1. 2 auction financial statements what is 2 + 2? as a senior manager or owner, you’re expected to...
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Auction Financial Statements
What is 2 + 2?
As a Senior Manager or Owner, you’re expected to know or expecting to have someone who can tell you.
Are your strategies working?Is all your hard work in the front end blowing out the back end or
not?
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Auction Financial Statements
“Driver” exampleTypes of Drivers?
Lot AuctionP&DCheck inShuttleSnow RemovalWash offVariety of hats can be worn
Numbers compared to what?Prior periodsAnother saleMonth vs WeekHolidays, special sales, management service decisions
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Auction Financial Statements
Accounting PastCash BasisAnnual Peek
Accounting PresentP&LBalance SheetStatement of Cash Flow
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Auction Financial Statements
AnalysisHistoricalComparativeReconstruction
Looking for leaksExample:
10 drivers ea lane x 4 lanes x $8 / hr x 3 hour sale = $960 / sale
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Auction Financial Statements
Ways to Improve Financial CommunicationsStart with Financial Personnel and Look at Processes
Get Operational Managers involvedTelling you what their P&L should look likeCompare actual to what the Managers tell you
Ask for Supporting Detail (instead of summary reports)General Ledger Account DetailPayroll reports by Dept code
Pay Rate Support (how it was calculated)
Look at clock hoursAlways compare Financial against Operational stats
Number of units sold or offeredNumber of units delivered or picked upNumber of units handled in a Dept
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Auction Financial Statements
Expand Accounts you track on large expensesAdd sub accountsPayroll
OperationsEven estimates become useful
AdministrationSale versus non sale
Account for TempsInsurance
WC vs Liability vs Health vs Property vs Auto vs P&D vs O&D
Use a Third Party to review statements periodicallyExercise generates good questionsQuick Not vested in the answer
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Auction Financial Statements
The SYSTEM you have for collecting data (Financial & Operational) is criticalA clerk can do the calculations
It takes a MANAGER to define the formulas to useto interpret the results
CONTINUING EDUCATION PROGRAM DEVELOPED BY:9
Contact Us
Randall McCathren COO, Auction Academy
(615) 383-1930
www.auctionacademy.net
Penny WannaAdministrator, Auction Academy
(615) 591-4544
www.auctionacademy.net