Recognize the people who make your business thrive with LotDrop’s Customer & Employee Appreciation Collection. From branded gear to thoughtful gifts, this curated lineup is designed to make saying “thank you” effortless and impactful. Whether you’re rewarding employees, thanking loyal customers or celebrating milestones, LotDrop makes it easy to show appreciation with quality items that reflect your brand’s values. Scan the QR code to explore the collection and find the perfect way to say thanks, because a little appreciation goes a long way. https://promo.lotdrop.com/sr/4296351 Align With External Parties Coordinate early with your CPA or auditor to clarify expectations and deadlines. Review fixed asset additions and disposals, confirm depreciation schedules and verify inventory valuations, including LIFO if applicable. Analyze Year-End Adjustments Check that all prepaid expenses, accruals and bonuses are captured. Review warranty liability estimates and deferred income accounts to ensure accurate reporting. UNDERSTANDING AND MANAGING “13TH MONTH” ENTRIES Many dealerships post final-year-end adjustments after the December close, often referred to as “13th month” entries. These adjustments are not for factory reporting but help finalize financial statements for audit and tax purposes. Best practices include: • Clearly labeling and dating all “13th month” entries in the accounting system. • Maintaining a separate journal or accounting period for these adjustments. SHOW YOUR APPRECIATION WITH LOTDROP BY JON DUNN PRODUCTS MANAGER, NHADA • Restricting access to authorized accounting or controlling staff. • Documenting all support and communicating with your CPA before posting. Handled properly, these entries fine-tune financial accuracy without disrupting factory or internal reporting. COMMON PITFALLS Some of the most frequent dealership accounting issues stem from overreliance on DMS balances without reconciling to the general ledger. Others include failing to record F&I chargebacks, overlooking small balances that carry forward month after month, or leaving accounting periods open for late changes. Locking each period immediately after close, once it has been reviewed, prevents unapproved adjustments and strengthens internal control. THE ROAD AHEAD A well-executed month-end close is more than a back-office task — it’s a strategic discipline that keeps your dealership financially healthy and audit-ready. By reconciling consistently, reviewing thoroughly and leveraging technology wisely, you can turn a tedious process into a competitive advantage. To start audit-proofing your dealership, treat every month-end close as a mini-year-end. 25
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