Specialist Automotive Accounting
Automotive Accountants in Melbourne & Moorabbin
What We Do
Our automotive services cover
Understand Your Margins
Why a busy workshop can still be short of cash
What does an automotive accountant do?
An automotive accountant handles the tax, BAS, bookkeeping and payroll for a workshop or parts business, and reports on the figures that drive its profit: labour recovery, parts margins, unfinished jobs, insurer and customer receivables, and stock. The aim is compliant accounts and information you can use to price and plan.
A full booking calendar does not tell you what will be left after wages, parts, rent, super and tax. The usual causes of a cash squeeze are margins that are thinner than they look, work done but not invoiced, slow insurer or customer payments, and cash tied up in stock. We connect your day-to-day activity to your financial results.
- Labour and parts margins: separate income and direct costs so you can see where margins change.
- Quoted and actual time: review overruns, unbilled work and rework where your time records allow.
- Unfinished and uninvoiced jobs: keep outstanding work visible and review its treatment at reporting dates.
- Customer and insurer balances: reconcile receipts, identify overdue amounts and find the causes of collection delays.
- Stock and supplier accounts: identify cash tied up in slow-moving parts and reconcile purchases, returns and credits.
- Upcoming commitments: bring wages, super, suppliers, equipment finance and tax into one cash flow forecast.
How one repair job’s margin can change
Take a repair invoiced at $2,000 excluding GST. Parts cost $700, direct labour $500 and consumables $100. The job contributes $700, or 35% of the invoice, before rent, administration, equipment and other overheads. If extra labour and materials add $200 without a change to the invoice, the contribution falls to $500, or 25%. Comparing quotes with actual costs shows where to review pricing, variations or workshop processes.
Illustrative figures only, not a client result or industry benchmark. All amounts exclude GST. Direct labour is assumed to include employment on-costs. This is a contribution calculation, not net profit.
See how our cash flow forecasting and business advisory service turns these figures into a forward plan.
Qualified Advice. Clear Scope.
Accounting support built around how your workshop operates
Who We Work With
Accountants for mechanics, panel beaters, auto electricians and parts businesses
Mechanics, auto electricians and repair workshops
Track labour sales, parts costs, technician time and overheads. See how servicing, diagnostics, electrical and repair work each contribute to your results. We support independent workshops, auto electricians and mobile mechanics.
Panel beaters and smash repairers
Keep track of repair costs, jobs awaiting completion or invoicing, and amounts owed by customers and insurers. Plan for the gap between paying wages and suppliers and receiving insurer payments.
Dent removal and paintless dent repair
Organise income and costs across mobile jobs, workshop repairs and subcontract work. Review travel time, materials and payment terms to see which work earns the strongest return.
Automotive spray painters and refinishers
Understand the cost of paint, consumables, preparation and labour. Compare quoted jobs with actual costs, and include booth, equipment and premises overheads when you set prices.
Performance, modification, restoration and trimming workshops
Track longer projects, specialist parts, subcontractors and changes to the original scope. Review deposits, progress billing and remaining costs so you know the cash needed to finish each build.
Parts, tyre, exhaust and accessories businesses
Manage the records behind retail, wholesale and online parts sales. Review stock, supplier credits, returns and product margins, including businesses that sell and fit parts.
Run a broader trade business as well? See our accountants for builders and tradies.
A Clear Starting Point
How we get started
Step 1 — Initial meeting
Tell us what you do, which systems you use and where you need help. We review your current accounting arrangements, deadlines and priorities.
Step 2 — Written proposal and fixed fee
We prepare a proposal based on your entities, transaction volumes, payroll, stock and reporting needs. Ongoing work and any catch-up or set-up work are listed separately.
Step 3 — Handover and reporting schedule
We coordinate the handover from your previous accountant, agree who does what, and set a reporting and lodgement schedule.
Your proposal confirms what is included, how often each service is delivered, and how any additional work will be quoted. If something falls outside the agreed scope, we tell you and quote it before doing the work.
The information on this page is general in nature and does not take your circumstances into account. We recommend obtaining advice specific to your situation before acting.
Tax, Books & Business Advice
What our automotive accounting services include
Accounting, tax and BAS
Financial statements, business tax returns, BAS and IAS preparation and lodgement, and tax planning. We also advise on the tax and accounting questions raised by equipment purchases, stock, business vehicles and changes to your structure.
Bookkeeping, payroll and super
Bookkeeping covering bank and merchant reconciliations, supplier and customer accounts, payroll and super. From 1 July 2026, Payday Super requires employee super to reach the fund within 7 business days of each pay. We can help you set up a payroll process that meets the new deadline.
Workshop and parts reporting
Management reports suited to your business, with labour and parts income separated where useful. Depending on your systems and engagement, reports can cover job margins, aged receivables, stock movements and unfinished jobs.
Cash flow and growth planning
Cash flow forecasts and scenario modelling for hiring, apprentices, equipment, larger premises or a second site. Understand the funding needed and the effect on the business before you commit.
Starting or restructuring your business
Structure advice, ABN, GST and PAYG registrations, and accounting set-up for new workshops and mobile operators. We also review whether your current structure still suits the business as it grows.
Buying a mechanic or smash repair business
A business-for-sale listing shows the seller’s view of the numbers. Before you commit, we test whether the earnings are real and repeatable: labour and parts margins, dependence on one insurer or fleet customer, owner and family wages, stock values, equipment condition and finance, lease terms, and the working capital you will need after settlement. You receive a written report on the financial findings, with structure and tax advice for the purchase. Legal review of the contract and lease should be carried out by your solicitor. Explore buying a business and due diligence.
Your Local Accounting Team
Meet your automotive accountant in Moorabbin
Our Moorabbin office is at Level 1, 13–15 Cochranes Road, Moorabbin VIC 3189, in the Morris Moor precinct. We work with automotive businesses in Moorabbin, Cheltenham, Highett, Bentleigh, Bentleigh East, Braeside, Mentone and across south-east Melbourne. Meet us at the office or work with us online around your workshop hours.
Automotive engagements are led by Sergiy Kucherenko CPA, a director of 42 Advisory. Forty Two Advisory Pty Ltd is a CPA Practice and a Registered Tax Agent (Tax Practitioners Board registration 26303651, ABN 53 685 405 458). We are not financial advisers and do not provide financial product advice; where a matter needs legal or licensed financial advice we say so and refer it.
Visit our Moorabbin office page or call (03) 9997 7081.
“A full workshop is not the same as a profitable one.”
We help you see what each job, each customer and each part of the business contributes, so you can price and plan with confidence.
YOU MAY NEED TO KNOW
Frequently Asked Questions – Startup Accounting in Melbourne
What does an automotive accountant do?
An automotive accountant handles the tax, BAS, bookkeeping and payroll for a workshop or parts business, and reports on the figures that drive its profit: labour recovery, parts margins, unfinished jobs, insurer and customer receivables, and stock. The aim is compliant accounts and information you can use to price and plan.
Do you work with automotive businesses other than mechanics?
Yes. We act for automotive businesses and work with auto electricians, panel beaters and smash repairers, dent and paintless dent repairers, spray painters, performance, modification, restoration and trimming workshops, and parts, tyre and exhaust businesses. The reporting is tailored to your mix of labour, stock and sales.
Why is my workshop busy but cash is tight?
Usually because of thin margins on some work, jobs completed but not invoiced, slow insurer or customer payments, or cash tied up in parts stock. We review each of these and prepare a cash flow forecast showing when money is expected to arrive and when payments fall due.
How is GST handled on insurance repair work?
It depends on the repair arrangement and who is invoiced for what, including any excess paid by the customer. The ATO’s view on insurance settlements is set out in GSTR 2006/10. We review your insurer arrangements and invoicing so GST is reported correctly on your BAS.
What does Payday Super mean for my workshop?
From 1 July 2026, super guarantee contributions must reach each employee’s fund within 7 business days after you pay them, rather than quarterly. Longer timeframes apply in limited cases, such as a new employee. Workshops with apprentices and technicians need a payroll process that funds super with every pay run.
Can you work with my workshop management software?
Yes, in most cases. We start by reviewing your workshop system and how it connects to Xero or MYOB, including available integrations and exports. We then set the reconciliation steps needed for sales, parts and payments. Any set-up or integration work is scoped and quoted after that review.
Do I need an accountant if I already have a bookkeeper?
Often, yes. A bookkeeper records transactions. A registered tax agent prepares and lodges your tax returns and gives tax advice. We can work alongside your bookkeeper, review their work at each BAS, and handle year-end accounts, tax planning and advice.
What should I check before buying a mechanic or smash repair business?
Test whether the earnings are real and repeatable. Review labour and parts margins, reliance on one insurer or fleet customer, owner wages, stock values, equipment condition and finance, lease terms and the working capital needed after settlement. We provide financial due diligence; your solicitor should review the contract and lease.
How much does an automotive accountant cost?
The fee depends on your structure, transaction volumes, employees, stock and the level of support you need. We provide a fixed-fee proposal after the initial meeting that sets out the services included and lists any catch-up work separately.
Can I change accountants during the year?
Yes. We review your upcoming deadlines and records, then coordinate the handover with your authority. If you can, bring your latest financial statements, recent BAS and your accounting software details to the initial meeting.