it's not necessary to change. survival is not mandatory. - Media ...
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A Publication of the Illino<strong>is</strong> Au<strong>to</strong>mobile Dealers Association Vol. 20 No. 4<br />
IT’S NOT NECESSARY TO<br />
CHANGE. SURVIVAL IS NOT<br />
MANDATORY.<br />
By changing <strong>not</strong>hing, <strong>not</strong>hing <strong>change</strong>s. In <strong>to</strong>day’s increasingly transparent world,<br />
dealers must be proacve in looking for ways <strong>to</strong> increase prot margins.
• Training offi ce managers<br />
• 401K Audits
CONTENTS Vol. 20 No. 4<br />
Illino<strong>is</strong> Au<strong>to</strong>mobile<br />
Dealers Association<br />
300 West Edwards Street<br />
Springfi eld, Illino<strong>is</strong> 62704<br />
T 217.753.0220<br />
F 217.753.3424<br />
www.Illino<strong>is</strong>Dealers.com<br />
6 IADA Chairman’s Letter<br />
9 It’s Not Necessary <strong>to</strong> Change. Survival Is Not Manda<strong>to</strong>ry.<br />
14 Getting the Jump on Financial Statement and Tax Filing Preparation<br />
19 Annual “Checkups” for Your Business<br />
The ILLINOIS AUTOMOBILE DEALER NEWS <strong>is</strong> publ<strong>is</strong>hed<br />
by <strong>Media</strong> Communications Group, Inc. and <strong>is</strong> the official publication<br />
of the Illino<strong>is</strong> Au<strong>to</strong>mobile Dealers Association. The ILLINOIS<br />
AUTOMOBILE DEALER NEWS <strong>is</strong> publ<strong>is</strong>hed 4 times per year.<br />
The statements and opinions expressed herein are those of the individual<br />
authors and do <strong>not</strong> necessarily represent the views of ILLINOIS<br />
AUTOMOBILE DEALER NEWS, or its publ<strong>is</strong>her <strong>Media</strong><br />
Communications Group, Inc. Any legal advice should be regarded as<br />
general information. It <strong>is</strong> strongly recommended that one contact an<br />
at<strong>to</strong>rney for counsel regarding specific circumstances. Likew<strong>is</strong>e, the<br />
appearance of advert<strong>is</strong>ers does <strong>not</strong> constitute an endorsement of the<br />
products or services featured by <strong>Media</strong> Communications Group, Inc.<br />
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IADACHAIRMAN’SLetter | BY JIM LOMBARDI<br />
IADA, an Infl uential Voice<br />
Supporting Franch<strong>is</strong>ed Dealers<br />
With the fall general election fast approaching, the<br />
future of our country and state could be riding on<br />
the outcome. With that in mind, I would like <strong>to</strong><br />
take th<strong>is</strong> opportunity <strong>to</strong> encourage all of the members<br />
and employees <strong>to</strong> be politically active, and get<br />
involved. Let your employees know what the election of business<br />
friendly candidates means for your dealership and for them.<br />
Throughout the year, IADA has strongly promoted both<br />
CAR of Illino<strong>is</strong> at the state level and DEAC at the national level.<br />
Both play an important role and are vitally important <strong>to</strong> promote<br />
dealer interest at both the state and national levels. We encourage<br />
you <strong>to</strong> be involved at the state level, and invite state leg<strong>is</strong>la<strong>to</strong>rs<br />
<strong>to</strong> dealership v<strong>is</strong>its. It <strong>is</strong> so important <strong>to</strong> support candidates that<br />
are positive and supportive of the au<strong>to</strong>motive industry.<br />
With their support, IADA can continue promoting beneficial<br />
leg<strong>is</strong>lation on behalf of Illino<strong>is</strong>’ franch<strong>is</strong>ed car dealers. A<br />
primary responsibility of IADA <strong>is</strong> <strong>to</strong> represent au<strong>to</strong>mobile and<br />
truck dealers in the Illino<strong>is</strong> General Assembly and before the<br />
various state regula<strong>to</strong>ry agencies. The Association <strong>is</strong> the dealers`<br />
voice in defending the industry against adverse leg<strong>is</strong>lation,<br />
as well as initiating and supporting favorable leg<strong>is</strong>lation in the<br />
Illino<strong>is</strong> Leg<strong>is</strong>lature. Please VOTE th<strong>is</strong> fall, and be supportive of<br />
the candidates who are going <strong>to</strong> make a difference in our industry,<br />
and have a voice for our well-being.<br />
On behalf of IADA and the Board of Direc<strong>to</strong>rs, I would like<br />
<strong>to</strong> thank all of our dealers who contributed <strong>to</strong> CAR of Illino<strong>is</strong><br />
and DEAC throughout the year, and communicated with their<br />
leg<strong>is</strong>la<strong>to</strong>rs. With your support and continued generous contributions,<br />
IADA will remain an influential voice at the state level,<br />
supporting Illino<strong>is</strong>’ franch<strong>is</strong>ed car dealers. Lastly, I would like<br />
<strong>to</strong> thank our IADA Vice Chairman, Gary Knight, Treasurer,<br />
Mike Mangold and Secretary, Dave Taylor for their ass<strong>is</strong>tance<br />
in making my term as Chairman so rewarding. <br />
Sincerely,<br />
Jim Lombardi<br />
Lombardi Chevrolet Buick<br />
2012 IADA Chairman<br />
2012 Officers<br />
Chairman<br />
Mr. Jim Lombardi / 815.476.2826<br />
Lombardi Chevrolet Buick<br />
901 E. Baltimore St., Wilming<strong>to</strong>n, IL 60481<br />
Vice Chairman<br />
Mr. Gary Knight / 217.443.6803<br />
Carmack Car Capi<strong>to</strong>l<br />
3724 N. Vermilion, Danville, IL 61832<br />
Treasurer<br />
Mr. Mike Mangold / 309.467.2344<br />
Mangold Ford Mercury, Inc.<br />
1100 West Center St., Eureka, IL 61530<br />
Secretary<br />
Mr. Dave Taylor / 815.935.7900<br />
Taylor Chrysler Dodge, Inc.<br />
1497 N. Route 50, Bourbonna<strong>is</strong>, IL 60914<br />
President<br />
Peter J. Sander / 217.753.0220<br />
Illino<strong>is</strong> Au<strong>to</strong>mobile Dealers Association<br />
300 W. Edwards, P.O. Box 3045, Springfi eld, IL 62708<br />
Illino<strong>is</strong> Au<strong>to</strong>mobile Dealers Association<br />
300 West Edwards Street, Springfi eld, Illino<strong>is</strong> 62708<br />
T 217.753.0220 • F 217.753.3424<br />
www.Illino<strong>is</strong>Dealers.com<br />
6 ILLINOIS AUTOMOBILE DEALER NEWS<br />
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Weekly Refreshes X NO<br />
Quality Audits X NO<br />
132 Point Inspection Process X NO<br />
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It’s Not Necessary <strong>to</strong> Change.<br />
Survival Is Not Manda<strong>to</strong>ry.<br />
BY MIKE ESPOSITO<br />
The title of th<strong>is</strong> article <strong>is</strong> a quote by W. Edward Demming.<br />
Regardless of what industry you’re in, sometimes there <strong>is</strong> a<br />
divide between what’s good for a business and what’s good<br />
for the employees of that business.<br />
In retail au<strong>to</strong>motive, th<strong>is</strong> means what’s good for the<br />
dealer may <strong>not</strong> always be perceived as being good for<br />
the employees. Take <strong>change</strong>, for instance.<br />
Dr. Demming unders<strong>to</strong>od completely that <strong>change</strong> <strong>is</strong><br />
<strong>necessary</strong> <strong>to</strong> survive. Change can be difficult, but <strong>necessary</strong><br />
if dealerships are going <strong>to</strong> stay competitive in th<strong>is</strong><br />
market. Even though the volume of sales has picked up<br />
th<strong>is</strong> year, the Internet has made pricing so transparent<br />
that dealerships all over are being forced in<strong>to</strong> pricematching<br />
wars. Continued, downward pressure on<br />
pricing means lower margins, and unfortunately for<br />
dealers it looks like th<strong>is</strong> trend <strong>is</strong> here <strong>to</strong> stay. In order <strong>to</strong><br />
be profitable in <strong>to</strong>day’s world and in the future, dealers<br />
must look for ways <strong>to</strong> stay lean and improve processes.<br />
They must continue <strong>to</strong> test new technologies that can<br />
either save them money or make more money.<br />
But often when a dealer or GM attempts <strong>to</strong> introduce<br />
a new process or technology, they are met with<br />
s<strong>to</strong>ne-cold res<strong>is</strong>tance from employees. As a DMS<br />
provider, I often hear from dealers who would love <strong>to</strong><br />
implement a new system, but decided <strong>not</strong> <strong>to</strong> because<br />
when the idea was presented <strong>to</strong> the dealerships’ employees,<br />
there was such an uproar that you’d think they<br />
had proposed a permanent ban on all coffee consumption<br />
within the dealership.<br />
I don’t blame the employees, however. Implementing<br />
a new process or learning a new technology can be<br />
difficult. If a major <strong>change</strong> <strong>is</strong> being considered in your<br />
dealership, here are a few things <strong>to</strong> keep in mind:<br />
<strong>survival</strong> <strong>is</strong> <strong>not</strong> manda<strong>to</strong>ry — continued on page 10<br />
9
<strong>survival</strong> <strong>is</strong> <strong>not</strong> manda<strong>to</strong>ry — continued<br />
Most employees are tuned in<strong>to</strong> that old radio<br />
station WII – FM (What’s In It – For Me)<br />
A new process or technology may indeed add thousands of<br />
dollars per month <strong>to</strong> a dealership’s bot<strong>to</strong>m line. That’s great for<br />
the dealer, but what do the employees get out of it?<br />
Take the service manager, for example. Switching <strong>to</strong> a new<br />
DMS would definitely be a pain for him because he probably<br />
gets paid a bonus based on the amount of gross profits he generates<br />
in the service department. If a new system <strong>is</strong> implemented,<br />
it’s going <strong>to</strong> take a lot of time <strong>to</strong> learn it, which takes time away<br />
from other activities that generate profits.<br />
Office managers are <strong>not</strong>orious for objecting <strong>to</strong> a DMS<br />
switch. Their life can be pretty m<strong>is</strong>erable throughout the entire<br />
process, and <strong>is</strong> their pay changing for the better? Probably <strong>not</strong>.<br />
So where’s the incentive <strong>to</strong> <strong>change</strong> and learn a new system?<br />
Extrapolate these examples out <strong>to</strong> everyone else in the dealership;<br />
the parts manager who <strong>is</strong> used <strong>to</strong> the inven<strong>to</strong>ry system,<br />
the salespeople who are used <strong>to</strong> and like their CRM, etc. No<br />
wonder there’s an uproar, and no wonder dealers throw up their<br />
hands and say they can’t <strong>change</strong>.<br />
Yet, wouldn’t a more profitable dealership ultimately benefit<br />
all the employees <strong>to</strong>o?<br />
By Changing Nothing, Nothing Changes<br />
Dealers, your name <strong>is</strong> on the sign and you are the dec<strong>is</strong>ion<br />
maker. Yet you are also part of a team. You want <strong>to</strong> do what’s<br />
best for you and your bot<strong>to</strong>m line, but you don’t want <strong>to</strong> upset<br />
everyone else on the team. Is it possible <strong>to</strong> do both?<br />
Of course, but the trick <strong>is</strong> <strong>to</strong> find and offer something unique<br />
<strong>to</strong> each team member that will help them accept the <strong>change</strong>.<br />
Tell them what <strong>is</strong> in it for them. For service managers, the extra<br />
savings or revenue could be used <strong>to</strong> purchase more lifts and hire<br />
more technicians. For parts, it could be extra cash <strong>to</strong> s<strong>to</strong>ck more<br />
inven<strong>to</strong>ry; for sales, it could be more money spent on advert<strong>is</strong>ing;<br />
for the office manager, it could be a bonus.<br />
One thing’s for sure. By changing <strong>not</strong>hing, <strong>not</strong>hing <strong>change</strong>s.<br />
In <strong>to</strong>day’s increasingly transparent world, dealers must be<br />
proactive in looking for ways <strong>to</strong> increase profit margins. More<br />
efficient processes and new technologies are the way <strong>to</strong> do it;<br />
but buy-in from the team <strong>is</strong> <strong>necessary</strong> <strong>to</strong> make them—and your<br />
dealership—successful. <br />
Mike Esposi<strong>to</strong> <strong>is</strong> President and CEO of Au<strong>to</strong>/Mate Dealership Systems, a<br />
leading provider of dealership management software (DMS). Mike can be<br />
contacted at (518) 371–4331 or via e-mail at mesposi<strong>to</strong>@au<strong>to</strong>mate.com<br />
or follow him on Twitter at @Au<strong>to</strong>MateDMS. Au<strong>to</strong>/Mate <strong>is</strong> a DMS “designed<br />
by car people , for car people,” and features easy-<strong>to</strong>-use, fully integrated<br />
modules <strong>to</strong> suit all dealerships.<br />
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10 ILLINOIS AUTOMOBILE DEALER NEWS<br />
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Getting<br />
the Jump<br />
on Financial Statement<br />
and Tax Filing Preparation<br />
BY JOHN COMUNALE, CPA<br />
Proactive au<strong>to</strong> dealers meet with their CPAs in<br />
late summer or early fall <strong>to</strong> plan for the next<br />
year’s financial reporting and tax filing. Th<strong>is</strong><br />
helps them anticipate requests for audit or review<br />
workpapers, streamline financial statement and<br />
tax return preparation, and minimize taxes. Here <strong>is</strong> some<br />
food for thought as your tax year winds down.<br />
Have you bought fixed assets?<br />
Sizable tax incentives <strong>to</strong> buy fixed assets still ex<strong>is</strong>t in<br />
2012, but the potential savings are lower than in 2010 and<br />
2011. Under Section 179, you can immediately deduct up<br />
<strong>to</strong> $139,000 of new and used capital equipment purchases<br />
placed in service on or before December 31, 2012. If you<br />
purchase more than $560,000 of equipment, Section 179<br />
deductions begin <strong>to</strong> phase out.<br />
There are no threshold limits for bonus depreciation<br />
in 2012. Th<strong>is</strong> year, bonus depreciation allows dealers <strong>to</strong><br />
depreciate half of the purchase price of qualifying new<br />
assets placed in service before year end, plus regular<br />
depreciation on the remaining half.<br />
If you’re thinking about replacing, say, a service lift<br />
14 ILLINOIS AUTOMOBILE DEALER NEWS<br />
or refreshing your signage, do it before December 31st.<br />
Section 179 <strong>is</strong> slated <strong>to</strong> return <strong>to</strong> normal levels in 2013,<br />
and bonus depreciation <strong>is</strong> scheduled <strong>to</strong> end.<br />
Is your fixed asset ledger in order?<br />
One of the most time-consuming parts of an audit<br />
or review <strong>is</strong> fixed assets. So, get your records <strong>to</strong>gether<br />
before your CPA arrives. Prepare a detailed l<strong>is</strong>ting of<br />
fixed asset purchases, new equipment loans, and retired<br />
or sold fixed assets. If old property will be replaced,<br />
consider a Section 1031 “like-kind” ex<strong>change</strong> <strong>to</strong> defer<br />
capital gains.<br />
Look through the ledger for smaller items that were<br />
capitalized but should actually be expensed. For example,<br />
if you recorded a large order of <strong>to</strong>ols as one combined<br />
fixed asset, consider reclassifying each individual item<br />
as a supply expense, <strong>not</strong> a fixed asset. Screwdrivers and<br />
wrenches aren’t worth capitalizing.<br />
Establ<strong>is</strong>h a formal policy for capitalizing fixed assets<br />
that considers the asset’s value and useful life. You might,<br />
for instance, write off items that cost less than $100 or<br />
are likely <strong>to</strong> wear out within one year.<br />
www.illino<strong>is</strong>dealers.com
Planning and adjusting your balance sheet and<br />
income statement accounts before December<br />
31st, you’ll save time and frustration when<br />
it’s time <strong>to</strong> prepare your annual financial<br />
statements and income tax returns.<br />
Also reverse entries in the fixed asset journal for repairs.<br />
Repairs should be expensed as long as they don’t materially add<br />
value <strong>to</strong> a fixed asset, appreciably prolonging an asset’s life, or<br />
adapt an asset <strong>to</strong> a new or different use.<br />
What about inven<strong>to</strong>ry?<br />
Book LIFO adjustment <strong>to</strong> cost of sales before year end, if<br />
possible. If you still have cars and trucks in separate LIFO pools,<br />
analyze whether it would be advantageous <strong>to</strong> combine them in<strong>to</strong><br />
one pool.<br />
For inven<strong>to</strong>ry that’s <strong>not</strong> on LIFO – parts, accessories, and<br />
perhaps used cars – adjust <strong>to</strong> the lower of recorded cost or current<br />
wholesale value. Write off obsolete and damaged parts.<br />
Donate or scrap write-offs before year end, if they can’t be<br />
returned for credit.<br />
Perform physical counts of m<strong>is</strong>cellaneous inven<strong>to</strong>ry items,<br />
such as body shop materials, and adjust them <strong>to</strong> observed levels.<br />
Match work-in-process inven<strong>to</strong>ry <strong>to</strong> the amounts shown on your<br />
open repair orders and body shop tickets.<br />
If owners or salespeople use demos, review IRS Revenue Procedure<br />
2001-56 <strong>to</strong> determine the amount taxable <strong>to</strong> employees.<br />
There are a variety of methods you can use for demos, including<br />
the simplified full extension, simplified in/out, partial exclusion,<br />
getting the jump — continued on page 16<br />
15
getting the jump — continued<br />
and simplified full inclusion methods. Ask your CPA which<br />
method <strong>is</strong> appropriate for your dealership.<br />
How many AJEs can you avoid?<br />
Adjusting journal entries (AJEs) muddy the waters when<br />
your CPA does h<strong>is</strong> or her fieldwork. A long l<strong>is</strong>t of CPA-imposed<br />
<strong>change</strong>s could suggest that your CFO <strong>is</strong>n’t doing h<strong>is</strong> or her job –<br />
and cause owners, franch<strong>is</strong>ors and lenders <strong>to</strong> wonder what else<br />
might have fallen through the cracks. Plus, the fewer d<strong>is</strong>crepancies<br />
between your controller’s year end statement and the CPA’s<br />
audited (or reviewed) financial statements, the fewer questions<br />
your franch<strong>is</strong>ors and lenders will ask.<br />
Review last year’s l<strong>is</strong>t of AJEs and see which year end adjustments<br />
you can handle in-house. Consider making adjustments for<br />
bad debt write-offs; prepaid expenses; benefit plan contributions;<br />
and accruals for wages, comm<strong>is</strong>sions, interest and taxes. Generally,<br />
accruals should tie <strong>to</strong> the payments paid in the following<br />
month (January) or shortly thereafter.<br />
Ask your CPA what was recorded for last year’s book-<strong>to</strong>-tax<br />
adjustments. Th<strong>is</strong> will help you anticipate document requests and<br />
estimate probable tax adjustments. Book and tax income usually<br />
differ, sometimes quite markedly. So, don’t make tax estimates<br />
based on pretax income shown on your income statement.<br />
Are you really ready?<br />
Year end <strong>is</strong> often the most stressful time for a dealer’s accounting<br />
department. But by planning and adjusting your balance sheet<br />
and income statement accounts before December 31st, you’ll<br />
save time and frustration when it’s time <strong>to</strong> prepare your annual<br />
financial statements and income tax returns.<br />
Map out owner transactions<br />
Decide on the payments you want <strong>to</strong> make <strong>to</strong> owners before<br />
December 31st, such as salaries, bonuses, benefits and perks.<br />
Payments <strong>to</strong> owners, including interest on loans <strong>to</strong> S-corporation<br />
shareholders or <strong>to</strong> C-corporation shareholders (those owning<br />
more than 50% of the dealership’s s<strong>to</strong>ck), will be deductible only<br />
if they’re paid before year end. Th<strong>is</strong> includes expenses owed <strong>to</strong><br />
related parties.<br />
Also determine the appropriate tax treatment for retirement<br />
and insurance benefits paid <strong>to</strong> owners. S-corporation, LLC and<br />
partnership owners may have <strong>to</strong> report these as taxable fringe<br />
benefits, rather than deduct them as an expense. <br />
For more information please contact John Comunale, CPA at Councilor,<br />
Buchanan and Mitchell, P.C. certified public accountants at (301)986-0600<br />
or jcomunale@cbmcpa.com.<br />
16 ILLINOIS AUTOMOBILE DEALER NEWS<br />
www.illino<strong>is</strong>dealers.com
Stair-step programs create <strong>to</strong>o<br />
Stair-step programs...<br />
many negatives <strong>to</strong> justify their<br />
use. And they are <strong>not</strong> <strong>necessary</strong><br />
for success in the marketplace.<br />
Just look at the manufacturers<br />
that have s<strong>to</strong>pped using them.<br />
Harm brand credibility.<br />
Hurt dealers of all sizes.<br />
Undermine relationships between dealers<br />
and their cus<strong>to</strong>mers.<br />
Have an adverse effect on CSI scores.<br />
Destroy consumer confidence in dealers –<br />
and in manufacturers’ brands.<br />
There are better ways <strong>to</strong> structure incentives.<br />
Tell us what you think about stair-step programs and other manufacturer intrusions in<strong>to</strong> dealers’ businesses. Send an email <strong>to</strong> stairsteps@nada.org.<br />
All messages will be kept strictly confidential.
di-zas-ter (n) a calami<strong>to</strong>us event, especially one<br />
occurring suddenly and causing great loss of life, damage,<br />
or hardship, such as a <strong>to</strong>rnado, fire, or hail s<strong>to</strong>rm<br />
When d<strong>is</strong>aster strikes,<br />
who’s protecting your business?<br />
Federated’s cus<strong>to</strong>mized coverages are designed <strong>to</strong><br />
protect your business from d<strong>is</strong>aster. D<strong>is</strong>cover the value<br />
of knowing you’re covered when you need it most.<br />
V<strong>is</strong>it www.federatedinsurance.com<br />
<strong>to</strong> find a representative near you.<br />
It’s Our Business<br />
<strong>to</strong> Protect Yours ®<br />
<br />
<br />
*Federated Service Company <strong>is</strong> <strong>not</strong> licensed in the states of NH, NJ, RI, and VT.<br />
©
Annual<br />
“Checkups”<br />
for Your<br />
Business<br />
Many of us make it a point <strong>to</strong> see our<br />
doc<strong>to</strong>r for an annual medical checkup.<br />
Th<strong>is</strong> <strong>is</strong> an important opportunity <strong>to</strong><br />
have a medical professional assess the<br />
current condition of our health.<br />
It also allows us <strong>to</strong> ask questions of our doc<strong>to</strong>r about medical<br />
<strong>is</strong>sues or concerns, and it <strong>is</strong> a chance <strong>to</strong> consider making<br />
<strong>change</strong>s <strong>to</strong> accommodate a healthier lifestyle.<br />
When was the last time you turned <strong>to</strong> your insurance provider<br />
for a similar checkup of your business insurance and r<strong>is</strong>k<br />
management programs?<br />
Get an insurance “physical”<br />
As your business <strong>change</strong>s and grows, so do your business<br />
insurance needs. It <strong>is</strong> a good idea <strong>to</strong> consult your insurance<br />
adv<strong>is</strong>or, at least annually, <strong>to</strong> review your insurance coverage in<br />
light of <strong>change</strong>s your business may undergo from year <strong>to</strong> year.<br />
For example:<br />
• You may have purchased or sold buildings, personal property,<br />
or vehicles.<br />
• You may have experienced fluctuations in payroll or sales<br />
receipts as business conditions <strong>change</strong>.<br />
• You may have undertaken new operations or developed new<br />
products or services.<br />
• You may need <strong>to</strong> respond <strong>to</strong> new legal or regula<strong>to</strong>ry <strong>is</strong>sues.<br />
An annual review—or “physical exam”—of your insurance<br />
coverages helps ensure that coverage purchased last year adequately<br />
protects you <strong>to</strong>day. Annual reviews are a good time <strong>to</strong><br />
consider, for example, whether your policy limits are sufficient <strong>to</strong><br />
replace damaged property. They provide you and your insurance<br />
representative an opportunity <strong>to</strong> d<strong>is</strong>cuss insured and self-insured<br />
exposures, as well as consider any new exposures that can impact<br />
your current insurance program.<br />
Annual insurance reviews are also a good time for you <strong>to</strong><br />
assess the performance of your current insurance provider. Are<br />
claims paid according <strong>to</strong> your expectations? Is the insurer still<br />
financially sound and stable? Are you receiving the prom<strong>is</strong>ed<br />
level of policy service and loss control support? Answers <strong>to</strong> these<br />
questions can have a huge impact on your business and may influence<br />
your dec<strong>is</strong>ion <strong>to</strong> continue <strong>to</strong> do business with your current<br />
insurance provider.<br />
Give your r<strong>is</strong>k management program a<br />
“checkup”<br />
In addition <strong>to</strong> an annual review of your insurance program,<br />
you should also expect your insurance professional <strong>to</strong> review your<br />
business r<strong>is</strong>k management strategies on a yearly bas<strong>is</strong>.<br />
A thorough review of your r<strong>is</strong>k management plans can help<br />
you and your insurance representative identify new exposures or<br />
business “checkup” — continued on page 20<br />
19
usiness “checkup” — continued<br />
operations that were <strong>not</strong> contemplated by your current programs.<br />
It provides you an opportunity <strong>to</strong> gauge the effectiveness of your<br />
current r<strong>is</strong>k management plans and also uncover patterns in your<br />
loss experience that suggest the need for additional r<strong>is</strong>k control<br />
• Ass<strong>is</strong>t in creating a safer, more favorable work environment <strong>to</strong><br />
attract and retain high-quality employees.<br />
Your recommended insurance carrier, Federated Insurance,<br />
provides an Annual Client Review SM and a R<strong>is</strong>k Control Review<br />
SM for each insured business each year. These reviews are<br />
part of the Company’s Major Client Service Standards.<br />
An annual review can help you determine if you are appropriately<br />
targeting resources <strong>to</strong> r<strong>is</strong>k control programs that have the greatest<br />
impact on your bot<strong>to</strong>m line.<br />
attention. Finally, an annual review can help you determine if<br />
you are appropriately targeting resources <strong>to</strong> r<strong>is</strong>k control programs<br />
that have the greatest impact on your bot<strong>to</strong>m line.<br />
An annual r<strong>is</strong>k management review may have other indirect<br />
benefits as well:<br />
• Help protect your future insurability by controlling losses and<br />
reducing claims.<br />
• Provide cost savings through reduced insurance premiums.<br />
• Trim expenses by reducing the hidden costs associated with<br />
claims—such as lost productivity, additional costs for hiring<br />
and training, and lost goodwill.<br />
You should expect your insurance agent or company <strong>to</strong> v<strong>is</strong>it<br />
with you annually for a check-up of your insurance and r<strong>is</strong>k<br />
management programs. You may find annual reviews are the<br />
best prescription for maintaining the health of your business. <br />
Th<strong>is</strong> publication <strong>is</strong> intended <strong>to</strong> provide general recommendations<br />
regarding r<strong>is</strong>k prevention. It <strong>is</strong> <strong>not</strong> intended <strong>to</strong> include all steps or<br />
processes <strong>necessary</strong> <strong>to</strong> adequately protect you, your business, or<br />
your cus<strong>to</strong>mers. You should always consult your personal at<strong>to</strong>rney and<br />
insurance adv<strong>is</strong>or for advice unique <strong>to</strong> you and your business. For more<br />
information, contact www.federatedinsurance.com.<br />
Think changing<br />
your DMS vendor<br />
<strong>is</strong> hard?<br />
Our 10-step informational guide<br />
makes switching your DMS easy<br />
V<strong>is</strong>it au<strong>to</strong>mate.com <strong>to</strong> download our FREE<br />
eBooks <strong>to</strong> help guide you through the DMS<br />
dec<strong>is</strong>ion making and data conversion process<br />
@Au<strong>to</strong>MateDMS<br />
(877) 340 – 2677<br />
A Dealership Management System<br />
Designed By Car People, For Car People<br />
20 ILLINOIS AUTOMOBILE DEALER NEWS<br />
www.illino<strong>is</strong>dealers.com
REACH YOUR<br />
TARGET AUDIENCE<br />
AFFORDABLY<br />
Find out how targeted advert<strong>is</strong>ing can produce<br />
real, measurable results for your organization.<br />
ADVERTISE AND<br />
GET RESULTS<br />
Don F. Brown, Project Manager<br />
<strong>Media</strong> Communications Group<br />
Spectrum Ink Sales & Marketing<br />
813-423-1429<br />
don@spectruminkpubl<strong>is</strong>hing.com<br />
Predicting Lender Acceptance<br />
<strong>is</strong> Like Predicting the Weather<br />
You Could Be Wrong<br />
Secure cus<strong>to</strong>mer<br />
financing with<br />
confidence by<br />
submitting a single<br />
contract <strong>to</strong> several<br />
lenders at one time –<br />
the LAW ® 553 Retail<br />
Installment Sale<br />
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For more information,<br />
contact your local<br />
Document Consultant<br />
or call 800.344.0996.<br />
V<strong>is</strong>it our re-designed<br />
www.Illino<strong>is</strong>Dealers.com<br />
For all your online<br />
membership needs<br />
Log on <strong>to</strong> the new member only area using your unique<br />
“dealer ID” – the IADA Membership ID printed on your<br />
annual membership statement. Please call the IADA<br />
office if you need ass<strong>is</strong>tance.<br />
www.Illino<strong>is</strong>Dealers.com<br />
<strong>is</strong> an informational community site for the<br />
au<strong>to</strong>motive industry of Illino<strong>is</strong>.<br />
21
Accounting<br />
Woodward & Associates, Inc. ............................................ Page 2<br />
Clif<strong>to</strong>nLarsonAllen ............................................................. Page 4<br />
WIPFLi .............................................................................. Page 16<br />
Banking/Finance<br />
Harr<strong>is</strong> N.A. ......................................................................... Page 7<br />
Cus<strong>to</strong>mer Relationship Management<br />
The Higher Gear Group ....................................................Page 11<br />
Dealership Buy/Sells<br />
Woodward & Associates, Inc. ............................................ Page 2<br />
Dealership Compliance<br />
Reynolds & Reynolds ....................................................... Page 21<br />
Dealer Management Computer Systems<br />
Au<strong>to</strong>Soft ............................................................................Page 11<br />
Dealer Management Systems<br />
Au<strong>to</strong>/Mate Dealership Systems ....................................... Page 20<br />
Dealer ship Marketing & Sales Solutions<br />
ADP .................................................................................... Page 5<br />
Energy Supplier<br />
AEP Energy ...................................................................... Page 24<br />
F&I Training/Products<br />
Foresight Services Group ................................................ Page 12<br />
Insurance<br />
Federated Insurance Companies .................................... Page 18<br />
Protective ........................................................................... Page 3<br />
Zurich American Insurance Co. ....................................... Page 10<br />
Internet<br />
Call One ........................................................................... Page 15<br />
New/Used Car Advert<strong>is</strong>ing<br />
Au<strong>to</strong>Trader.com ................................................................ Page 23<br />
Parts Department Services/Equipment<br />
Au<strong>to</strong>Soft ............................................................................Page 11<br />
Rec ond it ionin g Ser v ic e s/ L o t M an a gement<br />
Illino<strong>is</strong> Au<strong>to</strong> Group .............................................................. Page 8<br />
Telecommunications<br />
Call One ........................................................................... Page 15<br />
Transportation/Internet<br />
ShipCarsNow ................................................................... Page 22<br />
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22 ILLINOIS AUTOMOBILE DEALER NEWS<br />
www.illino<strong>is</strong>dealers.com
Illino<strong>is</strong> Au<strong>to</strong>mobile Dealers Association<br />
300 West Edwards Street<br />
Springfield, Illino<strong>is</strong> 62704<br />
PRSRT STD<br />
U.S. POSTAGE<br />
PAID<br />
SALT LAKE CITY, UT<br />
PERMIT NO. 508<br />
THIS MAGAZINE IS DESIGNED AND PUBLISHED BY MEDIA COMMUNICATIONS GROUP 801.746.4003<br />
GREEN REPORT ELECTRIC SALES<br />
IADA and<br />
AEP Energy Partnership<br />
The Illino<strong>is</strong> Au<strong>to</strong>mobile Dealers Association and AEP Energy<br />
proudly announce an exclusive partnership <strong>to</strong> offer electric<br />
supply and energy efficiency solutions <strong>to</strong> members.<br />
IADA and AEP Energy partnership extends savings on electricity<br />
supply, renewable energy and energy efficiency solutions. AEP Energy<br />
will work individually with the 1,000 plus IADA members <strong>to</strong> cus<strong>to</strong>mize<br />
a program for dealerships <strong>to</strong> save money and use less energy.<br />
Changing Energy Suppliers <strong>is</strong> Easy<br />
– No switching fees<br />
– No v<strong>is</strong>it required<br />
– No interruption in power delivery<br />
– Same reliable delivery service from your utility<br />
Get Started with AEP Energy Today<br />
AEP Energy’s dedicated IADA energy<br />
manager, Adon Navarette, will ass<strong>is</strong>t your<br />
business directly. Please fax or email a<br />
copy of your electricity bill <strong>to</strong> Adon or v<strong>is</strong>it<br />
www.AEPenergy.com/iada <strong>to</strong> request a<br />
quote online.<br />
Office: 312-488-5048<br />
Fax: 312-488-5049<br />
anavarette@AEPenergy.com<br />
www.AEPenergy.com/iada<br />
When contacting AEP Energy, please mention that you are a<br />
member of the Illino<strong>is</strong> Au<strong>to</strong>mobile Dealers Association.<br />
AEP Energy <strong>is</strong> a competitive retail electric service<br />
provider affiliated with American Electric Power<br />
Company, Inc. AEP Energy <strong>is</strong> <strong>not</strong> soliciting on<br />
behalf of and <strong>is</strong> <strong>not</strong> an agent for any AEP utility.<br />
866-258-3782<br />
AEPenergy.com<br />
363 West Erie Street, Suite 700<br />
Chicago, IL 60654<br />
Copyright © AEP Energy, Inc. All Rights Reserved.