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In Good Order

Accounting for independent car dealerships

An unexplained stock balance or uncertainty about the profit on a sale needs investigation. Andrew connects the vehicle records to the accounts and carries out the recurring accounting work you agree.

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Vehicle records and the stock book

Andrew checks the vehicles in the stock book against purchase and sales invoices, then reconciles those records to the ledger. He investigates missing documents and differences between invoices and receipts.

His background includes accountancy practice and operations, with experience in a large dealership group. He can work from a dealer management system or a stock book held separately from the accounts.

What the vehicles sold have earned

Vehicle profitability reports connect purchase invoices and relevant auction charges to the stock record, including preparation and repair costs. Missing costs are identified; the reporting basis determines how they enter the accounts.

The accounting result differs from the VAT margin. Preparation costs can reduce profit without reducing that margin. Auction charges need assessment from the invoice and scheme treatment, so the profitability schedule and VAT working are kept separate.

Read the vehicle margin-scheme VAT and auction-fee examples

Deposits, refunds and settlement of the sale

Andrew checks deposits and final receipts against the sales invoice, follows up differences and accounts for refunds. Finance settlements and part-exchange arrangements are assessed from their agreements and transaction records; a bank receipt may not explain the whole sale. Approval to release a vehicle remains the dealership’s decision.

Use the dealership handover guide for the release checks

Monthly accounts and outstanding questions

Monthly reports show supported stock and account balances, alongside vehicles sold and their recorded costs. Outstanding questions identify which results may still change. Management accounts explain performance beyond individual sales.

Company accounts, VAT work and payroll can be included in the agreed scope, which identifies filing responsibilities and who approves submissions.

Fictional monthly reporting schedule: September 2026. Illustrative records, not client work.

Scroll across the table to read every column.

Schedule entrySupported positionOutstanding work
Stock: vehicle D104Recorded in the stock book; purchase value unsupported.Obtain the purchase invoice and reconcile to the ledger. Value is unconfirmed, not £0.
Vehicle sold: D098Purchase, sale and auction invoices linked.Preparation invoice missing. Profit remains provisional until the cost is established.
Customer account: D101Deposit and final receipt matched to the sales invoice; balance settled.No difference found. Vehicle release remains a separate decision.
Monthly accountsReconciliations and vehicles-sold schedule accompany the draft report.Explain the stock and cost limitations before agreeing the reporting version.

See the management accounts service and example report

Agreeing the dealership accounting work

Fees depend on monthly vehicle volumes, your accounting system and the reporting required. We agree how your team will supply documents and assess the age and condition of any backlog. Recovery work is quoted separately from ongoing accounting.

The Forecourt example shows vehicle records in a dealer management system. Systems work, including any integration with your accounts, requires a separate assessment.

See the Forecourt dealer management software example

Discuss your dealership’s accounts

Tell Andrew your monthly vehicle volumes, accounting system and what needs resolving. The initial conversation is free; a quote follows assessment of the records.

Let’s talk