Tax season is coming soon, which means its time to get your expenses in order. This can be dreadful for many, as it means hauling out boxes of receipts, or mounds of paper expenses stapled together. By using paper as your means of reporting expenses, it leaves a lot of room for error or for expenses to fall through the cracks.
If you manage your dealership’s expenses in such a way, you may not being getting every eligible deduction because it may be difficult to track all of your paper expenses. However, you can prevent any sorts of issues if you track all of your cash and credit purchases through accounting software, such as Quickbooks or Freshbooks.
Aside from keeping the dealership’s accounting data accurate, there are many other benefits to using an accounting software in order to help your dealership.
Easy data input and tracking
Most banks generally allow you to directly download your bank account data, which you can then sync up with your accounting software, giving you access to your entire month’s worth of data within a couple keystrokes.
Formal Financial Statement Generation
When populated with data, accounting software can help generate useful financial statements, such as balance sheets or profit and loss statements. These sorts of statements can help you understand the state in which your business is currently at and can help you determine your strategy going forward.
Keep auditing short
By having an organized view of your financial data, the IRS will generally keep auditing short because the data has been kept in a formalized view in an accounting software.
Financial history of the business
There’s nothing more telling of your business’ growth than comparing year over year activity when it comes to your income statement. By keeping these records, you can easily compare and find trends within your data that can help drive better business making decisions. Also, in most accounting software, you can easily export this data to a spreadsheet, where you can further crunch the numbers to find more specific data or trends that can paint clearer pictures about your dealership.
Bank reconciliation is easy
Bank reconciliation is made easy because your account won’t balance if you don’t notate any charges you’ve made. As you write checks, withdraw cash, or incur any other charges, these transactions should be recorded in your accounting software to ensure that all records are matched.
Do you already use an accounting software? DealerCenter is now providing Quickbooks integration! See how your DealerCenter entries can easily be converted over to your Quickbooks journal in the video below.
Want to learn more about Quickbooks integration? Please call your DealerCenter rep or sales at 888-669-2669.
* This blog post was originally published on 12/07/2016 on dealercenter.com