Calculate the required reasonable estimate prior to the year end for the final financial statement. We prepare the actual computation to determine the pool methodology for the vehicle inventory.
A review of sales collection procedures is essential, as states have increased audit activity. Dealership must keep accurate records for both sales tax collected from customers and use tax owed on purchases when sales tax is not collected. Proper jurisdiction, use, and resale exemption certificates must be maintained by the dealership.
Keeping track of the taxes, fees and assessments due can be a full time job. A check of these items and a review of the filing procedures can help to avoid any problems in the future.