In a dealership, the difference between thriving and circling the drain often comes down to financial management. Two people supposedly steer that ship: the Controller and the CFO. Theoretically, they work in tandem to keep the money straight, the manufacturer happy, and the lights on. In reality, though, the lines between them are often as blurred as the print on a 20-year-old parts statement.
One thing I’ve learned over time: a title doesn’t always come with the skills to match.
A while back, I was talking to a colleague about job titles, which led me down memory lane, back to the time when I didn’t care about such things. In the early days, I helped start a dealership with the owner and a handful of other brave souls. Titles were a luxury we couldn’t afford. We were too busy doing everything – selling cars, managing the service drive, reconciling bank statements, unclogging the coffee maker – to bother defining who did what. If something needed doing, we did it. If it broke, we fixed it. It was chaotic, inefficient, and somehow… it worked.
Eventually, success crept in. The store grew, we hired more people, and titles appeared. Suddenly, I was something with a capital letter. Years later, I now understand that titles matter, but not for the reasons I once thought.
In the car business, titles are sometimes like horoscopes: vague, flattering, and occasionally accurate.
Take the word controller. In theory, a controller is the gatekeeper of truth – the person who ensures the numbers tell the real story. In practice, many “controllers” are performing heroically as office managers, juggling tasks they were never trained for. They can post a deal, balance a schedule, and chase a missing parts invoice before lunch, but leading a finance team or designing a cash-flow forecast? That’s not in their wheelhouse. And it’s not their fault. The title came first; the training never followed.
This mismatch between label and ability can create a kind of dealership twilight zone, where everyone assumes someone else is in charge of financial strategy, when in fact no one is. That’s how good stores stumble, and great ones quietly implode.
Meanwhile, the true dealership CFO – part strategist, part therapist, part crisis negotiator – has become something of a mythological creature. You hear about them at 20-Group meetings, but rarely in the wild. And if your controller doesn’t actually have the skills of a controller, and there’s no CFO in sight, well… you can probably guess how that story ends.
The Bigger Picture: What a CFO Really Does
A Chief Financial Officer’s role stretches far beyond accounting. Yes, understanding dealership GAAP is essential (it’s the foundation) but it’s only the beginning. A CFO’s true value lies in their perspective. They can zoom out far enough to see how every financial decision connects to the dealership’s larger goals. They build strategies, forecast growth, and prepare the business for the inevitable ups and downs that come with selling and servicing cars for a living.
If you’re a controller already operating at this level – crafting strategy, guiding the dealer, thinking beyond the month-end close – you deserve to be recognized for it, and perhaps even carry the CFO title yourself.
And if you’re a dealer fortunate enough to have that person in your organization, do what you must to keep them. Compensation, recognition, growth, whatever it takes. People like that are rare. Think “cat that listens to you” rare. (And even then, the cat is probably just humoring you.)
The truth is, automotive retail finds itself in unusual times. It’s always been a cyclical industry, but the last few years have taken that to extremes – record profits one minute, razor-thin margins the next. I’ve noticed a concerning pattern: financial literacy among GMs, controllers, and even dealer principals isn’t where it needs to be. That’s not an insult, it’s an observation, one made from too many late nights spent untangling financial statements that tell more of a mythical story than a financial one.
As profitability tightens, we need a collective effort to turn things around. Manufacturers, dealers, and managers all play a role in understanding what the numbers are saying… and what they’re not.
In the sections that follow, I’ll explore what truly distinguishes a dealership CFO from a Controller, where their roles overlap, and how each contributes to the store’s financial well-being.
Dealership CFO vs. Controller: The Subtle (but Crucial) Differences
At first glance, a dealership CFO and a Controller might seem like two versions of the same thing. Both deal with numbers. Both live in spreadsheets. Both probably have a love–hate relationship with the month-end close. But their roles are as different as steering a ship and swabbing its deck. Each is essential; one just happens to set the course while the other keeps it steady.
Role and Scope
A CFO operates from a higher altitude. They think long-term about strategy, growth, risk, and how every financial decision connects to the dealer’s larger vision. Their work stretches beyond the accounting office into planning, banking, and leadership conversations that shape the future of the business.
A Controller, on the other hand, runs the daily show. They make sure the numbers are right, the reports are accurate, and the dealership stays compliant. Controllers are the reason the lights stay on and payroll gets processed. Their precision is what allows everyone else to focus on selling cars instead of sorting through missing deal jackets.
Understanding where one role ends and the other begins doesn’t just make life easier, it makes the whole operation smoother. Clear boundaries mean faster growth, fewer surprises, and a healthier bottom line.
The Dealership CFO: Strategy in Motion
A good CFO doesn’t just count money, they make it count. Their world revolves around long-term strategy, big decisions, and the stories hidden in the financial statements.
1. Financial Planning and Strategy Development
CFOs turn dealership goals into financial roadmaps. They forecast, budget, and create strategies for sustainable growth, whether that’s expanding to a second (or tenth) rooftop or upgrading technology that finally replaces the 12-year-old server humming in the back office.
2. Investment and Capital Management
They’re the ones weighing big purchases: new facilities, EV chargers, inventory expansion. CFOs figure out how to fund those dreams responsibly, balancing debt and equity while negotiating with lenders so the dealership’s future isn’t mortgaged to the hilt.
3. Risk Management and Mitigation
Every dealership faces risks – economic shifts, regulatory changes, or the occasional manufacturer curveball. A CFO anticipates these storms, builds buffers, and crafts strategies so the business can bend without breaking.
4. Performance Monitoring and Improvement
CFOs translate numbers into insights. They analyze performance data, track profitability by department, and identify where the store is leaking cash (usually in the same few places, over and over again).
5. Leadership and Advisory
A CFO is a counselor as much as a financial officer. They guide dealer principals through major decisions, coordinate with lenders and investors, and act as the steady voice in rooms where emotions sometimes run high.
6. Compliance and Ethics
Beyond strategy, CFOs ensure integrity. They oversee audits, maintain transparency, and make sure the dealership’s financial practices can withstand both scrutiny and sleep at night.
A strong CFO is less a “numbers person” and more a trusted navigator – the one who keeps the dealership pointed toward the horizon.
The Dealership Controller: Precision in Practice
If the CFO writes the story, the Controller edits it carefully, line by line. Controllers live in the details, and those details are what hold the dealership together.
1. Financial Reporting
They produce the daily reports and monthly financial statements that everyone depends on. Every deposit, receivable, and factory statement passes through their desk.
2. Accounting and Reconciliation
Controllers ensure every number is backed by a source. They reconcile bank statements, verify schedules, and make sure the accounting tells the truth.
3. Budget Management
They compare actual performance against the budget, flag variances, and help department heads understand what went right (or wrong).
4. Compliance and Auditing
Controllers keep the store in line with Dealership GAAP, tax laws, and manufacturer requirements. They oversee internal audits and keep processes tight enough to deter both mistakes and mischief.
5. Cash Management
They monitor daily cash flow, balancing incoming receipts with outgoing payments so that there’s enough in the account to cover payroll and the flooring payoffs hitting tomorrow.
6. Payroll and Transactions
Controllers make sure every transaction, from car deals to vendor payments, is accurate and authorized. Payroll, taxes, and benefits are handled like clockwork.
A great Controller is the dealership’s unsung hero – the person who quietly ensures the numbers make sense and the operation runs without chaos.
The Big Picture: How They Differ (and Overlap)
Both CFOs and Controllers keep a dealership financially sound, but their focus is different:
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Strategic vs. Operational: CFOs look ahead; Controllers manage the present.
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External vs. Internal: CFOs deal with banks, investors, and strategy partners; Controllers focus on internal accuracy and control.
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Forward-Looking vs. Historical: CFOs forecast; Controllers document.
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Breadth vs. Depth: CFOs understand the entire dealership ecosystem; Controllers dive deep into accounting and compliance.
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Decision-Making: CFOs make calls that affect the future of the business; Controllers make sure today’s numbers are correct.
Despite these differences, they share important traits: integrity, analytical skill, and leadership. Both roles demand trust, discipline, and a clear head when the numbers stop adding up.
The best dealerships understand this partnership for what it is: the CFO sets the vision; the Controller keeps it grounded in reality. Together, they make sure the dealership not only survives but thrives.
How Each Role Fuels Dealership Success
When a dealership runs well, it’s rarely luck. It’s usually the result of two people quietly doing their jobs very well: the CFO and the Controller. Each plays a different part in keeping the business both solvent and sane.
The CFO’s Contribution
A strong CFO is the dealership’s financial architect. They think several moves ahead, making sure today’s decisions won’t create tomorrow’s regrets. They guide strategy, anticipate risks, and translate numbers into direction.
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Strategic Growth: They help the dealer principal see the financial path forward—how to grow, when to expand, and when to pause.
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Capital Management: They ensure the store has the funding it needs to operate smoothly, from inventory to facility upgrades.
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Profit Optimization: They find hidden opportunities—better lending terms, smarter inventory management, or more efficient expense structures.
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Partnerships and Relationships: They maintain the crucial ties with lenders, investors, and manufacturers that keep the financial engine running.
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Leadership Through Change: Whether it’s an acquisition, a buy-sell, or a major restructuring, the CFO provides calm, informed guidance when the stakes are high.
A dealership CFO doesn’t just watch the money; they help the dealer use it wisely.
The Controller’s Contribution
If the CFO builds the plan, the Controller makes sure it stands up. Their strength lies in precision, turning daily chaos into reliable financial clarity.
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Accurate, Timely Reporting: They produce the statements that allow everyone else to make decisions with confidence.
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Internal Controls: They keep systems tight enough to prevent both errors and temptation, protecting the dealership’s assets from the inside out.
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Cash Flow Management: They ensure there’s always enough in the account to meet today’s needs without jeopardizing tomorrow’s.
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Tax Compliance: They navigate the maze of taxes so the dealership stays compliant and efficient.
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Operational Insight: Through detailed analysis, they reveal trends, inefficiencies, and opportunities hiding in plain sight.
Together, the CFO and Controller form a kind of financial duet, one composing the melody of growth, the other keeping perfect rhythm. When both roles are clearly defined and properly supported, the dealership doesn’t just survive the next cycle, it thrives through it.
The Bottom Line
Titles are easy to hand out. Skills, experience, and sound judgment, the things that actually keep a dealership afloat, are harder to come by. The roles of CFO and Controller may share some overlap, but each brings a distinct strength to the table.
The CFO looks at the horizon. They’re the strategist, the financial storyteller, and the steady voice in the room when decisions get big and complicated. The Controller focuses on the ground beneath our feet, keeping every transaction, report, and reconciliation in order. Together, they create balance – vision paired with precision, strategy anchored by structure.
In smaller stores, one person might wear both hats out of necessity. But as the dealership grows, so does the need for separation – someone to see the forest and someone to tend to the trees. Having both roles in place doesn’t just make financial sense; it makes operational sense. It’s how a dealership moves from surviving the month to planning the next five years.
So, if you’re a dealer, a controller, or anyone in between, it might be time to take a closer look at your org chart, and more importantly, at the people behind the titles. Are the right skills in the right seats? Do your financial leaders have the authority and support to do their best work? The answers to those questions often explain why some dealerships stay stuck while others keep moving forward.
Because in the end, it’s not the title that makes the difference – it’s the talent, the trust, and the teamwork behind it.
Automotive CFO-To-Go™ helps dealerships gain control of their financials, improve profitability, and build long-term stability, without losing sleep (or sanity) in the process. Click below and I’ll personally follow up within 24 hours.