In a low-margin industry like automotive, it's vital to have effective controls in all areas of the business, managing the financial environment and implementing best practice across the board.
When a business is profitable, underperformance in certain departments can slip under the radar. That's why it's essential that monthly performance targets are broken down into daily targets for all operating departments.
A lack of focus or shortcomings in accounting systems often results in an inability to access the level of detail required for this type of valuable monitoring. ASE's expertise will ensure a comprehensive controls assessment, identifying areas for performance improvement and the extraction of relevant information from your systems to support decision making.
ASE assisted a Dealer Principal by breaking down the monthly budget into daily achievement targets for all departments. A number of Daily Operating Controls were implemented to enable the management to "keep their finger on the pulse" of the dealership. This included ensuring the operating control sheets were completed on a timely basis, because ASE were included on the distribution list for the controls schedules for the first month after implementation.
A follow up visit was scheduled for 3 months after the initial field work to review progress; this identified that significant progress had been achieved around cash controls, debtors and vehicle administration.