Lynx Newsletter # 5 (November 30, 2001)

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A suggestion . . .

Have you ever wondered if all the data you've entered into the system is correct? Remember, the computer can only make sure its "valid" but not necessarily "right".

For sure, you should balance each batch entered into the system. Run a tape on the invoices entered and check the total against the batch report total. Do this for each batch as you go.

However, you should take this one step further to really be sure.

Here's the suggestion. In addition to balancing each batch, keep a separate "control card". Use this to manually record each batch and the change it represents to your running A/R balance. Then run the "Quick A/R" and make sure this total balances with the total on your control card. Do this for each batch and you'll never have far to look if you're out of balance.

For detailed help on how to do this, see "Control Cards" in the Help System.

Here's a good idea . . .

Most propane plants have irregular month-to-month revenue patterns during the course of the year. That is, in the cold months deliveries are heavy and income is good. However, in the summer months deliveries drop and cash flow suffers.

Here's a suggestion to help you address this problem. It may be obvious or perhaps you're already doing it. But if you're not, you might give it a try.

The idea involves how (and when) you handle tank rent.

It's not unusual for tank rent to be charged on a monthly or quarterly basis and scattered throughout the year. Instead of that, try this.

Switch your tank rent customers to annual payments due in your slow months (like June, July, and August). In this way, you'll get some relief during the tough part of the year without suffering much during the heavy delivery months when revenue is good anyway.

Our customers who use this approach report significant improvements in leveling their revenue stream.

Thanks to Rick and Sue Evans at All Seasons Propane in Cascade, Idaho for the suggestion.