Category: Auto Dealerships

Making sense of financial statements can be a challenging job that is best left to your accounting firm. But you can achieve efficient oversight and help protect your auto dealership from internal theft by understanding and controlling the smaller numbers that are part of the bottom line. Many businesses inadvertently assign tasks to an employee that crossover in such a way as to allow an unscrupulous staff member to cover his or her own tracks. A classic example is when… Read more ›

The past several years have created a challenging environment for auto dealers. With shortages caused by the pandemic, increased pricing from lack of supply, employee recruiting challenges, and an inflationary market – there has not been a shortage in hurdles. In fact, the Cox Automotive Dealer Sentiment Index (CADSI) survey for the fourth quarter of 2022 showed a 17-point drop from last year, with most surveyed dealers reporting they view the current auto market as weak. Where will the opportunities… Read more ›

Councilor, Buchanan & Mitchell (CBM) will sponsor a reception hosted by the Maryland Automobile Dealers Association, the Virginia Automobile Dealers Association and the Washington Area New Automobile Dealers Association on Friday, January 27 at the 2023 National Automobile Dealers Association (NADA) Annual Show. The reception will be at Marie Gabrielle Restaurant and Gardens, 2728 N. Harwood Street from 6 to 9 pm CST near the NADA auto show in Dallas, Texas. John Comunale, CPA, Keith Laudenberger, CPA and Richard Morris,… Read more ›

Councilor, Buchanan & Mitchell (CBM) will serve as a sponsor of the Maryland Automobile Dealers Association’s 2023 annual meeting and legislative reception. The Wednesday, February 8 event is expected to bring together automobile dealers and state legislators to address issues facing the relationship between dealers and manufacturers. Members of CBM’s automotive dealership team will participate in the evening reception from 5:30 to 8:30 pm EST. For more information and to register, visit MADA’s website. Councilor, Buchanan & Mitchell (CBM) is… Read more ›

  Recordkeeping is often essential to business operations and automobile dealerships are no exception. Many auto dealerships use the Last-In, First-Out (LIFO) method of inventory accounting. Although the LIFO method can provide significant tax benefits, you must be careful to meet certain tax law requirements. One such requirement that is often overlooked is the need to maintain comprehensive records. There are different LIFO methods for new and used vehicle inventories. For new vehicle inventories, dealerships electing to use the alternative… Read more ›

  When President Biden signed the Inflation Reduction Act bill into law in August 2022, the Electrical Vehicle (EV) tax credit underwent immediate and long-term changes. Knowing what is coming and how to work with your clients under contract and future customers will be paramount to providing exemplary service and accurate information. The new clean vehicle credit rules Dealership challenges to be aware of The National Highway Traffic Safety Administration (NHTSA) has a VIN decoder to help dealerships and customers… Read more ›

Vehicle rebates are a selling tool car dealerships and manufacturers use to drive more business, even when most consumers are paying above sticker price on vehicles. Since rebates are not discounts or coupons, dealerships receive the funds from the rebate after the vehicle has been purchased from the manufacturer and sold to a consumer. This means accounting teams at the dealership must make adjustments once the rebate is received. When rebates are not paid for promptly, it can create over-aged… Read more ›

Searching for revenue to keep the bottom line healthy, a number of dealerships have added F&I products to their service offerings. A possible influx of longer-term customers at your store can make it worthwhile to consider selling service contracts and related products in the service lane. Timing Is Everything Dealerships are finding that it’s easier to sell F&I products at the time of a costly repair, or when the customers’ warranties are about to expire, than it was at the… Read more ›

Several years ago, Councilor, Buchanan & Mitchell’s (CBM) dealership team participated in a survey of clients and other business owners in the industry and found that many dealerships have been pushing succession planning back by more than 5 years. Furthermore, nearly 50 percent of the dealerships that participated in the survey admitted that while succession is important, they haven’t dealt with it yet. Despite the passage of several years, CBM decided to share what we still believe to be critical… Read more ›

As business owners, reliance on employees and vendors to help your dealership run smoothly is par for the course. Sometimes, those vendors and individuals take advantage of situations to increase their profits. Vendor fraud involves payments made to actual or fictitious vendors for personal gain. It is a lucrative industry that can take tens to hundreds of thousands of dollars off your bottom line. Types of Vendor Fraud There is a good chance your dealership has experienced some form of… Read more ›