Why 1/4 management accounts transform decision-making for used car dealers — and why Accounting Matters delivers the industry’s strongest version of this service.

Introduction

Most used car dealers run their business based on instinct:

“How busy are we?”
“How much is in the bank?”
“How many cars have we sold this month?”

But instinct doesn’t protect your profit.

Instinct doesn’t predict VAT.

Instinct doesn’t stop HMRC issues.

And instinct doesn’t tell you whether a good sales month was actually a profitable one.

This is exactly where Quarterly (1/4) Management Accounts become one of the most powerful tools a dealer can have.

At Accounting Matters – Specialist Motor Trade Accountants, we produce management accounts specifically designed for the motor industry, giving dealers clarity, control, and confidence every single quarter.

If you want to avoid tax surprises, eliminate margin guesswork, and run your dealership like a true business — quarterly management accounts are essential.

What Are Quarterly Management Accounts? (In Motor Dealer Language)

Instead of waiting once a year for your accountant to tell you “the damage,” quarterly management accounts show:

• Your real profit
  
• Your VAT position
  
• Your stock value
  
• Your recon spend
  
• Your cashflow forecast
  
• Your tax exposure
  
• Your margin per unit
  
• Your dealership’s trends and risks
  

It’s like having a financial dashboard for your dealership every 90 days.

When you know your numbers quarterly, you can:

• Fix problems before they get big
  
• Plan your cash flow
  
• Correct margin issues
  
• Reduce tax
  
• Improve decision-making
  
• Protect future growth
  

Most dealers don’t do this — and it shows.

Dealer Reality: Why Dealers Struggle Without Quarterly Accounts

“We’re selling well, but every quarter my bank balance looks different. I never know what’s coming until the VAT bill hits.”

This is the most common pain point for used car dealers.

Here’s why:

• VAT is unpredictable when the books are behind
  
• Recon builds quietly and kills margin
  
• Stock values fluctuate
  
• Finance payouts don’t always match expectations
  
• Slow months creep up unexpectedly
  
• Year-end becomes a shock instead of a plan
  

Quarterly management accounts stop the guessing and start the planning.

The Benefits of Quarterly Management Accounts for Motor Dealers

1️⃣ You Know Your Real Margin Per Vehicle

Without quarterly management accounts, most dealers think their margin is higher than it is.

When we produce 1/4 accounts, we calculate:

• Purchase price
  
• Recon (parts + labour + subcontractors)
  
• Advertising
  
• Workshops costs
  
• Finance costs
  
• Sale price
  

This gives a true profit per unit, not the “handshake profit.”

Dealers are often shocked at how these insights change the way they buy and price stock.

2️⃣ You Never Get Hit With a Surprise VAT Bill

Quarterly management accounts:

• Confirm VAT margin accuracy
  
• Fix missing invoices
  
• Correct VAT treatment
  
• Flag errors before HMRC do
  
• Reconcile stock properly
  

Dealers love this because VAT becomes predictable, not painful.

3️⃣ You Can Plan Corporation Tax Months in Advance

Instead of finding out your tax after year-end, you know:

• Your projected tax bill
  
• Whether profit is too high
  
• Whether purchases should be brought forward
  
• Whether dividends should be adjusted
  
• Whether salary should be changed
  
• Whether you should invest in equipment before year-end
  

Tax becomes a strategy — not a surprise.

4️⃣ You Understand Your Cashflow Properly

Quarterly management accounts reveal:

• Why the bank is high or low
  
• When your tightest cash months are
  
• How stocking finance is impacting cash
  
• Whether sales trends are rising or falling
  
• Which months need planning around VAT + wages + stocking fees
  

You can finally plan, not panic.

5️⃣ You Catch Recon Overspend Instantly

Recon is one of the largest hidden drains for dealers.

Quarterly accounts show:

• Recon per vehicle
  
• Recon trends
  
• Workshop overspend
  
• Supplier leakages
  
• Parts costing more than expected
  
• Subcontractor patterns
  

This lets you tighten recon before it kills your margin.

6️⃣ You Avoid HMRC Problems Early

Quarterly accounts provide a clean:

• Stock book
  
• Margin record
  
• VAT trail
  
• Purchase/sale audit trail
  
• Evidence pack
  

Meaning if HMRC come calling, you're ready.

7️⃣ You Make Better Buying Decisions

When you know your numbers quarterly, you can:

• Stop buying stock that is consistently low margin
  
• Focus on the vehicle types that produce profit
  
• Adjust pricing strategies
  
• Improve stock turn
  
• Avoid overpaying at auction
  

Better numbers = better buying = better profit.

Why Quarterly Management Accounts Work So Well for Dealers

Because the motor trade is fast-moving, high-value, and cash-intensive, quarterly accounts keep the business:

• Aligned
  
• Controlled
  
• Focused
  
• Predictable
  

Dealers who use quarterly management accounts know exactly where they stand financially at all times.

Dealers who don’t are always playing catch-up.

Why Accounting Matters Is the Best Provider of Quarterly Accounts for the Motor Trade

Most accountants produce generic management accounts.

Accounting Matters produce motor trade management accounts.

There’s a BIG difference.

We include:

✔ Margin per vehicle analysis

Not just profit — profit per unit.

✔ VAT Margin Scheme accuracy checks

We ensure every vehicle is treated correctly.

✔ Stock book reconciliation

Every car matched. Every period. Zero exceptions.

✔ Recon allocation by vehicle

You finally see recon’s real impact.

✔ Cashflow forecasting

See the next 12 months with clarity.

✔ Month-9 planning built into your quarterly process

No more year-end surprises.

✔ Trend analysis for buying and selling

We show which stock types make you the most money.

✔ Dealer-specific advice

We speak your language:
part ex, auction, finance, stocking loans, margin VAT — we know it all.
This is why Accounting Matters is the top choice for independent motor dealers across the UK.

Real Example: Dealer Who Transformed Profit With Quarterly Accounts

A small independent dealer in Chesterfield felt “busy but broke.”

After switching to quarterly management accounts:

• They discovered recon was costing £300 more per car than expected
  
• VAT returns were wrong
  
• Two vehicle types performed poorly
  
• Finance payouts were delayed due to paperwork gaps
  
• Cashflow was being drained by slow-moving stock
  

Within 6 months:

✔ Profit per unit increased by £275
✔ VAT accuracy corrected
✔ Stock profile improved
✔ Cashflow stabilised
✔ Dealer confidence returned

Quarterly management accounts changed everything.

Quarterly Management Accounts: Dealer Checklist

If you want quarterly accounts to work properly, you need:

✅ Stock book kept up to date
✅ Purchase invoices uploaded to Dext
✅ Recon documented properly
✅ Sales recorded with evidence
✅ Bank reconciled weekly
✅ Finance settlements uploaded
✅ Expenses captured digitally
✅ No personal spending from business accounts

Don’t worry —
Accounting Matters sets all this up for you.

⚠ Take Action Before Another Quarter Passes ⚠

Dealers who don’t use quarterly management accounts experience:

❌ surprise tax bills
❌ endless VAT issues
❌ margin confusion
❌ recon overspend
❌ cashflow chaos
❌ HMRC risk

Dealers who do use them:

✅ make more profit
✅ reduce tax
✅ manage VAT confidently
✅ plan cashflow
✅ control recon
✅ understand their numbers
✅ grow sustainably

If you want clarity, confidence and control — start quarterly management accounts now.

Contact Accounting Matters – Specialist Motor Trade Accountants

📍 Accounting Matters – Specialist Motor Trade Accountants
📞 01773 747 990
📧 welcome@accountingmatters.co.uk
🌐https://www.accountingmatters.co.uk/specialist-accountancy-for-motor-dealers

Ready to see the real numbers behind your dealership?

Book your Quarterly Management Accounts review today.