(And Why Many Simply Don’t)

Most garage and MOT centre owners already have an accountant.

Yet many still feel:

• Unsure about cash
  
• Nervous about tax
  
• Unclear whether the business is actually performing well
  
• Surprised when liabilities fall due
  

Which leads to an uncomfortable question:

If I have an accountant… why do I still feel in the dark?

This isn’t a criticism of garage owners.

It’s a reflection of how accountancy services are often delivered.

A good accountant should not just keep your garage compliant.

They should help you run a stronger, more predictable, less stressful business.

Let’s break down what that actually looks like.

The Minimum vs The Value

There’s an important difference between basic compliance and real support.

The Minimum

Many accountants provide:

• Year-end accounts
  
• Corporation Tax returns
  
• Payroll processing
  
• VAT returns
  

That keeps you legal.

But legality alone does not:

• Improve cashflow
  
• Prevent director pay issues
  
• Reduce stress
  
• Help you grow
  
• Stop HMRC surprises
  

That’s the baseline.

Not the gold standard.

What Garage & MOT Centre Owners Actually Need

Garage businesses are operationally complex.

You manage:

• High transaction volumes
  
• VAT at scale
  
• Parts and stock
  
• Labour margins
  
• Equipment investment
  
• Staff costs
  
• Director drawings
  
• Fluctuating cashflow
  

A good accountant understands how garages actually work — not just how accounting software works.

1. They Explain the Numbers Properly

If your accountant:

• Sends accounts once a year
  
• Speaks in jargon
  
• Assumes you understand everything
  
• Rushes through explanations
  

…they are not doing the full job.

A good accountant should:

• Explain figures in plain English
  
• Show you what actually matters
  
• Highlight trends, not just totals
  
• Clearly flag pressure points
  

You should leave meetings thinking:

“That makes sense.”

Not:

“I’ll just trust them.”

Clarity builds control.

2. They Talk About Cash — Not Just Profit

This is critical for garages.

Profit can look healthy on paper.

But cash is what keeps the ramps moving, wages paid and suppliers settled.

A proactive accountant should:

• Help you understand cashflow patterns
  
• Explain the difference between profit and available cash
  
• Flag upcoming VAT and tax pressure
  
• Help you plan for seasonal dips
  

If cashflow conversations only happen when you’re already under pressure, that’s reactive — not supportive.

3. They Actively Manage Director Pay

Director pay is one of the most common problem areas we see in garage businesses.

A good accountant should:

• Structure salary vs dividends correctly
  
• Monitor drawings throughout the year
  
• Keep a close eye on Director’s Loan Accounts
  
• Warn you early if dividends aren’t legal
  
• Plan personal tax alongside company tax
  

If director pay is only reviewed at year-end, the damage may already be done.

4. They Quietly Reduce HMRC Risk

Good accountants don’t create drama.

They quietly reduce risk.

They should:

• Keep records robust
  
• Spot risky patterns early
  
• Ensure filings are accurate
  
• Minimise enquiry risk
  
• Make HMRC interaction rare — and manageable
  

You shouldn’t frequently hear from HMRC.

And when you do, it shouldn’t create panic.

5. They Don’t Let Problems Drift

Silence is one of the biggest risks in accounting relationships.

Issues that are ignored rarely disappear — they compound.

A good accountant:

• Flags issues early
  
• Has direct conversations when needed
  
• Stops “we’ll fix it later” thinking
  
• Helps you correct course quickly
  

Comfort isn’t always helpful.

Clarity is.

6. They Help You Plan — Not Just React

Reactive accountants report what has already happened.

Proactive accountants help you think ahead.

They should support you to:

• Understand upcoming tax liabilities
  
• Plan major equipment purchases
  
• Assess whether you can afford additional staff
  
• Make decisions using numbers, not guesswork
  

By the time a reactive accountant explains the consequences, the decision has already been made.

7. They Understand the Garage Industry

Garages are not cafés.

They are not consultants.

They are not simple service businesses.

A good accountant for garages understands:

• MOT seasonality
  
• Labour vs parts profitability
  
• Parts margins and stock pressure
  
• VAT complexities in repair work
  
• Real-world supplier and cash pressures
  

Industry understanding reduces costly misunderstandings.

Why Many Accountants Fall Short

To be fair, most shortfalls aren’t deliberate.

Many firms:

• Are overloaded
  
• Operate on a compliance model
  
• Work reactively by structure
  
• Don’t build proactive reviews into their systems
  
• Aren’t set up for advisory conversations
  

But understanding the reason doesn’t remove the impact on your business.

The Hidden Cost of a “Tick-Box” Accountant

A compliance-only accountant can appear cheaper.

But the hidden costs often show up as:

• Missed tax planning opportunities
  
• Cashflow stress
  
• Director loan problems
  
• Unexpected tax bills
  
• Poor decisions made without clarity
  

Good advice often saves significantly more than it costs.

What Good Garage Owners Expect Now

Garage owners today expect more.

They want:

• Transparency
  
• Proactive conversations
  
• Clear communication
  
• Industry understanding
  
• Support — not just submissions
  

The role of the accountant has evolved.

Expectations should too.

A Simple Test

Ask yourself:

• Do I truly understand my numbers?
  
• Do I know what tax is coming — and when?
  
• Am I confident in how I pay myself?
  
• Do I feel in control of cash?
  
• Do I speak to my accountant more than once a year?
  

If most answers are “no”, something is missing.

Final Thought

Running a garage is demanding.

Your accountant should:

• Make things clearer
  
• Reduce risk
  
• Improve confidence
  
• Support better decisions
  
• Reduce stress — not add to it
  

How Hammond & Co Supports Garage & MOT Centre Directors

At Hammond & Co, we work with garage and MOT centre limited companies who want:

• Clear numbers
  
• Predictable tax
  
• Controlled director pay
  
• Stronger cashflow visibility
  
• Fewer surprises
  
• An accountant who genuinely understands how garages operate
  

If you want more than year-end compliance, it starts with a proper conversation.

And sometimes that conversation simply begins with:

“I think we need more clarity.”