Category: Auto Dealerships

  The global wide push to “go green” has built momentum over the years, and research points toward an even greater increase in the American demand for clean energy going forward. While the movement has primarily centered around the adoption of electric vehicles, the clean energy trend isn’t just lucrative for car sales. There are myriad attractive clean energy initiatives that could result in significant tax savings for your auto dealership. While many clean energy initiatives have come and gone… Read more ›

Undoubtedly, your dealership is aware of the challenges it faces on the front-end of the business. Competition in the marketplace is stiff. That is why the focus is increasingly being shifted to the back-end. Ask this question: Is your dealership doing everything it can to maximize profitability in your service department? For many dealers, the answer is “no.” Significantly, you can begin to rely on your service department to pick up some of the slack. In other words, it can… Read more ›

As a business owner, your auto dealership’s team must be comprised of people you trust to make the right decisions for the company. The reports derived from your accounting team are at the forefront of most major business decisions, so having a suitable controller in place will help ensure your dealership’s financial health and future. The characteristics of a good controller fall into two distinct buckets: technical skills and leadership qualities. On the one hand, at their core, a controller… Read more ›

  Dealership security goes far beyond securing buildings, vehicles, and cash deposit bags. Today’s crafty criminals have traded in their crowbars for keyboards, so your cybersecurity had better be top-notch when they start looking in your direction. Customer data and financial records may be bright, shiny objects they’re after, but the situation can become more complex when ransomware is involved. What is ransomware? Ransomware is software code deposited on computer networks or a single device with the intent of blocking… Read more ›

Do you have a love-hate relationship with manufacturer rebate incentives? On the one hand, they draw customers to your showroom and can bump up sales with alluring customer discounts. But they also pose the risk of your dealership undergoing a rebate audit by the manufacturer. Prevent a managerial headache – and a possibly large chargeback — by following these five tips: 1. Create a rebate submissions process. Adherence to a clear and consistent submissions process will help reduce your audit… Read more ›

The IRS recently released the 2022 mileage rates for businesses to use as guidance when reimbursing workers for applicable miles driven within the year. The rates tend to increase every year to account for rising fuel and vehicle and maintenance costs and insurance rate increases. Businesses can use the standard mileage rate to calculate the deductible costs of operating qualified automobiles for business, charitable, medical, or moving purposes. Keep reading for the updated mileage rates, as well as some reminders… Read more ›

The federal income tax rules for depreciating vehicles used for business are complicated. And different rules apply to different categories of vehicles. Special limitations apply to vehicles that are classified as passenger autos, including many pickups and SUVs. As a result of these limitations, depreciating an expensive vehicle may take longer than you’d expect. Here’s what you need to know about depreciation write-offs for vehicles used for business purposes. Cents-Per-Mile Method vs. Actual Expense Method Depreciation calculations only come into… Read more ›

Your dealership likely prepares and sends operating reports to your manufacturer every month. How you use the reports beyond sending them to the factory can have a big impact on your dealership’s profitability. Here are three ideas for using your monthly operating report as a tool to stay on track as the year progresses. 1. Keep an Eye on Revenue. Every manufacturer’s report is different, but yours likely contains, in some format, a summary of that month’s operating revenue. These… Read more ›

  Growth often is a good sign to a business owner their company is doing well and can allow the owners to expand their business footprint. For dealership owners, growth often means having more dealerships under their umbrella. With this growth comes complications, especially when it comes to accounting practices. Dealership owners typically have three options when considering how to handle their accounting practices for multiple locations: centralized accounting, noncentralized accounting, or a hybrid of the two. Benefits of centralized… Read more ›

The term “artificial intelligence” or “AI” may conjure up sci-fi images of robots and futuristic machines. But many businesses today are using AI to obtain more accurate data and help owners and managers make better decisions. This includes auto dealerships, where AI and data analytics are driving new types of innovation, especially in used car inventory management. By using data analytics tools, dealerships are better able to manage their used car inventory and maximize selling prices. And this, dealers are… Read more ›