Did you take a road trip this summer? If you did, I bet you took your car in for a service before you took off. It’s common sense to prioritize maintenance to avoid problems down the road. This common-sense thinking can easily carry over to one of the hardest working machines in your dealership: your scanner. Strict adherence to scanner maintenance ensures optimal scanner speed and accuracy, and increases the longevity of this expensive piece of equipment. 

Whether you have a professional Scanning Operator (which I highly recommend) or members of your team take turns scanning, it’s crucial to have a maintenance schedule prominently posted and to hold your team accountable for cleaning tasks. You can also set-up a cleaning schedule in Excel and set recurring calendar reminders so tasks don’t slip through the cracks. Here’s what needs to be done on a daily, weekly, and semi-annual basis:

1. Daily Tasks

Paper dust is the enemy of your sharpest, best scans, and it accumulates daily. Wiping the lenses, pads, rollers, and feed mechanism will only take a couple of minutes. Use a microfiber cloth and manufacturer-approved cleaner. Spray cleaner onto the cloth, not directly on the scanner, and let the glass dry fully before using.

2. Weekly Tasks

The paper chute and interior rollers and sensors should be cleaned on a weekly basis to avoid error messages, ink residue on scans, and misaligned documents. To clean the paper chute:

1. Turn on the scanner, press the menu button then use up and down arrows to select Cleaning, then press Enter to confirm.
2. Spray cleaner on the cleaning paper.
3. Load the cleaning paper in the chute and press Enter. Feed the paper through the chute a few times or until excessive residue appears on the paper.

To clean the rollers:

1. Open scanner lid and locate the Brake, Pick, and Idler Rollers
2. Carefully, remove the brake roller from the scanner (Pick and idler rollers should be left in the scanner and manually rotated when cleaning).
3. Use a cleaning wipe to clean off any dirt or dust along the grooves of the roller. Be gentle to avoid damaging the roller grooves. Be sure to remove all visible residue as feeding performance can be affected by any black residue left on the rollers

Semi-Annual Tasks

Brake and pick rollers generally need to be replaced every year, or every 200,000 sheets scanned. If you notice one of these issues, it’s time to order replacements:

1. Scanner displays “It is about time to replace the consumable,” error message.
2. Scanner has trouble grabbing paper.
3. Scanner regularly pulls multiple pages at once.

Keep in mind your team should only be using the proper scanning kit for cleaning. Check your scanner model to be sure you’re ordering the correct kit. Each kit includes cleaner, cleaning paper, and cleaning wipes. Using anything else may cause problems instead of solving them.

You rely on your scanner to produce detailed images of dealership documents. Routine maintenance is part of keeping it running at optimal performance. Easily avoid common issues by taking care of it on a regular basis.

In my former life as a Controller, I was always aiming for a fast and accurate month-end close. Our business office typically closed the books within five to seven days. Is that a realistic deadline? Not according to Christine LaFontaine, Owner & CFO of Matt LaFontaine Automotive, which owns three dealerships in Michigan. Christine, who is also a former Controller for a 13 store group with 21 franchises, believes that it’s frankly too MUCH time. How many days till a full close you ask? "Two days."

Christine's dealerships consistently finish closing their books on the second day of the month; and for good reason. Having accurate information sooner gives management more time to analyze what went well and what didn’t for better decision making, reveals items of interest that may be affecting the bottom-line, and allows the entire group to move forward instead of dwelling in the past for the first week of each month.

There are two big reasons many dealerships struggle to close their books quickly: lack of pressure from the top and co-worker buy-in. A Controller can’t do it alone. A two-day close requires that the entire dealer group be on the same page because a lack of data from one department can delay the entire process.

Beyond setting dealership-wide expectations and getting management on-board, LaFontaine has several recommendations that other groups can follow to achieve a two-day close. These include:

Start early and clean schedules continually. LaFontaine works schedules weekly, and even daily, when it comes to busy departments like service and parts. “People post and make mistakes so the schedules all get worked at least once a week,” she said. “It’s much easier to catch mistakes, like someone writing a check that they shouldn’t have or an expense posted twice, on an ongoing basis rather than trying to do it all at the end of the month. Keeping things clean is much less stressful and it works.”

Use a check-off list. LaFontaine swears by her check-off list that breaks down month-end procedures into smaller tasks. Each task has a due date and it is segmented by weekly/monthly action items. Due dates are set in stone, so the last few days of every month are spent fact checking, clarifying information, and getting memos together, not scrambling for data. Departments work together to complete items since they all have an interest in getting paid properly and on time.

Estimate payroll accrual and bonuses at the beginning of the month. This recommendation is a major mind shift from my days as a Controller, but LaFontaine swears by it. She has an Excel spreadsheet for each salesperson and everyone in F&I and uses current payroll and bonus estimates to populate the sheets. “It doesn’t have to be completely correct,” she said. “Our pay plans are not hard so my estimates are very close.” She explained that management likes this approach because income and expenses are matched in the month they occur, regardless of when money changes hands.

Look at trends. LaFontaine relies on trend reporting in the group’s DMS to catch accounting errors and make them right before too much time has passed. “I can see 12 months of activity,” she explained. “So, if there’s an expense that’s $100k more than the month before, for example, I can ask questions of the department. It’s a double-check for everyone and people appreciate it because they get paid on the bottom-line, and they need to know what they’re getting paid on is proper.” 

Get vendors on board. LaFontaine communicates to her vendors how important it is to have invoices and month-end statements in on time. She stresses this is integral to working with the group, but there are challenges. “Paint inventory can be painful, but I stress how important it is to come out on time and get the work done,” she said. “Every once in a while, we have a blip with a vendor, but when it comes down to it, we’re the customer and they need to make us happy.”

Reward your team. Closing the books is a team effort so it pays to encourage and reward employees for a job well-done. LaFontaine celebrates with a pizza party for the entire dealership. “We talk about the month and reward with cash one ‘everyday hero’ who really stepped-up,” she explained. “We need to give people a high-five because we all work very hard. It pulls us together as a team and gives us a chance to talk about how we did and how we’re going to move forward.”

When I was a Controller over five years ago, closing the books within seven days was the norm. Now I know that’s old-school thinking. Controllers like LaFontaine have found that starting early, getting department and management buy-in, taking advantage of technology, and rewarding the entire department for a job well-done, can result in a two-day month-end. Now it’s your turn.

Growing up in the 80s, I loved the A-Team. I thought they were the coolest; even the van was awesome! Ultimately, what made them great as a team was that they worked better together. The "better together" philosophy can easily carry over to a different A-Team: the "Accounting Team.” It simply makes fiscal and operation sense to round up your team and transition to centralized accounting.

Getting your house in order and bringing everything under one roof will help you weather industry ups and downs right now. The coronavirus is still a threat, several manufacturers just announced production interruptions, and no one knows when things will get back to “normal" (if that even exists anymore!).

A hub-spoke system for your accounting team, where the majority of office staff are in one location and each store has one accounting support system, delivers more common sense benefits.

Efficiency and consistency

Nothing makes a controller's heart happier than a quick and streamlined month-end close. When you are operating locally at every dealership, you are at the discretion of the controller of that store. Working centrally, you can implement the same time-saving processes at each location. Payroll, accounts payable, inventory management; all can be streamlined by removing redundancy.

In addition to time-savings, you gain consistency because everyone is following the same processes. Operational errors, and the risk of something being “swept under the rug,” are both less likely. Centralization helps staff do their jobs better, which improves morale and helps fight employee attrition.

Precise document management

Every stores' month-end data, reports, and physical documents must be properly stored to meet all regulations and protect you in the event of an audit. A centralized accounting office follows the COLDing process more consistently because employees work together in a more coordinated effort.

Also key to breezing through audits is proper scanning of sales and service documents. Managing entry-level employees at each location to scan can be difficult. Mistakenly piggy-backing documents together, missing items in a deal jacket, or creating unreadable scans can all have a direct impact on your bottom line and the liability of your dealership. Consolidating scanning in one place gives you more control over the process and the peace of mind that a trained professional is safeguarding critical information. Most of this information requires to go through accounting any way (think warranty processing and deal postings); why not take this time to scan it?

Effective vendor management

One of the more difficult things to control as you scale is the hundreds of vendors. Keeping track of each agreement can become basically impossible if you have the autonomy for each local store to have control. Additionally, you can bet that you'll end up with redundant vendors or inconsistent pricing structures.

Centralizing vendor management gives you more power to negotiate better contract terms, weed-out duplicates, and gives you the data you need to pinpoint and cut loose vendors with lackluster results. Centralization also eliminates the frustration of a store auto-renewing a contract that you’re now stuck with for another year. Every contract in the group passing through the same approval process will lead to improved bottom lines and better protection.

And don’t forget your DMS. Consolidating your general ledger may lead to a substantial reduction in your DMS bill.

Over countless episodes, the A-Team proved they could get more done together than by working alone. That lesson applies to your accounting team. When you centralize accounting in one location, you increase efficiency, accuracy, and save money.

Service warranty audits are back – some dealers say with a vengeance, according to a recent Auto News article. Others consider the return of audits, now that the pandemic has eased, to be business as usual. Why do some dealers find it easy to stay on top of compliance while others panic when a warranty auditor sends them notice?

I’d suggest it’s largely a matter of process and document storage. We all know the warranty-claims process is still very paper-intensive - which can lead to lost documents. Dealers who don’t have an iron-clad process for electronically managing their documents are putting themselves at risk. As a dealer once told me, “They might as well grab a gallon of gasoline and burn it all.”

To further complicate matters, these past 15 months have caused a total disruption in day-to-day operations: people have left the dealership, COVID-precautions have changed long-standing processes, many dealers have tried to implement electronic processes to compliment the overall document process, with varying degrees of success. I think it’s safe to say manufacturers understand the situation and may be looking to capitalize on it.

Manufacturers know these changes have increased the likelihood things are slipping through the cracks. The increase in audits are the natural result of that likelihood. If you aren’t prepared with a document management process that has strong checks and balances, you are setting yourself up for failure.

You can get your house in order and turn warranty audits into no big deal. Here’s what I suggest:

1. Train service employees and hold them accountable. You wouldn't take a road trip without a map. You cannot hold your team to a process if that process isn't written down and clearly documented. The warranty process is complex and service and parts employees must be properly trained on documenting hours and repair work. Just one employee not following the process could cost your dealership thousands of dollars. Properly trained employees should have no problem following a “no exceptions” process for paperwork and for warranty work. It’s fair and prudent to tell new hires that committing warranty fraud or performing unnecessary work will get them fired. No warning and no second chances.
2. Invest in electronic document storage. Overflowing filing cabinets and stuffed document boxes are a recipe for disaster. Just one missing document could cost your dealership an expensive chargeback. Web-based software that allows you to scan and store documents electronically is a simple solution with a big payoff. All documents are instantly available with a quick search which allows you to compile required auditing materials in seconds instead of hours.
3. Hire a professional scanning operator. An electronic storage system is only as good as what you put into it. The old adage holds true: "Garbage in, Garbage out". Even the best storage system can’t compensate for sloppy scanning. It’s well worth the time and money to hire a detail-orientated professional and invest in training because proper document scanning is the linchpin of a successful storage program. The role has a direct impact on your bottom line and dealership health and should not be assigned to a low-level clerical employee. You can find tips for hiring a Scan Operator in my previous blog about the most important dealership hire in 2021.
4. Designate a compliance officer. Routine self-audit reviews are one of the best ways to ensure your program is compliant when an actual audit happens. Designate an employee as a compliance officer and task him or her with regularly (weekly or monthly) spot checking claims and pulling a few job cars to check for complete, accurate information. I’d recommend this person not be the service manager or warranty administrator to keep the process honest. You’re also adding to this person’s workload so consider extra compensation to make the job attractive and motivate proper actions. One idea is to award a bonus for a clean audit.

After mostly shelving the process in 2020, warranty audit visits are back. While automakers may be less forgiving this time around, that doesn’t mean you need to panic. Follow the four steps above to get your house in order and it will be business as usual when an auditor shows up at your door.

I know from my time as a Controller that digital contracting sounds like a no brainer for the dealership. The benefits are there: less paperwork, less storage costs, faster funding, and delivering that “friction-less” experience we’re all hearing so much about. It’s no wonder e-contracting is the new popular kid on the block.  

I believe e-contracting and the paperless dealership are the future, but rapid growth will take time. Dealers and solution providers are still trying to get comfortable with how to integrate solutions, keep costs down, and manage the process. A smooth, paperless experience is hardly widespread or the norm yet for dealers.

As a recent Ward’s Auto article put it, e-contracting is already here. But it’s a fractured process and dealers are setting themselves up for failure if they expect plug-and-play solutions. 

The e-contracting landscape right now is like a game winning strategy without a playbook. Sure, it sounds great in theory. But how do you put it into practice? The dream of an entirely digital solution takes more work than expected and implementation can be messy. If your dealership is considering signing on to an e-contracting solution, review these factors first:

The process. The promise seems to be that e-contracting technology will give you a consistent process for every deal. That’s rarely true. There is efficient e-contracting for parts of the process, but when you get to additional paperwork like manufacturer incentives, warranty documents and DMV or regulatory documents, the process is still manual. States also vary on which documents they will accept with an electronic signature.

Your bandwidth. Do you have the people and the technology to implement e-contracting? You may have to make a large investment to upgrade your systems. A large auto group has plenty of money and people to throw at the problem; a five-store group may not. This reminds me of an article I read about Elon Musk needing 200 people for a project. His company hired the people in two days, but it took 50 people to hire them and another 50 to on-board them. My point is that the behind-the-scenes work and employee time are hurdles dealers still must clear.

Bumps along the road. As interest has spiked, more large dealer groups are giving e-contracting a try. But it’s not a smooth road. Proctor Automotive in Tallahassee, Florida, brought on a digital signature solution that, in theory, collected a digital signature once and then applied it to all the necessary documents. It took 18 months for the signature product to work as expected.

Your customers. Not every customer will be comfortable signing digital documents. A true friction-less experience means meeting customers where they are in their personal buying journey. Asking customers to purchase only one way is a great way to create friction. Don’t ignore what your individual customers want. Serra Automotive, for example, uses its digital finance solution to create forms, but very rarely do customers choose to use the iPad to sign contracts. Instead, paper deal jackets are scanned and saved to the cloud via a third-party document management platform.

In a recent article on modern retailing, author David O’Brien hit the nail on the head when he wrote that no matter what technology you use or how you describe it, dealerships are still built on people dealing with other people. Meet the needs of individual customers and monthly profits will increase.  

E-contracting can be another tool to meet those needs, but there are still hurdles to clear. Consider all the factors before you buy into a game winning strategy that may not yet offer the playbook you need to succeed.

You just paid another huge DMS bill, or you heard about a great new system from your 20 Group, or you want better support. There are a myriad of reasons dealers decide to switch DMS providers. Whatever the reason, it’s a major decision because your DMS touches every aspect of your business.

I get it. I’ve been a Controller during a DMS switch and it’s a decision no one should hurry or take lightly. No matter what, it will disrupt your business and challenge your team. Yet, if you put in the time to carefully select the right partner, the positives will outrank the negatives.

The following information walks through the tips and tricks of DMS contract negotiations, what to expect, and what to watch out for when analyzing providers.

How to prepare.

Before you approach any new provider it’s essential to do a thorough analysis of your current system. Perform an expense analysis of your DMS and also of all third-party spending. This will tell you exactly how much your DMS is costing per month.

Prepare a list of all systems that integrate with your DMS. Start with the obvious – such as your CRM, desking product, service applications – then move to less well-known integrations, such as your parts scan gun.

Review business components not directly tied to your DMS, such as your website and inventory. I remember when my dealership switched; we battled for months to understand all the websites where we listed inventory to make sure prices were correct and reflected in the new DMS.

Next, meet with your dealership managers to learn what is working with the current system and what is not. Gather input on other systems they may have used before. Chances are, some may have some recent exposure; especially if they are newer to the organization. 

Finally, narrow down exactly why you want to make a switch. Is it purely price, or are you looking for different functionality? Maybe you’re planning to buy another store and are concerned your current system isn’t flexible enough to handle the addition?

Once you’ve isolated your reason, set up a meeting with your current provider and discuss the problem with them. Maybe they have a solution you don’t know about, or they’re willing to negotiate on price to keep you as a client. There’s no reason to move if your current provider is willing to take care of you.

Set your priorities.

You’ve done your due diligence and decided a new partner is best for your business. Now, set your priorities for a new system. The biggest driver for most dealerships is price - they simply want to pay less for a DMS.

If this is your biggest priority, make sure you’re not losing something essential for that lower payment. When my store went through a transition, it sure seemed like it was going to be cheaper. But we ultimately had to source other programs to get the functionality we needed. Those cost savings virtually evaporated.

Determine what functionality you need to run your business. More times than not, dealers overpay for functionality their staff does not even use. You don’t always need the Ferrari of systems. On the flip side, don’t overlook core components that you absolutely need. Realizing you’re missing an aspect after the switch can be a major disruption, even if you can add it in later.

Support and quality of service should also be a high priority. Don’t simply listen to what a provider has to say about this issue. Lean on your 20 Group and other allies in the industry to give you honest answers. They’ll tell you if you can expect to wait on the phone for hours when you call with a problem. Then you can steer clear.

Add data retention and ownership to your priority list as well. You want to know your exit strategy. Will you have to pay to get your data back? Will there be conversion costs? Too often dealers ask these questions after signing a contract. Ask before so you go into the relationship with clear expectations.

Finally, think about DMS capabilities in regards to your long-term plans. Most DMS contracts last three to five years. During that time, are you planning to add a store? Start a wholesale parts department? Open an RV dealership? Whatever your plans, make sure the system can morph and adapt along with your business.

Know the timeline.

A DMS switch is a lengthy process with major milestones that begin far in advance of signing a new contract. The following timeline will help prepare you for what to expect.

24-months before current contract end – This is when you should start investigating a switch. Prepare your cost analysis of your current system. Meet with your dealership managers to discuss likes, dislikes, and needs. Complete a line-item review of your current DMS services. Determine the nuts and bolts that hold your system together and what is crucial for a new system.

15 to 6-months before current contract end – This is when you should begin to engage with new providers. Lean on your previous analysis to determine who to engage. If you want hardware support, approach Tier 1 providers, like Reynolds or CDK. Tier 2 providers, like DealerTrack, or Auto/Mate, do not provide in-house hardware support. Tier 3 providers are the least expensive but also offer the lowest level of support.

Set up product demonstrations with your managers present. Steer the conversations towards what your dealership needs, and have managers run through everyday tasks – such as cashing out a repair ticket– to get a feel for how the system works in real-world situations.

Narrow down your choice and begin contract negotiations (more on this in the next section). Thoroughly read the final contract before signing. Contracts are complicated, often with many sub-items, so call in a consultant where needed. Don’t assume you know something. Make sure you do.

Finally, iron out implementation and transition details, schedule trainings, and lock-down how and when data will be converted, all before signing the contract. Don’t forget to draft and send a 90-day cancellation notification to your current provider.

6-months to the go-live date – This is when you begin to prepare your dealership for the switch. Put a hold on manager vacations for the installation period. Everybody needs to be on board and ready to go to minimize business continuity issues.

Communicate the transition plan and expectations to all employees. Employee buy-in is key for a successful conversion. Curtis Horne, a dealership consultant for over 20 years and former Reynolds & Reynolds VP of Sales for the Southern Division, understands that change is hard and employees may need a little push. “Compensation drives behavior,” he explains. “If there is a significant financial benefit, employees will change.”

You can incentivize employees for taking additional online trainings, for hitting major milestones, or for helping slower learners. Money is always a great motivator.

Learn the tips and tricks.

DMS providers are like any other business – they want to make money. If you know a few of their tricks, you can avoid over-paying for services, getting locked-into auto renewals, and giving up too much control over your business. Watch out for the following practices during your negotiations.

5+ year contracts – Many providers offer a standard 60-month contract as if it’s the only option. It’s not. There is the ability to sign a 36-month contract. According to Horne, you should “only accept a five-year term if the offer has clear financial benefits. The market is so volatile and there are so many providers, you don’t have to live with a long-term contract.”

Support price increases – Providers typically increase the cost of support every year. Make sure those price increases are clearly included in the contract so the provider cannot further inflate the cost as time goes on. Horne notes that you can “negotiate getting support locked in with no increases, but you must do it from the very beginning before you sign.”

Terms of installation and training – Make sure you hash out terms for installation and training (the cost plus the number of hours you will receive) in the initial contract. Consider that some people will learn fast, and some will not. Work out an arrangement that gives your team ample training so they can succeed after the trainers leave.

Contract term – It’s a common misstep to not verify when the contract term begins and ends. Typically, the clock starts when the system installation is complete, not when you sign the agreement. I recommend setting a calendar reminder 24-months before the term end. This is a good time to assess the system. Do it again one year before end, and 6-months before end. Then you won’t be taken unaware and miss your window to cancel, if you make that decision.

Contract extensions – Be aware that DMS providers can include an automatic +60-month term renewal when you purchase updated hardware. Don’t accept that. Request in the contract a clause stating that any updated hardware have the same expiration date as the existing contract. Depending on the provider, Horne goes one step further: “I have a termination letter already signed at the beginning of the term so that there cannot be an auto renewal clause. If you’re not paying attention to dates, a contract can be auto renewed for years.”

Bundling services – Some providers encourage you to bundle all your services with them. Everything from internet and phone, to accounts receivable, desking, and employee timekeeping. Dealers can, and do, get held hostage by providers who threaten to shut off access to their systems if they don’t renew. Rather than bundle all your services, take a step back and look at third-party providers. You don’t want to be in a situation where you want to make a DMS switch, but didn’t realize your current provider manages your IT. “Negotiate who controls the network,” says Horne. “Do you really want one provider controlling your entire dealership?”

Document management – Many DMS providers offer electronic document management solutions, but those solutions only work if you use their DMS. If you decide to switch providers, you have to buy the new document management solution. Consider instead using a third-party system. You buy it only once, and many are DMS-agnostic so you always have access to your data, even if you switch providers.

OEM integrations – Your OEM must communicate with your dealership so many DMS providers include OEM integrations. Before you jump to a provider that touts integration with your OEM, ask how many integrations are included. An OEM may have 30 integration points to a DMS, but a provider may offer only 12. There’s no rule that they must offer them all so ask before you sign.

Your DMS touches every aspect of your business, so you should never take a provider switch lightly. Invest the time in analyzing systems and learning negotiation tips and tricks, and bring in outside consulting help if you need it. You’ll significantly increase the likelihood of choosing the best partner, with the best system and terms, for your business today and far into the future.

The phones are ringing off the hook. Your door is closed yet people keep pouring in. You have sales managers asking for their commissions, management wanting the final numbers for the month, a floorplan needing reconciled, and the statement still hasn’t been uploaded to the manufacturer.

I get it – I’ve been there. The dealership month-end close process is complex; however, a firm strategy and checklist can put the brakes on last-minute chaos and costly closure delays. You have to remember: proper archiving of month-end records is critical to overall dealership health. If you do not have a clear understanding of how/when you COLD data from your DMS, you may lose access to critical data and not know it until an unexpected audit reveals missing reports that result in hefty fines. 

It pays to give your month-end strategy a refresh, and investigate your DMS COLDing processes. The two go hand-in-hand in maintaining accuracy and efficiency, and in ensuring a fail-safe data back-up for auditing peace of mind. Here are a few tips:

1. Improve your deal flow.

It’s common for deal jackets to end up in accounting a day or two after the end of the month, which delays the process. Many also arrive without all of the necessary paperwork to process the deal. The best way to shut-down this last minute scramble for paperwork begins at the front-end with training and enforcement of both sales and F&I managers. A management-approved deal jacket checklist helps with completeness and accuracy. Many dealerships also levy commission penalties for incomplete or late paperwork – which is a great motivator!

2. Create a month-end schedule and checklist.

Sales and F&I must know when paperwork has to be submitted to be included in the current month. Accounting should also have deadlines for posting deals and invoices, and completing other month-end activities. It takes all hands-on deck and a structured plan to close out your books properly and on time.

The first four days of the following month are key for staying on track. Karlie DeVall, CFO of Tim Dahle & Red Rock Auto Groups, offers some great tips for breaking out your checklist and must-dos for each day in a recent article. If you already have a checklist, make sure it lists all key processes, who is responsible, detailed listings, and templates to be completed. Your Controller should be responsible for overseeing and managing activities to ensure the checklist is followed and daily activities get done.

3. Investigate your DMS COLDing processes.

You’re set up to end the month seamlessly so your job here is done, right? Not so fast. Your month-end data and reports need to be properly stored and archived to meet all regulations and protect you in the event of an audit. It’s easy to assume that your DMS is automatically taking care of COLDing everything – but do you know that for a fact?

Too often, a dealership relies on the DMS for fail-safe back-up, only to realize reports are not being saved. You may not even know this is happening until inactive data is needed. Consider the example of a six-store group using one of the DMS giants. It was only when the group’s CPA requested a report and couldn’t find it that management realized some schedules were not being saved to AGRA, therefore not being COLDed to DSDA. They had no insight into the Controller’s actions and no way of retrieving that data. This wasn’t on purpose of course, they just didn’t know how the process worked! 

Proper archiving and documenting best practices significantly increases the likelihood that you will be prepared to pass any type of audit, including OEM. The general trend over the past few years are manufacturers auditing more frequently on a smaller scale as a source of revenue. I’ve written in the past about how proper documentation can help dealerships pass warranty audits. This is just one example of why it’s crucial to investigate your system to understand why and how you COLD reports into the system.

It’s not enough to assume that everything is automatically saved. Every DMS has different rules that must be validated by your Controller. Once the process is understood, the Controller must share that knowledge and train accounting staff so that all crucial documents are retained.

Your Controller should validate the COLDing process monthly to ensure that key reports are being properly archived – most importantly every schedule, journal, general ledger. Without this information, you can be left blind to the details.

4. Understand archiving costs.

Another important consideration is how much your DMS will charge you to access archived documents once a month is closed. Many of the large DMS providers charge hefty fees to re-open a month. In addition to fees, you’ll likely have to work through layers of bureaucracy simply to open your books. This wastes employee time and causes frustration. And when you’re facing an audit, the last thing you need is more complications.

One way to avoid this scenario is to archive data to a third-party document management platform before you close out the month. This way if you do need to access COLD documents in the future, you can call them up with a few keystrokes, avoid additional DMS fees, and speed-up the auditing process.

A firm month-end strategy and checklist, coupled with verified COLDing processes, can reduce your close by several days and ensure your dealership data is easily accessible to protect against unexpected audits. Put the brakes on last-minute chaos and poor data archiving now to protect your dealership’s health far into the future.

It is NADA time again! While this year’s show may look different, it still is the best opportunity to discover and explore technology solutions to successfully run your business.

Every dealer’s “must learn more” list should include digital document management technology. The auto industry produces a lot of paper. All those documents take up valuable office space, and/or cost you money to store off-site. Digging through boxes to find a deal jacket or repair record wastes employee time. 

Paper files are also a liability. It’s estimated that 1 in 20 paper documents go missing. With the proper paperless system in place, documents are scanned, filed, and tagged, for the ultimate in security and risk mitigation. 

Need a document? It takes only a few seconds to type what you need into a search bar. Online storage also means you can retrieve an entire list of documents at once, documents can be accessed anytime and from anywhere, and there is no risk of misfiling pulled documents once they’ve been accessed.

The benefits are obvious, but how do you choose the right vendor partner? Before you visit a virtual NADA booth or jump on a Zoom call, make sure you familiarize yourself with the nine essential components of any document management solution: 

1. Breadth and depth. A vendor should handle documents from every department – not just accounting or service. Look for a solution with deep archiving abilities, the expertise to tackle any document challenges, and the ability to convert data from a wide range of software and hardware systems.
2. Customization. Your dealership has unique processes and requirements. Make sure a solution can be tailored to your needs (including custom folders) and preferred input devices (like scanners and smartphones). You want a flexible provider who tailors to your preferences, not the other way around.
3. Integrations. Third-party vendors are an essential part of your business. Ensure a solution can work with you to pull data records and integrate with vendors of your choosing.
4. DMS-Agnostic. A solution should be able to work with any DMS so that if you choose to move to a new DMS, your document storage continues uninterrupted. This is also essential for dealer groups that use multiple DMS vendors and require a consistent view of data via the corporate office.
5. User access and security. You want a system that allows full control over user administration. Look for systems that allows unlimited users, provides security controls over stores/folders, and provides the ability to lock access remotely to certain IP addresses.
6. Customer support and training. Ask about the implementation process and continued technical support. Training is also key, especially for your Scan Operator. Scanning documents is simple, but requires meticulous attention to detail. A vendor should offer plenty of training options to ensure your team hits the ground running.
7. System safeguards. Top vendors have built in safeguards to catch mistakes like missing documents or documents unintentionally scanned together, before documents are shredded. Ask about tools to ensure all deal documents are accounted for and legible before being placed in the permanent folders.
8. Exit costs and data ownership. Insist a vendor include exit costs in the initial contract to avoid surprises should you decide to change vendors. 
9. Dealer referrals. During the sales process, ask for at least three customer referrals for dealerships that are approximately the same size as yours. Don’t skimp on these calls. You want to make the best partner decision now to avoid the hassle of switching vendors later, if your first choice is not a best fit. In addition, discuss the vendor with your 20 Group. They may have insights that didn’t come up during your sales conversation.

The “paperless” dealership is coming, and it’s easy to see why. Scanning and electronically storing documents increases security, frees up office space, enhances employee productivity, and eliminates the cost of offsite storage facilities.

Users can use the Vault Key to initiate searches of the One View Vault archiving platform without leaving the DMS screen or other applications.

Indianapolis, IN – January 26, 2021 – One View, an auto industry-specific data solution specialist, announces the launch of the Vault Key search application for One View Vault. Vault Key enables One View Vault users to initiate Vault searches from within any DMS or external application that allows text highlighting; eliminating the hassle of opening multiple tabs and increasing employee productivity and efficiency.

“Our dealer clients requested a faster, more efficient way to find and use information from One View Vault,” said David DeHaven, One View Founder & CEO. “Vault Key is a huge time-saving application that we developed in direct response to their needs. Our goal is always to help our clients easily find and use information more effectively to move their businesses forward. Vault Key is the first of several new products coming soon that meets that goal, while maintaining the highest standards of data security.”

Vault Key retrieves information from Vault documents from within a dealer’s DMS, CRM, credit application, web browser, email, OEM portal, or any application that allows text highlighting. Dealership personnel simply highlight a string of text in an application, press shortcut keys, and a web browser appears within the original application displaying Vault search results.

Dealership employees can search for complex VINs, customer names, stock numbers, and much more, with just a few keystrokes. By eliminating the need to key information into the search bar or jump back and forth between applications, Vault Key saves time and eliminates keystroke errors, while boosting productivity and efficiency.

Vault Key is a complementary search application for the state-of-the-art One View Vault, a browser-agnostic document management platform that is unique as it is compatible with all DMS vendors and suitable for dealerships of any size. Dealerships can securely and easily archive and access their data anytime and anywhere via any web browser.

Thousands of existing customers, including large dealership groups such as Serra Automotive Group, trust their document management to One View Vault. Dealers own their data and have the freedom to utilize it in any manner. It incorporates the highest standards of data security with a user-friendly, mobile-enabled interface that makes it easier and faster for dealerships to archive, access, and retain documents.

All dealership DMS data is sent to One View Vault and between applications using Vault Key through encrypted transmission methods. Databases are backed up redundantly to multiple data centers to ensure business continuity and data integrity.

For more information about One View Vault Key and One View Vault, visit https://bit.ly/2Ntd57D

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About One View

One View has been a trusted partner to thousands of automotive dealers across North America with a broad range of business solutions, including month-end data archiving, document scanning, and DMS data conversions. These solutions digitally capture dealer’s data from any source and provide immediate user access, insightful analysis, and management of their most important asset: their data. A preferred vendor, recommended by major CPA firms, manufacturers, DMS platforms, and dealer groups, One View has built a strong reputation of excellence by showcasing a solid product and a strong understanding of the automotive market. As the only auto industry-specific data solution specialist, One View has aided dealers with electronic data management for over 20 years. As the auto industry continues to move toward a more digital and paperless environment, One View is committed to preparing, consulting, and assisting dealers as they navigate into the data-driven 21st century.

Making a list and checking it twice is one of Santa’s best known practices. It’s worth emulating when trying to manage a lot of information. Like your list of vendor partners.

The average dealership has around ten vendor partners. Large groups can have hundreds. Whatever the length of your list, proper management helps you weed out the naughty (costing you money) from the nice (making you money). 

Vendor management is not a new topic; but it’s arguably more important than ever now with margins continuing to shrink and our industry rebuilding from the pandemic hit. A hard look at your vendors can save money by cutting under-performers, weeding-out duplicates, and consolidating services under better contract terms.

Now’s the time to prioritize vendor management and make 2021 a year to rebuild and rely on those you trust. Get started with these proactive tips:

Audit your current vendors. Prior to budgeting, create a list of all the existing vendors that work with your dealership. Pull a report from your check register or run a DMS vendor report. This list helps you understand what you’re paying for, and gives you a starting point to determine what’s working and what’s not. Look for extraneous vendors and duplicate services. Are you paying for a service that comes free from one of your OEMs? Are you paying two companies for the same marketing services? Dig deep and weed out what you don’t need. 

Commit to a 6-month audit period. Take a hard look at your vendor costs twice a year. It’s surprising what can happen over just six months. Prices can go up without your knowledge. A product or service that seemed like a great idea may be doing nothing to increase sales or reduce costs. A regular audit period allows you to cut your losses before they really hurt your bottom-line.

Discuss new products and services. Tell your team what you want to bring on board before signing a contract. A department may already be using a proven vendor for the same product or service. A multi-point store may discover one franchise already tried a vendor and the relationship failed.

Designate authorized signers. Authorize only one or two staff members to sign contracts and expense the product or service. This is especially important if you have multiple stores. As a former Controller, I can tell you it was extremely frustrating to uncover an auto-renewal for a contract I knew nothing about and that we were stuck with for another year.

Create one email box for vendors. All vendor-related email notifications should go through one shared email box. I liken this to physical mail. You have one physical address where the mail goes. The same should happen with email. Designate one or two people with monitoring that email box so you never miss vendor communications.

Store all agreements in one central location. Ease vendor auditing and make it simple to find and review contracts by storing them all in one central location. You can designate a filing cabinet for this, but digging through paper contracts takes time and ups the likelihood of missing a renewal or vendor duplication. Online storage is the best option. A third-party document management platform allows you to retrieve and view contracts with only a few keystrokes, create spending reports, and stay on top of auto-renewals. You also get corporate transparency into all stores to better consolidate vendors and build the case for bulk pricing.

Santa may be for kids; but the practice of making a list and checking it often is a great tip for vendor management and all kinds of business decisions. Make 2021 a year to rebuild with a plan for regular vendor check-ins to ensure every expense is necessary to your business and adding to your bottom-line.