Don’t worry, this is not going to be an accounting lesson.

Operating companies, such as material handling dealers, are made up of numerous financial metrics used to determine profits, cash flow, and let’s not forget your federal and state income tax payments. While these are typical company transactions, it seems your current “audit” needs to take on additional areas if you plan to generate profits and cash flow that produce a value at the high end of the market.

It is no secret that AI and related functions are being used by just about every company (or should be), since a positive AI program should decrease the cost of sales, operating expenses, and payroll, while at the same time increasing the sales-per-employee metric.

AI, because of the speed at which it can collect and analyze data and its alignment with your industry, is putting the development of an AI program high on the agenda of every C-Level member of the management team. I believe you got a feel for what is required to get your feet wet from the three previous columns I prepared, which outline the steps to start an AI program if your data meets the criteria to produce meaningful output.

Supporting this new level of data collection and analysis could cost a lot of money and absorb financial office time, and probably the time of all department heads. Most companies would not have the expertise to execute such a program that produces accurate outcomes management can use to drive the business.

Some of these potential areas, I believe, will produce positive results are as follows:

BANKING RELATIONS

It is no secret that most small businesses dislike their bank. Low yield, slow turnaround, tools tough to work with. If you are drifting along in this boat, you may want to check out a new relationship. The new relationship should supply LIQUIDITY- VISIBILITY- TRUST AND SPEED. As with any transaction these days, time is money… data is required to make timely decisions… loan rates should be reasonable. If the new bank fits in with your payroll and other systems, that is positive as well.

FP@A PROGRAMS

Financial planning and analysis data is getting more popular lately as AI is put in place, but it also provides knowledge and suggestions that your normal accounting department could not provide without help. In this era where speed and information can be reviewed quickly, getting your month close within 15 days, along with an explanation of what happened, how it compares to the budget, and details on each line item that has to do with the results, is certain to add to the C-Level information request and suggestions for improvement. These programs can also take any monthly report and, based on that report, adjust the forecast and cash flow. I can emphasize enough what you can do with this.

I came across a couple of recent emails that you could review to see what could be done. One is YOUR CFO GUY, who develops Excel templates that produce these kinds of results, and when you look at his output options, I don’t imagine a C-Level who wouldn’t want data covering their area of responsibility. His email is [email protected]

Oracle also has a program titled STORYTELLING WITH NUMBERS. Monthly reports are geared towards supporting schedules. These reports are designed to address the MAIN point on that slide. Again, really neat stuff.

Of course, if you have bad data, these programs may not work for you. But if you are entertaining AI programs, that would be the time to get the data into shape to a trustworthy standard.

CUSTOMER PLANS

It is safe to say that a majority of manufacturing companies are investigating and have invested in AI and related technical advancements. The Grow or Die line does make sense.

But it appears that a good percentage of manufacturers take steps before diving into more sophisticated operating systems and eventually robotic involvement. The data I am seeing suggests multiple changes are being made, primarily to test out more efficient results, and then move up to the next ladder that will eventually get them to a robot program of some sort.

I still believe Lift Truck Dealers have the need to assist customers with input on these changes. If a dealer could produce a list of like-kind manufacturer customers, I would go to AI and ask what companies have models for these manufacturing types, and then offer to pass on what you get to them, or partner up with them to wind up being asked to cover the maintenance needs of the new system.

EMPLOYEE PARTNERSHIP

Keeping employees informed about company operations is something every company should do. Part of that education should be geared to a family’s personal requirements. I have received very positive feedback from employees for whom we have assisted with insurance, banking, tax planning, retirement planning, investment choices, and even ways to leverage the company’s relationships to support a transaction. In one case, we had a minimum health insurance cost for employees, which was associated with a “gold” plan. What helped was a broker who would provide input when necessary. Guess what? Turnover was very, very low. And if this type of program were held as a seminar or webinar, spouses were invited.

Another topic of interest would, of course, be AI and its impact on the company and job stability. There are discussions on both sides of the street. You will improve your financial results and hopefully make more money. Recruiting will go down… but chances are, existing employees will stay, especially if they have a “PARTNERSHIP” with them, as noted above.

TAX PLANNING

I seem to be getting more questions about taxes these days, both business and personal issues. And when reviewing the YouTube discussions on the topic, the analysis gets a bit technical, and as a result, additional tax deductions are missed. I know I am going to review my returns and, at the same time, check what applies starting in 2026, so I can plan properly. I am not suggesting you attack your tax people, but a request to review at least the ONE BEAUTIFUL TAX ACT. In addition, if you plan to investigate AI, how the data is used to simplify tax planning should also be part of your plan.

Told you “No accounting class” but how to improve operating results more quickly because of AI and FP@A. With the investments companies are making to sell, service, and use AI and the latest shop floor systems, they are doing so to improve margins, lower operating expenses, and increase free cash flow. Dealers or Customers who decide not to make a well-planned investment in this technology may find the performance gap catching up to them.

About the Columnist:

Garry Bartecki is a CPA and MBA with GB Financial Services LLC, and a Wholesaler columnist since August 1993.  E-mail [email protected] to contact Garry.