In the automotive industry, maintaining a strong gross profit margin is critical to business success

Megabus offers the following as six simple tips to help protect your bottom line and ensure long-term financial health:

1. Enforce staff accountability: ensure staff are responsible for their entered transactions and have appropriate system access and passwords. Reviewing low GPM percent invoices daily helps prevent transactions that fall below your minimum GP levels.
2. Control credit notes: credit notes reduce sales figures and gross profit. Therefore, we recommend having an authorisation process in place to prevent unnecessary revenue loss and an opportunity for fraudulent transactions with either stock or cash refunds.
3. Monitor stock levels closely: unknown stock loss can significantly impact profitability. Conduct regular stocktakes, at least once a month, alongside ad hoc stock checks to prevent inventory shrinkage.
4. Manage slow-moving stock: excess stock that does not sell ties up cash flow. Highlight slow-moving items and offer strategic discounts to move them before they become obsolete.
5. Reconcile banking balances: regularly check that cash and EFTPOS transactions match your banking records. Any discrepancies that go unnoticed and are written off as expenses can chip away at your profits.
6. Optimise pricing and upsell opportunities: regularly review pricing strategies, encourage upselling, and send follow-up reminders to capitalise on missed opportunities and maximise revenue.
   Paying close attention to these areas can optimise your workshop’s profitability and help create a more financially resilient business that remains competitive in an ever-evolving market.

Paying close attention to these areas can optimise your workshop’s profitability and help create a more financially resilient business that remains competitive in an ever-evolving market.
If you are looking for tools to help simplify your financial management and boost profitability, Megabus says its software offers industry-leading solutions designed specifically for automotive businesses.

For more information, visit www.megabus.com.au