Does your car dealership have confidence to face a sudden and an unexpected audit? For a lot of car dealerships, it comes to as a nerve-wracking experience. In those circumstances, you have no choice than to stop what is being done and ensure that everything goes smoothly. A lot is dependent on the success of the audits. So, how to ensure that you remain confident and strong while dealing with a surprise audit?
Ensure business operations conform to the prescribed standards and regulations.
It is one of the biggest reasons that can prove to be damaging for business at the time of an audit. It is needed that dealerships conform to the ethical practices and standards established for the execution of its operations. By failing to prioritize compliance, a business puts them at a greater risk for penalties and hindrances that make it almost impossible to remain in business.
A dealership can lose the chance to lose the relationship or even worsen your dealer license. With car dealer CRM software, a dealership is able to efficiently manage its workflows, juggle internet leads and analyze customer data with a lot of ease while abiding to the set standards.
Monitor inventory stringently
You need to be ready to keep a comprehensive and elaborate list of automobiles that leave the dealership. This is useful for accomplishing audit objectives of dealerships but also assists in enhancing inventory security.
Formulate a spreadsheet and then populate it with the below mentioned information:
- Stock number of the vehicle
- Year, model, complete VIN and make of the vehicle
- Vehicle location
- Contact information of the vehicle
- The reason of the vehicle leaving the dealership. These reasons could be repairs, delivery in process and test drive.
- Dealership employee who works with the repair facility or customers.
Track vehicle titles
The rules regarding the title of the vehicles differ from one state to another. Most of the financial institutions need a title for vehicle that adds unit to their floorplan. Though the auditor basically tracks physical inventory, some of those units may get bought at sale by floorplan funding.
Dealer can follow the acceptance of each title so as to prevent any complications that can arise during an audit. Tracking of vehicle’s title is also necessary for DOT compliance and finance in several states.
Confidence comes with a good amount of advance preparation. The more prepared you are, the more effectively you will be able to deal with the situation without any panic. All the above ways will definitely assist you in making the best preparation to face unexpected audits.