Managing financials can be a difficult task and it’s not unusual to face difficulties in the process.
Let’s jump into the three most common accounting frustrations automotive dealers face and how you can significantly improve your operations and boost success by applying the solutions we have provided.
1: Complex Inventory Management
One of the most significant factors that plays a part in day-to-day frustrations is managing an extensive range of vehicles holding different makes and models. Given how busy you are as an automotive dealer, this can quickly become very overwhelming and potentially lead to poor management and errors.
The Solution: A Dealer Management System!
A Dealer Management System will streamline your everyday tasks and assist you in tracking your sales, purchases, depreciation, and how long specific vehicles have been in stock. Generating management reports with real-time data at hand, has never been easier! By implementing a dealer management system like EasyCars, you can optimise cash flow and successfully manage your inventory, among other daily tasks.
2: Time-Consuming Manual Data Entry
Dealership accounting often involves manual data entry, this is not only time-consuming but can also result in errors. Eliminating this frustration requires the use of a more modern approach- automating the process.
The Solution: Automate Data Entry with Accounting Software
By using an accounting software like XERO or MYOB- You only need to input your financial data once, EasyCars will automatically sync it with the software. This not only reduces the chances of errors but also makes your workflow incredibly convenient. Imagine the relief of knowing that your GST calculations, BAS reports, Floorplan management, consignments, Notional Input Credits, trade-ins, and other crucial tasks are consistently accurate. Both software programs will integrate with multiple systems, such as the point-of-sale system and your bank accounts- making it easier to automatically import and categorize financial transactions. This not only saves time but also decreases the risk of errors. Further, automated workflows can be set up for repetitive tasks like invoicing, payroll, etc.
3. Dealing with the Challenges of Compliance and Taxation
Automotive Dealers must comply to complex tax regulations and the ever-changing compliance standards, this can feel overwhelming and of course, frustrating. By staying on top of government requirements, you avoid hefty fines and potential legal issues.
The Solution: Automate Notional Input Tax Credit calculations and remain compliant
Notional Input Tax Credits are vital in the used car industry, especially when reselling vehicles bought from private sellers. It's essential to note that you can't claim GST on these purchases until the car has been resold. Correctly recording this GST is crucial for tax purposes.
Plenty of accountants struggle with understanding and calculating Notional Input credits, therefore making it challenging for dealers as well. Failing to automate this tricky process can lead to potential tax overpayments OR underpayments, and this may result in penalties such as fines, other legal issues and in severe cases, a jail sentence. However, with an advanced dealer management system, the solution becomes straightforward. EasyCars syncs seamlessly with your connected Xero or MYOB program, ensuring error-free and accurate tax returns every time.
EasyCars will assist you in you in solving your dealership accounting frustrations, resulting in complete peace of mind so you can focus on looking after your customers and focusing on making extra sales.
We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.
EasyCars by Jeal is an Australian, web-based, dealer management system that automates the buying and selling of motor vehicles. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens your doors for greater growth.
EasyCars features include Simple Stock Management, Automated Advertising, Integrated Accounting, Government Compliance, Business Reporting, Facebook Automotive Inventory Ads, Reviews Management, Dealership Websites and more.
To learn more about EasyCars Dealer Management System or to arrange a no-obligation free demo, contact us today on 1300 473 744 or submit the form below.