TO THE GENERAL MOTORS DEALER:

Accounting, the process of properly recording and classifying business transactions, is recognized as essential to the successful management of a business.

Control of capital and satisfactory profits are largely dependent upon the efficiency of management and its ability to direct the affairs of the business.  Plans and decisions are necessary, and these should be based on facts.  Without facts, decisions may be made based on erroneous or unreliable information which, at worst, may jeopardize the business and, at best, may not utilize resources to their fullest extent to produce maximum profits.

Accounting itself will not correct mistakes and weaknesses which may exist in the operation of a business.  However, it will assist in revealing them and thus contribute to sound understanding and therefore initiate intelligent action aimed at their correction.

Uniform accounting is necessary because it records the financial performance and history of the business; but, more importantly, it provides the basis for meaningful comparisons.

There is, however, another important purpose of uniform accounting in dealerships.  If the most successful results are to be attained, a close relationship must exist between the dealers and the manufacturer.  Dealership managers depend to an extent upon marketing policies established by the manufacturer for its products. It is essential that such policies be considered in the light of their effects upon the dealer organization. This fact is recognized by the manufacturer, but it must have factual information in order to make decisions and establish policies that are fair and equitable to the dealers and in the best interests of both parties.  The Dealer’s Standard Accounting, properly adhered to, provides these facts when the operating data is forwarded to the manufacturer each month.

Adherence to the provisions of this GM Dealer Standard Accounting Manual and Handbook will also enhance internal control within the dealership.

Your cooperation in this respect will do much toward the elimination of weaknesses and the building of a stronger and sounder dealer organization, capable of increasing sales at a satisfactory profit.

GENERAL MOTORS

GM-US-AC v3.0