THE DEALERSHIP FINANCIAL QUIZ
The financial statements of a business are its score card. Yet many business owners and managers do not manage them in a way that creates the level of success they desire. Take this quick 10 question quiz to see how you stack up with those that manage their financials closely. Don't worry, this quiz is not here to gather your confidential info. It's merely designed to give you a sense of where you may be in terms of your financial management.
1. Do you receive and review an income statement and balance sheet every month without fail?
2. Do you receive the financials by the 15th of the following month?
3. Do you have P&L breakouts by department and/or product offerings?
4. Do you review the results with your senior management team?
5. Do you have exact targets for each revenue, cost of goods, expense and net income line on your income statement?
6. Do you compare your performance to industry benchmarks each month?
7. Do you determine what caused anomalies on the income statement and balance sheet each month?
8. Do you have incentive plans in place for your key managers that are driven by the financials?
9. Are all bank accounts, payroll, credit cards, etc. entered and reconciled each month?
10. Do you have a good way to project your tax burden for the business throughout the year?
If you answered Yes to 8 - 10 of the above questions, well done!
If you answered Yes to 5 - 7 of the questions, you have much of the groundwork in place but could benefit from expanding your financial management process.
If you answered Yes to 4 or less of the questions, you’re not getting the benefit you could from your financials and are likely leaving money on the table.
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At Prosperity Plus, we help dealerships and resellers like you put a strong financial review and management process in place. We’ve helped many clients more than double their profitability. Getting this process in place not only puts a focus on financial results, it builds a culture among the management team that permeates the entire business. We’d love to help you achieve the same. If you’re interested in learning more, send an email to Jim Kahrs who will reach out to you to set up a free consultation to discuss how you can benefit from the process.