Healthy Cash Flow Gives You Room to Grow
A busy workshop and a healthy bank balance do not always arrive at the same time. You can have a full diary and plenty of invoices raised, and still feel the squeeze at the end of the month while you wait for money to come in. That gap between doing the work and getting paid is what cash flow is all about.
The upside is that cash flow is one of the most controllable parts of running a garage. Small changes to how and when you get paid, how you buy parts and how you keep track of the numbers can make a noticeable difference. Better cash flow means you can pay suppliers on time, invest in equipment and take on bigger jobs with confidence.
Here are practical steps any independent garage can start using this week.
7 Ways to Improve Cash Flow at Your Garage
1. Get paid when the car is collected
The simplest cash flow win is making payment on collection the norm. The customer is standing in front of you, happy the job is done, so it is the easiest moment to settle the bill. Have the invoice ready before they arrive, and make paying quick and easy.
Tip: Every invoice you raise on account is money you are lending to a customer. Keep account customers for the businesses and fleets that genuinely need it.
2. Make it easy to pay by card and online
The more ways a customer can pay, the fewer reasons they have to say "I'll sort it later". Take card payments at the desk or in the bay, and give customers the option to pay online. Card payments also land in your account far more reliably than cash or cheques.
3. Invoice the same day the work is finished
Every day between finishing a job and sending the invoice is a day added to how long you wait to be paid. Raise the invoice as soon as the work is signed off, ideally straight from the job, so labour and parts are already on it.
4. Take deposits on bigger jobs
For larger repairs, especially where you are ordering in expensive parts, ask for a deposit when the job is booked. It covers your outlay on parts and protects you if the customer changes their mind.
5. Offer finance on large repairs
A big repair bill can make a customer hesitate, or put the work off altogether. Offering finance lets them spread the cost while you are paid for the work, so the job goes ahead now rather than in a few months.
6. Keep a close eye on parts and stock
Parts sitting on the shelf are cash you cannot use. Order parts against specific jobs where you can, keep stock levels sensible for the consumables you use every week, and make sure every part used is charged on the invoice. Parts that are fitted but forgotten on the bill are one of the quietest drains on a garage's cash.
7. Know your numbers every week
You cannot improve what you cannot see. Check what has been invoiced, what has been paid and what is still outstanding at least once a week. Spotting a slow payer early, or a quiet week coming up, gives you time to act before it becomes a problem.
Tip: Keeping your accounting software up to date automatically means your accountant sees the same picture you do, and there are no surprises at VAT time.
From the Autopilot teamHow Autopilot Helps
Autopilot is built to shorten the time between finishing a job and getting paid. Invoices are created straight from the job in Front of House, with the labour and parts already on them, so they are ready the moment the work is done. Parts ordered from suppliers such as GSF and NAPA go straight onto the job, so nothing gets missed off the bill.
When it comes to payment, you can take card payments online through Stripe, use Dojo card machines in the workshop, or offer finance on larger repairs with Payment Assist. On AutoPilot Pro, you can also take deposits when customers book online. Invoices and payments sync to Xero, QuickBooks or Sage, so your books stay current without anyone re-keying them.
On AutoPilot Pro, reporting shows revenue, gross profit and jobs completed in real time, so you always know where the business stands. You can see all of the payment options on our integrations page, and try everything free for 30 days.