Chainsaw accounting and balance sheets.(Dealer Dollers)

Powersports Business, December, 2004 by Ethington, Hal

The room was filled with the owners of 25 dealerships from around the country. They were attending a Lightspeed Dealer Principal class in Salt Lake City where I was presenting ways to improve performance and make dealerships more profitable. The subject of financial statements came up, and as part of the introduction to the subject, I asked how many of the owners in the room had confidence in their P & L and their Balance Sheet.

Only one person raised his hand.

I asked the question again, explaining that sure, there are always a few questions about some items on these two reports, but how many in the room use them to make management decisions?

Again, only one hand.

And then they blew. Negative inventories, Cost of Sales greater...