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Bryant Gibby

Bryant Gibby Used car manager

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Closing out the month

     I was recently in a training and one of the topics discussed was closing out the month in 3 days. Our store normally takes 10 days or so to close out the month, so we are quite a ways away from the goal. The reason it takes us so long to close out the month is that it takes F & I until about the 5th of the month to finish up all deals. It then takes the accounting office a few days to post & cap all the deals. Finally, it takes our controller and GM about 2 days to do the statement. It is usually the 10th-13th of the following month until we see the statement from the previous month.

 

     I feel like we take too long to close out the previous month and this training was a pretty big eye opener. They discussed ways to expedite everything so you could close the month by the 3d of the following month. I know we have room for improvement but I feel like 3 days is pretty unrealistic. What is your guys' thoughts? Do your stores have a process for closing out the month? Or do other stores even care about it?

Jim Bell
3 days isn't unrealistic at all. F&I has to have all of the deals turned in by noon for it to count on the month. Deals are processed through accounting and booked out, commissions figured, and financials are done by the 2nd business day. If you have the right people in place, it is very possible.
Alan Bailey
I worked at a large dealer group (12 stores)that without fail have the month closed AND everyone paid within TWO business days of the end of the month. To my knowledge this has always been followed and they have NEVER been late. The key? At 12:01PM the day after the last day of the month if the deal isn't done & in the accounting office it becomes the next months business. Period! No exceptions. Works great and the it is the most efficient dealer group I have ever done business with.
Alan Bailey
I worked at a large dealer group (12 stores)that without fail have the month closed AND everyone paid within TWO business days of the end of the month. To my knowledge this has always been followed and they have NEVER been late. The key? At 12:01PM the day after the last day of the month if the deal isn't done & in the accounting office it becomes the next months business. Period! No exceptions. Works great and the it is the most efficient dealer group I have ever done business with.
Brooke Samples
I recently wrote an article on how Dealers close their books by the third day. If you'd like a copy, email me at brooke@blueprintforprofits.com
Chris Costner
I too agree that 3 days is possible. I see our organization accomplish it every month. Every morning during the month however we go over the F&I "Heat Sheet" on the deals that haven't been booked yet and what is needed to make that happen. It keeps the focus strong every day so at the end of the month you don't end up with a stack of deals that have no chance at all of getting booked and sent to accounting to count. Please don't confuse this "heat sheet" with the "contracts in transit" - definitely two different statuses of deals.

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