Bridging the Divide: Sourcing Accounting Talent for Dealerships

The accounting talent pipeline for dealerships has been drying up in recent years and succession plans for key accounting personnel reaching retirement are thin. As the auto industry faces economic fluctuations, regulatory changes, and technological advancements, having a dedicated accounting team is more critical than ever before.

Sourcing accounting talent for auto dealerships requires a thoughtful approach that considers the unique needs of the industry. Having a skilled accounting team is crucial for managing finances, ensuring compliance, and ultimately, driving the success of the dealership. However, sourcing accounting talent for auto dealerships can be challenging. Whether you choose to hire in-house staff or outsource accounting tasks or leadership roles, the key is to find professionals who possess the right skills and experience to help your dealership achieve its strategic goals.

Considerations for Sourcing In-House Talent

Dealerships should focus on finding talent that can adapt. Finding the right accounting talent for a dealership requires a strategic approach to ensure the success of the business. Effective strategies to consider include:

• Leveraging Recruitment Agencies: These agencies have access to a pool of candidates with the skills and experience needed for the industry. By partnering with a reputable agency, you can streamline the hiring process and find candidates who are a good fit for your dealership. Working with recruitment agencies offers the added benefit of gaining access to passive candidates — those who may not be actively seeking new employment but possess the right qualifications and experience.
• Networking: Attend industry events, conferences, and seminars to connect with professionals who have expertise in automotive accounting. Building relationships with industry peers can lead to referrals and recommendations for potential candidates.
• Looking to Emerging Talent: Developing relationships with local universities and colleges can be an excellent way to source emerging talent. Internship and graduate programs allow you to train and evaluate potential candidates before making full-time hiring decisions. This strategy not only helps you find skilled accountants but also supports the development of future industry professionals.

Revisit Pay, Incentives, and Benefits

Odds are that you cannot afford to be paying employees more, with margins and overstock being what they are. However, several dealers we have worked with have found that the value of the pay was not the problem — it was the pay structure. More importantly, your benefits and vacation packages.

Offering competitive benefits and perks can help attract top talent in today’s market. Revisiting employee benefits is an ongoing process that requires attention to the changing needs of the workforce. Some dealerships have found success with offering flexible work environments, health and wellness programs, and professional development in addition to comprehensive health coverage. Offering tailored benefits is not only a strategy for attracting and retaining accounting talent but also a testament to your dealership’s commitment to its people. Overall, as an industry dealers have fallen behind in this category because they have been relying on how much time it used to take to complete tasks.

Utilize Technology and Remove Barriers for Talent

In times of labor shortages, dealership owners are looking to find ways to streamline jobs and improve operational efficiencies. New fixed operations technology that makes the employee experience better can also improve your ability to manage the dealership. While 83% of dealerships have access to data insights from a dashboard or reporting tool, less than one-third are satisfied with the insights they get from vendors, reports Cox Automotive. An investment in strong ERP systems and business intelligence tools can make life easier on employees while also answering your staffing questions.

Dealerships are using fixed operations technology to assist with:

1. Timely Billing: Ensures that customers are billed accurately and promptly, improving  cash flow.
2. Accurate Financial Reporting: Up-to-date repair orders contribute to precise revenue recognition and financial reporting.
3. Customer Satisfaction: Reduces billing errors and misunderstandings, leading to  higher customer trust and satisfaction.
4. Efficiency: Tracks technician productivity and service department efficiency, facilitating better management decisions.
5. Maintenance of Warranty Records: Keeping detailed records of warranties ensures  that claims are processed efficiently and accurately.
6. Service History Tracking: Maintaining comprehensive service histories for customers aids in future diagnostics and service recommendations.
7. Technician Time Tracking: Monitoring technician work hours and productivity for fair  compensation and performance evaluation.
8. Customer Communication Logs: Documenting all interactions with customers to  ensure consistent and high-quality customer service.
9. Regular Reconciliation: Periodic reconciliation of physical inventory with recorded  inventory to identify discrepancies and take corrective actions.
10. Detailed Parts Invoices: Recording detailed parts purchase invoices for accurate cost management and supplier relationship management.

Dealerships should also consider experimenting with AI tools to allow your team to automate some of its tasks. Many dealerships have successfully implemented AI tools to:

1. Automate tracking and categorizing expenses
2. Reconcile inventory levels with sales data
3. Reconcile cash and credit lines
4. Reconcile payroll and commissions
5. Produce weekly performance indicators
6. Track and report on budgets

Although AI can improve some efficiencies and replace rote tasks, more complex work such as detailed financial planning and analysis, tax planning, and long-term financial decisions still require the knowledge and expertise of professional accountants.

Another key point to consider is your DMS system and if it has become a barrier to an already small field of talent. While there may already be limited accounting talent on the market, the DMS you are using and the lack of knowledge and lead time may even further limit this field. Many dealers are switching to more user friendly DMS systems in order to attract top talent that may not have this specific knowledge but are top talent. By doing this you are showing younger talent you are adaptable and are invested in the future of the dealership accounting functions.

Consider Outsourcing

Outsourcing not only accounting tasks but filling key leadership roles like chief financial officer (CFO) is another effective strategy for auto dealerships looking to enhance their financial operations. By outsourcing, dealerships can access specialized expertise without the need to hire full-time staff. Some benefits of outsourcing for dealerships include:

• Cost Savings: Outsourcing can be more cost-effective than hiring in-house staff, as it eliminates expenses associated with salaries, benefits, and training.
• Expertise in the Industry: Outsourcing firms have teams of experienced professionals with specialized knowledge. Currently, there simply is not enough accounting talent to keep up with growing compliance demands. Dealerships can address these challenges by hiring consultants to check their in-house work or outsourcing to fill C-suite level vacancies. Outsourced CFOs can take on many roles within the dealership and train existing employees in new technology.
• Access to Advanced Technology: Outsourcing also offers the advantage of accessing the latest technology and software without the need for significant capital investment. Many outsourcing firms invest heavily in technology to deliver efficient and accurate accounting services. This means dealerships can benefit from cutting-edge solutions without incurring the costs of purchasing and maintaining their own systems.
• Scalability: Outsourcing allows dealerships to adjust the level of support they receive based on their needs, providing flexibility during peak periods or when facing specific challenges.

Outsourcing can lead to improved focus on core business activities, as in-house teams can dedicate more time to strategic initiatives rather than routine accounting tasks.

When considering outsourcing, it's important to choose a solution that aligns with your dealership's goals and values. Evaluate potential outsourcing providers based on their experience in the automotive industry, the range of services they offer, and their reputation for delivering quality results.

How Citrin Cooperman Can Help

In a rapidly changing industry, having the right accounting talent is essential for navigating financial complexities and driving growth. By investing in skilled professionals, dealerships can ensure their financial operations are efficient, compliant, and structured for success. As the industry continues to evolve, those dealerships that prioritize and adapt their talent acquisition strategies will be best positioned to thrive amidst new challenges and opportunities.

Citrin Cooperman’s Automotive Dealerships Industry Practice, complemented by the services provided by our Business Process Outsourcing Practice, can help dealers assess and address gaps in their accounting talent. To learn more about how to analyze the performance of your dealership to achieve your strategic goals, reach out to Philip Craft.