Not having control over customer payments results in a loss of control over one’s true holdings and the risk of making bad decisions by making often irreparable mistakes.
The proper management of deferred payments is therefore crucial to the success of garages, tire shops and repair centers.
Keeping track of the status of payments related to interventions made is critical to:
- Understand the company’s real financial readiness
- Plan investments properly
- Have control over the reliability of their customers
Partly as a result of the uncertain economic situation, car service companies are increasingly having to grant deferred payment terms to customers, especially for large amounts. This, if not done in an organized and digital way, however, can lead to a loss of control over the actual performance of the company.
What are the established habits in running the garage?
Generally, installment payment is handled by choosing one of the following ways:
- Issuance of tax receipt for amounts received over time
- Issuance of the tax receipt against the total without actual collection of the amounts due
Both of these methods present problems.
In the former case, the risk is to lose sight of the total amount to be collected in addition to the complexity of having to make manual reminders to customers to receive subsequent amounts. With the second practice, overestimation of the company’s availability is possible.
How to manage payment deferrals effectively?
The advice for garages, tire shops and repair centers is to use the invoice tool for private customers as well as businesses.
From the perspective of the vehicle owner, this approach does not complicate the issuance of payment in any way, simply at the time of the census of the registry it is necessary for the workshop to request his or her tax identification number.
For the company, the benefit is great because it has the ability to collect turnover data in a more realistic and timely manner.
By applying the method analyzed above and using the BUSINESS INTELLIGENCE built into YAP MMB you always have an up-to-date snapshot of your company’s performance to make more informed decisions.