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Chapter 2 DOCUMENTS AVAILABLE INTRODUCTION The records kept by auto
body and repair shops are generally neither elaborate nor complex. Most function as closely held small businesses with virtually no internal controls in place and little on site accounting supervision. Larger shops may employ some clerical help but often smaller establishments simply submit their check stubs and a stack of repair orders and/or their banking records to an outside accountant on a monthly or quarterly basis for posting and preparation of the accounting records and tax returns. The source documents may be maintained in a file or a carton or trashed, depending on the inclinations of the owner/operator. GENERAL BOOKS AND RECORDS An auto body shop will not generally have an elaborate set of books and records regardless of the accounting method used (cash or accrual). There will usually be a general ledger, a cash disbursements journal (or a combination of the two), a sales, and a cash receipts journal. An accounts receivable schedule may also be available. The only distinctive
journal which was encountered fairly consistently was
the sales journal which will usually break sales down into the following
categories: 1. Parts/Paint/Material sales 2. Labor Sales: Further break down will be metal labor (body work), paint labor, and frame labor 3. Sublet Charges 5. Towing Charges 6. Storage Charges 7. Sales Taxes For smaller businesses
there may only be single entry disbursement journal along with a listing of the
sales for the month or a listing of the bank deposits if that 2-1 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Glossary |