The collision industry is in conflict over which procedures are considered a “cost of doing business” and which are a “direct cost of the repair.” Tim Ronak addresses the rapid changes in new technologies, procedures, skills and services and suggests embracing generally accepted accounting procedures (GAAP) to differentiate between overhead expenses and the direct cost of performing a repair.
Understanding these different costs is the first step toward recovering new and often misunderstood expenses that go along with modern collision repair. Being able to justify expenses, document them and explain the process to industry stakeholders is critical to operating an efficient business.
Join us for the 2020 IDEAS Collide Showcase during the SEMA Show in November: https://sema20.mapyourshow.com/8_0/sessions/session-details.cfm?scheduleid=38.
