If this sounds like you

Illustrative composite. Not a real client.

Scenario · Dealer accounting software

Dealer accounting software help: Dealertrack, AutoSoft, CDK and QuickBooks Online

Here is how we get clean books out of a dealer system, shown on a made-up dealer with two floorplan lenders. Your system will be different, but the steps are the same.

If this sounds like you

Your dealer system runs deals, finance and insurance, and inventory, but nobody trusts its accounting side.
Your floorplan lenders’ statements never match the books.
Your system locks a month after it closes, and your fixes keep piling into the current month or into equity.
You’re switching dealer systems, or just did, and the new vendor wants opening balances.
Your tax preparer builds the return from a separate set of books because the system’s numbers can’t be used.

If any of these sound like you, the next section shows how we would work with you. After that comes a full example with schedules, tie-outs and entries.

We work out your options from your own books and tax returns.

Your numbers will be different. On the call we work them out with you.

Personal credit, taxes, finances
Books
Controller
CFO, including tax planning

Illustrative composite. Not a real client.

How we'd work with you

Here is what happens in the first week, the first 30 days and every month after that.

Week 1

Export the trial balance and every schedule.
Pull lender, bank, card and payroll reports.
List every schedule that doesn’t tie.
A schedule ties when its list of items adds up to its account in the books.

First 30 days

Clean the schedules, oldest items first.
Tie inventory and floorplan unit by unit.
Set up tax books in QuickBooks Online if the dealer system’s history can’t be trusted.
Write the month-end checklist.

Every month

Run the close checklist and clean the schedules.
Reconcile banks and cards.
Prepare the dealer financial statement.
Meet with the owner and the office manager.

What you get

Books your lenders and tax preparer can trust.
A close your staff can run.
Someone who already knows where problems tend to build up in dealer systems.

Systems we work in

Illustrative composite. Not a real client.

These are the systems we have worked in for dealer clients. The notes describe the work we do in each.

System	The work
Dealertrack	Getting old data back out after a dealer leaves the system, and rebuilding months from exports and bank records.
AutoSoft	Daily posting habits that break reconciliation, such as one lump entry a day for all deals. Month-end close steps, journal exports, and what to do when a closed month can’t be reopened.
CDK	Opening balances on a switch date, month-end and year-end close, cleaning account schedules, bank reconciliation uploads and posting templates.
QuickBooks Online	Tax books built from bank, lender and payroll records when the dealer system can’t be fixed, and a bridge from the dealer system to the tax return.
Floorplan lenders	Unit-by-unit tie-outs between lender statements, the lot and the books, and the monthly financial package lenders ask for.
Payroll providers	We set up payroll with your provider; your provider runs it. We make sure its reports match the dealer system and the books.

In our experience, older dealer systems often won’t let you reopen a month once it is closed. Fixes then pile up in the current month or in equity unless someone keeps a list.

Swipe to see the rest of the table.

Choosing dealer accounting software: what to check

Illustrative composite. Not a real client.

If you are picking a dealer system or judging the one you have, these are the questions we would ask, based on the books we have kept in them.

Can you reopen a closed month to fix it, or does every fix go in a later month?
Can you export every schedule and the full ledger detail, so the history leaves with you if you switch?
Does it tie floorplan unit by unit for each lender?
Does each deal post on its own, or does the day post as one lump entry?
Can it upload bank statements for the monthly bank reconciliation?
Is QuickBooks Online alone enough? For a small used-car lot with one lender, it often is.

Meet the dealer

Illustrative composite. Not a real client.

Sample Auto Group LLC is a made-up dealer that sells new and used vehicles. It finances inventory with two floorplan lenders, Lender A and Lender B. Everything here is invented except the product names above.

System 1: The start-up system. Deals were posted as one lump entry a day, so nothing could be traced back to a single deal.
System 2: A bigger system. Months were closed before the schedules were clean, and closed months could not be reopened.
QuickBooks Online: We rebuilt the tax books from bank, lender and payroll records. The tax return was built from these books.
System 3: The current system. We built the opening balances and the month-end checklist.

Schedule status for one month

Illustrative composite. Not a real client.

At the end of Month 1, 12 of 18 schedules were clean. Each one that wasn’t clean has a note and a person assigned to fix it.

Schedule	Status	Note
Used vehicle inventory	Clean	Ties to the unit list
New vehicle inventory	Clean	Ties to the unit list
Floorplan, Lender A	Not clean	One unit already paid off to the lender, still open in the books
Floorplan, Lender B	Clean	Ties unit by unit
Contracts in transit	Not clean	Two deals over 30 days old
Sales tax payable	Clean	Ties to the state return
Title and registration fees	Not clean	Fees collected but not yet paid to the state
We-owes (work promised to buyers)	Not clean	Three items from last quarter
Lien payoffs on trade-ins	Not clean	One payoff sent twice
Customer deposits	Clean	Matches open deals
Parts inventory	Clean	Count done this month
Warranty claims receivable	Not clean	Old denied claims never written off
Finance and insurance income receivable	Clean	Matches the provider reports
Factory receivable	Clean	Matches the factory statement
Employee advances	Clean	Two advances, both with signed notes
Accrued payroll	Clean	Ties to the payroll provider report
Payroll taxes payable	Clean	Ties to the payroll provider report
Bank reconciliation	Clean	Reconciled to the statement

Swipe to see the rest of the table.

Floorplan tie-out for two lenders

Illustrative composite. Not a real client.

Each lender’s statement is checked against the dealer system and a walk of the lot.

	Lender A	Lender B
Units on lender statement	34	12
Units in the dealer system	35	12
Units on the lot	34	12
Dollars on lender statement	$782,000	$318,500
Dollars in the dealer system	$806,500	$318,500
Difference	$24,500	$0

The Lender A difference is one vehicle sold last month. The payoff left the bank, but it sat in a clearing account (a holding account for money on its way somewhere) instead of reducing the loan. Posting it brings Lender A to $782,000 and 34 units.

Swipe to see the rest of the table.

Month-end checklist

Illustrative composite. Not a real client.

Your staff can run this list. The Day column counts business days after month end.

#	Step	Who	Day
1	Post the last day’s deals and repair orders	Office manager	1
2	Post deposits and card batches	Office manager	1
3	Reconcile the operating bank account	Bookkeeper	2
4	Reconcile the payroll bank account	Bookkeeper	2
5	Reconcile card processor deposits	Bookkeeper	2
6	Tie used vehicle inventory to the unit list	Bookkeeper	3
7	Tie new vehicle inventory to the unit list	Bookkeeper	3
8	Tie Floorplan, Lender A unit by unit	Bookkeeper	3
9	Tie Floorplan, Lender B unit by unit	Bookkeeper	3
10	Walk the lot against the unit list	Sales manager	3
11	Clear contracts in transit over 10 days	Finance manager	4
12	Clear lien payoffs on trade-ins	Office manager	4
13	Review we-owes and close finished ones	Service manager	4
14	Tie title and registration fees to state payments	Office manager	4
15	Tie sales tax to the state return	Bookkeeper	5
16	Tie customer deposits to open deals	Office manager	5
17	Tie finance and insurance income to provider reports	Bookkeeper	5
18	Tie warranty and factory receivables to statements	Office manager	5
19	Count parts or check the cycle count	Parts manager	5
20	Post the payroll provider reports	Bookkeeper	5
21	Tie accrued payroll and payroll taxes	Bookkeeper	6
22	Book floorplan interest and fees from lender bills	Bookkeeper	6
23	Book depreciation	Bookkeeper	6
24	Review every schedule for items over 60 days	Lead reviewer	7
25	Book correcting entries with a note on the month they belong to	Lead reviewer	7
26	Run the dealer financial statement	Bookkeeper	8
27	Review gross by department and units sold	Lead reviewer	8
28	Send the lender financial package	Office manager	9
29	Close the month in the system	Lead reviewer	10
30	Monthly meeting with the owner and office manager	Owner and lead reviewer	12

Swipe to see the rest of the table.

Dealer financial statement, summary page

Illustrative composite. Not a real client.

This is the summary page many floorplan lenders ask for every month.

Department	Units	Sales	Gross profit
New vehicles	22	$1,034,000	$96,000
Used vehicles	48	$1,296,000	$212,000
Finance and insurance			$118,000
Service and parts		$188,000	$74,000
Total	70	$2,518,000	$500,000

Line	Amount
Total gross profit	$500,000
Selling expenses	$168,000
Salaries and wages	$142,000
Floorplan interest	$8,000
Rent, utilities and other	$84,000
Net profit for the month	$98,000

Swipe to see the rest of the table.

Before and after the clean-up

Illustrative composite. Not a real client.

This table shows how many open items the schedules had at each month end, before and after we cleaned them. We clear the oldest items first.

Month	Open items before	Open items after
Month 1	41	12
Month 2	38	9
Month 3	44	7
Month 4	36	6
Month 5	33	5
Month 6	29	4
Month 7	27	4
Month 8	22	3
Month 9	18	3
Month 10	14	2
Month 11	9	2
Month 12	6	2

Swipe to see the rest of the table.

Key entries

Illustrative composite. Not a real client.

One retail deal, posted from start to finish

A used vehicle sells for $24,000. The buyer trades in a vehicle worth $8,000 that still has a $5,000 loan, buys a $1,500 service contract, and pays $1,440 of sales tax and $160 of title fees. A finance company funds the deal.

Account	Debit	Credit
Contracts in transit (finance company owes the dealer)	$24,100
Used vehicle inventory (the trade-in)	$8,000
Used vehicle sales		$24,000
Lien payoff owed on the trade-in		$5,000
Service contract income (finance and insurance)		$1,500
Sales tax payable		$1,440
Title and registration fees payable		$160
Total	$32,100	$32,100

Cost of the vehicle sold

The sold vehicle leaves inventory at its cost.

Account	Debit	Credit
Cost of used vehicles sold	$19,500
Used vehicle inventory		$19,500
Total	$19,500	$19,500

Floorplan payoff

The vehicle was financed by Lender A. The payoff clears the loan for that one unit.

Account	Debit	Credit
Floorplan, Lender A	$19,500
Operating bank account		$19,500
Total	$19,500	$19,500

Correcting entry in a locked month

The Lender A payoff from last month sat in a clearing account, and last month is closed. The fix goes in this month, with a note on the month it belongs to and a line on the list for the tax return.

Account	Debit	Credit
Floorplan, Lender A (belongs to last month)	$24,500
Floorplan payoff clearing		$24,500
Total	$24,500	$24,500

Swipe to see the rest of the table.

Tax questions we raise

Illustrative composite. Not a real client.

Which books the return is built from. We keep a written list that ties each number in the dealer system to the tax return.
Floorplan interest. Under the business interest limit in section 163(j), floorplan interest is fully deductible. In a year when a dealer deducts floorplan interest in full this way, it may lose bonus depreciation (writing off the full cost of equipment in the first year), so we look at both together. Dealers small enough to pass the small business gross receipts test (average yearly gross receipts under $31 million for 2025 or $32 million for 2026) aren’t subject to the limit at all.
Large cash payments. A dealer that receives more than $10,000 in cash from a buyer, in one payment or related payments, files Form 8300 within 15 days. A dealer that must file at least 10 other information returns that year files Form 8300 electronically.
Vehicle inventory value. Vehicles are tracked one by one at cost. Write-downs to market value are made before the system locks the year.
Clean vehicle credits. The federal clean vehicle credits ended for vehicles acquired after September 30, 2025. For earlier sales, we check that the seller reports were filed with the IRS and copies given to buyers.
Contractors. Transporters and detailers paid as contractors may need Form 1099-NEC. We get a signed Form W-9 from each one before paying them.
Entity type. We make sure the IRS has the same tax classification you file under.

Illustrative composite. Not a real client.

What we'd ask you for

This is the list for your first month. We only read these. Nothing in your system changes until you approve it.

What we ask for	What we look at	What it tells us
Dealer system exports	Trial balance and every schedule, month end	Which schedules tie and which don’t
Floorplan statements	Each lender, unit by unit	What you owe on which vehicles
Unit list and a lot walk	Stock numbers, costs and what is on the lot	What you really own
Bank and card statements	Every account for the month	The cash numbers we trust
Finance company funding reports	Deals funded and deals still out	Contracts in transit
Payroll provider reports	The month’s payrolls	Wages and payroll taxes to book
Last two tax returns	Business returns and depreciation	The bridge from the system to the return

Illustrative composite. Not a real client.

Switching dealer systems?

The moving accounting systems page shows the opening balance file and the unit-by-unit inventory list for a switch date. That page uses a different made-up dealer.

See the moving accounting systems example

Illustrative composite. Not a real client.

Need a statement for your lender?

Floorplan and credit-line lenders often ask the owner for a personal financial statement, too. That page uses a different made-up dealer.

See the personal financial statement example

Illustrative composite. Not a real client.

Running a dealership on Dealertrack, AutoSoft, CDK or QuickBooks Online? Book a free 30-minute call about your dealer books. We’ll look at your schedules with you and tell you what we would clean first.

Book a free 30-minute call

Bring last month’s schedules and your floorplan statements.