Auto Dealership Accounting, Tax & Advisory in Fort Wayne
Dealerships run on thin per-unit margins, floor plan debt and factory reporting deadlines. You need a CPA who knows how a dealership actually makes money, department by department.
HCG CPA + Advisory provides accounting, tax, payroll and advisory services for franchised and independent auto dealerships in Fort Wayne, Northeast Indiana and nationwide.
DEALERSHIP EXPERIENCE
Advice that fits how a dealership really runs
A dealership is really several businesses under one roof: new and used vehicles, F&I, service and parts. Each has its own margins, its own payroll plan and its own place on the factory statement. We help owners and dealer principals see how every department is performing and what's driving the bottom line.
Michael Hunsche, CPA, has been working for and with dealerships since 1999 when he started in the office at the Buick/GMC dealer in Muncie, Indiana. He has worked the sales floor, helped behind the parts desk and assisted with just about any area possible. As a CPA he has run audits for multi-location, multi-point dealers and helped local owners understand cash flow for their small lots.
WHAT WE HANDLE
Dealership Accounting, Tax and Advisory Services
Our dealership clients rely on us for everything from financial statement analysis to payroll and tax preparation, so your books, factory statement and taxes all the same story.
Dealership Tax
LIFO inventory elections and calculations
Floor plan interest and the business interest limitation
Depreciation, Section 179 and cost segregation for facilities
Manufacturer incentives and facility program payments
Entity structure for the dealership and its real estate
Year-round tax planning and projections
Accounting & Payroll
Monthly closes that tie to your factory statement
Floor plan, contracts-in-transit and schedule reconciliations
Used vehicle inventory and reconditioning costs
F&I income, reserves and chargebacks
Payroll for our accounting clients, including commission and flat-rate pay plans
Indiana sales tax and title fee tracking
Advisory
Department profitability: new, used, F&I, service and parts
Fixed absorption and expense control
Cash flow and floor plan curtailment planning
Pay plan design and its effect on margins
Dealership buy-sell support and Quality of Earnings
Succession planning for family dealerships
COMMON QUESTIONS
Dealership Accounting Questions We Hear Most
What makes dealership accounting different?
Dealerships carry large inventories financed with floor plan debt, report monthly to the manufacturer on a standardized factory statement, and earn income from several departments with very different margins. Accurate dealership accounting means tying your books to that factory statement every month, not just at year-end.
Should my dealership use LIFO?
For many dealers, LIFO can defer significant taxes when vehicle and parts costs are rising. But it comes with reporting requirements, annual calculations, and the risk of a large recapture if inventory levels drop or the dealership is sold. We look at your inventory trends and long-term plans before recommending whether to elect, keep or change LIFO.
How does floor plan interest affect my taxes?
Floor plan financing interest gets special treatment under the business interest limitation, which helps most dealers deduct it in full. That same treatment can affect your eligibility for bonus depreciation on other assets, so interest and depreciation decisions need to be planned together each year.
Can you help with my factory financial statement?
Yes. We work with your office team to keep the general ledger and the monthly factory statement in agreement, review department results each month, and make sure year-end adjustments flow through correctly so there are no surprises from the manufacturer or your lender.
I'm buying or selling a dealership. How can you help?
Dealership deals involve blue sky value, inventory, real estate and manufacturer approval, and each piece has tax consequences. We provide Quality of Earnings reports, help structure the purchase price allocation, and plan for issues like LIFO recapture, drawing on our own experience buying and selling businesses.
Do you work with independent and used car dealers?
Yes. We work with franchised new car stores and independent used vehicle dealers. Independent dealers face many of the same issues, including inventory valuation, floor plan financing and sales tax, without a manufacturer's reporting framework to lean on.
OUR APPROACH
Timely Numbers, Department by Department
Dealers need to know what's working while there's still time to act. Here's what working with us looks like.
Step 1
Get to know your store
Your franchise or format, your DMS, your office team and your goals.
Step 2
Review the books and returns
We review schedules, LIFO, depreciation and prior returns for issues and missed opportunities.
Step 3
Monthly reporting
Results by department, tied to your factory statement, on a set schedule.
Step 4
Year-end planning
Before December 31, we project LIFO, depreciation and tax so you can act in time.
WHO WE WORK WITH
Dealerships at every stage
Franchised new vehicle dealerships
Multi-rooftop dealer groups
RV, powersports and marine dealers
Independent used car dealers
Family-owned stores planning succession
Truck and equipment dealers
A Better Accounting Partner for Your Dealership
Your dealership deserves more than year-end compliance. With timely numbers by department, proactive tax planning and real advisory support, your financials become a tool for running the store, not just a report for the factory.