Utilizing Excel to Prepare Budgets & Forecasts Presented by: Automotive Services Group Amper, Politziner & Mattia, LLP

Seminar Objectives Enable attendee to become pro-active in preparing budgets Allow attendee to compare budget to actual analysis in a dealer financial format Benchmark historical results to assist in determining strengths and weaknesses of dealership

Seminar Objectives - Continued Allow dealership to prepare What if analysis Assist dealership in determining break-even analysis Provide a template for your use

How Budgets are Effective Invaluable business tool for management Allow management to plan for future direction of dealership. Assist in recognizing factors that are affecting the actual to anticipated results

How Budgets are Effective Allows for financial information to be accessible to all managers of departments & assist them in growing their department. Allows dealer to hold managers accountable for their department. Helps the dealer to monitor expenditures throughout the year.

Forecasts A forecast is a what if exercise Assist with acquisition Assist with financing negotiations Helps with cash flow analysis

Dealerships and Budgets Are Budgets frequently prepared at dealerships? Why not?

Reasons for Not Budgeting Im too busy No one follows up and compares actual to budget The dealer statement is too large to perform budget There is no reward or ramification for achieving or not achieving budget results The department managers do not take the process seriously

The Template Solution Template is built to mirror the dealer statement to assist management Allows for 6 different scenarios –Same as last year (2) –Percentage increase over prior year –Expenses as Other % of Gross Profit (ie 20 Group / Financial institution) –Expenses as NADA Benchmark of Gross Profit –Expenses as same % of Gross –Other input amount

Worksheets Within Template Dealer set-up Projection scenarios Projection input (this worksheet is the driving force behind the template) Projected P&L ( Various sheets relating to page #s of Dealer Financial) Prior year Financial statement (Same various Sheets relating to Dealer Financial)

Keys to Changes Column Q within Projection input Function Gross Profit % columns –Enter your own benchmarks

Keys to Changes Other Input –Known expenses Rent Depreciation Contributions Why no Departmental breakdown?

Lets Experiment One Major Rule of the Experimental Phase of the Seminar. If you have a question ASK There are individuals present to assist.

Lets Experiment - Continued Project new vehicle sales to be 15% lower than previous year. What about Gross? Project Customer Pay Labor to increase 10% from prior year. Any Questions so far??

Lets Experiment - Continued New Telephone contract? Lets cut telephone expense by 2%. Interest rates rising.!!! What to anticipate with a rate increase. Increase Floor Plan Interest by 3% Any More Questions ??

Lets Experiment - Continued What would you like to change? Open discussion and questions.

Thank You! Chuck Diegel Dawn Rosoff Sam Longo Jerry Shinfeld The material contained in this presentation is for general information and should not be acted upon without prior professional consultation.