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PricingService areasAll services →Accounting and Tax for Ontario Auto Repair Shops and Mechanics
Parts inventory, HST, shop equipment and mechanic payroll handled by a CPA-led accounting firm that understands how a garage actually runs.
24/7 receptionist, a real person answers.
- Every return is reviewed by a CPA
- No surprise bills
- Reply within one business day
- 24/7 receptionist: a real person answers
- QuickBooks Online, Xero and Dext
- Rated 5.0 stars from 29 Google reviews (read our reviews)
T-Ledgers is a CPA-led accounting firm working with Ontario auto repair shops, collision and body shops, tire shops and independent mechanics. Wajahat Ajmal, CPA, FCCA, has been practising since 2020. We handle bookkeeping, HST, payroll and corporate and personal tax, and every return is reviewed by a CPA.
A repair shop sells two things on every invoice: labour and parts. Parts inventory, core charges, warranty work and cash customers all need to be recorded properly so your margins, your HST and your year-end numbers are right.
Auto repair tax and bookkeeping issues we handle
Rules, rates and thresholds change. We confirm the current figure for your situation on the call before relying on it.
Parts inventory and margins
Parts on your shelves at year-end are inventory, not an expense. We set up your books so parts purchases, parts sales and stock on hand line up, and we separate labour and parts margins so you can see where the money is made.
Repair estimates and invoices
Ontario consumer protection rules set requirements for estimates and invoices on motor vehicle repairs. Clear, consistent invoices also make bookkeeping and HST simpler.
HST on labour, parts and fees
You charge HST on labour, parts and shop fees and claim input tax credits on parts, equipment and supplies. We make sure core charges, warranty reimbursements and returns are coded correctly.
Shop equipment and vehicles
Hoists, alignment machines, diagnostic scanners and tools go on your capital cost allowance schedule. Shop vehicles and tow trucks are tracked separately with their business use.
Law: Income Tax Act s.20(1)(a) (capital cost allowance); Income Tax Regulations s.1100(1) and Schedule II (CCA classes); Income Tax Act s.13(1) (recapture).
Mechanics’ tools
Employed mechanics and apprentice mechanics who must supply their own tools may be able to deduct part of the cost of new tools. We make sure your team knows the forms they need from you.
Law: Income Tax Act s.8(1)(s) (tradesperson’s tools); Income Tax Act s.8(1)(r) (apprentice mechanics’ tools).
Payroll and apprentices
We run payroll for technicians, service advisors and apprentices with the right source deductions, and check whether apprentice wages qualify for the federal apprenticeship job creation credit.
Law: Income Tax Act s.153(1) (source deductions); Income Tax Act s.127(9) (“apprenticeship expenditure”).
Cash sales and records
Cash and e-transfer payments need to be recorded the same way as card payments. Six years of invoices, work orders and parts records keep you ready if the CRA asks.
Law: Income Tax Act s.230(1) and 230(4) (books and records, six years); Excise Tax Act s.286(1) and 286(3) (records, six years).
Key rules at a glance
← Swipe to compare →
| Rule | What it means for you | Law |
|---|---|---|
| Inventory valuation | Parts on hand at year-end are inventory | Income Tax Act s.10(1) (inventory valuation) |
| Motor vehicle repairs | Ontario rules for estimates and invoices | Consumer Protection Act, 2002 (Ontario) Part VI (repairs to motor vehicles) |
| Input tax credits | Claim HST on parts, equipment and supplies | Excise Tax Act s.169(1) (input tax credits) |
| Tradesperson’s tools | Employed mechanics may deduct part of new tools | Income Tax Act s.8(1)(s) (tradesperson’s tools) |
| Apprentice mechanics’ tools | Extra deduction for eligible apprentice mechanics | Income Tax Act s.8(1)(r) (apprentice mechanics’ tools) |
| Books and records | Keep records for six years | Income Tax Act s.230(1) and 230(4) (books and records, six years) |
Who we work with
- Independent general repair garages
- Collision and body shops
- Tire and alignment shops
- Mobile mechanics
- Shops with apprentices and service advisors
- Used-vehicle reconditioning shops
T-Ledgers services for auto repair businesses
- Inventory and margin reporting. Parts and labour margins and stock on hand, monthly.
- Monthly bookkeeping. From $500/month (Scale), with books closed by the 10th; quarterly bookkeeping from $350/month (Growth). Your fixed fee is confirmed after a free call (see bookkeeping).
- Catch-up bookkeeping, from $1,800 per year. We rebuild past years and file what’s overdue (see catch-up bookkeeping).
- Bookkeeping Review, $195/month or $295/quarter. For owners who keep their own books.
- GST/HST returns, $150 per return. (see GST/HST services).
- Payroll. Quoted after a free call (see payroll services).
- Corporate (T2) and personal (T1) tax. Corporate returns quoted after a free call; personal tax returns from $110 + HST/GST, with your final price confirmed after a free call. Owner T1s can be prepared alongside the T2 (see corporate tax and personal tax).
- Virtual CFO, from $2,500/month. Cash flow, margins and growth decisions (see Virtual CFO).
Prices are + HST/GST. Anything without a listed price is quoted after a free call, and you get the price in writing before any work starts.
How we work with auto repair businesses
- Free call. We ask about your shop management software, parts suppliers, team and how records are kept.
- Written price. Scope and price in writing before any work starts.
- Setup. Shop software and supplier feeds connected, HST codes and inventory accounts set up.
- Monthly rhythm. Books closed monthly, HST filed on time and parts and labour margins reported.
- Year-end. Inventory count, CCA, T2 and T1, all reviewed by a CPA.
Why auto repair businesses choose T-Ledgers
- We understand the shop floor. Parts margins, core charges, warranty work and tool deductions are part of our normal conversation.
- CPA-led, start to finish. T-Ledgers was founded by Wajahat Ajmal, CPA, FCCA. Every return is reviewed by a CPA before it's filed.
- No surprise bills. You get the scope and the price in writing before we start. If the work changes, we agree the new price with you first.
- Price matching, agreed up front. Have a comparable written quote? Bring it to us before you sign your proposal. We can only match a price when it's agreed before the proposal is signed.
- Fast, human answers. We reply within one business day, and our 24/7 receptionist means a real person answers when you call 866-254-5368.
- In person or online. Meet us in person, by appointment only, at our Etobicoke office (102-89 Skyway Ave, Etobicoke, ON M9W 6R4) or our Mississauga office (100 Matheson Blvd E #204, Mississauga, ON L4Z 3P8), or work with us entirely online.
- Your software, set up properly. We work in QuickBooks Online and Xero, and use Dext so receipts go in with a photo.
Meet your CPA
Wajahat Ajmal, CPA, FCCA, Founder, T-Ledgers Accounting. Verify my CPA Ontario membership.
I started my career as an audit associate at KPMG. Since then I’ve worked as an independent contractor for a tax filing company, preparing returns and handling client questions. I hold a BSc in Applied Accounting from Oxford Brookes University and an MSc in Professional Accountancy from University College London. I’m a Chartered Professional Accountant in Ontario and a Fellow of the ACCA. I started taking on my own clients in 2020 and founded T-Ledgers in 2023.
Every return the firm files is reviewed by a CPA. You can read more about the firm on our About page.
What our clients say
Read more on our client reviews page.
DIY vs a generalist firm vs T-Ledgers
← Swipe to compare →
| DIY | Generalist firm | T-Ledgers BEST VALUE | |
|---|---|---|---|
| Parts inventory | Expensed when bought | Year-end adjustment only | ✓Stock on hand tracked; margins monthly |
| Core charges and warranty | Lost in the totals | Often netted | ✓Coded separately with the right HST |
| Mechanics’ tool deductions | Forms missed | Varies | ✓Your team gets what it needs to claim |
| Who checks the return before it's filed | You do | Depends on the firm and who's assigned | ✓Every return is reviewed by a CPA |
| How you're billed | Software fees plus your own time | Often hourly; the final bill can vary | ✓Scope and price in writing up front. No surprise bills |
| Getting an answer | Search online or wait on CRA phone lines | Varies by firm | ✓Reply within one business day; 24/7 receptionist, a real person answers |
| Software | Whatever you set up yourself | May ask you to switch to their system | ✓QuickBooks Online, Xero and Dext |
| Meeting face to face | Not applicable | Varies | ✓In person by appointment in Etobicoke or Mississauga, or fully online |
| Price matching | Not applicable | Rare | ✓Available if agreed before you sign your proposal |
Frequently asked questions: Auto repair
Not the ones still on the shelf at year-end. Those are inventory and are deducted when sold.
We work with your shop management system’s reports and connect what we can to QuickBooks Online or Xero.
We separate parts and labour revenue and costs so you see both margins monthly.
Yes, on both, once you’re registered.
We code them separately so HST and refunds are recorded correctly.
Yes, as input tax credits on business purchases.
Employed mechanics and apprentice mechanics may be able to deduct part of the cost of new tools they must supply. They need a form signed by you.
Yes, a federal credit on eligible apprentice wages in the first two years.
QuickBooks Online Payroll or Wagepoint.
Through capital cost allowance by class.
Generally six years from the end of the year they relate to.
It can make sense once profits are steady. We run the numbers first.
GST/HST returns are $150 per return, catch-up bookkeeping starts from $1,800 per year, the Bookkeeping Review is $195/month or $295/quarter (from $450 per review for complex books). Payroll and corporate (T2) returns are quoted after a free call. Personal tax returns from $110 + HST/GST, with your final price confirmed after a free call. Prices are + HST/GST. You get the price in writing before any work starts.
Yes, if you have a comparable written quote and bring it to us before you sign your proposal. We can only match a price when it’s agreed before the proposal is signed.
Yes. Snap receipts with Dext, share documents through our client portal and talk by phone or video. You can also meet us in Etobicoke or Mississauga by appointment.
Book a free call through our contact page or call 866-254-5368. We reply within one business day.
Get your shop’s numbers running smoothly
Book a free call to talk about parts, payroll and HST. We reply within one business day, and a real person answers 24/7 at 866-254-5368.
Reviewed by Wajahat Ajmal, CPA, FCCA. Updated October 15, 2026.
Related services: Bookkeeping · Catch-up bookkeeping · Corporate taxes · Personal tax · Payroll · Virtual CFO · Contact us
Related industries: Trucking · Self-employed · All industries
Rates and thresholds change, so we link to the official sources for current figures.