Category: Auto Dealerships

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 ›

PDF: Councilor, Buchanan & Mitchell (CBM) Named Accounting Broker for Dealership Buy-Sell Transactions in Virginia, Maryland and Delaware Councilor, Buchanan & Mitchell (CBM), a full-service tax, accounting and advisory business serving clients up and down the East Coast, has been named by the LabNation brokerage network as the select broker to deliver accounting expertise to Maryland, Virginia and Delaware dealerships entering buy-sell transactions. LabNation, the nation’s only multiple listing service (MLS) serving the automotive industry, provides dealership owners with access… Read more ›

Many auto dealerships rely on the LIFO (last in, first out) accounting method for inventory valuation to defer taxes. Since this method allows businesses to include inflation in the cost of goods sold, it’s a great way to temporarily lower tax liability and is most effective in times of high economic inflation. However, the COVID-19 pandemic has interrupted supply chains and created myriad challenges in most industries, including car manufacturing. Most notably are the shortage in computer chips required for… Read more ›

Many dealerships generate detailed financial information and send it to their banks and manufacturers each month. This typically includes an income statement and a balance sheet. The balance sheet can be a useful tool for dealerships that know how to uncover the valuable nuggets of data that lie within these reports. Savvy dealerships use the information to improve their financial performance. Think of it this way: The balance sheet gives you a snapshot of your dealership’s financial position at a… Read more ›

Ask any dealership owner whether he or she would like to strengthen the business’s overall performance and you’ll likely get a resounding, “Yes, of course!” But there is a legion of factors that affect performance — and not all of them are under your control. For example, you probably can’t make drastic changes to your brand or your marketplace demographics, at least not in the short term. But you can focus on other goals within your control to bolster your… Read more ›

The employee retention tax credit (ERTC) provides relief for many businesses to help offset some of the profit loss due to keeping employees during the COVID-19 pandemic and creating cash flow to pay wages to their employees. While many dealerships are experiencing a boom in both used and new car sales, it’s possible to still qualify for the ERTC if your dealership was ordered to shut down in-person retail operations. Dealers who were able to continue to sell cars online… Read more ›

Your dealership works with a wide range of different vendors, ranging from auctions and ad agencies to parts suppliers and reconditioners. Given the importance of these relationships to your success, it’s a good idea to take a fresh look at the companies you do business with. Performing vendor reviews can help ensure that both your dealership and your vendors are still benefiting from the arrangements. In addition, it can help uncover possible vendor fraud. Fraud Prevention: Fraud Comes in a… Read more ›

Solar panel technology is nothing new. However, advancing technology and a concern for the environment created a wide push to adapt to more renewable energy sources. Many electric utility companies are developing or relying more heavily on wind farms, water-powered energy, and farms of solar panels. Some of them are offering credits to consumers for installing solar panels on their property and allowing them to buy any excess energy generated. As a car dealership, there are several benefits to converting… Read more ›

The new year is starting out with much new activity as President-Elect Joe Biden took office on Jan. 20, and the U.S. Senate run-off elections in Georgia resulted in two democratic wins, thus giving democrats majority control of the U.S. House of Representatives, the Senate, and the Presidency. With this majority, more items are likely to get accomplished in the President-Elect’s tax plan as reconciliation allows tax and spending provisions to move through without a super majority, unlike other non-budgetary… Read more ›

As consumers become more conscious of their environmental footprint and look for ways to save money, more and more electric vehicles can be seen on the roads today stretching from coast to coast. States are encouraging the purchasing of electric vehicles as well as exampled by California where the governor has taken action to ban the sale of non-electric vehicles after 2035. At this point, most taxpayers know or have heard of an electric vehicle tax credit program, but what… Read more ›