By David Keller
AC C OUNTING
6 REASONS FOR A
PARTS INSPECTION
Inspecting your parts department will tell you where your inventory �����and your money �����is going.
The magazine���s resident accounting expert shows you what to look for.
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1. ORGANIZATION
Organization is central to a
well-run parts department.
Your employees should be able
to f nd parts quickly. Every
minute they make a technician
David Keller is a partner with the accounting firm of
CliftonLarsonAllen, a Top 10 nationwide accounting
firm with extensive experience in serving new- and
used-vehicle retailers, heavy truck and utility trailer
outlets, and BHPH dealerships.
DKeller@AutoDealerMonthly.com
12
AUTO DE ALE R MONTHLY ��� APRIL 2013
wait costs you gross proft. If
parts bins are not organized
and labeled, how are any new
hires or temporary employees
ever going to f nd the parts to
sell them?
2. CLEANLINESS
Dirt and dust are necessary
evils in the parts department.
Everything is stored in a large,
open area adjacent to the service
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When w the la
When was the last time you
h n
h
wa lked throug
a e
u
walked through your parts
depar tment? Did
department? D you just cut
p rm
t hrough, or did you
r u
i
through, or did yo walk every
a isl
s
loo at
aisle and look a the shelves
a n n the b
h
and in the bins? If not, you
m
be su
surpri
might be surprised to learn
what you actually own and
where your cash is tied up.
Here are six more reasons to
take a closer look:
department, and people and
parts are constantly moving in
and out. But that doesn���t mean
you shouldn���t try to clean up
and dust on a regular basis.
3. SPECIAL PARTS
Special-order parts not picked
up by a customer or installed on
his or her car will cost you a lot
of money over time. Special-order parts can burn through your