Automotive Industry Expertise
Automotive accounting has its own vocabulary and its own set of landmines that general-practice CPAs frequently step on. LIFO layers, holdback, pack, CSI bonuses, factory receivables, floor plan curtailments — these are not concepts you want to explain to your accountant. We bring hands-on understanding of how dealership operations flow through the financial statements, from the showroom to F&I to the service drive.
LIFO Inventory Valuation
- LIFO conformity elections for new and used vehicle inventories
- Annual LIFO computations and pool maintenance
- Parts department LIFO management
- Multi-franchise and multi-location LIFO coordination
- IRS compliance and LIFO recapture planning
- LIFO reserve analysis for buy-sell transactions
Floor Plan & Financing
- Floor plan interest expense accounting and deduction optimization
- Curtailment schedule tracking and cash flow planning
- Manufacturer incentive and holdback accounting
- Interplay between floor plan interest and Section 163(j) limitations
- Factory receivables reconciliation and aging analysis
Buy-Sell Advisory
- Due diligence for dealership acquisitions and divestitures
- Blue sky and goodwill valuation analysis
- Deal structuring — asset vs. stock transaction considerations
- Tax planning for buyers and sellers
- Post-close integration and accounting transition support
- Manufacturer approval process financial support
Manufacturer Compliance
- Financial statement preparation meeting OEM reporting requirements
- Factory image and facility program compliance documentation
- Composite statement analysis and benchmarking
- Franchise agreement financial covenant support
- Warranty and incentive program accounting
Fixed Ops & Service
- Internal controls for service departments and body shops
- Warranty accounting and chargeback management
- Fixed operations absorption rate analysis
- Service and parts profitability reporting
- Labor rate optimization and technician productivity analysis
Tax Strategy & Credits
- R&D credits for EV infrastructure and technology investment
- Cost segregation studies for dealership facilities
- Section 179 and bonus depreciation for demo vehicles and equipment
- State-specific dealer incentive and tax programs
- Multi-state apportionment for dealer groups
- Succession and estate planning for family-owned dealerships
Who We Serve
- Franchise dealerships — single-point to multi-rooftop groups
- Independent used vehicle dealers and BHPH operations
- Fleet management and commercial leasing companies
- Aftermarket, collision, and specialty service providers
- Parts distributors and wholesale operations
- Private equity-backed dealership platforms
The Kurt Simmons CPA Difference
Most general practice CPAs treat dealership clients like any other business. But automotive accounting requires industry-specific fluency — the kind that only comes from working inside the numbers day after day. We understand how the DMS data flows into your financial statements, what the composite looks like when something is off, and how to read a deal jacket from a tax perspective.
Combined with our capital markets background, we're uniquely positioned to advise on the financial complexities of multi-location groups, private equity-backed platforms, and succession planning — bringing a perspective that most dealership CPAs simply don't have.