This eLearning module provides a practical, easy-to-understand guide for collision repair and automotive businesses on how to properly track, account for, and reconcile banked technician hours (also known as flagged, owed, or carryover hours). Banked hours can create major financial inconsistencies when not handled correctly—impacting payroll, labor costs, profitability, and technician trust. This module walks learners step-by-step through the accounting logic and operational best practices needed to manage these hours accurately and consistently.

What Learners Will Gain:

• A clear understanding of what banked technician hours are and why they occur

• The difference between production hours vs. paid hours vs. banked hours

• The financial impact of banked hours on labor rate, cost of goods sold (COGS), and gross profit

• Proper accounting methods to record and track banked hours (manual and system-based methods)

• How to reconcile monthly to ensure financial statements match technician balances

• Real-world examples and scenarios with step-by-step calculations

Who Should Take This Module:

• Controllers and accounting staff

• Payroll and HR administrators

• Shop managers and estimators

• Anyone responsible for technician pay plans or financial reporting