Article:

Automotive FAST 15 – Are you prepared?

26 July 2019

Mark Ward , National Leader, Automotive |

With the current challenges in respect to profitability and the FY19 financial year behind you, now is an opportune time to consider our FAST 15 checklist to ensure you are well positioned for the year ahead.

Are you:

Claiming back the GST on bad debts written off
Comfortable with the process of claiming and recovering factory incentives
Considering your dealership’s footprint by brand to identify if there are opportunities to increase throughput by site (reduce sites)
Attentive to the sales opportunity that has come from the wave of service customers (some who you have not seen before, or for a long time) due to the airbag recall
Minimising and getting payroll tax, stamp duty, workers compensation, GST and FBT right
Sure you are recovering as much of your NITC's as you are entitled to
Talking to your financier about your retail plan in this post flex environment
Convinced that your remuneration structures are engaging staff, optimising financial results and encouraging good behaviours
Minimising floorplan interest by paying out sold vehicles and clearing vehicles transferred
Measuring and incentivising return on investment on your parts, new and used vehicles
Conscious of your cyber risk and taking steps to address
Aware of the fraud risks in your dealership and setting an appropriate tone from the top
Evaluating the impact of the new accounting standards for leases and revenue
Contemplating the consolidation and disruption trends and what you can do to prepare
Reviewing your expenses, particularly the big 4, employee, rent, advertising and interest – leveraging scale

The BDO Automotive team can assist you in getting prepared, helping you make informed decisions to maximise the value of your business. If you have any questions, please contact your BDO adviser.