Updated July 16, 2015
Body Shop Inventory Management in Chicago Illinois
Controlling inventory in the body shop industry
Generally inventory is not a huge problem in the Auto Body Shop Industry of Chicago.
Most people don’t maintain large inventories because they don’t actually know what to carry in the first place. If you are a general auto body shop, then you probably just carry paint supplies, bulbs, and general items. Any other inventory that you have are parts left over from other jobs that you couldn’t return for whatever reason. The inventory that you carry would be minimal.
But if you are a specialty body shop, such as one that works primarily on vintage cars, then you probably try to gather as much inventory as you can. Why? Because it can be a source of larger profits. It also becomes a source of accounting difficulties and headaches.
A perfect example would be a front end for a 1956 Jaguar whatever. This part came out of a car that you worked on ten years ago, and has been gathering dust for the past decade. How do we value this for inventory purposes? Let’s say that the only expense in acquiring it was getting it sandblasted and in shape so that it can be resold in the first place. So, you’re into this piece for maybe $500.
But let’s say that all of a sudden someone from Nowhere-ville North Carolina sends you an e-mail and is in desperate need of this part. All of a sudden its worth plenty. Body shop inventory management What is this inventory item actually worth?
If you are having problems with your Body Shop Inventory Management in Chicago Illinois or have issues with your accounting in general, we would love to help. I love hearing from my readers, and can be contacted at…..
Chris@AccountingSolutionsltd.com
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Chris Amundson is the President of Accounting Solutions Ltd., a full service public accounting firm of Certified Public Accountants and Enrolled Agents handling the bookkeeping, accounting, tax preparation, and audit representation needs of Businesses, Estates, Trusts, and Upper Income Individuals.