Check It Off the List: Planning for Your Dealership’s Smooth 2015 Year-End – December 2015
Dixon Hughes Goodman
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Clean your schedules. Examples of how you can tidy things
up include writing off uncollectible receivables, ensuring that
proper accruals have been set, identifying any related party
items and considering if any prepaid expenses need to be
fully expensed. In addition, identify incorrect entries in your
receivables/payables and clear them from your schedules.
10 Compare principal balances on December loan statements to
your general ledger to ensure all entries have been properly
recorded.
Be sure to reconcile your bank, floorplan and factory statements
as of Dec. 31, 2015 to identify any adjustments.
It is a best practice to reconcile these statements at least monthly – even daily for cash – to identify corrections early and save time during your year-end reconciliations. 5 Triple check that you have all W-9s on file for each vendor you use so that 1099 preparation will be a breeze. 7 In addition to the items listed above, our final tip would be to talk to your CPA. Keep him/her in the loop! Discussing any major business activities, such as construction or litigation, ahead of time – most preferably as they’re taking place – will allow your CPA to advise what you can do to remain ahead of the game, giving you plenty of time to determine what additional information might be necessary in wrapping up your year-end. We urge you to take the above items into account as you plan for your 2015 year-end.
Get a head start on crossing off your list of “to-do’s” so you may alleviate anxieties in this area. Ask your CPA for their Prepared by Client (PBC) packet or request list now. This will enable you to get a head start on getting your documents in order before year-end. You will additionally familiarize yourself with what your CPA will ask from you.
As you close your year, you can eliminate duplicate work by pulling the information your CPA needs while you’re working on it, eliminating duplicate work. 6 Provide any new documents as you receive them to your CPA so that they are already on file. This may include ownership changes, new leases, new franchise agreements, new loan or floorplan agreements and more. 8 Natalie Centeno Senior Manager | DHG Dealerships 704.367.7056 natalie.centeno@dhgllp.com Amy Robinson Manager | DHG Dealerships 704.367.5868 amy.robinson@dhgllp.com Perform an inventory count for vehicles on-hand at or near year-end and reconcile to your general ledger. Be sure to include service loaners to ensure proper classification.
Also, reconcile your parts inventory on hand to your general ledger at year-end to see if any significant adjustments to your parts accounts may be needed. Assurance | Tax | Advisory | dhgllp.com Adjust any reserves you may have been tracking during the year. Ask yourself questions such as “do any balances need to be taken into income?” Or, “do any balances need to be increased for potential liabilities after year-end?” 2 .
It is a best practice to reconcile these statements at least monthly – even daily for cash – to identify corrections early and save time during your year-end reconciliations. 5 Triple check that you have all W-9s on file for each vendor you use so that 1099 preparation will be a breeze. 7 In addition to the items listed above, our final tip would be to talk to your CPA. Keep him/her in the loop! Discussing any major business activities, such as construction or litigation, ahead of time – most preferably as they’re taking place – will allow your CPA to advise what you can do to remain ahead of the game, giving you plenty of time to determine what additional information might be necessary in wrapping up your year-end. We urge you to take the above items into account as you plan for your 2015 year-end.
Get a head start on crossing off your list of “to-do’s” so you may alleviate anxieties in this area. Ask your CPA for their Prepared by Client (PBC) packet or request list now. This will enable you to get a head start on getting your documents in order before year-end. You will additionally familiarize yourself with what your CPA will ask from you.
As you close your year, you can eliminate duplicate work by pulling the information your CPA needs while you’re working on it, eliminating duplicate work. 6 Provide any new documents as you receive them to your CPA so that they are already on file. This may include ownership changes, new leases, new franchise agreements, new loan or floorplan agreements and more. 8 Natalie Centeno Senior Manager | DHG Dealerships 704.367.7056 natalie.centeno@dhgllp.com Amy Robinson Manager | DHG Dealerships 704.367.5868 amy.robinson@dhgllp.com Perform an inventory count for vehicles on-hand at or near year-end and reconcile to your general ledger. Be sure to include service loaners to ensure proper classification.
Also, reconcile your parts inventory on hand to your general ledger at year-end to see if any significant adjustments to your parts accounts may be needed. Assurance | Tax | Advisory | dhgllp.com Adjust any reserves you may have been tracking during the year. Ask yourself questions such as “do any balances need to be taken into income?” Or, “do any balances need to be increased for potential liabilities after year-end?” 2 .
