How Not to do Accounting for a Boat Dealership
Spreadsheet programs are great, don’t get us wrong. But multiple users working in multiple files with multiple tabs to keep track of accounting-related information is just a breeding ground for human error. (And sometimes these errors go unnoticed for weeks or months.) Plus, it requires significant time and effort to gather the raw data needed to populate the spreadsheet.
Some business owners lean heavily on their accountant to make sense of it all, which can be enormously expensive in the end.
Think about it. If you’re using spreadsheet programs as the basis for your accounting system and sending them once a month to your CPA, they have to spend a lot of time and effort wrangling data and consolidating information in a way that produces any meaningful financial reports.
And typically, accountants’ fees can run anywhere between $150 or more than $400 per hour based on training, experience, and certifications. So in the end, your spreadsheet accounting system actually costs more than purchasing a solid DMS platform that integrates with accounting software.
The other drawback of using spreadsheets as the primary tool for your accounting function is that if you’re sending these files to your accountant monthly, you’ll have only a retrospective picture of how your business is doing rather than in real-time.
And even if you’re using accounting software versus a spreadsheet system, it’s likely that it doesn’t capture important data concerning other essential functions like rentals, parts, and sales. So you’ll never have a complete picture of how the business is doing as a whole.
The Right Way to do Accounting for Your Dealership
The best Dealer Management Systems boost productivity and integrate with your accounting software. That way you can access all of the information in one place and have the option to pull reports that are both detailed and comprehensive in real-time.
For optimum results, your DMS should incorporate not just accounting data but also key details from all other critical aspects of your business, including things like:
- Major unit sales
- Hard good add-ons like covers, trailers, and wakeboards
- Service revenue and expenses, including parts and labor (which are treated differently from a sales tax perspective)
- Rentals (e.g. slips, boats, or both)
- Storage
- Retail sales captured by your point-of-sale (POS) system
A DMS that integrates with your accounting platform not only reduces the opportunity for human error but also allows you to find and fix them quickly.
A DMS That Works
Ultimately a fully integrated Dealer Management System creates efficiencies, reduces human error, and offers a simple and less confusing solution for everyone in the office, from salespeople to administrative staff.
Dealership Advantage is a cloud-based SaaS solution that integrates with two of the most popular accounting software packages, QuickBooks and Sage. We take advantage of cutting-edge technology that allows our customers to be swift and agile as a result of streamlining dealership operations.
