6 minute read
Preparing Your Records for CEWs
DRIVING INSIGHTS | Customers Pick Their Cars, It’s Time to Let Them Pick Salespeople
DREW HARDEN, MANAGER, RESEARCH & INSIGHTS AT CARFAX CANADA
The process of finding a vehicle has evolved over the years but one part that hasn’t changed is how potential buyers meets their salespeople. For two out of three car buyers, they meet the person who sells them their car by chance—whichever salesperson speaks to the customer first is now their rep. Turns out people are tired of playing this salesperson roulette; 74 per cent of used-car buyers would like to choose their sales rep next time they buy a vehicle.
What’s in it for you? Selling more cars Allowing potential customers the opportunity to pick their own salesperson is going to get them into the dealership faster and it will make them more likely to listen to that rep. Of those who are interested in picking their sales partner beforehand, 72 per cent would feel more comfortable visiting the dealership, 76 per cent would be more open to listening to the salesperson’s recommendations and 49 per cent would spend less time researching other vehicles online. Start getting more leads and appointments The option for your customer to choose who they will deal with needs to happen online. Once the customer chooses a sales rep, you should have them book an appointment, creating a new source of leads for your dealership. The preferred methods are: interactive tools that ask potential customers a few questions about their needs, and then providing one or several recommended sales people; or, if that isn’t possible, allowing customers to choose a salesperson based on their biographies is still a viable option.
When it comes to the information that matters to potential customers, those who would like to choose their salesperson were universally interested in their rep being knowledgeable about the vehicle they’re interested in. After that, their needs do vary. If you’re investing in giving your customers the choice, it would be important to ask your customers what matters to them. One customer may want someone who speaks their native language, another may want someone with a lot of experience and a third could want someone who knows what it’s like to have a big family.
Ensuring potential customers know you have salespeople who are knowledgeable about the vehicle they want, and then allowing them to pick a salesperson, will make customers feel comfortable when visiting your dealership—factors that should sell more cars
and create more satisfied customers.
Driving Insights is an information series designed to help used car dealers better understand the motives and behaviours of Canadian used-car buyers. The research, designed by CARFAX Canada and executed by Dynata, is obtained through a national survey of 1,000 Canadians. If there’s a question you’d like us to address, email insights@carfax.ca. Get more insights at carfax.ca/insights.
Preparing Your Records Before and After Unlock Your Auto Dealership’s Applying for the CEWS
Full Potential JACQUELINE FEHR, JD, LLM, PARTNER WITH MNP’S TAX SERVICES TEAM IN VANCOUVER
The federal government recently announced the extension of ant and should be kept handy for when employers are asked to the Canada Emergency Wage Subsidy (CEWS). Described by the Today’s auto dealers continue to face their share of challenges, reconcile how they arrived at these amounts. Canadian Automobile Dealers Association (CADA) as a “critical from narrow margins and management struggles to dealing with For example, the CRA may ask employers to reconcile their lifeline for dealerships and employees,” the CEWS program has manufacturers’ expectations and a constantly shifting marketplace. calculation of eligible remuneration. In that case, employers will been extended to August 29, 2020 (with possibility of extension As business advisors to more than 140 auto dealerships in B.C., need to clearly and quickly communicate how they arrived at the to December, announced by the federal government and finance MNP understands the specific demands and opportunities of the amount they claimed as eligible remuneration from their calculaminister at the time of writing). automotive industry — and is uniquely positioned to address the tion of gross remuneration, including commissions.
In order to ensure the application is processed efficiently, dealneeds of dealer principals, whether you’re a single-store operator or Similarly, employers should retain any calculations prepared which erships applying for the CEWS should have robust supporting a multi-store dealer. demonstrate the decline in qualifying revenue between the compared documentation readily available if requested by the Canada ReveTo learn how we can help you deliver performance - drive results periods. This allows employers to clearly explain their assumptions in nue Agency (CRA). and more success, contact Chris Schaufele today at the future, even if institutional knowledge has been lost. chris.schaufele@mnp.ca or 604.536.7614 Retain any source documents and underlying working papers. What records must dealerships keep? Copies of any elections made in respect of those calculations are Employers applying for the CEWS must keep records demonstratkey to the calculation of qualifying revenue. ing the reduction in their qualifying revenue and the remunera Chris Schaufele, CPA, CA Dan Lock, CPA, CA Ryan Gorder, CPA, CA Regarding the reduction in revenue, employers may also base tion paid to their employees. But what does this mean? Partner, Automotive & Partner, Automotive & Partner, Automotive & their calculations on primary source documents, such as financial
To apply for the CEWS, employers must calculate both the re Assurance Services MNP Surrey Assurance Services MNP Port Moody Assurance Services MNP Port Moody statements, invoices, general ledger details, contracts and bank duction in qualifying revenue in the claim period when compared records from the periods they are comparing. Similarly, employers to a prior reference period, and the eligible remuneration paid to might support the calculation of remuneration paid to employees employees. As a result, working papers will be particularly importMNP.ca with cancelled cheques and payroll records like employment con
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Unlock Your Auto Dealership’s Full Potential
Today’s auto dealers continue to face their share of challenges, from narrow margins and management struggles to dealing with manufacturers’ expectations and a constantly shifting marketplace.
As business advisors to more than 140 auto dealerships in B.C., MNP understands the specific demands and opportunities of the automotive industry — and is uniquely positioned to address the needs of dealer principals, whether you’re a single-store operator or a multi-store dealer.
To learn how we can help you deliver performance - drive results and more success, contact Chris Schaufele today at chris.schaufele@mnp.ca or 604.536.7614
Chris Schaufele, CPA, CA
Dan Lock, CPA, CA
Ryan Gorder, CPA, CA
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tracts, information about the hours worked by each employee and amounts withheld, commission calculations and related support, any information slips issued and copies of other required forms. Any primary source document relied on in a CEWS application should also be kept along with the working papers.
Finally, it will be important for employers to make sure that their internal CEWS file also includes a copy of the signed attestation made on form RC661.
MNP’s recommendation on best practices If an employer’s CEWS claim is reviewed, it is the responsibility of the employer to prove that they met the requirements. Organizing files contemporaneously with the application process, ensuring appropriate referencing and detail, will save time and effort later in responding to any CRA queries.
The Income Tax Act has requirements which relate to the length of time documents must be kept. You should make sure that any record-destruction policies in place for your business do not accidentally destroy records from the prior reference period too early.
We recommend that employers keep all relevant records (CEWS calculations, primary source documents, elections and attestations) together in an easily accessible and safe place. Any of the records subject to solicitor-client privilege should be clearly marked.
If you have any detailed questions about the CEWS or record-keeping for your dealership during these uncertain times, please reach out to an MNP advisor for more details.
Jacqueline Fehr is experienced in tax dispute resolution and controversy. Contact Jacqueline at jacqueline.fehr@mnp.ca or 778.309.4740.
