Why Dealership Leaders Must Learn to Love the Numbers - Kruse Control Inc
If you’re in the car business, you better like math. I was watching the latest Marcus Lemonis show called The Fixer. The owner of one of the businesses he| Kruse Control Inc
It takes an obscene amount of cash to run a car dealership. Not “a lot” in the way you might describe your cousin’s sneaker collection, but a lot in the way you’d describe Mount Everest. Cash isn’t just king here, it’s oxygen. Without it, the store wheezes, sputters, and eventually passes out. Lately, the subject […] The post Dealership Cash Flow: From Panic to Strategy appeared first on Kruse Control Inc.| Kruse Control Inc
Month-end in a franchise car dealership is a bit like hosting Thanksgiving dinner. You think you’ve got everything under control until you realize the turkey’s still frozen, the cranberry sauce is missing, and Aunt Linda has arrived two hours early asking why the table isn’t set. For controllers, it’s the same kind of scramble: dozens […] The post Month-End Checklist for Franchise Car Dealership Controllers appeared first on Kruse Control Inc.| Kruse Control Inc
Every dealership has its version of “everything’s fine.” It’s usually said just after someone asks a financial question that doesn’t have an immediate answer. The phones are ringing, the sales team is caffeinated, and the service dept has customers in the drive. On the surface, it looks like a well-oiled machine. But behind the office […] The post The Warning Signs of a Dealership Financial Crisis appeared first on Kruse Control Inc.| Kruse Control Inc
If you’re in the car business, you better like math. I was watching the latest Marcus Lemonis show called The Fixer. The owner of one of the businesses he| Kruse Control Inc
When I walk into a dealership for the first time, I never know what I’m going to find. Sometimes there’s a friendly receptionist and a fresh pot of coffee. Other times, it’s a makeshift accounting office in what used to be the broom closet, where the “controller” is a former parts runner with a R+R […] The post The Joys of Internal Controls for Franchise Dealerships appeared first on Kruse Control Inc.| Kruse Control Inc
Over the years, I’ve noticed a persistent misunderstanding in the dealership world: the tendency to dismiss the accounting office as a “cost center.”| Kruse Control Inc
Bringing a CFO into your dealership can feel a bit like inviting a houseguest who goes through your medicine cabinet, your freezer, and your credit card statements, and then tells you what’s expired, what’s rotting, and why you’re broke. It’s unsettling at first, but if you’re smart, you’ll pour them a cup of coffee and […] The post When to Hire a Dealership CFO appeared first on Kruse Control Inc.| Kruse Control Inc
If there’s one thing dealers and GMs hate it’s discovering that the money they thought they made last month has quietly evaporated. Not stolen, exactly,| Kruse Control Inc
Lately, I’ve found myself obsessing over something that most people wouldn’t notice unless it jumped out from behind a sales desk and bit them. It’s not flashy, it’s not trending, and it certainly won’t get you invited to any parties (unless it’s a very sad party with spreadsheets and stale donuts). But once you see […] The post Car Dealership Accounting Skills Don’t Grow on Trees appeared first on Kruse Control Inc.| Kruse Control Inc
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 […] The post The Great Dealership Controller Disappearance (And Why You Should Care) appeared first on Kruse Control Inc.| Kruse Control Inc
This week, I spoke with a potential client struggling with dealership cash flow—an issue that should be top of mind for every dealer, especially given today’s economic uncertainty. Having been in this business through the ’90s, early 2000s, and the Great Recession of 2009, I’ve seen firsthand how market shifts, consumer behavior, tighter flooring rules, […] The post 7 Top Cash Drains in Auto Dealerships appeared first on Kruse Control Inc.| Kruse Control Inc
One of the unexpected perks of writing this newsletter is that inspiration can strike in the most absurd places—like the grocery store this past weekend. If you’re anything like me, you probably shuffle through those fluorescent-lit aisles weekly, wondering when you unknowingly signed up for a live-action obstacle course. Lately, though, I’ve noticed a troubling […] The post EBITDA Won’t Hug You Back: Why Dealership CFOs Care About Customer Experience appeared first on Kruse Control...| Kruse Control Inc
Car dealerships have an accountant problem. Namely, they are running out of them. Over the past two years, I’ve been writing about the growing shortage of dealership controllers, and the situation has only deteriorated. Not only is it increasingly difficult to find knowledgeable controllers, but the crisis extends to dealership accounting talent as a whole. […] The post Car Dealerships Face an Accountant Crisis appeared first on Kruse Control Inc.| Kruse Control Inc
Treating employees with respect and offering competitive compensation has a significantly positive impact on dealership profitability. When employees feel valued, they are more engaged, more productive, and genuinely committed to delivering exceptional service. This is especially true in the car business, where customer experience and long-term relationships drive revenue. Fair pay and a supportive work […] The post Respect and Competitive Pay for Dealership Workforce Improves Profitability...| Kruse Control Inc
Financial literacy in a dealership is like knowing how to swim before jumping into the deep end—technically, you can still jump in without it, but the results will be unpleasant for everyone involved. For a General Manager and a Controller, understanding financials isn’t just a nice-to-have; it’s what allows them to make decisions that don’t […] The post How Poor Financial Literacy is Undermining Dealership Profitability appeared first on Kruse Control Inc.| Kruse Control Inc
It’s clear that many dealerships are actively searching for experienced controllers. In Driving Blind: The Shortage of Seasoned Dealership Controllers, I discussed how this shortage has been developing for years, worsening over time. Now, we are witnessing its impact firsthand. Running a dealership without a firm grasp of its financials is like driving without being […] The post 12 Questions to Ask When Hiring a Dealership Controller appeared first on Kruse Control Inc.| Kruse Control Inc
I’ve spent my entire career in the car business, working in every franchise and holding just about every role within a dealership. One of the biggest momentum-killers in this industry is a lack of working capital. Without sufficient liquidity, even the most well-run dealerships can struggle to maintain inventory, cover operating expenses, and capitalize on […] The post The Crucial Role of Working Capital in Franchise Dealerships: A CFO’s Perspective appeared first on Kruse Control Inc.| Kruse Control Inc
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 […] The post Solving the Car Dealership Accounting Skills Shortage appeared first on Kruse Control Inc.| Kruse Control Inc
Accounting errors happen. But when they go undetected, uncorrected, or—worse yet—intentionally concealed, the fallout can be severe. Car dealerships are no exception to this rule, and the recent story of a Macy’s employee’s accounting misstep should serve as a cautionary tale for dealer principals and general managers alike. The Macy’s Misstep: A Warning for All […] The post The High Cost of Lax Accounting Controls: Lessons for Car Dealerships from Macy’s Costly Mistake appeared...| Kruse Control Inc
There’s nothing quite like the feeling of losing money—not in the thrilling, stock-market-plummet way, but in the “Wait, didn’t we have cash here yesterday?” kind of way. I’ve met so many dealers who are sales superstars, yet at the end of the month, their profit margins seem to evaporate once everything is in for end-of-month. […] The post Stealing Success: How Messy Books Put Dealerships at Risk appeared first on Kruse Control Inc.| Kruse Control Inc
Included in a dealership CFO’s responsibilities is identifying operational weaknesses that affect financial performance, such as inefficiencies in asset management, excessive overhead costs, or missed revenue opportunities in sales and service. By pinpointing these areas, the CFO can develop strategies to reduce costs, optimize processes, and improve profitability, ensuring the dealership’s financial stability and growth […] The post Quick Tips to Identify Dealership Operational Weaknes...| Kruse Control Inc
Those of us who have worked in auto retail for any length of time know when the industry is thriving. It’s easy to forget the difficult periods when profits are high and the workload is more manageable. However, we’ve also weathered some hard times, even times when dealerships were shutting down. I tend to adopt […] The post Spend Management Tactics to Boost Dealership Profitability and Operational Efficiency appeared first on Kruse Control Inc.| Kruse Control Inc
Dealership financial management plays a crucial role in ensuring success and sustainability. Two key positions at the helm of a dealership’s financial operations are the Chief Financial Officer (CFO) and the Controller. While both roles are essential for dealership financial health, they have distinct responsibilities and focuses. Understanding these differences is essential for comprehensive dealership […] The post Key Differences Between a Dealership CFO and a Controller appeared first ...| Kruse Control Inc
You’d be surprised what’s lurking in car dealership accounting records and financials. I’ve written and spoken about this a lot and nothing really seems to change that much. I’ve seen the same mistakes repeated again and again, with little progress toward improvement. While some dealers and general managers are aware of the issues and work […] The post Car Dealership Accounting “Worst Practices” That Jeopardize Profitability appeared first on Kruse Control Inc.| Kruse Control Inc
Early in my career, I opened a Nissan dealership in Rosemead, California with just the owner and a small team of six others. The location had been shut down for a year before we took over. That’s where I truly learned the ins and outs of the car business, working every role in the dealership […] The post A Blimp, a Dealership, and Lessons in Financial Stewardship appeared first on Kruse Control Inc.| Kruse Control Inc
With every passing week, I’m witness to a growing number of dealerships whose expenses have been creeping upward. It’s often a topic of conversation, and after the past few years of volatile sales, some bad habits are back. One of the most dangerous habits is neglecting to conduct a monthly review of dealership expenses and […] The post A Simple Dealership Expense Control Tactic to Avoid Scary Surprises appeared first on Kruse Control Inc.| Kruse Control Inc
I’ve always believed that life has a way of serving up the most delicious ironies when you least expect them. Take, for instance, the tale of a car dealership that mistakenly turned a questionable termination into a $2.8 million lesson, all thanks to a perfect storm of incompetence, inferior software, and corporate HR overreach. Recently, […] The post A $2.8 Million Cautionary Tale of Dealership Mismanagement and Corporate Overreach appeared first on Kruse Control Inc.| Kruse Control Inc
Just like when the doctor warns you about your cholesterol, I'm here to warn about the silent killers lurking in dealership financial practices.| Kruse Control Inc
I've been working with a dealer client who's number one goal is to control expenses. They reached out for help with a common challenge: despite strong| Kruse Control Inc
I've basically been a car dealership controller or CFO my whole life. I've worked every job in the car business (except technician), and I've been the| Kruse Control Inc
The car business is a high stakes gambit. The average consumer believes manufacturers just build cars and dealers sell them - simple as that. But it's| Kruse Control Inc
