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The Standard Operating Procedure (SOP) of a quality Auto mechanic has been outlined in a sample income statement for Auto Repair Shop. The data needed to prepare this document is gathered from records of repair work done and the number of hours worked each week.
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However, it is always advisable to have two SOPs for Auto Repair Shop, one for each shop as well as some other documents on hand. This will give you enough data to ensure the accuracy of the details that will be presented in the income statement.
When preparing an income statement for Auto Repair Shop, it is best to collect all the data on hand such as the number of hours that each employee has worked. Such information may help determine the hours worked each week and may also assist you in estimating the full cost of labor, deducting it from the wages paid by the shop to the employees. The related deductions should be computed according to the wage policy set by the shop.
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The income statement also needs to give information about the pay for overtime, bonuses, and vacation time. If the business practices are laid down in the SOP, it is better to indicate the overtime rates, although there is no legal requirement in the US for overtime.
The SOP should also describe the pay rates for the different types of workers employed in an Auto Repair Shop. For example, if the shop employs one housekeeping staff for each floor and all the employees are women they should be given the same pay. If many men are working in the shop but it is mostly women who do the maintenance then there is a need to modify the wage rates.
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An auto mechanic or car dealer is usually hired for a very short period and they have to be paid according to the complete package. An employee hired for a longer-term may not have the right skills to do the work. If the former is given a lower pay rate there may be a tendency to keep him or her for a longer period and this may result in a reduction in quality of work.
The sample income statement for Auto Repair Shop includes all the basic factors required to calculate and present the wages to the employees. These data will help you in deciding whether the SOP is sufficient for the business practices followed by the shop. This information will also help you in improving the employee’s efficiency and help in managing the shops efficiently.
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