How to monitor and manage your dealership’s online reputation

Most dealerships know how important it is to generate positive word of mouth among customers and prospects. But “word of mouth” now goes beyond just what people are speaking to others about your dealership.

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Topics: Auto

Weighing the Benefits of LIFO

Many dealerships use an inventory accounting method known as LIFO to defer their income tax liabilities. However, using LIFO, which stands for “last in, first out,” requires some additional recordkeeping and may make your dealership appear less profitable to outsiders. So, it’s important to compare the pros and cons before deciding whether to use LIFO or not.
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Topics: Auto

Compilations, Reviews, and Audits

Not all financial statement preparation is the same

Do you know the differences between financial compilations, reviews, and audits? CPAs engage in all three types of financial statement reporting for auto dealerships and other businesses. But each endeavor has its own level of requirements, depth, and outcomes.

It’s important to understand that, depending on the level of assurance selected, CPAs perform procedures of varying degrees of complexity when evaluating a company’s assets, liabilities, revenues, and expenses. Here are descriptions of the three main types of CPA engagements.

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Topics: Auto

Internal Controls Are Vital In Guarding Against Fraud

Many dealerships are riding the wave of an improved economy and the booming automobile industry, which experienced a record sales year in 2015. In the midst of these positive developments, however, there’s one potential risk dealerships should be aware of: internal fraud.

Traditionally, many stores have been susceptible to fraud due to their relatively small financial and accounting staffs, the large sums of cash kept on hand, a high volume of transactions, and their highly-marketable inventories. Growing sales and revenue can present even more opportunities for dishonest employees to embezzle funds.

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Topics: Auto

Your Dealership Real Estate May Offer You a Significant Tax Advantage

Posted by Britt Keener, CPA, Tax Manager on Mar 15, 2016

 Could you use a tax strategy that can save you significant tax dollars and boost cash flow? If so—and who doesn’t want to save tax?—consider looking into a cost segregation study on the dealership real estate you own. It could save you a bundle.

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Topics: Auto, Real Estate

Is Your Company Ready to Bring on a CFO Or Controller?

Bringing on a CFO or a controller to handle the financial operations at an auto dealership is a big decision, and there a number of factors that management must consider, including the dealership’s size, the benefits of the hire and the time and money involved in such a commitment.

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Topics: Auto, Accounting Tips

Road Rules: Deducting Business Travel Expenses

If you travel for business, you will want to ensure that the expenses you incur while doing so are tax deductible. IRS rules are strict, and improperly substantiated deductions can cost you.

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Topics: Auto, Accounting Tips

“Capitalizing” on the New IRS Safe Harbor Rules

As most may know, the IRS does not have a materiality threshold when it comes to items on which they can enforce a ruling, but there are some ways to protect your company when the IRS comes calling for an audit. One of those is by establishing a capitalization policy for your company using the IRS de minimis safe harbor limits.

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Topics: Auto, Accounting Tips

Lease Accounting Update

On November 11, 2015 the FASB voted 6 to 1 to move forward with new lease accounting guidance that would require companies to include lease obligations on their balance sheets.

Under current lease accounting standards, most leases are not reported on a lessee’s balance sheet and sometimes the amounts involved can be substantial. There are two types of leases—capital and operating. In a capital lease, the lessee recognizes an asset and liability on the balance sheet while under an operating lease, it does not.

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Topics: Auto, Accounting Tips, Construction

Improving Your Dealership's Accounting Department

Posted by lgtcpa on Oct 6, 2015

When was the last time you took a look at your accounting department? How is it staffed? Do you have too many, too few or just enough people to complete the work? Is your office efficient?

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Topics: Auto, Accounting Tips