Are You Losing Money Because You’re Too Busy to Look at the Details?

In today’s fast-paced world, we’re all juggling multiple responsibilities. To manage our busy lives, we increasingly rely on technology. From smartphones that remind us of appointments to apps that guide us to our destinations, technology simplifies our lives. But have you considered how your business’s Back-office System (BOS) plays a critical role in your operations?

For a company managing 5,000 customers, the BOS can handle over 100,000 annual transactions, including deliveries, invoices, and service calls. This system is essential, but it’s only effective if the data you put in is accurate. Inaccurate data can create “gaps” between your intentions and the results, potentially hurting your bottom line.

At Angus Energy, we dedicate a significant amount of time to analyzing our clients’ operations in order to identify the areas that require attention.

Here are some common issues we encounter:

• Billing Code Errors: When making a delivery, the key components are the gallons delivered and the price. While gallons are usually accurate, pricing errors can occur if the wrong pricing code is applied. This can lead to incorrect billing and unnoticed impacts on daily margins. How do you ensure your transactions reflect the correct prices and margins?

Margin Out of Line

• Billable Service Calls: Service calls typically involve billing for time and materials. If labor costs are omitted, the customer’s bill may be correct, but your profit and loss statement will show inaccurate profits. Ensuring accurate labor cost entries is crucial for financial accuracy.

Missing “Hourly Cost”

• Hours and Miles Tracking: While gallons and price determine invoice amounts, tracking hours and miles is vital for assessing efficiency and organizational health. Achieving accuracy 99% of the time is significantly different from 75%, and inaccuracies can lead to costly errors.

Incorrect Miles Entered

The data is available, but it needs to be correct. Establishing a process to ensure data accuracy begins with recognizing its importance. While leveraging technology is beneficial, relying solely on it without human oversight can lead to unintended outcomes.

By addressing these details, you can boost your operational efficiency and improve your financial results. At Angus Energy, we’re here to help you navigate these challenges and optimize your business performance.