Who Should Be Paid And When? (Lesson 14)
Over the years, many shop owners have told me, “We know it’s important to have all the information at hand and all of the demands for payment totally under our control, but it just doesn’t seem to be a top priority”.
If you see yourself mainly as the technical expert rather than the accountant in your business, you probably feel the same way. In a typical busy day, the main thing you want to be doing is getting on with your core business – fixing cars.
Keeping track of the invoices is not usually the most exciting part of the workshop business. Yet it’s crucial that invoices are managed and under control, so you don’t lose profitability by being subject to late fees or other penalties that can impact your business financially.
This may seem obvious, but it’s easy to lose sight of one of the core reasons you are in business and that core reason is to make money. Your suppliers are also in the business to make money as well. Paying your invoices on time consistently will certainly improve your reputation with your suppliers.
Imagine being free of ever having to worry about an invoicing or accounts payable issue.
It is very common for auto workshop business owners to be so busy that they simply lose track of time when it comes to paperwork. It is easy for invoices to become overdue, and this is why many auto workshop owners feel that the best management of creditors is to pay them immediately, or outsource this work at an exorbitant fee. However, this is a reactive approach to your financial responsibilities. What Jim did in the story above, was to take a proactive approach and it made his life so much easier, assisting in his business success.
By implementing an integrated system that streamlines your business, you allow yourself the peace of mind that comes with knowing that everyone is paid, and that you still have cash on hand. You don’t have to struggle the way you are. There is a proactive solution waiting for you.
On a scale of 1 to 10, how streamlined would you say your invoicing and payment systems are?
To your success,
Australia’s #1 Automotive Business Growth Expert