What is an Automotive Work Order and Car Invoice Used For?

Independent automotive and repair shops provide mechanic work orders and car invoices to clients for all types of work done on their vehicles. 

Examples of auto work that need invoicing include:

• Oil changes
• Brake maintenance
• Tire changes
• Accident repair
• Windows and dashboard repairs
• Fuel system checks
• AC maintenance
• Engine repair
• Exhaust work
• Auto body work
• Towing
• Tune up maintenance
• Paintwork
• Transmission maintenance 

Simply put, any maintenance or auto-repair work you perform on a client's vehicle should be accompanied by a mechanic's invoice or car receipt. Therefore, having an auto repair invoice template at the ready, will make it easy for you to tailor the document to each job and the auto body services performed on the customer’s vehicle.

How Should You Charge for Your Auto Repair Services?

As a business owner in the repair service industry, you want to charge customers effectively, not too much or too little. Whether you’re working from home, running a brick-and-mortar shop, or operating a mobile unit, it’s a good idea to converse with customers to discover their needs.

Obtaining customer information helps you discover the best ways to serve them, as well as what the job should cost you. Using the job costing technique gives you an accurate picture of what it costs you to meet your customer needs. 

In the repair industry, such as appliance and automotive repair, your options include charging an hourly rate or a flat rate for jobs. Either way, you should make sure to cover labour and parts costs. Choose what works best for your business plan, marketing strategy, and cash flow needs. Consider looking at the average cost of car maintenance throughout Canada to get a better understanding of the price points you will be set for your services. 

Billable labour costs on a repair invoice might include performing a brake job, oil change or engine tuneup on a car, or repairing a faulty dishwasher. One way of handling parts costs is for you to buy them and let the customer reimburse you. That way, price increases won’t erode your profit. If you choose that option, it’s smart to factor in the cost of time you spend shopping for parts and materials, as well as a markup for profit.

Items to Include in Your Free Repair Shop Invoice Template

Generally, your repair service agreement determines what goes into your repair service invoice template, but some items are mandatory. You must inform customers when you’re applying the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) and Québec sales tax (QST) (if in Québec) to their purchases.

It’s wise to separate your repair shop services price from any GST/HST/QST (if in Québec) you must collect. The Canada Revenue Agency (CRA) requires that you show the total HST rate if HST applies to the supply, but don’t show the federal and provincial parts of the HST separately.

If you repair vehicles in Ontario, your final vehicle repair shop invoice template must include:

• Your customer’s name
• Your repair shop name, address, and contact information
• Vehicle make, model, vehicle identification number (VIN), and licence number
• Vehicle odometer readings for when you receive the vehicle and when you return it
• A list of the parts you installed and whether the parts are new, used, or reconditioned
• Whether you used parts by the original equipment manufacturer
• The prices of the parts
• Total labour cost and how you calculated it, such as hourly rate, flat rate, or a combination
• Shop supplies beyond normal operating costs if you charge the customer for them
• Terms of the warranty you provide for each part installed and the labour to install it
• Total amount you bill your customer, which can’t be greater than 10% of the estimate, according to Consumer Protection Ontario

If your customer sets a maximum price they’re willing to pay for the repair and you agree, you can’t charge a final cost that’s higher than the agreed amount. Overall, be sure to include an invoice number and keep an itemized list and brief description of all supplies used in the repair work. These details will help you make the total price of the services as concise as possible, so customers know exactly what they are paying for. 

How to Write a Car Receipt Template for Car Repairs 

An auto repair invoice or car receipt should only ever cover the work done on the vehicle that was discussed with the client beforehand. Your car receipt template should have room for you to edit the work completed and client information per account. With an easy-to-fill-in template, it'll take you less time to tailor each receipt to the appropriate account.

All maintenance or repair work that was discussed with the client prior to the work being done, can be added to the mechanic invoice receipt. Fill in all applicable client information in the fields required and then add in any invoicing payment terms, like the payment due date and how long the client has to pay off their bill (net 30 days), to complete the car receipt template. 

Once finished, send the document to the client through email or print off a copy for them if you use paper invoices. 

Why You Should Provide a Car Invoice to Clients

Providing an automotive work order or auto repair invoice for customers is not only a best practice for a business, but it is also necessary for tracking the company’s accounts and revenue generation. Sending professional invoices to customers will create a paper trail for you to track client accounts and follow up on unpaid invoices. 

Providing this critical documentation for clients will also help them come tax season. Should your clients service a work vehicle, or a fleet of work vehicles, with you, they can write off vehicle expenses on their tax return each year. This means it's paramount that you provide them with the evidence they need to claim such expenses, and they will continue to use your services. 

Invoicing Software Increases Efficiency & Speed Payments for Your Auto Repair Business

Presenting invoices to customers immediately after completing their repairs helps you maintain a steady cash flow and avoids carrying customer debt unnecessarily. Computer software programs and mobile apps help streamline your invoicing routines. Such software could even help you get paid quicker, as people are more likely to pay off their accounts right away if you use electronic invoicing for your mechanic invoice needs.

QuickBooks Online Invoicing can help speed up the process of creating and sending invoices, saving valuable time. With this accounting software, you get messages as soon as your customers see your repair service invoices, and they can pay you directly from the invoice. Start improving your payment process right away when you try it for free today.