Trucking Secret #5 – Keep the Cash Flowing

(This post is part of the 7 Secrets to Phenomenal Success in the Trucking Industry series)

What is just as important for a business as showing a profit? Having lots of Cash of course!

Your company can be (and should be) a very profitable enterprise. But without positive cash flow, even the most profitable enterprises can stumble, and even fail. Your income and expense statements can look great, but if too much of that profit is tied up in receivables or non-liquid assets like equipment, you might still have trouble making payroll, and that just sucks!

If saving money is wrong, I don't want to be right!

If saving money is wrong, I don't want to be right!

Some of the first areas you should look into to improve your cash situation are:

  • Reducing the time it takes between the delivery of your service and the date you get paid.
  • Decreasing the "person-hours" that it takes to manage your sales and expenses.
  • Eliminating most of the errors in transaction processing that result in lost orders, uninvoiced transactions, and overpayments to suppliers and drivers.

 

 

Better than any other transportation and accounting software available, Axon attacks from all three of these angles to provide a "Triple Whammy" boost to your cash flow!

First and foremost, we’ve discovered that we are able to do as much work or more with a staff of three quarters of what we had before. We’ve seen a reduction in our staffing, just by natural attrition; people leaving, moving away or that kind of thing. And we’ve been able to continue on with the work without replacing those employees. We’ve gone from 20 staff to 15. That’s five full-time salaries, saving us, maybe $180,000.00 a year.

Probably the biggest eye opener for me was when we were able to take one of our employees out of the billing department and put her into collections. It had been years since we were able to have somebody that has been actively pursuing collections on past due invoices. She has been able to collect on this bad debt and we’ve actually seen about $750,000.00 to $800,000.00 go directly into the coffers that would have been lost income. We would have written it off had we not had the ability to go out and collect that and that came completely from having Axon allow us to move employees around and do their jobs more efficiently.

- Andy Fletcher, Bunning Transfer, Rock Springs WY

Now, before you get too excited and start thinking that just installing Axon is going to put an extra $180,000.00 on your bottom line and another $750,000.00 cash in your bank account, like Bunning did, please remember that every company is different. Most companies don't have that amount of questionable receivables in the first place, and if you do, they may not be as recoverable as they were in this case. On the other hand, most companies have issues with billing times and outstanding receivables they don't have time to chase. You would be amazed at the dollars that just don't get accounted for, possibly in your own operation, because of the errors and work overload. Tens of thousands of dollars just disappear through the cracks in many companies.

Andy Fletcher also went on to say that:

Andy Fletcher - John Bunning TransferBefore we started with Axon, the time between when the job was completed and when we actually got paid for it and it was over 60 days, on average. Our receivables now on average are less than 12 days. It’s amazing. It’s an 80% reduction in turn-around time and, as anybody who runs a business knows, having that cash flow is vital to a business.

 

Most Axon clients have had similar experiences in one way or another.

Jones Transportation StaffIt's probably saving us at least a week in turning around our paper and getting the invoices out, and that's very important.

- Robert Jones, Jones Transportation Inc, Edmonton AB

jake-new-hopeAxon software will save you from adding more people. It saves you on extra salaries that you don't have to put out, and training as far as extra people goes. I'm sure that if we wouldn't have it, that we'd be looking at having at least three more people, so it's probably a savings of close to $90,000 to $100,000 a year.

- Jake Peters, New Hope Transport Ltd, Oak Bluff MB

Clearly the results, while they may vary from company to company, are significant for every company who fully uses the capabilities of their Axon system. When it comes to tools to improve your cash flow, nothing comes close to Axon.

Built into every Axon system are dozens of powerful features to help you save time and improve your cash flow.

    • The "Copy and Void Invoices" feature performs two steps with one click of a button. Now you don't need to manually reverse an incorrect invoice. You don't need to re-enter all the correct information that you just reversed. You just go into the new copy, make the changes, and it's ready to print. A complete audit trail of all the transaction steps is maintained, including the ID of the users involved.
    • Assigning an invoice to specific equipment will automatically track costs for the company units and create the charge back transactions for an owner-operator or driver. The invoice is automatically applies to the Equipment Statement or Driver Settlement Statement when it is produced. This means that missing charge-backs because of internal mistakes are virtually eliminated. It will improve your cash-flow, improve your bottom line, and save massive amounts of time.
    • The Payroll system in Axon creates a direct link between your Accounts Payable Invoice screen and Payroll. When you enter an invoice that should be charged back to an employee, (a credit card cash advance for example) you can select the employee directly on the screen and access a list of valid deductions for that employee (as set up in the Payroll). Then you enter the payroll transaction date. That's it! The item is automatically charged back to the employee and deducted from their payroll check.

 

Watch or read the full interviews of clients quoted in this article:

If you absolutely can't wait for the secrets to be revealed one at a time on this blog, then we can ship the entire manual to you free of chargeJust call us at 1-800-567-8385 or click here, and ask for "7 Secrets to Phenomenal Success in the Trucking Industry."

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