Timely reporting is essential for managing the business. Don’t lose sight; the longer it takes to prepare reports, the more time consuming the process is to complete. Today, IT technology makes it possible to pinpoint the financial state of the business exactly. 

The first major session on CCIF-focused second day part of this year’ AIA National Conference in Toronto this past March went straight to the heart of every shop’s business, grappling with the financial puzzle. Jim Bethune of Bethune Consulting spoke from direct experience explaining that there is no substitute for streamlining processes, reducing costs, and leveraging information technology to increase profitability.  

“Technology is going to help you count the pennies. If you are not counting the pennies, you are not going to see the dollars,” Bethune explains with enthusiasm. 

Your budget is your roadmap. Then, compare daily sales to your targets and budget plan. Monthly, analyse financial statements including key performance indicators (KPIs).  Waste no time; close off sales by the 4th day, assess Gross Margin Analysis by the 10th day of each month.  Accounts Receivable means Cash Flow; Bethune emphasises that cash flow is the life blood of the business. Knowing your numbers will improve the bottom line 

Bethune cautioned managers that to use Information Technology to ensure that you know immediately how your business is fairing. Eliminate paper – it costs money; eliminate keystrokes to be efficient; do a daily reconciliation.  Bethune recommends switching to cloud rather than a server to avoid information access problems. 

He also listed some very immediate areas to control to “look for pennies”. Eliminate cheques by paying suppliers electronically. Watch and reduce wherever possible credit card expenses. Ask for lower rates. 

A huge area of lost expenses in parts and parts return. “You cannot afford to lose parts,” he notes. Make sure you get your credits and be super careful or margins will be eroded. 

By committing to a regular process of immediate reporting and regular analysis you will improve your bottom line. Developing the discipline, tools and systems is vital.  Keep learning and improving – knowing your numbers will improve your financial performance.