Financial Services for Auto Dealers
Green’s new LIFOcapture™ service revolutionizes time-consuming data collection by simultaneously capturing the data for Net Inventory and LIFO calculations at once! Eliminate the wasteful duplication of efforts, increase efficiency, reduce costs and place your firm in the role of auditor, instead of data entry. Green employs your LIFO business rules, utilizes existing Net Inventory databases and delivers the results you need in one, platform-independent, cost-effective, turn-key service.
NET INVENTORY CALCULATIONS
Green’s all-in-one Net Inventory service gives you all the data capture, documentation and calculations required in a single solution. Green identifies all automotive trade discounts and advertising expenses. The data results are typically delivered in as little as 10 days; all you have to do is incorporate the necessary M1 Adjustments in the company’s tax return!
Most dealerships have a tax deferral equivalent to 1 1/2 % to 2% of new vehicle inventory at cost, but these benefits often go unrealized. Let Green identify and calculate the applicable items so you can defer the realization of income resulting from trade discounts until the year those goods are sold. Create an annual rolling deferral for the life of the company or manufacturer program. Every factory program is different and those programs change but Green keeps track of everyone.
Green’s service tracks advertising expenses and determines the status of economic performance and the all events test, often the most challenging portion of the Net Inventory Method. If you’ve already reduced inventory for trade discounts, don’t miss the advertising inventory reductions that can accelerate an additional 1% to 2% of advertising expenses into the current year! Green tracks all factory programs and the distribution of funds so you’re always recording the actual amount spent on advertising expenses.
THE GROSS BENEFITS
Net Inventory calculations are determined from fact and circumstance analysis and the programs change. Three factors create the Gross Benefit and work in conjunction with each other.
The negative 481(a) amount for the year of change + the current year’s Net Inventory adjustment = Current FY Gross Benefit
Using LIFOcapture™ to absorb annual calculation costs and maintain compliance is the most cost-effective tool available to CPAs today. Let Green deliver the data, so you can deliver the results.