Automotive Services

Daniel Ferrari & Co., P.C., has been providing specialized services for automobile dealership clients, of which we have forged many long-lasting business and personal relationships. We have been providing services for Motors Holding Division of General Motors Corporation and its dealer companies for over 25 years. We are among the 10 Motors Holding Approved CPA Firms in the United States. Currently, we are providing audit and tax related services to several MHD dealers along with occasional Pre-Investment audit engagements for Motors Holding area branches. We also provide similar services for Marketing Investment Division of DaimlerChrysler Corporation and various private capital automobile dealerships.

Specialized Services for Automotive Dealerships

• Assistance with personnel issues:
  
  Compensation is a significant cost to dealerships. We can help with compensation arrangements in two major ways – reviewing for compliance with labor and regulations, and assisting with the design of competitive compensation arrangements.
• Benchmarking:
  
  Benchmarking comparisons provide useful information about the dealership’s strengths and weaknesses. We compare your dealership data with national groups, manufacturers and 20 groups to gauge if your departments are run at peak performance.
• Reviewing controls for compliance with tax laws and regulations:
  
  The IRS has been aggressively auditing dealerships for compliance with Form 8300 “Report of cash payments over $10,000 received in a trade or business.” We can review if the dealership has implemented internal controls to follow Form 8300 requirements. We can also review internal controls for compliance with current IRS Luxury Tax requirements and state and local sales tax requirements.
• Business valuations:
  
  We can guide you through the purchase or sale of a franchise, obtaining financing from a lender, estate and gift tax matters, or other situations that may require valuations.
• LIFO inventory implementation and guidance:
  
  We can assist with LIFO calculations and support for both new and used vehicles and parts. We use LIFO Systems, Inc. software to generate index computation, LIFO reserve, LIFO layers, and Inventory Reconciliation reports for new vehicles. If your dealership is currently using the LIFO method of valuing new vehicle, used vehicle and/or parts inventory, we can determine if it has been handled properly and conforms to current IRS guidelines before a possible audit situation arises.
• Department performance reviews:
  
  We can provide advice on the best use of resources and investments, gross profit analysis and overhead containment as well as help in asset and inventory management and the evaluation of procedure controls for each department.