Monthly Office Manager Checklist

The importance of an accurate monthly financial statement cannot be understated.  The following checklist should be prepared by the office manager and reviewed by the general manager or owner on a monthly basis.  This checklist should improve the line of communication between the accounting department and management.  Each dealership should modify the checklist according to its chart of accounts, dealership policies, and unique franchise situations. 
                                                                                                                              Explanation 
                                                                                                            Yes    No    or Exception

All cash accounts have been reconciled and are in balance
with the general ledger.

I have reviewed the contracts in transit schedule and it appears
proper.  There are no contracts over ten days old.

I have reviewed the vehicle receivables schedule and it appears
proper.  There are no vehicle receivables over 3 days old.

All finance reserve accounts have been reconciled and the
adjustments and chargebacks have been recorded.

I have reviewed the parts and service accounts receivable
and it appears proper.  Attached is the detail of any items
over 60 days old, with notes about the collection activity.

I have reviewed the factory incentives schedule and it appears
proper.  Attached is a listing of any incentive over 30 days old,
with notes about the collection activity.

I have reviewed the warranty receivable schedule and it appears
proper.  Attached is a listing of any warranty receivables over 30
days old, with notes about the collection activity.

The holdback schedule has been reviewed and is in balance.

I have reviewed the new and used vehicle schedules and they
appear proper.  There are no smaller debits and credits which
should be cleared from the schedule.

The work in process and sublet accounts have been reviewed
and appear proper.

The floor plan statement has been reconciled to our books. The
interest is properly accrued.

Prepaid or accrued real estate taxes has been reviewed,
adjusted, and the balance is correct.

The prepaid expense accounts have been reviewed, adjusted,
and appear proper.

The fixed asset accounts have been reviewed. The asset
additions are proper and the depreciation has been adjusted.

The accrued payroll and accrued payroll tax accounts have
been reviewed and the balances on the general ledger are
correct. All payroll tax deposits have been made and the
required returns have been submitted.

All other accruals have been reviewed and are correct.

I have made all required payments on lines of credit, notes
payable, and lease payables. The general ledger balances
have been agreed to amortization schedules or bank
statements.

I have reviewed the accounts payable schedule and it
appears proper.  The open parts account has been reconciled
to the manufacturer statement.

The general ledger balance for parts inventory for parts has
been compared to the parts pad at the end of the month.

The general journal has been reviewed and appears proper.

Any balance sheet accounts not specifically noted in this
checklist have been reviewed and are reconciled.

I have reviewed the balance sheet portion of the trial balance
and feel that all accounts are accurate.

For more insights on the state of the dealer industry, please e-mail Paul McGovern at pmcgovern@downeycocpa.com or call 800-849-6022.