The issue
A large regional accounting firm was interested in elevating the level of audit and related services they provided to several hundred dealership clients. Specifically, the accounting firm sought to reduce the time spent in the audit and review process while serving these clients and, at the same time, boost the volume of value-added advice sold to the dealerships.
Our approach
PricewaterhouseCoopers was engaged to deploy eComposite™ and Budget Builder™ across the dealership network. Doing so brought particular benefit to the large, multi-franchise, multi-location dealerships that would otherwise use paper composites developed by third parties or be forced to commit significant staff resources in developing proprietary systems. This solution also included an “early warning assessment” that quickly and clearly indicates operating problems and recommends options for correcting them. This allows the local accounting firm to be proactive in diagnosing dealer operations, thereby providing a value-added service. The client is also using eComposite™ comparative reports, which allows dealerships to judge their performance against others in similar segments.
The outcome
The client’s multi-franchise dealerships have reduced their monthly closing time and are now able to view a composite of all franchises immediately after month close (as opposed to 30-45 days later). All accounts have been normalized so performance between franchises can be compared on an equal basis, despite differences in charts of accounts and franchise-specific accounting rules. This new reporting process is also expected to significantly reduce labour and closing time associated with the annual audit.
