Profit Accounting Academy

Nadine EpsteinSandi Jerome

Sandi Jerome Computer Consulting1391NW St Lucie Blvd West PMB 362

Port St Lucie, FL 34986360-406-5062 x 706

Questions? Email - sandi@sandijerome.comTo order – www.sandijerome.com

This handout may not be reproduced in any form without the written permission of the publisher. This handout was designed to provide accurate and authoritative information about its subject. It is provided with the understanding that it is not intended to render legal, accounting or other professional services. If legal advice or other expertise is needed, the services of a competent professional should be sought. Users are cautioned that this might not be a complete list of all regulations, deadlines, or other required tasks for a business and should only be used as a guide. Users assume all risks for using tasks, tips, and suggestions and should seek professional advice before making any changes to procedures.

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Welcome to the Profit Accounting Academy!Introduction and hotel/area information

Notes:______________________________________________________________

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Who are You?Name , Dealership(s) – city/state, Position and how many years?Excel guru or newbie? Autofilter, Pivot tables, Vlookup?DMS system? ADP, R+R (Power/ERA), Dealertrack/Arkona, ASI,Other

How can we bring down the breakeven number?

Parts and service gross profit $____________ Non-variable expenses $_______________

Absorption _____

Where does your store need help? 5 key items

1. Parts and Service – what is your absorption percentage? – What should it be?

a. Technician productivity, sell every hour

b. Parts fill rate, pricing matrix2. Reduce non-variable expenses3. Variable percentage – sales commission

analysis4. Gross profit per unit5. Carry what sells, sell more!

The “Why” of Profit Accounting

o “Mini” deals? Minimum Wage?o Unapplied time? Low technician productivity?o Obsolete parts? Parts Shortages?o High sales commission expense o Why do cars stay in stock over 60 days?o Why am I out of cash today – everyday!

Creating Why Profit Reports for Managers

MondayLast week’s overtime report (this month’s focus) and whyTuesday – Service and Parts10 oldest parts – why did this happen? Can we get rid of?10 oldest repair orders (with hr and pts) – why still open?Lowest productivity technicians – why?

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Parts and Service Gross Profit $534,323Non-variable expenses less other income $914,433Gross Profit per unit $2,500F & I Income per unit $726Variable Cost Per Unit $742Variable percent 23.00%

Total unabsorbed expenses $380,110Net profit per unit $2,484Breakeven Point in Units 153

Forecasted Units 150Forecasted Vehicle Gross Profit 483,900$ Forecasted Gross Profit 1,018,223$ Forecasted Variable Expenses $111,297Forecasted Total Expenses $1,025,730Forecasted Profit (7,507)$

Star ChevroletBreakeven Analysis

10 oldest warranty claims – why?Weds – Inventory day10 oldest new – why? What do we have in stock vs. on order 10 oldest used - why, What is our mix vs what sells?Are we advertising vs. what is in stock?Thursday – Car dealsLowest gross profit – front and back – why? What is common?Deals not in the office – why, reasons (vlookup)Oldest contracts/VR not paid – why – reason (vlookup)Deals per sales person – who is on top? Who is lowest? Why?

Profit Accounting Requirements

Get your office organized - time

Create your metrics

Understand Gross Profit – let’s start at the bottom…parts

What should Parts Gross be?

INTERNAL 481 (15,252) 13,680 (1,572) 10.31%COUNTER-RETAIL 482 (6,725) 5,215 (1,510) 22.45%WHOLESALE 483 (37,525) 30,252 (7,273) 19.38%

Metric1. Top 10 wholesale accounts 27,858 Total sales 25%2. Price matrix setup -9381.25Shortage – how many paper clips doyou need to save? (2,108)

Cash sales Cost plus 35% Metric35%

-2353.75Shortage (844)

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Homework for Parts Profit

Top 10 Parts customers, GP% and price code matrix setup Most common price code matrix – customer file Setup of the price code matrix on DMS What should your matrix be, discussion with dealer and parts manager? Your metrics Journal review – gross profit Parts master, List vs Cost

List Price __________ Cost _____________ Retail Gross Profit% ______

Trade Price __________ Cost _____________ Wholesale Gross Profit% ______

Metric - Customer%_____ Metric - Wholesale%

How you lose Parts Gross

o Tickets sold at cost or lesso Not selling at customer’s matrix priceo Internals not at matrixo Adjustments to cost of sales accountso Journal voucherso Parts purchases – buying at a premium

.....More Profit Homework in the Parts Department

Internal control – Parts

Override Report – DMS 2542, ROV

Additions/Deletes Parts Management Report

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Inventory Analysis

What is your Parts age? Sales vs Receipt date

What if most of your inventory is “current” based on Receipts instead of Sales?

Accounting balance vs. parts pad – do you compare monthly?

Parts Reconcile spreadsheet

What are some of the reasons why Parts and Accounting Totals are not the same?

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Fill Rate Report – your metric, 80%, 70%? ________

If a dealership has a higher fill rate from shelf – how do they make more profit?

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Filled same day?

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Service Department Financial vs. Operational Profit

Name some reasons why service gross on the Service Advisor's report is different than the DOC, Financial Statement?

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What is your Gross Profit %? Customer Labor ___%

CUST. LAB CARS & LD TRKS 460A 140 (67,325) 21,525 (45,800) 68.03%S/CNTR LAB -CARS&LD TRKS 460B 0 0 0 0 0.00%Q/SRV LAB -CARS&LD TRKS 460C 0 0 0 0 0.00%CUST. LAB COM,FLT & MD TRKS 461A 0 0 0 0 0.00%S/CNTR LAB COM,FLT & MD TRKS 461B 0 0 0 0 0.00%Q/SRV LAB -COM,FLT & MD TRKS 461C 0 0 0 0 0.00%WARRANTY CLAIM LABOR 462 227 (127,582) 34,252 (93,330) 73.15%INTERNAL LABOR 463 125 (56,425) 15,252 (41,173) 72.97%NEW VEH INSP LBR 464 31 (8,712) 1,252 (7,460) 85.63%ADJ COST OF LBR SLS 665 17,282 17,282

SUB-TOTAL (260,044) 89,563 (170,481) 65.56%

Do you see any problems above?

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What is your Metric? Homework

125.00$ Posted 125.00$ 33.50$ Actual 40.00$ Tech Cost (set up)91.50$ 85.00$ Gross Profit

73% 68%

Your Posted Labor Rate* $_____ Tech Cost $_____ Metric for Gross Profit % ____

Effective Labor Rate $____ Tech Cost_____ Metric for Gross Profit % ____

* Customer Labor Sales setup amount

Ways to Prevent – Gross loss

Unapplied/shop time to own account – not on an RO Remove all overtime – and put any in an expense/sub Use actual cost in tech setup Work in Process must be a “closed loop” – no lick ‘n stick! Measure – Post - Analyze Technician Productivity/Efficiency/Utilization/Opportunity

What is best to measure –Productivity/Efficiency/Utilization/Opportunity?

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_____________________________________________________________________

Technician Efficiency - can he do jobs faster and more efficient than flag time?

Total Flat Rate Hours - Flag__________________Total Actual Hours – RO Time 

Technician Productivity - did he produce enough flag hours?

Total Flat Rate Hours - Flag__________________Total Available Hours – Clock Hours – Employee Time

Technician Opportunity - did he take advantages of the opportunity we gave him?

Total available hours – Time Clock time________________________Total hours shop was open 174 hours in a month, normally

Technician Utilization - did we use him?

 Total actual hours - RO Time__________________Total available hours – Time Clock

What (Who) is the problem?

o Tech comes in, but doesn’t punch on repair orders.o Tech punches in on jobs, but then spends hours – checking manuals, double check the

work, looking for tools and parts, showing the problem to other techs. o Tech doesn’t come in for work. Doesn’t get paid for hours, but takes a lot of time off,

also training – has 2x the training of others!o Tech comes in and sits around and drinking coffee or hides. May punch on jobs, but

most of the jobs either don’t have many flag hours, or wastes time.

Hours to Sell

Hours to Sell for Profit Productivity Goal 125% 11 Expired service days21 Total service days

Est Carry Available Sold UnderAdvisor Techs Appts Hr. Over Tech Hours To Sell Yesterday MTD Goal Projection Over

Jim 4 11 16.5 11 40 12.5 42 523 840 998 158 Sue 5 17 25.5 7 50 17.5 53 407 1050 777 (273) Sam 5 12 18 3 50 29 31 385 1050 735 (315)

Total 14 40 60 21 140 59 126 1315 2940 2,510 (430) Appointment Open RO PerformanceQuery Report - Report Hours

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Why didn’t we get 140 hours yesterday?

What you Need for an Hours to Sell ReportAppointments today with estimated hours (3rd party system?)Available hours – (8 hours x 125%)Hours yesterdayMTD hoursDetail by advisor, summary of techs

How can I help?Was there PDI or Internals that could have been written?Did we call customers (move up appointments?)What is our campaign this month? Summer special, brake job, alignments?

What you need for the Hours to Sell report to be accurate…Carry over that is ready to dispatch (no longer on hold for parts)Estimated hours entered for appointmentsDo you understand appointments vs. hours to sell? How many appointments can you book per day? ______ Appointments tracked electronically? _______

Work in Process/Unbilled – what is that? Repair orders must be closed Do not hold open warranty claims

What are my Metrics fixed operations?

Worksheet

Parts and service gross profit $____________ Non-variable expenses $_______________

Absorption _____ Parts fill rate % _______

List Price __________ Cost _____________ Retail Gross Profit% ______

Trade Price __________ Cost _____________ Wholesale Gross Profit% ______

Your Posted Labor Rate* $_____ Tech Cost $_____ Metric for Gross Profit % ____

Effective Labor Rate $____ Tech Cost_____ Metric for Gross Profit % ____

Hours to sell vs sold _______ Technician (circle one) productivity, opportunity, efficiency, utilization _______%

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Cash is King! The Pain of Profit and Growth

Cash Flow WorksheetAmount of

Assets Last Month Last Year Increaseor Decrease

Current Assets:Cash in Bank (325,255)$ 501,205$ (826,460)$ Contract in Transit /Vehicle Re 2,252,522$ 952,521$ 1,300,001$ A/R + Factory Receivable 5,252,412$ 3,103,593$ 2,148,819$ New Inventory less floorplan 12,325$ 15,252$ (2,927)$ Used Inventory less floorplan 1,896,252$ 325,258$ 1,570,994$ Parts/Sublet/WIP 631,241$ 639,730$ (8,489)$ Prepaid/Other Assets 187,566$ 147,142$ 40,424$ Rental Units -$ -$ -$

Collections made Easy

Is it really a collection issue or a lack-of-paperwork issue? Missing invoices Can we get the copy to the client easier? Fax, email? Have you discussed the account with the parts manager, wholesale parts

manager/representative, advisor, service manager? Do you have the right person calling customers? What did it take to “get” this account?

Profit Accounting in Sales - it's time to get involved!

Chargebacks– bad for morale! What and Why of Salesperson Productivity – how do we measure? Sales Gross/Expenses – metric and variance Do they carry the models that sell at the best gross profit?

CRM Software___________________

What does it provide you with?

Sales Gross Profit – 4 places!

1. Gross in manager’s head -“I made $xx on that deal”2. Written on log, entered on form or in CRM software3. Gross calculated by F&I/sales module

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4. Journal Gross Profit - Financial Statement Gross, True Journal gross - Less Charge backs, writedowns + Plus “funny money” and adjustments

Top 5 Ways you “lose” Gross

1. Wholesale Loss – are you in the business of wholesaling vehicles? – should be zero2. Open Internals, Customer Repair Orders, Purchase Orders - chargebacks3. Promised items not set up on due bill – or not really promised – or was already on

vehicle.4. Cost item should have gone to BE gross instead of FE gross5. Nothing to reconcile to…Recap and displayed Cost is wrong

Cost - Open PO and Open RO - Homework

Stock#____ Accounting Cost _______ F&I manager _____ Sales Manager _______

Stock#____ Accounting Cost _______ F&I manager _____ Sales Manager _______

Stock#____ Accounting Cost _______ F&I manager _____ Sales Manager _______

What are my key Sales Metrics?

Units “out” – does not include wholesale, fleet?New ___ Used ____New Gross Profit Average $_______ Used Gross Profit Average per retail $______ includes wholesaleTotal F&I $______ Chargebacks $(______) Net per $____

Total Expenses  

Sales Commissions  

Non-Variable  

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Understanding the Breakeven

Parts and Service Gross Profit $534,323Non-variable expenses less other income $914,433Gross Profit per unit $2,500F & I Income per unit $726Variable Cost Per Unit $750Variable percent 23.24%

Total unabsorbed expenses $380,110Net profit per unit $2,476Breakeven Point in Units 154

Forecasted Units 200Forecasted Vehicle Gross Profit 645,161$ Forecasted Gross Profit 1,179,484$ Forecasted Variable Expenses $149,919Forecasted Total Expenses $1,064,352Forecasted Profit 115,132$

Star ChevroletBreakeven Analysis

Variable Expense Metrics - Big 3

Advertising $______________ per unit?

Floor plan $____________ Rate ____% Credit?

Floor plan Balance_____________ * rate = ___________

Sales Commission Worksheet

Sales Commissions _______%

Total new and used gross $_____

Sales commissions $_______

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Variable percent ____%

Gross Profit $ 1,942.00 Gross Profit  

Pack $ 450.00 Pack  

Payable Gross $ 1,492.00 Payable Gross  

Percentage 25% Percentage  

Commission $ 373.00 Commission  

Percentage 19% Percentage  

Example of Item ExpenseExpense Account Name: Delivery Expense - NewAccount number (s) 15AItem description Demo for test drivesVendor(s) ABC gasApproved by? Sales manager - purchase order/special gas card - codeAverage monthly price $2,947.50 Contract details

$5.00 per up X 250 ups = $1250Price per gallon - $3.65

Variable, Fixed, Budget – based on?

Variable based on CRM software of ups

Protect – is it being stolen? Yes, card is used by everyone, filling tanks on used vehciels

Bid – could we get it for a lower price elsewhere?

Get for $3.45 per gallon

Metric

Physical observation of the product – item – where is it stored? How is it used?

Gas card is in sales manager's desk - code written on yellow post note

Eliminate – do we really need this?

Yes

Reduce – is there a way to use less?

No, $5.00 is not very much

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Expense Account Name:Account number (s)Item descriptionVendor(s)Approved by?Average monthly priceContract details

Variable, Fixed, Budget – based on?

Protect – is it being stolen?

Bid – could we get it for a lower price elsewhere?

Metric

Physical observation of the product – item – where is it stored? How is it used?

Eliminate – do we really need this?Reduce – is there a way to use less?

Categories of Expenses - Objective - What Category?

Variable Fixed Budget

Are these Service Expenses a % of Gross Profit?

Service Advisor Commissions_______ %

Shop policy $_______ are you paying advisors on Internal gross?

Outside Services $_______

Shop Supplies $_______

Recovery Rate __% of labor Labor sales _____ * 5%

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Office Management-Challenges

o Hard to get more staff – authorized, findo Difficult to get raises for our current staffo Staff has no incentive to learn new skillso No time to train – no training programs for office staff (techs go to school, sales people

get trainers, etc.)o No time, no time, no time

Strengths & Weakness

How can you use your Strengths to overcome your weakness?

How can you help your staff and other managers do the same? We all need file clerks…

Time, Time, Time

Hours that you work per week _______?Free time for ? What do you like to do?Do you work from home? Sat? _______Date that you close the books? _______How many people do you have in the office? _______Number of dealership employees?____Ratio ____ Are you 14:1 or 10:1?

How Many People do you Need – are you the same?

How many retail deals, wholesales?Service Advisors – ROs per day?Do they write PDI, internals?Do they dispatch, cashier?Salespeople – pay plans – complicated step?Paying employees – 1x month? 2x, weekly?Does your Office Staff

Relieve cashiers, phones? Take deposit to bank, retrieve mail? Dealer trades, titles

Can we have someone else do this?

More efficient to be done by operations as long as it doesn’t affect item C. - F&I manager submitting contractsRequires a skill set not available in an office person – calling past due accounts Part of pay plan – profit $$$ generating activity – approving overtime – if this is an ‘objective’ then put in pay plans at a higher premium

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Can you do a 3-Day Close? Homework- ChecklistDo you need to do that?

Look back at A, B, C skillsDo you need to do that?

Does it need to be done as part of the close?Factory StatementSchedules

Do you need to do that? Faster way to do that?Easier Way to do that?Use your DMS better – Change or not?

Time Management - Tasks

What do you do all day? What percent of your day is spent on each?

___% T – Tasks that you do as part of your job; reconciling accounting, paying the sales tax, checking the bank balance ___%F – Fire drills. I call this any unplanned issue; a customer who lost a check, an employee upset about their pay, someone wrecked their demo or got hurt in the shop, covering for a sick employee, training someone who is new, and the dealer with about any reason…  ___% M – Monkey. This is anyone who came into your office, emailed, texted, phoned to get something, ask you a question, tell you a story, manager meetings, or just chat with you about their weekend. Normally anything that is not a T or F is a Monkey…or the dreaded “Close” - close the books faster!

List the Time Wasters for You

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How to become a Task-based Office

Step 1- Use the TasksMaster Basic  (free for 3 months) version that we’ll be in our hands on session to determine if you have your tasks properly allocated by skill level. As a suggestion, put in Assigned to the person who is currently doing this and in the Backup, put the person you would like to train. Filter on Backup person to find those that need training and the tasks.

Step 2 – Get the TasksMaster Plus version. Both the setup and training of your staff might require a consultant (like me!) and I can come to your dealership to reallocate tasks based on skill levelsl, train your staff to use TasksMaster daily, weekly, and monthly, and help them

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get your “HowTo” files completed. Having the TasksMaster Plus version becomes a documentation, evaluation, archiving and training system for your office staff.

Step 3 – Starting using TasksMaster Plus! A new “A” skill level person can start reading the HowTo and Tips of B and C tasks to see if they are ready to learn more and move to a B or C level person. You can start paying a bonus – or determine their current pay level by their skill level and the amount of each task they perform.

What is the Skill Level of your Staff?

Before you can delegate, you need to determine the skill levels of your office personnel

Anybody? File, make coffee, put stuff in order Better trained and qualified person CAT ; Confidential, Accurate, Timely

A Level How many?  Names

B Level How many?  Names

C Level How many?  Names

Action Plan – Profit Accounting

Find a better way to manage your office to get more time to be a Profit Accountant and not a bookkeeper

Stop putting them asleep with reports

o “Why” reports to increase profits and their pay…o Breakeven, absorption of expenses – item expenses, not detail

Use your metrics – not your 20 group

Improve Cash Flow - understand how profit contributes and depletes your cash

Breakeven points to profit areas 5 to 15

Why reports

Are you and your “Cats” doing too many A and B tasks?

Using Technology –

◦ vlookup 4 hour floor plan down to 15 minutes

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◦ Pivot table – better reports for your manager◦ AutoFilter – find the “what” for your “why”◦ If – the good and bad!◦ Conditional formatting – help them “see the answer”

Survey and Certificate

To Learn More…Training – how to get it and use it

DMS system ADP, R+R – coached, Internet training

Super Excel/Super DOC – Learn standardized reporting

Super Controller Guide, 117 pages – whole dealership

Super Controller 2 & 3 – 101 pages- Expenses & Employees

Taskmaster - Over 300 Tasks – are you doing everything you should? Nadine’s consulting

New! Super Reporting –Operational/Outside and financial reports for you to create – detail on Top 10+ Risk areas

Next Profit Accounting Academy ____________________Advanced?______________

DealerStar – the newest DMS – looking for GM, KIA, VW, Chrysler and investors. Email sandi@dealerstar.net for a prospectus.

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Appendix A – Hands On

Hands On - Using Excel for Profit

Excel has hundreds of features but today we’ll be covering just the best ones for creating Profit-focused spreadsheets! Open ProfitAcademy.xls file from your pre-workshop material.

In our business, the most important features of Excel are;

=If formula - HourstoSell tab AutoFilter - HeatSheet Pivot tables NewinStock VLookup - Heatsheet

Functions/FormulasDecrease the amount of time you spend in Excel and increase the accuracy of your data and your reports.

Absolute vs. Relative, F4. Click on HourstoSell tab and cell G1. Notice the formula=B6*8*$G$1. Click on the cell and press F4 and then copy down

Conditional formatting vs if statement Conditions (greater than or equal to, less than, does not equal) If Statements, =IF(L6<0,"bad", "good")

This means if the amount in cell L6 is less than 0 days old, then put “bad” in cell, else, “good” - using an If statement means you filter

AutoFilter Exercise:AutoFilter turns your date into a database and helps you find data in 2 sources. In this example, we have a schedule with all the vehicle receivables/contracts in transit that have been downloaded. We also have another data extraction of the deals (figross.) There is information on that which I'd like to have on my schedule report. Click on HeatSheet tab

Click on filter icon - Data, Filter, AutoFilter Custom filters (text, numbers) - Top 10 - what are the top 10 oldest on the schedule?

Sum vs. Subtotal formula

What is the total due on cash deals __________________?

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Tip! Quick

Access Tool Bar

Heat Sheet Exercise (Vlookup)

Naming a range to make formulas easier - figross VLookup

=VLOOKUP($B5,FIGROSS,10,0)=VLOOKUP($B5,FIGROSS,10,0)

This means – look up the Name in B5 in the named range “FIGROSS” and bring back what is in the 10th column. Discussion - what are the various things you can look up between 2 files - Control number? Putting deal number on schedule?

Creating a Pivot Table Exercise:

Row, Values

Value Field Settings – type and number format

Designs and styles

Step 1 – Basic pivot table

MODEL

Count of BALANCE

Sum of BALANCE2

Average of BALANCE3

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Tip! Keyboard shortcuts

CADENZA

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399049.08 $36,277FORTE 6 98532.17 $16,422FORTE 5-DR 8 156489.97 $19,561FORTE KOUP 5 91901.67 $18,380OPTIMA 9 199729.48 $22,192OPTIMA HYBRID 5 137125.12 $27,425RIO 4 55358.88 $13,840RIO 5 DR 3 43081.53 $14,361SEDONA 10 264162.49 $26,416SORENTO 11 279183.85 $25,380SOUL 6 91926.58 $15,321SPORTAGE 6 117266.06 $19,544Grand Total 84 1933806.88 $23,022

Step 2 – Make it fancy

1. Fix labels2. Format currency3. Sort gross from high to lowExtra Credit - Hands On - Suggested Stock

Create a comparison of what you have in stock compared to what you have sold.Using figrosspivot

The figrosspivot is a pivot table created by the figross download of our deals for the month. We used figross to lookup the bank name and other info for the heat sheet. Now we'd like to "dress up" the figrosspivot table

1. Report Filter (N/U/O) - filter on just N and New (older versions of Excel cannot do multiple filters and you would have to do a search and replace of the data - replace New with N) and then refresh the pivot table.

2. Fix labels from Average of GROSS PFT to Avg Gross and # of Deals. In the pivot table list, find the field, right click and Value Field settings

3. Format currency - using number format in Value Field Settings4. Sort gross from high to low - Right click on Carline field and Sort based on Avg Gross5. Add how many in stock column - =VLOOKUP(A5,instock,2)

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6. Enter calc for 2 months (60 days supply) =C5*$E$27. Enter calc to determine if amount is stock is high or low Over/Under =D5-E58. Create an if statement that shows “low” and “high” =IF(F5>=0,"high","low")

Add that column and determine if you are short or over on units.

N/U/O (All)- Using the Page/Report Filter

  Data  CARLINE Average of GROS PFT Count of GROS PFT In StockCADENZA 1663.985 14 11CARAVAN SE 4617.43 1FORTE 1909.255 10

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Your Result

N/U/O (Multiple Items) Page - New and N2 Months

DataCARLINE Avg Gross # of Deals In Stock Suggest Supply Over(under)SOUL $3,028.38 4 6 8 -2 lowRIO 5 DR $2,104.86 1 3 2 1 highSEDONA $1,978.19 3 10 6 4 highOPTIMA $1,747.68 5 9 10 -1 lowRIO $1,669.30 2 4 4 0 highCADENZA $1,571.07 6 11 12 -1 lowFORTE KOUP $1,423.43 2 5 4 1 highOPTIMA HYBRID $1,221.55 2 5 4 1 highFORTE $914.88 6 6 12 -6 lowFORTE 5-DR $647.30 14 8 28 -20 lowSORENTO -$939.74 7 11 14 -3 lowSPORTAGE -$1,663.01 2 6 4 2 highGrand Total $955.44 54 5 108 -103 low

Think about…

How does the number we have in stock compare with our highest gross profit? What would be a 30 or 60 day supply? Who orders vehicles in your dealership?________________________ What do they use as a guide?______________________What does this show that information from the factory or outside services doesn't?

Try these Tips + L Locks Computer - Requires Password to unlock if Screensaver password is turned on.

+ E Opens Windows Explorer

+ R Opens the Run Dialog

+ M Minimizes all windows and takes you to your desktop

+ F Opens the Search/Find Dialog

+ Tab Shows and Cycles through all open windows

+ T Cycles through programs on the taskbar

Snipping Tool

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Hands On- Cash Flow Statement

Basic – enter amounts manually in both columns. The most common problem is missing an account (if you want to balance!)

  Cash Flow Worksheet       Assets Last Month Last Year  Current Assets:Cash in BankContract in Transit /Vehicle ReA/R + Factory Receivable New Inventory less floorplanUsed Inventory less floorplanParts/Sublet/WIPPrepaid/Other AssetsRental Units  Total current assetsTotal Fixed Assets Less-Accumulated depreciation Total fixed assets Other Assets Total Assets Current Liabilities:Accounts PayableOther note payableOther; taxes, payroll, insurance Total current liabilities Long Term DebtProfit or LossCapital and DividendsRetained Earnings Total Term Debt and EquityTotal Liabilities and Capital

Extra credit – can you make this easier by “linking” to your GL or trial balance and downloading each month?Download your trial balance or Doc and use vLookup to enter the amounts

1. Challenge – how can you “group” amounts? (use a DOC)2. How do you make sure you have everything being “looked up?” (use another lookup on GL table.)

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Hands On BreakevenClick on the Breakeven tab and use the following information

Sales Cost of Sales Gross

TOTAL FIXED   84.7% 937,493 475,469 462,024 TOTAL NEW & USED (PVS) 191 3,663,157 3,411,314 251,843

TOTAL F&I AND PROT.PLANS (PVR)   110,713 57,326 53,387

TOTAL VARIABLE L&R     23,670 17,148 6,522

TOTAL VARIABLE     3,797,540 3,485,788 311,752

VEH. SLSPLE COMPENSATION & OTHER 11 47,900

TOT RTL RTL PROFIT/

NEW NEW USED LOSS

82 76 67 123,622

Extra Credit – try doing a BreakEven with your Financial Statement

Hands On - Office Skill Levels and Organization – TasksMaster

Betty Red's Office

Betty is a “do it all type of person” - she is currently billing all car deals because she just lost her biller and Ellen doesn't know to bill out deals, Betty is short on cash, so she's pulling the contracts, calling all past due accounts – pretty much stressed out.

Her right hand person, Carly is pretty much doing everything else.

Betty Red - controller CCarly Bean – Payroll/AR/AP C

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  TOTAL EXPENSES (INCL. PRO OF G&A)   609,846 T OPERATING PROFIT OR LOSS   163,930

O NET ADDITIONS & DEDUCTIONS   (17,686)

T NET PROFIT OR LOSS BEFORE BONUS & INC. TAX 146,244

A BONUSES-EMPLOYEES 97 0   BONUSES-OWNERS 98 0 L NET PROFIT OR LOSS BEFORE INCOME TAXES 146,244

  INCOME TAXES 99 22,622   NET PROFIT OR LOSS AFTER INCOME TAXES   123,622

Ellen Jones – Biller AFrank Beam – Inventory clerk, dealer trades AFreda Andrews – Bookkeeper/Cash sales AJane Smith – Titles BTom Masters DealerThey hired Ellen and Freda recently, but haven't had the time to train them at all. Freda spends ½ her day trying to balance cash sales and getting the deposit ready. Jane has been there a long time, knows a lot, but says that titles take up 100% of her time, in fact she works overtime. They sell 150 cars a month, about ½ have trade-ins.

Demonstration - Filtering1. How many Tasks are being done by Betty?

A___ B____C____

2. How many Tasks are being done by Carly?

A___ B____C____

Discussion

What tasks of Betty would you reassign to Ellen, Frank, Freda and Jane? (hint-find any A & B tasks assigned to Betty and Carly)

What are the challenges of assigning tasks to Jane vs. Ellen, Frank, or Freda?

Assigning to Jane (who thinks she is too busy)?

Assigning to Ellen, Frank, Freda? (who are not trained)?

Log in with your Name - (case sensitive) and password of acct

Assign the tasks to your employees (don't worry if all are not there, we can discuss that later)

How many A and B tasks are being done by your C staff?C – Staff Person (you)__________________Current number of tasksA___ B____C____

C – Staff Person __________________Current number of tasksA___ B____C____

B – Staff Person __________________Current number of tasksA___ B____C____

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B – Staff Person __________________Current number of tasksA___ B____C____

Office PersonSkill Level

   

   

   

   

   

   

   

Extra Credit on Simple and Complex Floorplan Interest 1. Download the spreadsheet from TaskMaster and study it2. Bring in all the fake "data" in the yellow and purple sections into a new spreadsheet3. Enter the formulas and create the Complex calc

Flooplan Interest Accrual

Simple method Floorplan balance beginning of month $ 1,900,152 Interest free credit

Floorplan balance end of month $ 2,052,452 Units received $ 542,652

$ 3,952,604 Rate 4.75%

Average balance $ 1,976,302 Annual $ 25,775.97

Rate 4.75% Daily $ 70.62

Annual Interest $ 93,874 Days free 20

Daily $ 257.19 Credit $ 1,412

Days this month $ 31 Total Expenses $ 7,973 Credit* $ (1,412) Accrual $ 6,561

*Can also be matched with sale

Complex method using 2 rates, and download

Total interest from Download 7,901.32

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Per Lender 8,413.64

Variance 512.32 Steps;

1. Determine start date for your lender - and enter that in "Received Date in your DMS"2. Update an unused field in your DMS with date floorplan paid.3. Make sure you are entering the floorplan amount in a field4. Download the data from your DMS and put in yellow section of Download tab5. Download interest from lender and put purple of lender tab.

Can you answer this?

Why use a named range for change, end, start date? Imbedded if statements - =IF(F7>change,0,(change-F7)) How to handle reductions each month?

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