Rental Revenue Assurance: Sikich can help Rental Organizations Both Invoice for all Revenue and Also Cut Down on Unnecessary Purchasing
When talking with rental prospects looking for an Enterprise Resource Planning (ERP) software package, a common fear of management is that the company is leaving revenue on table when invoicing. Regardless of size of company, or what industry, we hear the same phrase, “I think we are leaving money on the table.” As we work with the client to implement their new system, we find that they were right.
In partnership with Armada Dynamics, our Sikich rental solution addresses the concern of revenue assurance. Armada Dynamics operates seamlessly inside of Microsoft Dynamics NAV. This gives us the best of two worlds, a world class ERP solution for the Small and Midsize Business (SMB) market in Dynamics NAV and a proven world class rental solution powered by Sikich and Armada Dynamics.
Leveraging functionality under the Equipment Management granule, the system offers some functionality when placing equipment out for rental called “Components Parts”. For each type or actual piece of equipment you can attach consumables, services and even other rental equipment. So when the equipment is placed on a contract to create rental invoices, the required consumables and services are also placed on the contract, making sure that these are not left off the contract and invoiced. In addition some of these Component Parts can be optional, allowing the sales group to upsell other products and services, producing more revenue. Another great example of revenue not being invoiced on an existing client is delivery and setup fees. The equipment always made it on the invoice line, but often these service fees were left off. Leaving the rental company the dilemma of invoicing for these services a month later and upsetting a good customer. We often find that the decision is made to not invoice the customer for these delivery and setup fees.
Component Parts can also cut down on additional purchase of required consumables that are often required at installation. This eliminates those last minute purchases out in the field that are always more costly, reducing their profit on the rental contract. A client who rents equipment to drill sites was constantly making more expensive and last minute purchases of cables and wires. Component Parts insured these consumables, while not individually rented, were part of the delivery.
The combination of Sikich, Dynamics NAV and Armada Dynamics will make sure your rental business increases revenue and decreases costs.