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Category: Auto Dealerships

November 14, 2022

Why Your Dealership Needs Good LIFO Records

  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 ›

November 14, 2022

Navigating the Updated Clean Vehicle Tax Credits

  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 ›

September 23, 2022

What to Do When Outstanding Rebates Become Over-Aged

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 ›

September 23, 2022

Consider Pumping Up Your Service Menu

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 ›

August 25, 2022

2022 Update – Business Transition Planning in 3 Steps

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 ›

August 23, 2022

Protecting the Dealership from Vendor Fraud

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 ›

August 23, 2022

Tax Planning Critical When Buying a Business (2022 Update)

Acquiring a company will leave you with a long to-do list, which means you can’t devote all of your time to the deal’s potential tax implications. However, if you neglect tax issues during the negotiation process, the negative consequences can be serious. To improve the odds of a successful acquisition, it’s important to devote resources to tax planning before your deal closes. Complacency Can Be Costly During deal negotiations, you and the seller should discuss such issues as whether and how much… Read more ›

August 19, 2022

6 Questions Every Succession Plan Should Answer (2022 Update)

The auto dealership group at Councilor, Buchanan & Mitchell (CBM) participated in a survey several years ago to determine how prepared dealership are for a succession planning process. The survey, which incorporated feedback from respondents nationwide, found that auto dealers are pushing succession planning back by more than 5 years. Furthermore, nearly 50 percent of the dealerships surveyed admitted that while succession is important, they haven’t dealt with it yet. The results of the succession planning survey, which continue to… Read more ›

August 18, 2022

Insurance: Do You Have Adequate Coverage?

  Before they can legally drive a vehicle, individuals must obtain a minimum level of automobile liability insurance. Similarly, dealerships are also legally required to carry certain types of insurance to operate in most states. If you haven’t reviewed your store’s insurance policies recently, now might be a good time to do so. Your goal is twofold: to make sure you have the right coverages for the risks involved in operating your dealership and to keep your insurance premiums as… Read more ›

August 10, 2022

Councilor, Buchanan & Mitchell Partner Dan Keefer Graduates from Upstream Academy’s Emerging Leaders Program

PDF: Councilor, Buchanan & Mitchell Partner Dan Keefer Graduates from Upstream Academy’s Emerging Leaders Program Dan Keefer, CPA, CVA, a partner at Councilor, Buchanan & Mitchell, has graduated from the Upstream Academy’s Emerging Leaders Program. The program, which develops future leaders in the accounting profession through a rigorous, year-long period of instructor-led trainings, dialogue and the hands-on application of new knowledge, engages participants on the most pressing issues facing the industry. “The Emerging Leaders program broadened my understanding of what… Read more ›