Cashflow and DOC
03/07/2009
In a climate where ‘cash is king', Dealership accountants are necessarily being tasked with maintaining a healthy cash position and are often called upon for an accurate forecast of the cash position today, tomorrow, next week.
To produce a meaningful cash forecast, particularly during busy periods, can be, at best, time consuming, information from other departments may not be readily available, with potentially reduced headcounts the staff may not be available to collate the information, and at worst it may be impossible to predict the cash position with an acceptable degree of accuracy.
This has the potential to result in misleading information being provided to parties such as managers, stakeholders and funding partners, which in turn may have an effect upon the decision making process. This may not be in the best interests of the business.
The Dealer Assistance Team are currently working on the development of a management tool which will combine the departmental DOCs with a daily cashflow forecast, thereby ensuring the information required is available every day with minimal input required.
If you would like to learn more, or have any comments please contact Karen Watkins on 07824 812122.