Month End-
What to Do?

Raymond E. Lofstrom, Principal, CPA

9 October 2019

Month end comes and we all wait for the office manager or controller to finalize the factory financial statement so we can determine how we did. We look at volume, we analyze gross, and we dissect expenses. What else should we be looking at and asking the office manager/controller to be providing so we can get a better picture at just how well we did or did not perform?

We suggest that in addition to the monthly factory financial statement, a “Controller’s Report” also be provided. This report will provide key items that should be reviewed by management along with the monthly factory financial statement.

Some key items that should be included:

• Copy of bank reconciliations

• Check register for the month

• Schedule of contracts in transit over 5 days old

• Schedule of parts and service receivables over 30 days old

• Schedule of factory receivables over 30 days old

• New and used vehicle inventory aging

• Schedule of inventory with no movement for 12 months

• Schedule of items in prepaid expenses

• Listing of all fixed asset additions made during the month

• Schedule of trade payables over 90 days old

• Listing of all vehicles sold that floorplan has not been paid off

By looking at these items in connection with your factory financial statement you will gain insight into not only how well you’re performing from a profit and loss standpoint but how well you are performing from a balance sheet management standpoint as well.

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