- Joe Coffin | DSI Corporate Office
YOU SHOULDN’T AUDIT THE $300 IN YOUR PETTY CASH BOX MORE THAN YOUR $575,000 PARTS INVENTORY!
Fact: The parts inventory at a new car dealership is typically one of the top 3 capital investments for dealer principals.
Does your dealership have a petty cash box? How much is in it? $250, $500? How often is that petty cash audited? Daily, weekly? In most cases, there is about $300-500 and it is checked constantly. Ironically, some dealerships will treat their petty cash like a box of 10-carat diamonds, yet fail to conduct regular bin-checks, cycle count, or perpetual inventory.
Let’s sit and let it soak in for a moment… $300 is checked over and over again, but the $575,000 investment in the back warehouse sits unchecked until the need for a parts inventory arises.
Every parts department, regardless of the size or condition, should conduct regular bin checks or have a cycle count system in place.
YOU SHOULDN’T AUDIT THE $300 IN YOUR PETTY CASH BOX MORE THAN YOUR $575,000 PARTS INVENTORY!
Fact: The parts inventory at a new car dealership is typically one of the top 3 capital investments for dealer principals.
Does your dealership have a petty cash box? How much is in it? $250, $500? How often is that petty cash audited? Daily, weekly? In most cases, there is about $300-500 and it is checked constantly. Ironically, some dealerships will treat their petty cash like a box of 10-carat diamonds, yet fail to conduct regular bin-checks, cycle count, or perpetual inventory.
Let’s sit and let it soak in for a moment… $300 is checked over and over again, but the $575,000 investment in the back warehouse sits unchecked until the need for a parts inventory arises.
Every parts department, regardless of the size or condition, should conduct regular bin checks or have a cycle count system in place.
