Car Dealership Accounting

4 Credits: Accounting


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Car Dealership Accounting

Course Level
CPE Credits

4 Credits: Accounting

Course Description

The accounting for a car dealership is quite complicated, since there are many profit centers, fixed assets, and employees, not to mention the large vehicle inventory. In the Car Dealership Accounting course, we cover all aspects of a dealership’s accounting, including the underlying accounting system, profit center reporting, and the accounting for all types of sales, expenses, liabilities, and equity. Dealership-specific topics include floorplan interest, contracts in transit, and factory receivables. The course also covers how to account for payroll and the steps needed to close the books.

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Learning Objectives

Upon successful completion of this course, participants will be able to:

  • Identify the normal account balances for the accounts used by a car dealership.
  • Specify how information is stored and posted in a dealership accounting system.
  • Identify the basis of accounting choices that a dealership can make.
  • Recall the structure of a car dealership’s financial statements.
  • Identify how contracts in transit are recorded by a dealership.
  • Recall the accounting used by the various profit centers of a dealership.
  • Specify how a dealership accounts for holdbacks.
  • Recall the accounting for new and used vehicles.
  • Identify the accounting for work-in-process labor.
  • Specify the accounting used for each of the expenses incurred by a dealership.
  • Recall the accounting for a floorplan loan.
  • Identify how a dealership would account for policy work.
  • Specify the choices available to account for bad debts.
  • Recall the underlying concepts used to account for fixed assets.
  • Identify the tax reporting structure used by governments to collect sales and use taxes.
  • Specify the journal entries needed to process payroll for a dealership.
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Course Specifics

Course ID
Revision Date
April 4, 2024

There are no prerequisites.

Advanced Preparation


Number of Pages

Compliance Information

NASBA Provider Number: 103220

CMA Notice: Western CPE makes every attempt to maintain our CMA CPE library, to ensure a course meets your continuing education requirements please visit Insitute of Management Accountants (IMA)

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

Meet The Experts

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 300 business books and courses. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast. Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and …