I’ve spent what feels like a lifetime managing car dealerships as a CFO or GM, and I’ve worked nearly every job in the car business, save for the one that requires grease under your nails. I’ve even led my own business for a good stretch. But through it all, I’ve always viewed every bit of business strategy through the eyes of a CFO – someone who can balance the books, yes, but also knows how to steer the ship away from icebergs of liability and toward the sunny shores of growth.
Where have all the controllers gone?
Even on my days off – if such things exist – I stumble across reminders of how critical and how rare skilled dealership controllers have become. The issue seems to be everywhere, like a bad sequel no one asked for. Last year’s CDK ransomware attack, for example, practically put a neon sign on the situation. The lack of skilled professionals is becoming alarmingly obvious, and it’s hitting dealerships harder than I think they realize.
One might be surprised to learn that I actually enjoy cleaning up accounting messes and setting dealerships up for financial success. There’s a twisted satisfaction in restoring order to chaos. But lately, I’ve watched with a mix of disbelief and concern as the state of dealership accounting has gone downhill in the past couple of years. The decline in skills – and the shortage of experienced controllers – has led to some pretty shockingly bad outcomes.
It’s like watching someone drive a car off a cliff, all while ignoring the warning signs.
The backbone of the Balance Sheet is breaking
Operating a dealership without a competent controller is a bit like driving a car while staring at your feet. Sure, you might keep it between the lines for a while, but eventually, you’re going to crash into something expensive. And loud. Probably a customer.
Across the country, dealership controllers, accounting managers, and office managers are doing their best – often armed with little more than a DMS password taped under the monitor and a vague sense of dread. They’re trying to keep the lights on and the statements clean, but the industry has done them no favors: no meaningful training, no mentorship, and certainly no spa vouchers.
Some simply don’t have the tools, support, or guidance to manage the increasingly complex financial gymnastics that dealerships require. It’s not their fault. It’s ours – for assuming they could juggle flaming chainsaws with one hand tied behind their back while also answering the phone and fixing a vendor’s invoice error from 2022.
Spoiler: The numbers aren’t real until they’re posted
Despite what some GMs believe, the only numbers that matter are the ones that have been posted, balanced, and collected. Not the ones shouted across a desk during a sales meeting. Not the ones scribbled on the back of a to-go menu. Real numbers come from real transactions that someone, somewhere, has lovingly agonized over in accounting.
This post is for those of you – owners, dealers, aspiring moguls – who haven’t looked at your books in a while. Or worse, think you don’t need to.
Why Controllers actually matter (and aren’t just fancy bookkeepers)
If you’re still picturing your controller as someone who just adds up receipts, allow me to shatter that illusion like a side mirror on a too-narrow garage.
The controller’s role is particularly crucial in car dealerships due to the high-value inventory, complex financing arrangements, and the need to manage multiple profit centers within a single business. Their expertise directly impacts the dealership’s financial health and long-term success.
1. They Run the Financial Machine
- Oversee daily financial activities: Controllers manage cash flow, accounts payable, accounts receivable, and payroll.
- Financial reporting: Controllers and their staff prepare the monthly financial statements and reports required for the manufacturer, flooring bank and other lenders, and for management and owners.
- Cost control: Controllers identify expenses outside of benchmarks and implement cost-saving measures.
- Performance analysis: They analyze financial data to assess the dealership’s performance and identify trends.
2. They Keep the Business Profitable
They watch margins, catch leaks, question pricing strategies, and help ensure that every department—from new cars to parts—pulls its financial weight.
- Departmental profitability: Controllers analyze the performance of each department (new cars, used cars, service, parts) tracking each department’s optimal contribution to the dealership’s overall profitability.
- Margin analysis: They closely monitor profit margins on vehicle sales, service labor (CP, Internal and Warranty) and parts (retail and wholesale).
- Pricing strategies: Controllers can help determine optimal pricing for vehicles and services to maximize profitability.
- Inventory management: They track vehicle aging and days supply and work with sales and management to optimize inventory levels.
- Investment analysis: They evaluate potential investments in equipment, facilities, or new ventures to ensure they will yield adequate returns.
3. They Keep You Compliant (and Out of Trouble)
Controllers are your best shot at avoiding fraud, audits, fines, lawsuits, and the dreaded “Did we pay that vendor twice?” debacle.
- Implement internal controls: Controllers establish and maintain systems to prevent fraud, errors, and misuse of assets.
- Ensure compliance: They make efforts to shield the dealership from potential liabilities by remaining in compliance with various regulatory agencies, tax laws, and industry regulations.
- Manage audits: Controllers prepare for and manage both internal and external audits.
- Oversee the accounting team: They supervise the accounting office staff, ensuring accurate and timely record-keeping.
- Technology integration: Controllers often lead the implementation and optimization of the DMS (Dealer Management System) and other various integrations.
4. They’re Strategic, Not Just Tactical
Good controllers help leadership make sound decisions. They talk to banks, insurance reps, auditors, and the occasional state agency that thinks you forgot to file something. Because, without an experienced controller, you probably did.
- Advise leadership: Controllers provide financial insights to inform major business decisions.
- Risk management: They identify and mitigate financial and other risks to the dealership’s well being and future.
- Liaising with external parties: Controllers often interact with banks, auditors, attorneys, insurance providers and regulatory bodies on behalf of the dealership.
5. They Know This Industry Inside and Out
They navigate floorplan financing, incentive chargebacks, and the mysterious science of parts statement reconciliation.
- Manage complex inventory financing: Controllers navigate the intricacies of vehicle inventory floor plan financing.
- Handle manufacturer relations: They manage financial aspects of relationships with the manufacturers, including parts/non-vehicle statement items, incentives and chargebacks.
The Title Says Controller, But the Reality Says Otherwise
In more and more dealerships, the title “controller” is showing up on email signatures, org charts, and pay stubs. The only problem? In too many cases, it’s just that—a title.
Behind the scenes, the person wearing the controller badge may not actually be doing what the job demands. Not because they don’t care, but because no one trained them, mentored them, or gave them the time and tools to succeed. It’s like hiring someone to fly the plane because they’ve seen Top Gun—a lot of style, very little landing.
The truth is, dealership accounting is a beast of its own. It’s part art, part science, part trauma recovery. And while someone may be great at paying bills or processing car deals, that doesn’t mean they’re ready to manage financial strategy, balance sheet accuracy, internal controls, manufacturer compliance, tax deadlines, floorplan audits, and a 3-day close™.
This mismatch between title and ability isn’t the employee’s fault. It’s a reflection of a bigger industry problem: we’re desperate to fill the role, so we hand out the title and hope it works out.
It doesn’t.
Instead, financial statements go sideways. Unreconciled schedules pile up like junkyard parts. The GM stops trusting the numbers. And eventually, someone gets blamed for not doing a job they were never prepared to do in the first place.
So… Where Have All the Controllers Gone?
Here’s what’s fueling the great controller vanishing act:
1. Retirement of Experienced Professionals
Boomers and Gen X controllers are riding off into the DMS-free sunset. And they’re taking decades of institutional knowledge with them.
2. Increased Demand
The car business has seen significant growth and consolidation. Compliance demands are growing. Multi-store groups are multiplying. Everyone wants a controller. No one can find one.
3. The Role Got Harder
Today’s controller is expected to be a financial savant, IT wizard, data analyst, and risk manager with a charming phone voice.
4. Dealership Culture Isn’t Always… Welcoming
Hostile work environments, misogyny, harassment – it’s all still there. Many controllers work in dealership offices where “support” means not getting yelled at today.
5. No One Teaches Dealership Accounting
There’s no masterclass in schedule reconciliation or month-end process (which doesn’t just mean the end of the month). Most learn through painful, trial-by-fire experiences…and then promptly leave.
6. They Have Better Options
Accounting professionals can go work in tech, healthcare, or anywhere that doesn’t involve reconciling a sales tax return that hasn’t balanced since 2019.
7. Geography Gets in the Way
Talented controllers cluster in urban areas. Dealerships don’t always. Relocation offers aren’t exactly enticing when the reward is more work for less thanks.
8. Economic Fluctuations Scare Everyone
The car business is cyclical and intense. One slow month and owners panic. Controllers get blamed. Job security becomes a myth.
What Happens Without a Good Controller?
Brace yourself:
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Financial reporting becomes fiction.
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Cash flow vanishes into thin air.
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Inventory sits. Or disappears.
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Budgets don’t exist.
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Tax errors pile up.
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Internal fraud becomes depressingly easy.
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Banks stop returning your calls.
In other words: you don’t just have a controller shortage. You have a crisis.
What Can You Actually Do About It?
Good news: this isn’t unsolvable. But it does require effort, creativity, and, yes, a little humility.
1. Grow Your Own
Create deputy roles. Offer mentorship. Start training replacements before the controller retires (or walks out).
2. Pay Better
Yes, really. Offer real money. Offer real benefits. Retention starts with respect and a decent paycheck.
3. Be Flexible
Flexible schedules. Hybrid work. Family-friendly and work/life balance policies. You know, the things normal industries already offer.
4. Bring in Temporary Help
Outsource to an automotive-specific advisory firm. Bring in an on-demand dealership CFO. Hire a consultant to help your team level up.
5. Fix Your Culture
Eliminate harassment. Promote fairly. Don’t reward chaos. Make your store a place where people want to work.
6. Recruit Beyond Your Zip Code
Use remote tools. Hire differently. Target dealership accounting pros who already know the lay of the land inside the store where it counts.
Final Thought: Respect the Role
If you still think your controller is “just the person in the back who runs payroll,” I invite you to do their job for one week. No breaks. No help. Just you, the DMS, a month-end close, and a $250,000 reconciliation mystery.
You’ll never underestimate them again.
Is your financial health 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!