Checkout the AutoCPA’s latest newsletter

A biannual newsletter highlighting the latest accounting trends written by the AutoCPA Group.

Here are the highlights of what is included in this edition. Please click here for the full version.

Overcoming Obstacles Impacting Dealership Profits and Valuations

The decreased supply of new vehicles resulting from the pandemic and other supply chain issues, coupled with strong consumer demand, has created the best environment for retailing new and used vehicles that we have encountered. Year-to-date 2022, we have seen new record profit months. But is this level of net profit truly sustainable for the long term considering the FTC new Safeguards Rule, interest rate increases, and inflation?

There’s Every Reason To Consider Solar Energy Now

We are frequently asked about ways dealers can save and make money. Over the last several months, one answer to both questions has been the same:

Consider solar. Here is why.

• Like most technology, with innovation comes price reduction.
• Federal, state and utility incentives are available.
• Projected financial returns can be substantial.
• The expected life of an array is 40 years.
• Once installed, the cost of electricity from the system is fixed.
• The marketing opportunities for dealerships can be significant.
• Staying ahead of the competitive curve is what keeps businesses healthy.

Navigating Tax Strategies – Business Interest Expense Deduction Limitation

Dealers are navigating unprecedented market conditions, and most are experiencing a higher bottom line and healthier cash flow.

As dealers contemplate significant capital improvement projects, such as a facility image upgrade or electric vehicle infrastructure, they should work with their tax advisors on how to maximize the tax benefit of placing these projects in service. Changes to the business interest expense limitation calculation for taxable years beginning after January 1, 2022, may have a substantial impact on the amount of depreciation expense immediately available for dealers when placing improvements in service.

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