The importance of an accurate monthly financial statement cannot be understated. The following checklist should be prepared by the office manager and reviewed by the general manager or owner on a monthly basis as part of the month end financial statement closing process. This checklist should improve the line of communication between the accounting department and management. Each dealership should modify the checklist according to its chart of accounts, dealership policies, and unique franchise situations.
Yes No Explanation/Exceptions
All cash accounts have been reconciled and are in balance ∠ ∠ __________________
with the general ledger.
I have reviewed the contracts in transit schedule and it ∠ ∠ __________________
appears proper. There are no contracts over five days old.
I have reviewed the vehicle receivables schedule and ∠ ∠ __________________
it appears proper. There are no vehicle receivables
over 3 days old.
All finance reserve accounts have been reconciled and ∠ ∠ __________________
the adjustments and chargebacks have been recorded.
I have reviewed the parts and service accounts receivable ∠ ∠ __________________
and it appears proper. Attached is the detail of any items
over 60 days old, with notes about the collection activity.
I have reviewed the factory incentives schedule and it ∠ ∠ __________________
appears proper. Attached is a listing of any incentive
over 30 days old, with notes about the collection activity.
I have reviewed the warranty receivable schedule and it ∠ ∠ __________________
appears proper. Attached is a listing of any warranty
receivables over 30 days old, with notes about the collection
activity.
The holdback schedule has been reconciled to the factory ∠ ∠ __________________
statement and is in balance.
I have reviewed the new and used vehicle schedules and ∠ ∠ __________________
they appear proper. There are no smaller debits and credits
which should be cleared from the schedule.
The work in process and sublet accounts have been reviewed ∠ ∠ __________________
and appear proper.
The floor plan statement has been reconciled to our books. ∠ ∠ __________________
The interest is properly accrued.
Prepaid or accrued real estate taxes has been reviewed, ∠ ∠ __________________
adjusted, and the balance is correct.
The prepaid expense accounts have been reviewed, adjusted, ∠ ∠ __________________
and appear proper. Attached is a listing of any significant items
in the account.
The fixed asset accounts have been reviewed. The asset ∠ ∠ __________________
additions are proper and monthly depreciation entries have
been made.
The accrued payroll and accrued payroll tax accounts have ∠ ∠ __________________
been reviewed and the balances on the general ledger are
correct. All payroll tax deposits have been made and the
required returns have been submitted.
Sales taxes payable are accurate and amounts have been ∠ ∠ __________________
remitted to the state.
All other accruals have been reviewed and are correct. ∠ ∠ __________________
I have made all required payments on lines of credit, notes ∠ ∠ __________________
payable, and lease payables. The general ledger balances
have agreed to amortization schedules or bank statements.
I have reviewed the accounts payable schedule and it ∠ ∠ __________________
appears proper. The open parts account has been reconciled
to the manufacturer statement.
The general ledger balance for parts inventory for parts has ∠ ∠ __________________
been compared to the parts pad at the end of the month.
The general journal has been reviewed and appears proper. ∠ ∠ __________________
Any balance sheet accounts not specifically noted in ∠ ∠ __________________
this checklist have been reviewed and are reconciled.
I have reviewed the balance sheet portion of the trial ∠ ∠ __________________
balance and feel that all accounts are accurate.
For more insights on accounting, tax and management issues in the dealer industry, e-mail Paul McGovern at pmcgovern@downeycocpa.com or call 781.849.3100.
Updated: 9/12
