Individuals and businesses have been negatively impacted by the health and economic effects of the COVID-19 pandemic. The outcome of this November’s election will determine how we move forward. The Presidential candidates have each put forward a variety of tax proposals. The panel will discuss these proposals and how the outcome of the congressional and Presidential elections affects the likelihood of these proposals becoming law.

Learning objectives:

• Evaluate each candidate’s tax proposals

• Analyze whether action is needed to prepare for the outcome of the election

Join us as Jason Stein, Publisher of Automotive News, conducts a “fireside chat” with Don Flow, Chairman and CEO of Flow Automotive Companies where the two will discuss success stories, best practices, and the obvious operational challenges during the recent pandemic. The session will cover:

• Best practices and lessons learned from the leader of a large automotive group
• Managing through a pandemic, including digital retailing, HR, operational challenges
• How to emerge strong following the pandemic

The economy continues to recover from the deepest recession in the post-war period. The reopening phase generated stellar growth rates from locked-down levels, fueled by massive amounts of fiscal and monetary policy stimulus. However, although still strong, growth rates are starting to ebb in a swoosh-like fashion, as business and consumer confidence remain vulnerable to virus’ vagaries. Meanwhile, additional fiscal policy support is proving harder to come by as the election approaches. The economy’s complete recuperation from the pandemic could take a long time. This session will address these issues. 

Used vehicle net profits have diminished in recent years, even as sales volumes have increased for dealers. This trend finds many dealers achieving record-setting sales volumes while losing money in their used vehicle departments. This session offers a data-rich dive into the factors that have caused net profits to decline and reveals new metrics dealers can use to right-size their inventory investment to retail demand, identify each vehicle’s unique investment value and align their used vehicle acquisition, pricing and reconditioning decisions to maximize each vehicle’s optimal return on investment. The session will deliver take-home strategies that help dealers increase sales volumes without sacrificing net profit.

Learning Objectives:

• Recognize the shorter retail shelf life of most used vehicles
• Base critical used vehicle management decisions on each vehicle’s investment value
• Create an investment management strategy to drive sales and net profit improvement

In this session the speaker, Torre Hammer, will: 

1. Look at the increased risk of fraud due to the pandemic, employees working remotely and the changing business environment. 

2. Discuss key controls and exception reporting CFOs can implement to address fraud risk and improve operations.

This session will discuss current planning strategies with respect to family succession, outside sales, estate and income taxes, as well as a discussion of some of the pitfalls of traditional succession structures.

Learning Objectives:

• Strategies addressing family issues which often impeded succession
• Participants will become more aware of viable exit strategies and family or management transaction alternatives

In the session, the speakers will discuss advertising and marketing strategies to maximize effectiveness, efficiency, and ROI in an ever increasing digital world.

Learning Objectives:

• Provide insights on the importance of auditing your digital marketing efforts
• Provide current best practices for an effective and efficient marketing strategy

CFOs from Mega Dealer Groups will be ready to answer your questions. Topics to be discussed include:

1. COVID-19 operational changes, 

2. PPP loans planned approach, 

3. Pay plan ideas in changing world, people and development, 

4. Building dealers trust, 

5. 2020 expense savings ideas implemented, 

6. CFO role and 2021 and beyond key initiatives.

Tax Update: What we have learned from COVID-19 Inspired Legislation

(CARES Act, FFCRA, Payroll Tax Deferral, PPP, and more)

The Coronavirus Aid, Relief and Economic Security Act (CARES Act) and the Families First Corona Virus Response Act included a number of provisions that impact dealerships and their owners. Some of these impacts were felt immediately and others will have a delayed effect to be considered during planning for 2020 tax compliance. We will cover the following topics:

• Paycheck Protection Program
• FFCRA Employer Tax Credits
• Employee Retention Credit
• Employer Payroll Tax Deferral
• Technical Correction to QIP
• NOL Carryback Period Expansion
• Increase in 163(j) limitation
• Changes to Business Loss Limitation
• Charitable Contribution Deduction Changes for 2020

Speakers Sally Lopez and Tom Olney, Partners of OWL Automotive Consulting, LLC, will discuss:

• DMS – Are you getting full utilization and efficiencies out of your existing system?
  1. How do you know if you are?
  2. Training on your DMS – new employees and existing employees
  3. How to get more training out of your DMS provider
• DMS – What every dealership should do before the end of their contract?
  1. System utilization review
  2. Timing of review
  3. Proper shopping / comparison to other systems
  4. Phantom barriers to changing DMS providers
• Data / Network Security – You THINK you are safe and secure? Do you KNOW that you are?
  1. You are financial professionals, not IT Engineers who have firsthand knowledge
     1. Are you safe, just because your IT Director says you are safe?
  2. Steps to positively verify the condition of your IT Network

Learning Objectives:

• Learn the proactive steps necessary to get full value for your DMS system and contract
• How to identify if your organization has potential weaknesses that could lead to system intrusions and ransomware

During this session, presenter, Willie Beck from Bel Air Partners will discuss:

1. Current Buy / Sell Trends

2. How the Market Values a Dealership

3. Preparation and the Sales Process

Think you have a viable cyber strategy and a good understanding of cyber threats facing dealers? 

“Everyone has a plan until they get punched in the mouth.” – Mike Tyson

This session will inform Dealership owners and other stakeholders how crippling cyber-attacks occur against dealerships, its owners, as well against supply chain partners in the automotive industry. Real life lessons from the trenches from the United States Secret Service, Intelligence Agencies, Insurers, Compliance, Criminal and ‘Civil’ matters, SME’s to major global businesses and suppliers. This session is provided by the Partner of the Withum cyber team, a former United States Secret Service Agent and awarded as the Top Electronic Crimes Special Agent and Department of Justice Award Recipient for Invaluable Expertise, as well as supported by Withum cyber team’s former military and private sector specialists w/offensive and defensive expertise.

Katherine Johnson Cannata leads Wyatt Johnson Automotive Group which is listed as one of Nashville’s Top 25 Fastest Growing Businesses each of the last six years. The dealership is known for achieving excellent results in the areas of employee retention, customer satisfaction and financial growth and stability.

During this session, you will learn about:

1. Katherine's experience as a CPA and how it shaped her leadership style in the Automotive Industry

2. Enhancing your current leadership skills through the experiences of a CPA  turned Dealer Principal

My very first speech as the 2020 NADA Chairman dealt with the corruption, obstruction and disruption to the auto retail industry.  The COVID-19 pandemic might be described as destruction but we are facing the challenges together as we learn to operate in a new business environment.

Learning Objectives:

• Business challenges bring opportunities and adapting to change leads to advancements in the auto industry
• Educate ourselves and learn new best business practices for an ever changing environment
• We are united as One NADA, a bulletproof band of brothers and sisters. Stay positive because together, We've Got This

Dealers have shown their resiliency as they developed strategies to survive, and even thrive during, the pandemic.  Dealer operations during these difficult times have highlighted critical legal issues  as the pandemic (hopefully) winds down, and dealers return to "normal" times with operations informed by the lessons learned from the pandemic.  The session will cover:

• Relationships with franchisors
•  Attention to supplier agreements, particularly indirect finance and lease providers
• Digital issues, particularly data protection
• Reducing legal risk 
• Strategies for improving personnel policies

Learning Objectives:

• An audience member will identify legal issues important to a client's business in moving beyond the pandemic
• An audience member will learn specific strategies and policies to which attention must be given in dealing with critical legal issues
• An audience member will learn specific steps that can be taken to assist clients in developing protections in dealing with franchisors and suppliers and reducing risk of losses from legal actions

The Accounting and Assurance (A&A) Update will cover recently issued accounting, reporting and auditing standards and other guidance that may affect your business. We will provide general information on happenings from FASB and AICPA. This session will touch on COVID-19 accounting considerations as well.

Learning Objectives:

• Identify items to be considered from the impact of COVID-19, specifically accounting options related to debt forgiveness under the CARES Act/PPP loans, impairment of assets and revenue recognition.
• Outline the new effective dates of the lease standard and other standards that are currently delayed by the FASB.
• Identify key accounting issues that are typically encountered in the automotive industry.

The lasting effects of the Tax Cuts and Jobs Act of 2017 continues to resonate with dealers and impact decision making. Revisiting key provisions of the most sweeping tax reform in the last 30 years and what we have learned along the way.

Here are a few of the topics that will be covered in the session:

• IRC 199A 20% Qualified Business income deduction
• IRC 163(j) business interest limitation
• IRC 168(k) bonus depreciation
• Interplay between IRC 163j and IRC 168k
• IRC 274 Qualified transportation benefits

The annual physical parts inventory is typically viewed as an accounting exercise – an opportunity to “true up the books to the physical.” The count is performed and adjusted and then the physical value is reconciled to the GL. The conversation around a “good” or “bad” entry is had, some wringing of hands if it was a “bad” entry is done and then life goes one. However, the physical inventory and the following reconciliation is an excellent opportunity to identify profit and cash drains on the business.

Every owner wants more parts gross profit. This occurs by selling more pieces or selling pieces for more dollars (or both.) Selling more is not just a marketing function – in fact, having the right part in the right quantity in the right place at the right price at the right time (also call first-time fill-rate from inventory) is the biggest reason that sales increase. Having more of what is needed when it is needed at the right price will increase sales. People are willing to pay a reasonable amount more if you “always have what they need.” Gross profit is driven by first-time fill-rate from inventory.

In addition, reducing the write off at the time of inventory (a reserve for obsolescence, throwing old parts away, shortages, etc.) will drive gross profit up. If you do not have to write it off, gross profit does not go down. Also, if you manage the excess and obsolescence well, cash is not tied up in inventory.

The annual parts physical inventory is the perfect opportunity to stop, investigate, ask questions and identify reasons that the physical parts inventory, as well as the general ledger parts inventory, does not work as well as it should. This workshop will investigate causes of inventory quality, depth, breadth, and accounting accuracy. The participant will learn the questions to ask and where to investigate to turn the annual inventory from “the CPA says I have to do it” to an event that is high value and impact.

Learning Objectives:

• Identify the questions to ask that cause poor physical inventory performance
• Identify the questions to ask that can lead to physical inventory to general ledger variances.
• Identify the activities that can improve overall parts inventory accuracy and performance

Speaker, Anthony Sardis will discuss the insurance market post-COVID and cost-savings opportunities.

Learning Objectives:

• Understand the Impact of Covid on Insurance Pricing
• Learn about Methods to Manage Risk using Alternative Structures

This session will cover:

• 199A and the sunset date  
  
• 831b reinsurance companies and what to do next
  
• The direction of taxes based upon the upcoming election and things to consider for planning if tax rates are expected to increase 
  
• Employee parking tax deductibility rule updates
  
• Change to Qualified Improvement Property rules and value in potential accounting method changes to retroactively claim bonus depreciation