Case Study: Rocky Mountain Dealership improves financial accuracy, raises labor rates, and saves $21,000 with Eide Bailly

Rocky Mountain Dealership saves $21,000 in taxes with Eide Bailly

The customer, Rocky Mountain Dealership, faced challenges common to many dealers: being too inundated with daily operations to focus on strategic analysis. They were unable to unlock the potential of their factory financial statement, had incorrect accounting classifications, and employed inefficient inventory count procedures. They called upon the vendor, Eide Bailly, to perform a Dealership Diagnostic Check to bring a fresh set of eyes to their accounting department.

Eide Bailly implemented a multipoint financial inspection. Their solution involved reclassifying employee expenses, instituting new inventory count procedures that corrected a $60,000 overstatement, and performing an Effective Labor Rate analysis that successfully secured a warranty labor rate increase. The results included more accurate financial statements, an increased labor rate, and over $21,000 in tax savings for the client.