Are you gambling with your dealership’s cash flow?
- There are three ways you could be gambling with your cash flow.
- Manual and outdated processes leave your dealership open to a lot of risk.
Imagine you are at the casino and take a seat at a poker table. The dealer deals you a hand and without even looking at your cards, you decide to bet everything you have. Seems risky right? When you don’t have full visibility to your cash flow, you could be going all in without the proper financial information on your dealership.
Knowing where your cash is can be like having a royal flush in a game of poker or hitting 777 on a slot machine. It helps you play your cards right and have a deeper understanding of your dealership’s financial health.
However, all bets are off when you have manual and outdated cash flow and payment processes. These processes can leave your store open to a lot of financial risk. In your business office, do your cash flow processes ever make you feel like you’ve been dealt a bad hand?
There are three ways you could be gambling with your cash flow.
Relying on Mail
Mailing checks and A/R statements is a lot like rolling the dice and having to rely on luck. There are a lot of unknowns. For example, there is no way to track A/R statements once you’ve mailed them out, or when you would get a customer payment back. There’s also the chance of having a bad customer address and having to deal with a returned statement. Not only is this wasted time to find the updated address and resend the statement, but it’s also added postage costs. It may not seem like a lot for stamps and envelopes, but these costs add up over time. Bad card after bad card or bad address after bad address, can mean game over.
The way you pay your vendors matters. When it comes to sending out your A/P payments, do you send them all out at once? Sometimes it can take weeks for your vendors to receive payments, or even worse, your vendors don’t receive the payment and they never get paid. On the other hand, what if your vendor takes a large payment out at one time? Can your dealership handle a large sum of cash leaving even though payments weren’t due for another two weeks?
When it comes to payment, customers and vendors today want something quick, easy, and reliable. Imagine if you could get your money the same day the invoice was sent to the customer. No more waiting around to receive the payment or having your cash float around your dealership. Adding a digitized payment process would allow you to have better visibility and control of your cash.
In the end, when it comes to cash flow, the higher the risk, the lower the reward. Relying on mail, manual payments to vendors, and a lack of payment options could all be costing you time, money, and control of your cash flow.
So, how can you deal yourself a winning hand?
With digitized payment processes that increase visibility and secure cash flow, save employees time, improve business relationships, and collect money faster, you’ll hit the jackpot.
Would you bet on your current cash flow processes? Leave gambling to the casino and stop putting your dealership’s financial health at risk.