In the second of a series of insights into running an efficient dealership, Thurlby Motors managing director Chris Roberts looks at forecasting.
Never has timely financial information been more important than at present, in the middle of a global downturn where quick decisions and actions are vital.
During my career I have been involved with many businesses where the management have the ability to fix a problem or increase profitability, but simply don’t have enough timely
information to understand under-performance and focus solutions in the right areas.
Most large groups and plcs have a way of tracking financial performance throughout the month and are therefore well placed to make changes and improvements to the business on a daily basis if needed.
However, more than half the small and medium-sized companies I have worked with rely on their management accounts to ascertain how they are performing.
At best, management accounts are generally produced by the 10th working day of the following month, which means you are already around two weeks out of date before any performance improvements can be addressed.