<script type='text/javascript' src='https://platform-api.sharethis.com/js/sharethis.js#property=648d93f16fc24400124f2a24&product=inline-share-buttons' async='async'></script>

4 Tips to Streamline Car Dealership Accounting Processes

Accurate, timely accounting information is essential to car dealership profitability. Yet, much time is spent on manual processes like track...

Accurate, timely accounting information is essential to car dealership profitability. Yet, much time is spent on manual processes like tracking past-due invoices and paying vendors.

The good news is that implementing new technology in dealer accounting can transform the department for the better. Here are four tips to help you re-engineer your dealership's accounting processes for increased efficiency.

Car Dealership Accounting

Top 4 Tips to Streamline Car Dealership Accounting Processes

1. Automate as Much as Possible

More well-managed accounting processes help to reduce duplication that might result in duplicate entries. Simplified bookkeeping can also save time that would otherwise be wasted on manual data entry and accounting equation paperwork. Dealerships may now focus on what matters: assuring profitability.

Most auto dealer accounting software programs include a wide range of tools that can be customized to meet specific business needs. For instance, some auto dealer accounting software programs allow managers to create customizable reports and dashboards to analyze sales trends or business performance metrics.

Another feature commonly found in top-tier automotive dealer accounting software is a tool that can assist with expense reporting. The tool will help track all deductible expenses and maximize tax deductions. Some tools will even let users snap pictures of receipts to attach to their reports. Additionally, some auto dealer accounting software tools can assist with service department billing by allowing mechanics to log their hours and generate customer invoices quickly and efficiently.

Another important tool is a vehicle tax preparation software program that helps to manage the complex process of managing federal and state taxes. The software will automatically calculate taxes due based on local regulations and can even store customer information for documentation. Most of these software solutions are now in the cloud to enable remote access and collaboration with team members.

2. Focus on Reconciliation

While running a dealership may be challenging, rock-solid accounting is necessary to keep a business functioning. This is especially true of reconciliation, which entails checking to make sure that transactions documented in the general ledger also appear on your monthly bank statements. Reconciliations can help you spot inconsistencies or fraud that otherwise might slip through the cracks.

The good news is that you can automate this process, which makes it easier and faster for accounting teams to check balances.

There are many reasons why the balances in your accounts and cash might differ, including a simple miscalculation or even some internal theft behind the scenes. If you regularly reconcile your accounts, these discrepancies will likely be avoided, leading to bad management decisions and potentially even a cash shortfall. This is why reviewing these accounts regularly through a mandated and streamlined reconciliation process is imperative. This will ensure that your cash balance is accurate and that you have a clear picture of how much money is coming in and going out of your business at all times.

3. Create Internal Controls

Even with the best systems and automation, your dealership still needs strong internal controls. Unfortunately, many dealerships don't prioritize these, leaving them vulnerable to employee theft and other financial irregularities.

The first step to establishing these controls is to determine the risk factors your dealership faces by conducting a risk assessment. This should include evaluating processes susceptible to human error and identifying potential impacts on your business if these errors occur. This process can also help you prioritize processes to automate or transition from paper to digital.

Next, you must document and implement internal control policies informed by your risk assessment results. Segregation of duties is a must, which includes having someone other than the cashier fill out bank deposit slips and perform bank reconciliations. Additionally, dealerships should have policies requiring someone to verify all parts purchases. Parts purchases should be compared to inventory management system records and physical counts of high-dollar items such as sound systems and tire rims.

In addition to these preventative measures, consider adding employee dishonesty coverage to your insurance policy. This will reimburse the dealership if an employee steals assets, allowing you to recoup some losses. While this isn't a foolproof solution to eliminating fraud, it can significantly reduce the likelihood of loss and recovery costs.

4. Automate Time-Sucking Processes

Even the most basic task automation can help save dealerships massive amounts of time and money. These time-sucking tasks, like tracking past-due invoices or paying vendors, differ from the flashiest parts of a car dealership's business. Still, they're necessary to ensure that all aspects of the business are running smoothly. If they are managed, a company can avoid trouble with its creditors and be allowed to ship parts or provide service.

Using software to automate these processes will ensure employee and customer satisfaction. It can also help reduce costs since fewer people must manage them, and more information can be tracked more accurately.

In addition, some of these automation tools can help with other dealership areas. For example, a dealer management system (DMS) can track inventory levels, calculate daily sales reports and generate customizable reports for the entire store or by product line. Many auto dealer accounting software solutions are now cloud-based and accessible on any device, which makes it easier to work from anywhere in the world.

Lastly, an automated payables (AP) system can replace paper and streamline the accounts payable process by eliminating time and cost. It will read bank records daily, match outstanding checks that have cleared, and automatically update the payables check file.

/fa-solid fa-video/ Latest Tech Videos!$hide=mobile

Name

25PP,2,3G,3,4G,5,Absinthe,5,Adobe Flash,3,Ads,30,Affiliate Marketing,10,AliExpress,1,Amazon,55,Amazon Phone,1,Amazon Tablet,7,AMD,5,Android,255,Android 10,2,Android 11,2,Android 12,2,Android 6,3,Android 7,4,Android 8,9,Android 9,4,Android APK,34,Android Apps,127,Android Auto,3,Android Games,20,Android GApps,3,Android Gingerbread,2,Android Ice Cream Sandwich,8,Android Jelly Bean,21,Android KitKat,12,Android Lollipop,10,Android Marshmallow,3,Android N,5,Android Nougat‬,5,Android O,7,Android Oreo,8,Android P,2,Android PC Suites,1,Android Pie,3,Android Q,2,Android R,2,Android SDK,9,Android TV,11,Android USB Drivers,2,Android Wear,10,Angry Birds,6,Anti Virus,18,App Developer,67,Apple,799,Apple CarPlay,1,Apple Pay,3,Apple Store,19,Apple TV,121,Apple Watch,86,Apps,151,ARM,2,Asus,2,ATT,7,Baidu,2,Battery,2,Bill Gates,2,Bing,16,Bitcoin,68,Bittorrent,5,BlackBerry,11,BlackBerry App,3,Blockchain,28,Blogger,53,Blogs,85,Bluetooth,7,Business,802,BuySellAds,1,Call Center,7,Camera,9,Cars,30,CCTV,1,Certifications,28,China Mobile,3,Chrome,26,Chrome OS,6,ChromeBook,2,ChromeBox,2,Chromium,4,CISPA,1,Cloud,49,CMS,7,Communication,21,Computer,80,Cortana,1,Credit Cards,10,CRM,16,Cryptocurrency,102,Currency,74,Cyberbullying,7,Cydia,49,Cydia Apps,11,Cydia Tweaks,11,Debit Cards,7,Developers,101,Digital Camera,9,Digital Marketing,432,Digital Signage,5,Disqus,1,DMCA,1,Doodle,1,DOS,1,Downgrade,18,Dropbox,1,Drupal,3,Earn Money,84,EarPods,2,eCommerce,64,Electra,6,Electronic Arts,1,Emulator,8,Encryption,2,Entrepreneurs,116,eReader,4,eSignature,2,Ethereum,30,Evasi0n,16,eWallet,12,Facebook,140,Facebook Ads,13,Facebook Apps,20,Facebook Credits,4,Facebook Developers,4,Facebook Like,8,Facebook Marketing,14,Facebook Messenger,5,Facebook Pages,9,Facebook Photos,2,Facebook Stocks,2,FacePAD,1,FaceTime,2,FileSonic,2,Finance,218,Firefox Add-Ons,2,Firefox OS,2,Fitbit,1,Foursquare,1,FP,11,Framaroot,4,Free Stuff,27,Gadgets,238,Galaxy Nexus,2,Galaxy S-Voice,2,Game of Thrones,1,Games,85,Gaming Console,12,Gaming Laptops,15,GApps,2,GearBest,6,Gifts,6,Gmail,13,Google,253,Google +1,10,Google Ads,5,Google Adsense,3,Google Adwords,6,Google Analytics,3,Google Apps,11,Google Earth,2,Google Fit,2,Google Glass,8,Google IO Conference,4,Google Map,7,Google Music,2,Google Nexus,13,Google Nexus Player,1,Google Panda,1,Google Penguins,1,Google Play Edition,1,Google Play Store,18,Google Plus,17,Google Plus Pages,6,Google Search,45,Google TV,5,Google Voice,6,Google Wallet,1,Google+,16,Google+ App,1,Google+ Pages,6,Graphic Design,19,GreenPois0n,28,Groupon,6,GSM,3,Guest Posts,10,h3lix,2,Hack,99,Hackintosh,4,Hard Disk,14,Hard Drive,17,HDD,16,Headsets,9,HealthVault,1,Home Automation,16,Honor,1,Hootsuite,1,Hostgator,2,Hotspot Shield,1,HP,2,HTC,16,HTC One,6,HTML5,16,HTTPS,3,Huawei,4,Huawei Honor,3,Hyper-V,4,IBM,2,iCloud,31,iGoogle,2,iMac,10,Infographic,212,Instagram,26,Intel,8,Internet,578,Internet Explorer,18,Internet IPOs,1,Internet Marketing,234,Internet Protocols,4,iOS,495,iOS 10,21,iOS 11,28,iOS 12,33,iOS 13,20,iOS 14,26,iOS 15,19,iOS 16,5,iOS 17,6,iOS 4,1,iOS 5,17,iOS 5.0.1,5,iOS 5.1,9,iOS 5.1.1,12,iOS 5.2,1,iOS 5.2.1,1,iOS 6,73,iOS 6.0.1,13,iOS 6.0.2,5,iOS 6.1,21,iOS 6.1.1,3,iOS 6.1.2,4,iOS 6.1.3,7,iOS 6.1.4,4,iOS 6.1.5,2,iOS 6.1.6,2,iOS 7,58,iOS 7.0.1,2,iOS 7.0.2,2,iOS 7.0.3,1,iOS 7.0.4,2,iOS 7.0.5,1,iOS 7.0.6,5,iOS 7.1,25,iOS 7.1.1,6,iOS 7.1.2,6,iOS 8,60,iOS 8.0.1,5,iOS 8.0.2,5,iOS 8.1,12,iOS 8.1.1,2,iOS 8.1.2,1,iOS 8.1.3,1,iOS 8.2,6,iOS 8.3,5,iOS 8.4,10,iOS 8.4.1,4,iOS 9,33,iOS 9.0.1,1,iOS 9.0.2,1,iOS 9.1,6,iOS 9.2,2,iOS 9.2.1,2,iOS 9.3,3,iOS 9.3.1,2,iOS 9.3.2,4,iOS 9.3.3,4,iOS 9.3.4,2,iOS 9.3.5,2,iOS Apps,96,iOS Beta,32,iOS Games,19,IP,3,iPad,456,iPad 2,54,iPad 3,47,iPad 3G,1,iPad 4,10,iPad Air,4,iPad Apps,32,iPad Mini,29,iPad Mini 2,2,iPad Siri,4,iPadOS,77,iPhone,518,iPhone 3G,51,iPhone 3GS,6,iPhone 4,62,iPhone 4S,66,iPhone 5,32,iPhone 5C,4,iPhone 5S,14,iPhone 6,31,iPhone 6 Plus,9,iPhone 7,2,iPhone Apps,32,iPhone Siri,7,IPO,3,iPod,414,iPod Apps,18,IPv4,1,IPv5,1,IPv6,1,iShower,1,iShower Speaker,1,IT,2,iTunes,198,Jailbreak,137,Jailbreak Tools,45,Jitterbug Touch,1,Joomla,5,Kaspersky,1,Keyboards,3,Keylogger,2,Kindle,9,Kindle Fire,3,Kingo,2,KingRoot,1,Laptop,78,Lasers,1,Launchers,3,Lava,1,LCD,2,Legal,5,Lenovo,2,Lenovo ThinkPad,1,LG,9,LiberiOS,2,Lightning Cables,1,Link Building,5,LinkedIn,4,Linux,13,Lockerz,1,Logitech,1,Lync Desk Phones,1,Mac,258,Mac Mini,4,Mac OS X,202,MacBook,12,MacBook Air,18,MacBook Pro,17,Macintosh,8,macOS,121,macOS 10.12,9,macOS 10.13,9,macOS 10.14,8,macOS 10.15,9,macOS 11,22,macOS 12,11,macOS 13,2,macOS 14,3,macOS Beta,7,macOS Big Sur,22,macOS Catalina,9,macOS High Sierra,9,macOS Mojave,8,macOS Monterey,11,macOS Server,3,macOS Sierra,9,macOS Sonoma,3,macOS Ventura,2,Magento,5,Mambo,3,Maps,9,Mark Zuckerberg,2,Marketing,180,Marketplace,3,Meego,2,Megaupload,1,Meizu,1,Micromax,1,Microsoft,213,Microsoft Office,47,Microsoft SharePoint,1,Microsoft Surface,3,Microsoft Surface Pro,2,MIUI,3,Mobile,778,Mobile App Developers,55,Mobile Apps,222,Mobile Broadband,2,Mobile OS,32,Mortgage,1,Moto X,1,Motorola,6,Mouse,3,Movies,1,Mozilla Firefox,16,Music,20,MySpace,2,Nasdaq,1,Net Meeting,1,Nexus,7,NFC,1,Nikon,1,Nintendo,3,Nintendo 3DS,2,Nokia,31,Nokia Belle,2,Nokia Lumia,8,Nokia Normandy,1,Nokia Store,2,Nokia X,6,Notebook,1,Nuance,1,Office 2010,9,Office 2013,3,Office 2016,13,Office 2021,1,Office 365,13,OnePlus,1,Open Graph,1,Open Source,1,Opensn0w,1,Opera,6,Opera Mini,2,Operating System,118,Oppo,1,Oracle,3,Orkut,1,OS,47,OS X 10.10,65,OS X 10.10.1,6,OS X 10.10.2,9,OS X 10.10.3,10,OS X 10.10.4,6,OS X 10.10.5,4,OS X 10.11,25,OS X 10.11.1,3,OS X 10.11.2,2,OS X 10.11.3,2,OS X 10.11.4,2,OS X 10.11.5,3,OS X 10.11.6,2,OS X 10.8,2,OS X 10.9,37,OS X 10.9.1,2,OS X 10.9.2,5,OS X 10.9.3,12,OS X 10.9.4,7,OS X 10.9.5,5,OS X El Capitan,23,OS X Mavericks,40,OS X Mountain Lion,17,OS X SDK,9,OS X Server,48,OS X Server 3,5,OS X Server 4,15,OS X Server 5,9,OS X Yosemite,60,Outlook,14,Ovi,2,Ovi Store,1,P0sixspwn,1,P2P,1,PageRank,2,Pangu,11,Payments,34,Payoneer,2,PayPal,4,PDF,10,Personalization,1,PhotoBox,1,Photography,10,Picnik,1,Pinterest,2,PIPA,2,Piracy,3,PlayStation,6,PlayStation 4,4,Pocophone,2,Pod2g,2,Podcasts,2,Powerpoint,5,PP,2,Printers,12,Privacy,185,Programming,59,Projectors,4,PS4,4,PUBG,1,Python,2,QMobile,1,QMobile Noir,1,RAM,2,Redsn0w,23,Remote Access,9,Root Android,37,Rovio Mobile,4,S-Voice,2,Safari,46,Samsung,58,Samsung Galaxy,30,Schemer,1,Search Engine,84,Search Engine Marketing,82,Search Engine Results,57,Seas0nPass,2,Secure Socket Layer,3,Security,214,Selfie,1,SEM,86,SEO,157,SEO Tools,16,SERP,2,Server,18,Shopping,129,Signage,3,Sileo,4,SIM Card,4,Siri,12,SkyDrive,3,Skype,5,SlideShare,1,Small Business,541,Smart TV,6,Smart Watch,9,Smartphones,719,SMM,12,SMO,16,Sn0wbreeze,5,SnapChat,5,Social Media,157,Social Media Marketing,113,Social Media Optimization,73,Social Media Tools,12,Social Networking,204,Software,436,Sony,19,Sony Ericsson,5,Sony VAIO,1,Sony Xperia,3,SOPA,2,Speakers,3,Sprint,2,Spyware,4,SSD,16,SSL,2,Startups,389,Statistics,23,Stock,3,Stock Photography,6,Stock Photos,7,Storage,26,Store,58,Swift,12,Swype,1,Symbian,8,T-Mobile,4,Tablets,604,TaiG,5,TechGlobeX,3,TechGlobeX.net,1,Technology,388,Telephone,1,Television,10,Templates,6,TinyUmbrella,2,Tools,280,Torrent,4,Toshiba,2,Toshiba Satellite,1,TuneUp Utilities,1,TV,15,tvOS,72,Twitter,20,TypePad,3,Ubuntu,6,Ultrasn0w,1,Unlock,43,USB Debugging,2,uTorrent,5,Verizon,4,Video Marketing,20,Video Optimization,27,Videos,63,Vimeo,1,Virtualization,13,Virus,10,Visual Studio,3,Vlogging,3,Vlogs,3,Vodafone,2,Voice Call,22,VoIP,16,VPN,30,Wallpapers,1,Walmart,2,watchOS,84,Wearables,18,Web,277,Web Browser,31,Web Browser Plugins,5,Web Design,49,Web Development,86,Web Domains,16,Web Hosting,39,Web Servers,22,Western Digital,1,WhatsApp,8,Whited00r,1,WiFi,8,WiFi Calling,6,WiFi Hotspots,6,Windows,173,Windows 10,22,Windows 10 Enterprise,2,Windows 10 Mobile,1,Windows 10 Pro,2,Windows 10 Server,3,Windows 11,3,Windows 11 Enterprise,1,Windows 7,33,Windows 8,48,Windows 8 Pro,3,Windows 8 RT,3,Windows 8.1,6,Windows 8.1 Enterprise,1,Windows 9,4,Windows Apps,4,Windows Live,3,Windows Live Essentials,5,Windows Live Messenger,6,Windows Media Center,1,Windows Mobile,19,Windows Phone,47,Windows Phone 10,1,Windows Phone 7,10,Windows Phone 7.5,5,Windows Phone 8,9,Windows Phone 8.1,1,Windows Phone Apps,1,Windows Phone Mango,3,Windows Phone SDK,1,Windows Server,7,Windows Server 2012,2,Windows Server 2016,2,Windows Server 2019,1,Windows Server 2022,1,Windows Server 8,1,Windows Vista,5,Windows XP,6,Wireless,4,Wordpress,54,Wordpress Plugins,6,Wordpress Themes,9,WWDC,76,Xbox,6,Xbox 360,6,Xbox One,3,Xcode,85,Xiaomi,8,Yahoo,15,Yalu,3,YouTube,19,Zong,1,ZTE,1,Zune,2,Zynga,1,
ltr
item
TechGlobeX: 4 Tips to Streamline Car Dealership Accounting Processes
4 Tips to Streamline Car Dealership Accounting Processes
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRNEnWRFrlXwbMqhZIa3Qjvxb69aVh2GSggqtcWo_taM8TyeHAXvMkRbz3dp190nnWaa7AC5zweJwACklaZ3VjHkENHxz_P-mkULuo1UgkBg42gPHZq4fJyA-WI0G-wWYjd4mhTUY4cvD_VT9O4W9_QOBbbeT6dEOIie-a_qrdwveF_B8a99r_b_lfIwNo/s16000/Car%20Dealership%20Accounting.jpg
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRNEnWRFrlXwbMqhZIa3Qjvxb69aVh2GSggqtcWo_taM8TyeHAXvMkRbz3dp190nnWaa7AC5zweJwACklaZ3VjHkENHxz_P-mkULuo1UgkBg42gPHZq4fJyA-WI0G-wWYjd4mhTUY4cvD_VT9O4W9_QOBbbeT6dEOIie-a_qrdwveF_B8a99r_b_lfIwNo/s72-c/Car%20Dealership%20Accounting.jpg
TechGlobeX
https://www.techglobex.net/2023/06/car-dealership-accounting.html
https://www.techglobex.net/
https://www.techglobex.net/
https://www.techglobex.net/2023/06/car-dealership-accounting.html
true
6015647009126982431
UTF-8
Loaded All Posts Not Found Any Posts VIEW ALL Read More Reply Cancel Reply Delete By Home PAGES POSTS View All RELATED ARTICLES: TOPIC ARCHIVE SEARCH ALL POSTS Not Found Any Post Match With Your Request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Just Now 1 Minute Ago $$1$$ minutes ago 1 Hour Ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago More Than 5 Weeks Ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share To A Social Network STEP 2: Click The Link On Your Social Network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content