: Generally limited to dealerships with average annual gross receipts under $25 million (indexed for inflation, currently closer to $26–30 million).
: Expenses are recorded when incurred, allowing you to match the cost of the vehicle against the sale price in the same period. buy here pay here accounting method
: Income is recorded when the deal is finalized, even if the cash hasn't been received yet. : Generally limited to dealerships with average annual
: This is the standard required by Generally Accepted Accounting Principles (GAAP) and is typically demanded by lenders, auditors, and investors. buy here pay here accounting method
: Dealers may owe taxes on profits they haven't actually collected in cash yet. Cash Basis Accounting :