At the 14th Digital Dealer Conference, May 7-9th in Orlando, I will be presenting a workshop in the new Data and Analytics track titled “Super Reporting made Easy.” It has never been so important for dealerships to understand how data can not only be used to retain customers – but also to retain your profit.
Recently we have experienced a trend of regular thefts by controllers, and some were huge thefts! I think we all remember the big news story last year about the former controller who embezzled a record $10 million! She was convicted of systematically transferring money from the dealership’s online account to her own for seven years. She covered up the thefts with a series of fake transactions as well as listing phantom cars in inventory so they could be recorded as assets.
When I read about this tragedy, I had to wonder: could this have been avoided by better reporting from their DMS? I realize that it is frustrating for you to get the data that you need from ADP, Reynolds and Reynolds, or another DMS system, but it has never been more important for you to get that data.
Over the years, I’ve taught you in previous Digital Dealer workshops how to get your customer data and service history for better customer retention. In this Super Reporting workshop, I’m going to introduce a whole new look at your data for profit retention: starting with discussing the difference between operational reports and financial reports.
Using gross profit as an example, I will show you why your gross profit never seems to be right, and ways to make it more accurate in your DMS.
Next, I’ll discuss the need to run financial and operational reports in your DMS as a “check and balance” along with my top 10 list of reports you should run — using as a case study the controller that stole 10 million dollars. Since most thefts are found by mistake and not by extensive audits, these reports find mistakes and problems with your processes that open the door for fraud and theft. For example, if you have an accounts receivable clerk that has been writing off AR balances to parts inventory to cover up her theft of AR payments to replace the cash sales she has stolen, and you’re questioning every JV that debits your parts inventory, she’ll have to find a better way to do those write-offs. By forcing a thief to scramble, they might eventually make a mistake and create an entry that is obviously to anyone that it is bogus – and your thief is uncovered.
Finally, I’ll provide you with tips to get your reports easier for 3rd party interfaces and the dynamic security that you need to protect your data.
To be prepared for this seminar, try to create a comprehensive list of the reports you are currently running daily, weekly, and monthly from your DMS system. If you’ve never run a report before – try to take a quick class on your DMS report writer. It is worth the effort to learn how to use this valuable tool to get the data you need to protect your profit.”
