Why Your Motor Trade Business
Needs a Specialist Accountant
Margin schemes, stocking finance, department profitability.
The motor trade is unlike any other sector, and here is why a specialist accountant pays for itself.
By Andy Smith, Founder & Finance Director
The motor trade is unlike almost any other business. The way you buy and sell stock, the VAT rules you live by, the finance behind your forecourt and the way profit hides across departments, none of it fits the template a general accountant works from. I should know: as well as running Abbeygate, I have acted as Finance Director of a Top 200 dealer group that grew from £30m to over £130m a year.
VAT is a minefield, and an opportunity. The margin scheme for used vehicles, demonstrators, part-exchanges and warranty handling. Get them right and you keep every penny you are entitled to. Get them wrong and you either overpay or invite an enquiry.
Profit hides in departments. A healthy bottom line can disguise a service department subsidising a loss-making sales operation. Department-level reporting shows you where you really make money.
Real-time beats year-end surprises. With Xero set up properly, you get live numbers and proactive monthly reviews. A specialist does not cost you money, done well they make you money.
