Car dealership controllers have officially been classified as an endangered species, right up there with snow leopards and decent Wi-Fi at the DMV. Experts point to a perfect storm of rapid industry changes, complex financial requirements, and a universal human aversion to reconciling factory incentives as the root causes.
Dealership owners, meanwhile, are left scrambling for solutions, hoping that AI might step in to save the day—if it can also learn to negotiate with banks and survive a heated budget meeting with the GM.
My March 2024 article Car Dealership Accounting Skills Don’t Grow on Trees highlights the growing shortage of qualified dealership controllers and the critical role they play in a dealership’s financial health. Nearly a year later, this shortage has only gotten worse.
Assessing the Current State of Affairs
The automotive industry is navigating a complex landscape, and nowhere is this more apparent than in the accounting offices of car dealerships. My original article highlighted a glaring challenge: the critical shortage of dealership accounting skills. Dealership controllers play a pivotal role in managing financial compliance, optimizing cash flow, and ensuring the overall fiscal health of a dealership. However, the demand for qualified controllers has far outstripped the supply.
Several factors contribute to this shortage, including the growing complexity of dealership operations, the rapid pace of technological change, and a lack of specialized training programs tailored to the unique needs of automotive accounting. The result? Dealerships are struggling to find and retain professionals who can navigate these challenges, leaving critical gaps in their financial operations.
Why This Follow-Up Matters
This sequel aims to shift the conversation from identifying the problem to finding actionable solutions. While the original article shed light on the skills crisis, this follow-up will share strategies for closing the gap.
Let’s examine practical strategies for cultivating the next generation of dealership controllers. By tackling these challenges directly, dealerships can strengthen their accounting teams, building resilience and ensuring long-term stability and success in an industry that, while evolving, is often slow to adapt to change.
The Importance of Dealership Controllers
Dealership controllers, often considered the financial backbone of automotive dealerships, are responsible for managing financial statements, compliance, cash flow, and overall dealership accounting practices. Their expertise ensures the dealership operates within financial and legal guidelines.
With so many dealerships operating without a CFO, the controller is also expected to strategize for profitability and sustainability. There is a concerning void in this area, as I have experienced in the last few years working first-hand with dealerships.
As the automotive industry becomes more complex with digital transformation and evolving business models, the role of the controller has become even more critical, which is troublesome when the available workforce is diminishing, while lacking leadership, management and advanced accounting skills.
And once upon a time…
The factory actually offered training programs and even a pat on the back for dealership controllers. But those days are long gone. Now, they’ve opted for a bold new strategy: leaving dealers to navigate a turbulent sea of spreadsheets, armed only with a calculator, a growing sense of despair, and the faint hope that someone, somewhere, remembers how to pull a financial statement.
The role of external consultants: highlighting the value of an on-demand dealership CFO
Let me start by clarifying that this isn’t a sales pitch for Automotive CFO To Go. While I firmly believe we offer the unique expertise, efficiency, and affordability that most franchise dealers would benefit from, my goal here is not to promote our services. Instead, I’m using our approach as an example to illustrate the value of leveraging highly specialized dealership operations expertise to address gaps in accounting knowledge and processes effectively.
Supplementing In-House Expertise
Even the most skilled in-house dealership controller may encounter limitations in expertise or bandwidth, particularly when navigating complex financial scenarios or management techniques. This is where external consultants, especially on-demand CFOs, bring immense value.
Filling Knowledge Gaps: On-demand CFOs possess specialized knowledge across a range of financial disciplines, including advanced tax strategies, M&A advisory, and cash flow optimization. Their broad experience allows them to address challenges that in-house teams might not have encountered before, such as restructuring during market downturns or scaling operations during rapid growth.
Strategic Guidance Without Full-Time Costs: For smaller or mid-sized dealerships that may not have the budget for a full-time CFO, an on-demand CFO offers a cost-effective solution. One major benefit of Automotive CFO To Go’s work is our ability to find the money to pay for our services. By uncovering inefficiencies and implementing cost-saving strategies, these professionals essentially operate under a no-risk guarantee for the dealer. They improve financial reporting, expense control, and the overall health of the dealership while eliminating financial strain.
Mentorship for In-House Teams: On-demand dealership CFOs can also serve as mentors to in-house controllers, sharing best practices and transferring knowledge to help build a stronger, more capable internal team over time.
My newest client’s controller recently said to me, “I called to just say thank you. I’m very glad you’re here. I’ve needed someone to bounce things off of and you’ve made such a positive impact on my day-to-day.”
Ensuring Compliance and Best Practices
Staying compliant with ever-changing financial regulations and industry standards is a constant challenge for dealerships. External consultants, particularly those with CFO-level expertise, provide a safety net by ensuring no detail is overlooked.
Periodic Audits for Financial Health: Regular audits by external professionals play a crucial role in helping dealerships uncover and address discrepancies before they escalate into expensive issues. These comprehensive financial reviews enable dealerships to prevent costly cleanup efforts or write-offs, ensure compliance with manufacturer requirements, and strengthen internal control protocols for long-term stability and efficiency.
Objective Analysis of Financial Practices: On-demand CFOs bring an impartial perspective to dealership finances. Their role allows them to identify inefficiencies, outdated processes, or hidden risks that internal staff might miss due to familiarity or lack of bandwidth.
Keeping Pace with Industry Trend Changes: Regulations, consumer behavior, and manufacturer compliance requirements evolve frequently. External consultants are often deeply entrenched in the industry, enabling them to provide up-to-date insights and proactive strategies for staying ahead of these changes.
Crisis Management Support: In times of financial distress—such as cash flow shortages or fraud investigations—on-demand CFOs act as experienced navigators, bringing expertise in damage control and recovery planning.
Organizational Growth Strategies: The roles of a dealership CFO and a controller differ significantly, yet their titles are often used interchangeably, leading to confusion about their responsibilities. A dealership CFO goes beyond managing financial operations; they serve as a strategic partner to the owner or General Manager. Their role includes providing insightful guidance on growth strategies, financial forecasting, organizational structure, and navigating mergers and acquisitions. This elevated level of expertise and collaboration ensures that the dealership’s strategic decisions are informed by a comprehensive financial perspective.
The strategic advantage of an on-demand dealership CFO
While some dealerships may see external consultants as a temporary fix, the real value lies in treating an on-demand CFO as a strategic partner. By identifying inefficiencies and cost savings, services like Automotive CFO To Go make their engagement a win-win for dealerships. With improved reporting, expense control, and overall financial health, dealerships gain both immediate benefits and long-term stability.
For dealerships aiming to scale, streamline, or simply survive in a competitive market, the flexibility and expertise of an on-demand CFO can mean the difference between maintaining the status quo and achieving exceptional success. By integrating these professionals into their operations, dealerships can confidently tackle complex financial challenges while empowering their in-house staff to focus on day-to-day excellence.
Call to Action: Proactively Invest in Accounting Talent
The shortage of skilled dealership accounting professionals is a pressing issue, but it is not insurmountable. Dealers, managers, and industry stakeholders must take proactive steps to address this challenge head-on. Investing in the development of accounting talent is not just an operational necessity—it is a strategic imperative.
This investment can take many forms, such as creating in-house training programs, supporting continuous education for existing staff, or leveraging the expertise of on-demand CFOs to fill critical gaps. By prioritizing the growth of skilled financial teams, dealerships can safeguard their operations against risks, improve profitability, and build a foundation for sustained success.
Future Outlook: Optimism Through Collective Effort
While the current landscape may seem daunting, the future holds tremendous potential for those willing to take action. With the right combination of innovative training, technology adoption, and collaboration between industry players, the dealership accounting skills gap can be bridged.
Picture a future where every dealership boasts a crack team of financial wizards, deftly steering through the labyrinth of modern business with ease and confidence. It sounds like a fantasy, but the auto industry has always been good at one thing: adapting just enough to survive the latest crisis.
This challenge is no different—if we can share a little knowledge, pool a few resources, and resist the urge to hoard best practices like a secret barbecue recipe, we might actually turn today’s headaches into tomorrow’s wins.
Sure, the road ahead might involve effort (and maybe even a spreadsheet or two), but it’s a road worth taking. Dealerships willing to step up and tackle this will not only improve their bottom line but set a shiny new standard of excellence for the entire industry. The time to act is now—before the next financial statement feels like a round of financial hide-and-seek.
Is your dealership’s financial operation in the fast lane or stalled on the side of the road? You want experience on your side without the huge salary expense. Let’s talk and figure out if an on-demand Automotive CFO is right for you!