Some dealers may consider accounting less critical than other areas in a dealership. Still, I believe it should be the foremost concern for dealers, and more are realizing this. The first question we are often asked is, "Do you integrate with QuickBooks, DacEasy, Peachtree, or another accounting software?" It becomes even more amusing when we hear, "My accountant wants me to use QuickBooks," or "I use an outside bookkeeper." When we inquire about what this outside bookkeeper uses to prepare their books, the typical response is, "My bank statements." If we ask about capitalizing reconditioning expenses or which automotive chart of accounts they use, the answer is often, "I am not sure; my accountant knows."
I always wish to ask the following questions: "Who owns the business—you or your accountant? If you get sued, who pays—you or your accountant? Who bears the cost if you get audited and penalized for incorrect books? If an error occurs, who is responsible?" These questions are not intended to blame accountants but to highlight to dealers that they should have access to and understanding of their financial information.
Under the Freedom of Information Act, every dealer should obtain a copy of the IRS Examiner Tax Audit Manual to understand IRS expectations better. We took this step and responded by addressing the crucial need for proper accounting management.
AutoDealer Plus has automated most accounting transactions. As you buy and sell cars, your accounts payable and receivable adjust automatically. Invoice additions for reconditioning are seamlessly integrated into your capitalization process, covering both unsold and sold inventory. Customer DMV fees are automatically processed, sales tax responsibilities are managed, and bank account reconciliations are straightforward. Payroll reports can be processed using the same methods your payroll provider uses. BHPH deals are accurately calculated based on simple or add-on terms, with precise interest postings. Comprehensive, auditable accounting reports, including income statements, balance sheets, and payable/receivable reports, are readily available with a click of a button. Every account transaction is logged, allowing detailed audits to track who performed what actions and when including voided and modified transactions.
In essence, owners and managers are in control. They can effectively oversee business activities, identify and address issues, and ensure proper operations. Furthermore, the accounting data also provides valuable statistical reports, helping dealers understand what works best— whether it's the day of the week, car color, or buyer age that proves most profitable. Knowledge is power; driving without a rearview mirror increases the risk of trouble. We provide that rearview mirror and navigation system, ensuring you can confidently conduct your business, knowing where you've been and where you're going. We focus on facts, not sales pitches.