Receivables

Office Management RECEIVABLES CREDIT EXTENSION COLLECTION NOTES AND ACCOUNTS RECEIVABLE ANALYSIS FORD RECEIVABLES CREDIT EXTENSION One employee of the dealership should be assigned authority for extending credit. This employee should not be directly associated with the sales function. If a credit card is not used by the customer, a credit application should be completed, and Read more about Receivables[…]

Records Retention

Office Management RECORDS RETENTION In the course of operating a dealership, many different types of business records, in addition to the book of account, are created. Examples are vehicle invoices, repair orders, parts counter tickets, paid checks, paid invoices, and there are many more. Storage should be provided for these records only as long as Read more about Records Retention[…]

Property, Plant and Equipment

Office Management PROPERTY, PLANT AND EQUIPMENT PROPERTY AND DEPRECIATION RECORD The dealership must maintain property, plant and equipment records to provide accounting control over the assets and to record depreciation. An individual property card, as illustrated below, should be maintained for each asset. Accumulated depreciation for each item should be recorded on the reverse side Read more about Property, Plant and Equipment[…]

Prepaid Expenses

Office Management PREPAID EXPENSES PREPAID AND ACCRUED EXPENSE SCHEDULE Prepaid expenses, such as prepaid insurance, taxes and licenses, represent payments made in advance which are applicable to accounting periods beyond the current month. A schedule should be maintained for each prepaid expense account to support the general ledger balance and to insure that the prepayment Read more about Prepaid Expenses[…]

Other Non-Current Assets

Office Management OTHER NON-CURRENT ASSETS NON-CURRENT RECEIVABLES CASH VALUE OF LIFE INSURANCE DEPOSITS ORGANIZATION EXPENSE NON-CURRENT RECEIVABLES The detailed schedule maintained of each receivable control account, and the schedule should agree with the applicable general ledger control account. The schedule includes the date of the receivable, the customer’s name, the amount and date due and Read more about Other Non-Current Assets[…]

Other Liabilities

Office Management OTHER LIABILITIES CUSTOMER DEPOSITS AND CUSTOMER ACCOMMODATION ACCRUED LIABILITIES CUSTOMER DEPOSITS AND CUSTOMER ACCOMMODATION To maintain control over customer deposits and customer accommodations, a listing of these items should be prepared monthly including date, customer’s name and amount due. The totals should agree with the applicable general ledger control account balance. The listings Read more about Other Liabilities[…]

Office Management Menu

Office Management Cash Notes Payable Receivables Accounts Payable Inventories Other Liabilities Prepaid Expenses Accountable Documents Property, Plant and Equipment Records Retention Other Non-Current Assets  

Notes Payable

Office Management NOTES PAYABLE NOTES PAYABLE—NEW VEHICLES AND DEMONSTRATORS NOTES PAYABLE—USED VEHICLES OTHER NOTES PAYABLE NOTES PAYABLE—NEW VEHICLES AND DEMONSTRATORS Notes payable are listed on the same schedule as the vehicle inventories to which they apply, The total of floor plan notes payable, as shown on the schedules, should agree with the balance in the Read more about Notes Payable[…]

Inventories

Office Management INVENTORIES VEHICLES INVENTORY RECORD CARD—NEW AND USED (EXAMPLE) VEHICLE INVENTORY NUMBERING SYSTEM PARTS PARTS INVENTORY RECORD LABOR IN PROCESS SUBLET REPAIRS BODY SHOP MATERIALS GAS, OIL AND GREASE GASOLINE USAGE AND EXPENSE DISTRIBUTION FORM VEHICLES A vehicle inventory record card, not necessarily the one illustrated below, is prepared for each new and used Read more about Inventories[…]

Cash

Office Management CASH CASH IN BANKS BANK RECONCILIATION FORMAT PETTY CASH PETTY CASH VOUCHER PETTY CASH SUMMARY CASH IN BANKS As soon as bank statements for all bank accounts are received they must be reconciled immediately with the book records. The reconciliation should be prepared by an employee who has no responsibility for handling cash Read more about Cash[…]