it's not necessary to change. survival is not mandatory. - Media ...

More documents

Recommendations

Info

getting the jump — continued and simplified full inclusion methods. Ask your CPA which method is appropriate for your dealership. How many AJEs can you avoid? Adjusting journal entries (AJEs) muddy the waters when your CPA does his or her fieldwork. A long list of CPA-imposed changes could suggest that your CFO isn’t doing his or her job – and cause owners, franchisors and lenders to wonder what else might have fallen through the cracks. Plus, the fewer discrepancies between your controller’s year end statement and the CPA’s audited (or reviewed) financial statements, the fewer questions your franchisors and lenders will ask. Review last year’s list of AJEs and see which year end adjustments you can handle in-house. Consider making adjustments for bad debt write-offs; prepaid expenses; benefit plan contributions; and accruals for wages, commissions, interest and taxes. Generally, accruals should tie to the payments paid in the following month (January) or shortly thereafter. Ask your CPA what was recorded for last year’s book-to-tax adjustments. This will help you anticipate document requests and estimate probable tax adjustments. Book and tax income usually differ, sometimes quite markedly. So, don’t make tax estimates based on pretax income shown on your income statement. Are you really ready? Year end is often the most stressful time for a dealer’s accounting department. But by planning and adjusting your balance sheet and income statement accounts before December 31st, you’ll save time and frustration when it’s time to prepare your annual financial statements and income tax returns. Map out owner transactions Decide on the payments you want to make to owners before December 31st, such as salaries, bonuses, benefits and perks. Payments to owners, including interest on loans to S-corporation shareholders or to C-corporation shareholders (those owning more than 50% of the dealership’s stock), will be deductible only if they’re paid before year end. This includes expenses owed to related parties. Also determine the appropriate tax treatment for retirement and insurance benefits paid to owners. S-corporation, LLC and partnership owners may have to report these as taxable fringe benefits, rather than deduct them as an expense. For more information please contact John Comunale, CPA at Councilor, Buchanan and Mitchell, P.C. certified public accountants at (301)986-0600 or jcomunale@cbmcpa.com. 16 ILLINOIS AUTOMOBILE DEALER NEWS www.illinoisdealers.com
Stair-step programs create too Stair-step programs... many negatives to justify their use. And they are not necessary for success in the marketplace. Just look at the manufacturers that have stopped using them. Harm brand credibility. Hurt dealers of all sizes. Undermine relationships between dealers and their customers. Have an adverse effect on CSI scores. Destroy consumer confidence in dealers – and in manufacturers’ brands. There are better ways to structure incentives. Tell us what you think about stair-step programs and other manufacturer intrusions into dealers’ businesses. Send an email to stairsteps@nada.org. All messages will be kept strictly confidential.
Page 1 and 2: A Publication of the Illinois Autom
Page 4 and 5: CONTENTS Vol. 20 No. 4 Illinois Aut
Page 6: IADACHAIRMAN’SLetter | BY JIM LOM
Page 9 and 10: It’s Not Necessary to Change. Sur
Page 11 and 12: the next level is here are you read
Page 14 and 15: Getting the Jump on Financial State
Page 18 and 19: di-zas-ter (n) a calamitous event,
Page 20 and 21: usiness “checkup” — continued
Page 22: Accounting Woodward & Associates, I

it's not necessary to change. survival is not mandatory. - Media ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?