Dealership Assistance Services

In the current financial climate it is a certain fact that we need to examine all areas of our business and ensure that costs are minimised and maximum value for money obtained.  Much focus is placed on the customer facing elements of the dealership ensuring that controls are operating effectively and returns maximised.

However, how many Dealer Principals and Owner Drivers can genuinely say that they take the same approach to the accounts and administration functions?  We find that all too often these departments are left to their own devices with minimal accountability. 

Our aim is to de-mystify the role of the accounts department and ensure it is operating efficiently and effectively.

So what is the role of an effective accounts department?  Without doubt, the primary role has got to be the production of accurate monthly accounts to an agreed timescale.  In our experience, this is achieved via:

1. Strong daily disciplines – ensuring that the financial records and reconciliations are always up to date.  A few transactions per day per task will prevent a mammoth task later in the month when the pressure is on to meet a deadline.
   
   
2. Optimised usage of the DMS – all too often the sophisticated nature of the DMS is not used to full effect causing reconciliation problems and over staffing.
   
   
3. A standardised month end file, timetable and checklist which ensures that EVERY BALANCE SHEET ACCOUNT IS RECONCILED EVERY MONTH to an agreed timescale.

Assuming the basics are right, then the potential for the accounts function to add further value becomes available.  The main areas our team focus on are:

1. Use of financial reports on a daily basis (daily operating controls or DOC’s) to drive performance.  These are increasingly important and allow management to react to issues immediately as they occur rather than waiting for two weeks after the month end has elapsed when the accounts are produced.
   
   
2. Driving through control improvements at weekly debtor and stock meetings to assist in the control of working capital.
   
   
3. Cash flow forecasting and pro-active management of the cash position to mitigate peaks and spikes in the cash demand.
   
4. Cost reduction analysis and control.
   
   
5. Used stock profiling analysis to maximise gross profit per unit and mitigate stock writedowns and stocking interest.

Are you getting the above out of your accounts function?  If not, do you know why?

Our Dealership Assistance Department comprises of a team of dedicated ex Dealership Accountants with significant experience in the way it “should be done”.  We can work with your business in a number of ways from a one-day financial health check to a long term Finance Director style relationship.

For a free consultation about how we can help, please call Neil Tewkesbury on 07854 549389.