Consider Accounting Office Consolidation at Your Multi-Store Dealership Group

As dealerships continue to expand, the logistical and operational complexities of handling processes such as accounts payable, accounts receivable, cash flow, billing, and payroll can become cumbersome and costly. Some questions that should be considered include: Should there be a controller per store? Can an office manager handle two or three different stores? Should the consolidated accounting center be set up by process or by store? The functions can become easily muddled - particularly as accounting function sophistication and actual processing will vary from store to store.

The Benefits

More and more multi-store dealers in pursuit of improved performance are transitioning away from location-specific accounting functions in favor of a centralized service model, where all core process areas are operated out of a common office or service center. In addition to the potential cost reduction of running an accounting department, accounting office consolidation can offer the following benefits:

  • Improved efficiency and accuracy in reporting
  • Strengthened internal controls
  • More efficient monthly closings and reporting
  • Ease of streamlining information and processes across locations
  • Enhanced roles and responsibilities
  • Opportunity to attract, develop, and retain talented employees
  • Process standardization which yields more accountability
  • Having the ability to consistently measure performance
  • Appeal to potential buyers in a dealership sale


Author:
Thomas England, Partner | DHG Dealerships
404.575.8917 | thomas.england@dhg.com