Posted on November 30, 2023 by Kirsten Waters
Closing the month-end books in an auto dealership involves a series of critical steps to ensure accuracy, compliance, and completeness. Given the already chaotic accounting office, it’s crucial to establish a systematic process to ensure all steps are taken. Aligning with a vendor, like One View, who understands the importance of a proper month-end close, can ensure reduced opportunities for error.
Here are some best practices and tools to consider for effective month-end closing in auto dealerships:
- Create Standard Operating Procedures (SOPs):
- Document clear and detailed SOPs for month-end closing procedures.
- Ensure all team members are trained and have access to these procedures.
- Use Cross-Verification Checklist:
- Develop a checklist that outlines all the tasks to be performed during month-end closing.
- Assign responsibilities to specific personnel and cross-verify completion.
- Perform Regular Audits and Reconciliations:
- Conduct regular internal audits to identify discrepancies or missing data.
- Reconcile financial statements with transactional data to ensure accuracy.
- Ensure Digital Archiving of Documents
- Implement a robust document management system, such as One View, to archive all necessary documents electronically.
- Provide remote access to CPAs or corporate personnel to reduce back-and-forth
- Regularly back up month-end data, especially in a 3rd party system, gives you the ultimte flexibility to manage your documents.
- Change Management Protocols:
- Implement change management protocols to ensure a smooth transition during personnel changes.
- Document procedures and provide training when new staff members take over responsibilities.
- Data Validation Tools:
- Utilize reliable data validation tools and software to check for discrepancies.
- One View can be a useful tool for validating archived documents. Using One View’s proprietary “Vali-Data” technology, One View provides a 3rd party audit of your month-end reports to ensure they timely archived, in full, every month.
- Benefits of Archiving and Scanning:
- Efficiency: Quick access to archived data saves time during audits and inquiries.
- Compliance: Ensures compliance with legal and regulatory requirements for data retention.
- Space and Money Savings: Reduces the physical space and costs associated with storing paper documents.
- Security: Enhanced security features protect sensitive information.
- Regular Review Meetings:
- Hold regular review meetings to discuss any issues encountered during month-end closing.
- Use these meetings to update SOPs based on lessons learned.
- Continuous Improvement:
- Continuously assess and improve month-end closing processes.
- Encourage feedback from employees involved in the process to identify bottlenecks and areas for improvement.
- Employee Training:
- Invest in ongoing training for employees, especially when there are software updates or changes in procedures.
- Cross-train employees to ensure multiple staff members are familiar with critical tasks.
By combining a structured approach, well-defined processes, reliable scanning and archiving tools like One View, and a commitment to continuous improvement, you can enhance the efficiency and accuracy of month-end closing procedures in auto dealerships. Remember that a proactive and well-documented approach is key to mitigating risks associated with personnel changes and data conversions.
Meet Us at AICPA: If you’re attending the AICPA & CIMA Dealership Conference, we invite you to stop by our booth # 105. Our leadership team will be available to discuss your scanning, archiving, data conversion, and document management needs. We understand the challenges faced by CPAs and controllers, and we’re here to provide solutions tailored to your client and your dealership’s requirements.
Visit our Website: https://www.one-view.com/