We have developed something of a niche in the motor trade, predominantly working with used car dealers and garages.
Our direct experience of working with many clients in this sector gives us the edge.
Due to our reputation in the motor trade, we have clients in Nottinghamshire, Derbyshire, Cambridgeshire and Leicestershire. We are even accountants for used car dealers in London.
Used car dealers
Used car dealers need an accountant that has expertise in dealing with the complexities of the used car market and the unique reporting mechanisms.
We started our business with a loyal client bank containing several used car dealers and our portfolio has grown ever since, primarily through referrals from existing clients.
We can help you with:
Setting up and administering a stock control system
Did you know that a condition of using the margin rate VAT scheme is that you must maintain an up to date stock book of vehicles held for sale?
We can guide you through all of the various ways in which you can comply with that requirement. We have clients keeping paper records, excel spreadsheets and trade specific software. We will help you choose what is right for you and train you on how to use it.
Applying the VAT margin scheme
VAT Notice 718/1 contains the official guidance and we can help you navigate all of the complex issues that often arise when using this scheme.
Stock financing advice
We are familiar with all of various ways in which you may finance your stock purchases and it is always a bonus if your accountant can quickly obtain the reports that they need from the likes of BCA Partner Finance’s website.
We are more than happy to chat through the financing solution that is right for you.
Full management accounts
The stock book can give some indication of profit made on each vehicle, but it is unlikely to highlight all of the other hidden costs of running a used car dealership, such as rent, advertising fees or staff costs. We have the best relationships with those clients that ask us to prepare management accounts; this allows our clients to:
- Understand how much profit the business is actually making. In real time.
- Make decisions on financing.
- Make decisions on dividend declarations.
- Obtain a narrative from us on trends compared to previous periods.
Determining the most tax efficient business structure
It could be sole trader, could be a partnership or possibly a limited company. You can rest assured that we will advise on the best structure for you, taking into account your individual circumstances.
Motor repair garages
Our work with a new client in the garage industry often starts with an analysis of their bookkeeping methods, their stock control systems and advice on the most tax efficient structure for their business.
We can advise on VAT registration obligations and ensure you remain compliant.
We will advise on a bookkeeping system that works for you. If you prefer to leave all of the bookkeeping to us, that’s great. We can even collect the paperwork from you.
If you are already using a trade specific garage software package, the chances are we will be familiar with it. Our accounting packages integrate with all of the well-known garage systems, saving us time and you money.
We can advise on computerized systems for monitoring your stocks. Many of these integrate fully with the accounts and bookkeeping packages we are familiar with.
We know the industry
We appreciate that sales are often paid for in cash and that cash may well be used to purchase parts. We can help you set up a system that monitors that cash, to ensure you remain compliant with HMRC and that the theoretical cash balance does not run out of control.
Other sectors of the motor trade
Used car dealers and garages make up the bulk of our motor trade clients but we also have experience with businesses selling motor spares, those in the car collection business, car valet businesses and tyre dealers, to name a few.
They have become an important partner of the business over the years and if anyone else I know needs help I am always happy to recommend Sunny. Read more “Norris Motorsport”
You can always rely on Karl and his team to be there when you need them most and everything they do is good. I know if I ever need advice he is there to help. Read more “Kirkby Cross Garage”
I knew and trusted Karl. I have a personal meeting with Karl every month. He is happy to deal with any queries as they arise. Karl is very hands on. Read more “Cavendish Motor Workshop Limited”