FINANCE

The key to obtaining the maximum benefit from your accountant is not only by having basic business compliance, but ensuring that all the figures and data are in the right boxes and that the information is produced on time. Best also to avail of the accountant’s knowledge to suit the business management and profitability of the company.

As recently outlined in a global financial publication, there are a number of leadership traits needed within a firm especially in post pandemic times, elements of which are relevant to Irish transport businesses. n Listen to Customers n Care for Employees n Keep up with Technical

Developments n Know the business and its life cycles.

The vast majority of small, medium and even large transport firms in Ireland have owners who are technically excellent, have control over their business and have the energy to drive the firm on. However, some spend very little time dealing with current customers (it is usually left to drivers or office staff). The genuine feeling is that once the business is won then as little contact with customers as possible is best, as it puts the haulier in a position less prone to criticism or requests for added service. However successful companies listen to their customers and respond to their needs before the competition does . This traditional method of client interface will now change on exiting lockdown and new methods of contact with customers will become the norm.

To survive in one of Ireland’s most competitive industries, employees need to be trained to understand what best practices means in order to make the business stand out. Truck drivers are underpaid and undervalued, because of low margins. Pay has always been an issue but to attract good employees, pay increases will be required. More pay to drivers is only possible by changing work practices in a manner that reduces costs and increases margins to the business. Respect for employees starts with how to correctly deal with staff. How vehicles and drivers are presented and how the business owner supports staff help to raise the profile of the company. Nobody is suggesting a return to the days of employees choosing the trucks they will drive or having the boss operating from the golf course (or worse, the 19th green!). To retain competitiveness employees need to be constantly motivated, working within a system that rewards compliance and profitable work practices. Management must put systems in place that monitor and reward their endeavours fairly and accurately.

Road haulage is an industry that benefits from huge technical developments every year, from legislation affecting the capacity and tonnage carried by the vehicles, to the technical complexity of vehicles, to the integration of transport software that can link compliance and operational data. Then there is the financial data that is now

available so that real-time information can be monitored. This has become more obvious during this crisis where remote working for much of the administration and transport planning became the norm. Therefore, there are two choices to be made, embrace change and invest in the future, or create a niche. Final item: know the business and its life cycles. Over the next ten years the profile of the company will change, the customer base will change, employees will have new duties and stills. Technical advances will alter transport vehicles and operations but where the business lies in this life cycle is crucially important. Business involves challenges and opportunities, but having the financial strength, personnel and business acumen to keep pushing the business ahead as factors change is vital for good business leadership. In the business life cycle plan the most advantageous strategy is to maximise business value. This value can be transferred to the next generation without undue tax implications and also help maximise funds after tax if deciding to retire or sell on. The enjoyment and excitement of business lies in the fact that it is a constantly changing endeavour. The ability to change and adapt brings some businesses to the fore. Others fall behind or are consumed by those that are stronger and more able. Text: Donal Dempsey – donal@fleet.ie ADR Initial & Refresher Online Courses

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