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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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4 ILLINOIS AUTOMOBILE DEALER NEWS<br />

www.illino<strong>is</strong>dealers.com


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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 />

www.illino<strong>is</strong>dealers.com


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Hard Plastic Dye/Repair X X<br />

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Exterior Paint Touch & Bumpers X ?<br />

Cus<strong>to</strong>m Floor Mat X ?<br />

Service Lane Program X ?<br />

Walk Around Inspection X NO<br />

Weekly Refreshes X NO<br />

Quality Audits X NO<br />

132 Point Inspection Process X NO<br />

2 & 4 Year Interior Warranties X NO<br />

Event Preparation X NO<br />

Emergency Service X NO<br />

Quarterly On-site Sales Training X NO<br />

Monthly Performance Tracking X NO<br />

Supported by Billion Dollar Company X NO<br />

Try us for 90 days and see for yourself!<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 />

www.illino<strong>is</strong>dealers.com


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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 />

Contract.<br />

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 />

RAIL DELIVERS OVER 70% OF NEW CARS<br />

IN AMERICA. WE TREAT YOUR USED CARS<br />

LIKE NEW.<br />

SAFE, RELIABLE, AFFORDABLE, AND EASY AUTO TRANSPORT.<br />

V<strong>is</strong>it us at NADA, Booth #3072 for a chance <strong>to</strong> win up <strong>to</strong> 50% in au<strong>to</strong> transport savings.<br />

www.shipcarsnow.com<br />

866-207-3360 A Union Pacific Company<br />

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.

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