Warning Signs That You Might Have a Cash Flow Management Problem
There’s never been a time when it was more critical than today for dealers to take advantage of every opportunity technology offers to run leaner and smarter.
At Avanto, we’ve seen firsthand both the impact effective use of technology can have on the bottom line and the potentially very significant downsides of failing to automate repetitive, low-value processes and procedures.
One area of dealer operations that truly cries out for focused, aggressive technology deployment is cash flow management.
There are several very obvious signs that you might not be managing your cash flow as well as you could be.
For example, if you’re constantly up against the limit of your line of credit and worried about issues as basic as making payroll, the time for action is probably long overdue.
Likewise, if your 90-days outstanding invoices represent more than 5% of your overall receivables or if you’re not taking all your earned manufacture discounts.
But even if your dealership is free from issues like these, there will still be opportunities to improve. That’s where we come in.
At Avanto, you’ll find the tools and the expertise to free up valuable time that your people can spend on higher value activities. We can also provide technical training and career development opportunities that can help strengthen morale and generate a more cohesive team spirit in these challenging times.
Implementation of accounts payable automation also brings greater visibility into true product costs, a key resource in the fight against margin erosion. At the same time, errors can be identified far earlier in the quote-to-order cycle, so that they can either be avoided entirely or addressed before negatively impacting the bottom line.
Putting it bluntly, if you’re still managing your cash flow the same way you did three years ago, you’re not only leaving money on the table but also ultimately putting your dealership at a significant competitive disadvantage.
We work with many different industries, helping them navigate the digital transformation process. Reach out to us and see how Avanto can save your company time and money.