Used Car Dealerships
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Bookkeeping Services
$900-3,000
per month
- Monthly Bookkeeping
- Bank Reconciliations
- Sales Tax Filings
- Financial Statements
- Financial Analysis & Reporting
- Ongoing Tax Advisory
We provide our clients with live books and timely month end close.
Our Services for Small Businesses
At Bennett Accounting & Tax LLC, we offer specialized financial services tailored to the unique needs of used car dealerships. From managing inventory accounting methods to understanding complex tax regulations, our bookkeeping, payroll, and tax preparation services help dealerships streamline their financial operations. We also ensure compliance with key tax rules, such as LIFO inventory accounting and the safe harbor provisions under Section 263A capitalization.
LIFO Inventory Method for Used Car Dealerships
One of the most important aspects of financial management for a used car dealership is inventory accounting. Many dealerships benefit from using the Last-In, First-Out (LIFO) method to manage their inventory and reduce taxable income. Our services include:
- LIFO Inventory Management: We help dealerships implement and manage the LIFO inventory method, which can be especially advantageous during times of rising vehicle prices. By using LIFO, dealerships can match the most recent (and typically higher) costs of vehicles sold against revenue, potentially lowering taxable income and deferring taxes.
- Strategic Inventory Planning: Our team works with your dealership to determine if LIFO is the best inventory method for your business and how it can be optimized to align with your financial goals, ensuring maximum tax efficiency.
Used Vehicle Dealership Safe Harbors for Section 263A Capitalization
Section 263A, also known as the Uniform Capitalization (UNICAP) rules, requires businesses to capitalize certain costs related to inventory. However, used car dealerships can take advantage of safe harbor provisions that simplify compliance with these rules. Our services include:
- Understanding and Applying Safe Harbors: We help dealerships understand the safe harbor options available to them under Section 263A, which can reduce the administrative burden of capitalizing indirect costs. These safe harbors allow smaller dealerships to simplify their accounting processes and minimize the impact of 263A on their financial reporting.
- Section 263A Capitalization Compliance: For larger dealerships subject to full 263A capitalization, we ensure accurate tracking and capitalization of inventory-related costs, such as storage, handling, and indirect expenses. Our team helps you stay compliant while minimizing the effect of these rules on your bottom line.
Comprehensive Tax Preparation
Alongside inventory and capitalization strategies, we offer full-service tax preparation tailored to the needs of used car dealerships:
- Maximizing Deductions: We ensure that all deductible expenses, including those related to inventory purchases, operating costs, and dealership improvements, are fully accounted for, reducing taxable income.
- Tax Planning and Compliance: Our tax preparation services ensure dealerships remain compliant with all federal and state tax regulations, while also implementing forward-looking strategies to reduce tax liabilities and improve financial performance.
By partnering with Bennett Accounting & Tax LLC, used car dealerships gain access to expert financial management solutions, including the LIFO inventory method and Section 263A compliance. Our services help you focus on growing your dealership while we handle the complexities of tax preparation and accounting.
Free Discovery Meeting!
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If you’re looking for a Certified Public Accountant to provide tax preparation, bookkeeping, or payroll services, we’re here to help!
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Our Services
Exceptional Quality in Accounting and Tax
Assistance with accounting and taxes ensures that tax obligations are met while maximizing your financial efficiency for small businesses, individuals, and large corporations alike. Below are some of the avenues where our team can help your business find success.
Bookkeeping
Our outsourced bookkeeping can help you track and save costs for your growing business.
Payroll
Our team can help ensure your employees are paid on time, every time.
Personal Taxes
Our tax planning and preparation services can help you save more with less worry.
Business Taxes
Our team can help ensure your employees are paid on time, every time.
Tax Planning
Our team can help forecast your tax bill and put together a plan to keep it as low as possible.
Trust & Estate Taxes
If you're in need of financial statements to present to lenders, we've got you covered.
Business Planning
Not sure how to start, grow, or sell your business? We can help walk you through the process.
Tech Consulting
Let us help you set up your new tech stack to optimize business operations.
Comprehensive Tax Planning
We help clients from all across the United States plan ahead for tax season. If you’re looking to minimize your tax liability and avoid overpaying the IRS, we’re ready to help.
Contact us now to discuss your tax situation with a Certified Public Accountant (CPA).
Hear What Our Clients Have to Say
Our Client Testimonials
We assist clients in a wide range of industries at different stages of their lives and businesses. Below are some of the clients our practice continues to support to this day.
It's reassuring to have such reliable and personable professionals handling my financial matters.
