General Motors Dealer Standard Accounting Manual and …

General Motors

Dealer

Standard Accounting

Manual and Handbook

? 2021 General Motors

This manual cannot be reproduced in whole or in part without the expressed

written permission of General Motors.

TO THE GENERAL MOTORS DEALER:

Accounting, the process of properly recording and classifying business transactions, is an important factor, 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 intelligent action aimed at their correction.

Uniform accounting is necessary because it records the financial history of the

business; but, more important, 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 operated,

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

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 he or she is able to 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 FACTS 2.0 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 FACTS 2.0 Compass Reports each month as a tool in managing the

business.

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