TO THE DEALER’S ACCOUNTANT:

The General Motors Dealer Standard Accounting Manual and Handbook is not an explanation of the basic and fundamental principles or methods of bookkeeping but is an accounting manual intended for use by an accountant.

It is our desire to have the dealer employ a skilled accountant who recognizes the importance of gauging the business and of assisting in the formulation of policies on the basis of facts rather than guesswork.

An accountant is one who understands the mechanics of bookkeeping and, in addition, has the ability to supervise the methods used in collecting the information to be recorded and to interpret and analyze the results disclosed by the operating data. Such an individual should be able to interpret:

·        The trends of the business

·        The results of changes in policies

·        The fluctuations in various accounts

·        The effect of such fluctuations

The accountant should be aware of changes in conditions of the business, which might prove detrimental to profits, be able to forecast the probable results of any contemplated actions or changes in policy, and be able to determine the number of vehicles, which must be sold to cover the unabsorbed overhead and produce a desired profit.

The value of the accountant is increased if they furnish the dealer with the information outlined above.

The duties of a dealer accountant are:

1.    Maintain the Dealer’s Standard Accounting System in accordance with the instructions contained in this manual and supervise all methods used in the business for the recording of transactions.

2.      Submit required trial balance information to DBI/FACTS on a timely basis. Prepare necessary supporting schedules of accounts.

3.      Prepare sales and profit forecasts for future periods as a guide for the business and make comparisons between these forecasts and the actual results.

4.      Use the DBI/FACTS Compass Reports each month as a tool in managing the business.

GM-US-AC v3.0