Pub. 2 2019-2020 Issue 4

24 D ealerships are learning on the fly how to manage greater market swings than previously imagined. One fundamental action you can take now— reducing expenses — can help strengthen your dealership’s finances no matter what the future holds. As you think through ways to manage costs and increase cash on hand, there are many places to look. As you take tighter control of your expenses, be sure to keep the following top of mind: Re-Evaluate What’s Currently on the Table Pausing to take a close look at your current expenses may be the most meaningful action to shore up your finances. Different departments may have separate budgets and expenses, but have you considered how those costs might be more related than you think? Don’t just take a clean-sheet approach. Clear off an entire table and look at the physical bills to ensure that the product or service you’re paying for is what’s actually listed on the invoice. This exercise might seem time-consuming, but you may uncover some surprises — and subsequent savings. Who’s in Charge? Oversight Is Key Depending on the size of your dealership, you may have different managers determining what the essential expenses are for their departments, while someone else is responsible for writing the checks and balancing the books. The table-top exercise of reviewing all your bills may involve several staffers, but oversight is key. You know where the buck stops and someone who understands the big picture has to make difficult choices, prioritize expenses and identify savings. Don’t Pay Twice for the Same Service You might be surprised to find you’re paying two vendors for the same service. Ask your trusted vendors about their full range of services and consider streamlining suppliers and Find Money by Sharpening Julie Becker-Myers , Director of Dealer Consultation, Ally Academy Expense Management