The automotive industry has always had its share of challenges, but the current environment may be the most difficult in a generation. Regulations have grown more complex, qualified workers are less plentiful, and supply chain disruptions have made it difficult to secure the right vehicles, parts, and other critical automotive supplies promptly.
Extraordinary challenges require innovative solutions, and sometimes those solutions come from an unexpected source. In this article, we’ll explore how experienced automotive business accounting professionals like those on the BradyRenner team can help build successful business strategies that meet the unique needs of new and used car dealers, service and repair shops, aftermarket equipment dealers, gas stations, and similar businesses.
Automotive Business Accounting: Expert Solutions for the Automotive Industry
Partnering with a CPA firm like BradyRenner takes the most complex issues out of your hands so you can focus on what you do best: running your business. These are just a few of the many processes and procedures a CPA with small and medium business specialization can simplify, restructure, or otherwise manage on your behalf:
Traditional Accounting Tasks
Many small automotive businesses handle the books on their own, but that isn’t practical as you begin to grow. A specialized firm does all of the traditional accounting tasks you expect from a CPA, including accounting, month-end closing, and bank reconciliations.
Complex Accounting Tasks
As your automotive business grows, there will be a greater need for more sophisticated accounting, including the preparation of formal financial statements. A specialized CPA has the experience you need for attestations, audits, business valuation, and financial statement analysis.
Cash Flow Management
When you work in a cyclical industry, keeping enough cash on hand to pay your suppliers can be difficult. Your automotive CPA can offer expert cash flow and budget analysis, as well as comprehensive debt structuring and restructuring strategies.
You can’t get the job done unless you have the right employees – and that’s only possible when your compensation and benefits plans are competitive. A specialized CPA understands the industry and what it takes to become an employer of choice. Related support includes employee benefit plan audits and the development of strategic employee compensation plans.
Tax Preparation and Expense Reduction
Any CPA can prepare your taxes, but it takes deep knowledge of tax regulations to create an effective tax-reduction strategy. In addition to ensuring your business is in compliance with all relevant laws and amendments, your automotive CPA can help with reducing your tax liability through tax minimization planning – and, of course, IRS representation if the need arises.
As experts in the automotive industry, a specialized firm goes beyond standard CPA functions to help you grow your business, supporting you in strategic planning, succession planning, and buying, selling, or expanding your business.
It’s true that you can perform these functions on your own, but consider the cost of keeping these tasks in-house. Staying on top of regulatory changes and new tax laws can be a full-time job, and managing accounting activities that require specialized knowledge takes time away from running your business.
Accounting and tax software can handle basic bookkeeping and tax preparation, but when you rely on them exclusively, you miss out on significant savings. The experts have insight into how laws and regulations are applied in the real world. That often translates into reduced tax liability, which is always a win.
Remember, there is risk involved anytime you are working with tax laws and other regulations. A small misstep can lead to expensive consequences – legal fees, penalties, and fines are just the beginning. Partnering with a specialized firm prevents you from running afoul of accounting regulations and tax laws.
Why Choose BradyRenner CPAs and Business Consultants?
BradyRenner CPAs and Business Consultants have specialized experience in the automotive industry. Whether you are concerned with unprecedented employee turnover, compliance with regulations, fierce competition, endless increases in overhead, or declining gross profit margins, BradyRenner can help.
Many national firms sell you on the idea that they are part of your community, and they insist that they can deliver personal service like a local firm. However, if you have ever done business with one of the larger national firms, you know that’s not always the case.
BradyRenner is a regional firm that holds a leadership position in the greater Baltimore-Washington area. Because they are truly local, BradyRenner CPAs and Business Consultants understand the specific challenges you face in this unique market. With a client base of small and medium-sized businesses that are owner-led or closely held, BradyRenner has deep roots in the community, and team members understand the automotive industry inside and out.
Don’t take time away from managing your automotive business to unravel the complicated problems that crop up in today’s competitive market — instead, partner with a skilled automotive business accounting firm like BradyRenner.