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DEALERSHIPS

We're CPAs who speak F&I, floorplan, and frontline profit, not just tax code. Our practice is built exclusively around automotive, powersports, marine, RV, and industrial vehicle dealerships. 
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Accelerate Your Growth With Utah's #1 Dealership Team

Larson's commitment to being the go-to audit and tax advisor for auto dealerships across Utah is proven by the level of attention and high quality services we offer automobile dealerships in all industries.

For more than 30 years, we’ve worked alongside dealer principals, general managers, controllers, and multi-rooftop groups, delivering specialized expertise in dealership audits, tax strategy, manufacturer reporting, and profitability planning. As a boutique CPA firm, we combine deep automotive industry experience with direct partner access and responsive service — providing practical, strategic guidance built specifically for dealerships.

In a business where margin, compliance, and performance matter, we help ensure your numbers drive smarter decisions.

WE KNOW YOUR BUSINESS

work with THE TEAM that knows the automotive industry

Every dealership vertical has unique tax treatments, flooring financing rules, manufacturer incentives, and compliance requirements. General CPAs might miss these nuances. Our CPAs know the industry inside and out, saving you time and money.

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New Cars

NEW CAR DEALERS:  OEM incentive & holdback accounting, factory financial statement compliance, warranty claim revenue recognition, co-op advertising, demo vehicle tax treatment

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Used Cars

USED CAR DEALERS: Specific-identification inventory, reconditioning cost capitalization, pack accounting, wholesale income, buy-here-pay-here installment sales, trade-in valuation + aging write-downs

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Powersports

ATV, MOTORCYCLE, AND UTV DEALERS:  Multi-line franchise tax, seasonal cash flow, parts inventory

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Recreational Vehicles

RV DEALERS:  Consignment accounting, extended warranty revenue, campground tie-in income structures

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Marine + Boat

MARINE + BOAT DEALERS:  Seasonal revenue recognition, storage income, dock slip income, sales tax complexity by waterway

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Industrial

INDUSTRIAL/COMMERCIAL VEHICLE DEALERS:  Heavy equipment, forklifts, and commercial vehicles -- Section 179 optimization, lease vs. own analysis

fROM THE LOT TO THE BOTTOM LINE

PROFESSIONAL CPA SUPPORT FOR DEALERS

Full-service accounting support built specifically for automotive, powersports, marine, RV, and industrial vehicle dealerships. 

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Tax Preparation and Planning

LIFO inventory accounting, Section 179 and bonus depreciation, OEM factory holdback treatment, dealer reserve income deferral, and multi-entity structuring are just the beginning. We prepare and plan proactively year-round, not just at filing time.

  • Entity structure optimization (S-Corp, C-Corp, partnership)
  • LIFO election and annual LIFO reserve calculations
  • Floorplan interest deductibility under Section 163(j)
  • State and local tax (SALT) strategy for multi-rooftop groups
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Audit + Review Services

Whether you need a full audit for a manufacturer covenant, a review for a floorplan lender, or an agreed-upon procedures engagement for a buy-sell transaction, our audit partner brings 15 years of dealership-specific experience — including work with the state's largest dealer group.

  • Annual audits for manufacturer and lender compliance
  • Buy-sell due diligence and quality of earnings
  • Internal control assessment and process improvement
  • Agreed-upon procedures for specific dealership risks
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Accounting Services + Quickbooks

We offer QuickBooks setup, cleanup, training, and ongoing bookkeeping for dealerships and affiliated entities. DMS-to-QuickBooks reconciliation, management reporting, and back-office support — handled.

  • DMS-to-QuickBooks reconciliation workflows
  • Monthly financial package preparation
  • Controller and CFO advisory services
  • Payroll review and reconciliation
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dealership consulting

We help you read your composite report, benchmark against NADA averages, and identify profit leaks hiding in fixed ops, F&I, or parts. Buy a store, open a new point, or restructure management — we bring the financial perspective.

  • Composite and 20-group benchmarking analysis
  • Acquisition due diligence and deal structuring
  • Profitability deep-dives by department
  • New point feasibility and pro-forma modeling
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Wealth Management

Your dealership is your largest asset — but it shouldn't be your only one. We help dealers build personal wealth outside the business, optimize retirement plans, and plan for succession or exit.

  • Qualified retirement plan design (401k, DB plans, cash balance)
  • Personal investment strategy aligned with dealership risk
  • Estate planning and business succession coordination
  • Executive compensation structuring for key managers
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cybersecurity

Dealerships are prime targets. You hold customer SSNs, financing data, bank account information, and high-value inventory records. FTC Safeguards Rule compliance is now mandatory for dealers. We assess your exposure and help you meet requirements.

  • FTC Safeguards Rule compliance assessment
  • Vendor and DMS security review
  • Staff phishing training and policy development
  • Incident response planning and cyber insurance guidance

NAMES DEALERS HAVE KNOWN FOR DECADES

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2nd Generation Expertise
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30+ Years Serving Dealerships
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High Quality Expertise
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Integrated Service Teams
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Utah's Most Well Known Dealership Practice
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You can't buy experience

Carl Jensen has grown up in the industry — his father, Jeff, built one of the region's most respected dealership-focused tax practices, and that legacy is now part of our firm. He knows most of the dealers in the state by name, and they know him. That relationship capital means he understands not just your financials but your history, your goals, and your business situation.

Carl leads all tax planning and preparation for dealership clients, with deep expertise in LIFO elections, multi-rooftop entity structuring, OEM incentive treatment, and owner compensation optimization.

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the perfect complement

If Carl knows where every dollar has been, Kyle Robbins knows where every dollar is going. Kyle brings 15 years of dealership-exclusive audit experience, including five years with a national firm where he built the technical foundation that dealers expect. He has served as the primary audit relationship for some of the largest dealer groups in Utah — operations where the margin for error is small, the lender requirements are demanding, and a generalist approach isn't an option.

That background translates directly to what you get when Kyle is on your engagement: an audit that satisfies manufacturers and floorplan lenders, financial statements that hold up under scrutiny, and an advisor who can look at a DMS-driven balance sheet and tell you what it actually means — not just what it says.

Together, Carl and Kyle cover every financial dimension of your dealership. The tax strategy and the audit opinion. The planning and the verification. The relationship that goes back decades and the technical depth that goes back to the biggest firms in the country. You don't have to choose between experience and rigor. At Larson, you get both.

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Deep Expertise in the Industry Others Treat As a Specialty

Utah's dealer community is our primary focus — not one practice group among many. Our team has spent careers working with new and used car dealers, powersports, marine, RV, and industrial vehicle operations. That depth means we recognize the patterns that matter: when your floorplan costs are creeping up before you notice them, when your F&I income is being recognized incorrectly, when an OEM incentive structure is being misread on your books. You get the judgment that comes from having seen these situations before — not a generalist learning on your time. 

 

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Every Financial Need Under One Roof

Tax preparation and planning, audit and review, QuickBooks and accounting support, wealth management, cybersecurity compliance, fraud detection, financial dashboards, tax provisions, and pro forma modeling — handled by a single team that knows how all of it connects. That matters more than it sounds. When your CPA, your auditor, and your advisor are all looking at the same numbers with the same context, nothing falls through the cracks between firms. You make one call. We already know the full picture. 

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We Speak Fluent Dealership

Floorplan interest creeping past your threshold. Pack structures distorting used gross. F&I income hitting the books at the wrong time. Recon costs expensed when they should be capitalized. These aren't obscure edge cases — they're the specific places where dealership accounting gets expensive when your CPA doesn't specialize. Our team translates what your DMS is actually telling you into decisions you can act on: how to price inventory, when to pull the trigger on capital investments, where margins are quietly eroding, and what's coming before it arrives. 

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STAY INFORMED WITH OUR FREE NEWSLETTER

Our quarterly newsletter, Driven By Numbers, is for dealership operators, GMs, and controllers. Tax changes and deadlines that matter to you, NADA benchmarks, regulatory updates, and plain-English guidance on the financial issues moving your industry.

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THE COST OF GETTING IT WRONG

WHY DEALERSHIP ACCOUNTING REQUIRES SPECIALISTS

Automotive dealerships operate under a uniquely complex financial structure that general-practice CPAs routinely mishandle. The cost can be enormous — missed deductions, misclassified manufacturer incentives, incorrect LIFO elections, and audit exposure from errors specialists would have caught years earlier.

The IRS has identified auto dealers as a high-audit-risk industry for decades, largely because of the complexity around floor plan financing, vehicle inventory, and related-party transactions.

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LIFO Errors are costly

Improper LIFO accounting on vehicle inventory can trigger a recapture event worth tens of thousands of dollars at the worst possible time. 

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FTC Safeguards: You're Already Liable

Since June 2023, dealerships must comply with expanded FTC Safeguards Rule requirements. Non-compliance exposes you to civil penalties and regulatory action.

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Section 179 Timing Matters

Bonus depreciation continues to phase down annually. Dealers who haven't structured capital expenditures strategically are leaving real money on the table. 

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READY TO WORK WITH

PEOPLE WHO GET IT? 

How can we help your dealership succeed?

ANSWERS DEALERS ACTUALLY NEED

We get the same questions a lot. Here are some honest, detailed answers — because we'd rather you be informed than guessing.

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HOW OFTEN SHOULD A DEALERSHIP HAVE AN AUDIT OR REVIEW OR COMPILATION?

This depends on your lenders and manufacturer requirements. Most floorplan lenders require a review or audit annually. Growing or multi-rooftop groups should consider annual audits for internal control benefits alone — we'll tell you what you actually need, not the most expensive option.

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WHAT IS THE IRS SAFEGUARDS RULE AND DO I HAVE TO COMPLY?

Yes. The FTC expanded its Safeguards Rule for dealerships in June 2023. You must maintain a written information security program, designate a qualified individual to oversee it, and implement specific technical safeguards. We help dealers document and implement compliant programs.

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WHAT'S THE BIGGEST TAX MISTAKE DEALERS MAKE?

Not planning around Section 179 and bonus depreciation proactively. Dealers who wait until December often miss the window. Second biggest: not funding a cash balance retirement plan, which can shelter $200K+ annually for a high-earning dealer principal.

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WE USE CDK/REYNOLDS. CAN YOU WORK WITH OUR DMS DATA?

Yes. We regularly work with CDK, Reynolds & Reynolds, DealerSocket, Lightspeed, and other major DMS platforms. Your DMS data is the starting point, not an obstacle. We translate DMS reporting into GAAP-compliant financial statements.

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HOW IS DEALER RESERVE INCOME TAXED?

Dealer reserve is ordinary income, but timing of recognition can be complex depending on whether you use a flat fee or participation model with the lender. We make sure this is reported correctly and chargeback reserves are handled properly.

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I'M THINKING ABOUT BUYING ANOTHER STORE. WHERE DO I START?

Start with independent financial representation before you fall in love with the deal. We review financials, normalize earnings, identify hidden liabilities, and help you evaluate asset vs. stock purchase structure — which can have a seven-figure impact on your after-tax position. Call us before you sign the LOI.

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WHAT IS LIFO AND WHY DOES IT MATTER?

LIFO (Last-In, First-Out) lets dealerships value inventory at older, lower costs — reducing taxable income when prices rise. The election must be properly set up, maintained annually, and protected against inadvertent revocation. A specialist handles all of this. The last inventory purchased is the first inventory recognized as costs of goods sold, thus the remaining inventory on the books is older, lower cost inventory.

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HOW DOES FLOORPLAN FINANCING AFFECT MY TAXES?

Floor plan interest is generally deductible, but Section 163(j) business interest limitation rules can restrict deductibility for larger dealers. Dealer-specific elections exist that most generalists don't know about. We navigate this proactively.

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WHAT SHOULD I KNOW ABOUT BUY-SELL TRANSACTIONS?

The structure of the deal dramatically affects your after-tax proceeds. Asset vs. stock elections, goodwill allocation, and blue sky valuation all carry major tax implications. Get independent financial representation before you sign anything.

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HOW SHOULD I THINK ABOUT SUCCESSION PLANNING?

Most dealer principals have the majority of their net worth tied up in the dealership. Succession planning addresses gifting strategies, buy-sell agreements, and whether family or a third party will own the business. Starting 5–10 years early dramatically improves outcomes.

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WHAT BENEFITS DO DEALERSHIPS GAIN FROM WORKING WITH A SPECIALIZED CPA FIRM?

Dealership-focused CPA firms help improve financial reporting accuracy, reduce tax liability, and provide insights that support dealership growth. A specialized firm can give you more efficient audits, better tax planning strategies, industry benchmarking, improved internal controls, and strategic advisory support. For dealership financial leaders, working with industry specialists often leads to better financial outcomes and smoother reporting processes. 



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WHAT TAX STRATEGIES ARE COMMONLY USED BY DEALERSHIPS?

Automotive dealerships often use specialized tax strategies that reduce tax liability and improve cash flow. Common strategies include LIFO inventory accounting, cost segregation for dealership facilities, bonus depreciation and Section 179 deductions, multi-entity tax structuring for dealer principals, and state and local tax planning for multi-state operations. An experienced dealership CPA firm can identify strategies specific to dealership operations. 



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WHAT INFORMATION SHOULD DEALERSHIPS PROVIDE TO A NEW CPA FIRM?

Providing financial and operational documentation upfront helps CPA firms start work quickly and avoid delays. Preparing these materials in advance helps accelerate onboarding. Documents commonly requested include prior year financial statements,  prior tax returns, trial balance and general ledger, vehicle inventory reports, parts inventory reports, floorplan financing statements, manufacturer incentive schedules, and ownership structure documentation.