concept of Creative Accounting and the examples presented

Approval Date: 09/01

Ned Tomarchio 6 credits, 8 credits; 3-hour course, 4-hour course Specialty: