💡 A 9-Store Auto Group’s Path to Smarter Back Office Consolidation

Costs were rising, headaches were multiplying, and financial reporting had become a monthly Keystone Cops Routine.

When the executive team at a growing auto group gathered for their annual planning retreat, the mood was optimistic... but the spreadsheet in front of them told a different story. With nine rooftops across three states, the organization had experienced impressive top-line growth over the past five years. But costs were rising, headaches were multiplying, and financial reporting had become a monthly Keystone Cops Routine.

“We were running nine different back offices,” said Julie, the auto group’s CFO. “Each store had its own quirks... different payroll practices, different vendor contracts, even different chart of accounts. It worked when we had three or four stores. But at nine? We were hitting a wall.”

The group’s leadership knew something had to change. They wanted to tap into the benefits of scale... cost savings, better control, improved processes... but they were wary of rocking the boat too hard.

That’s when Julie discovered the DealersEdge Guide to Back Office and Accounting Consolidation.

A Roadmap, Not a Recipe

“What struck me right away,” she recalled, “was that this guide didn’t tell me, ‘Here’s how to do it.’ Instead, it laid out options... functions that could be consolidated, potential benefits, pitfalls to watch for. It gave us a framework to think strategically, without promising some magic fix.”

Armed with the guide, the team started small. They identified several back office functions that seemed ripe for centralization: accounts payable, payroll processing, and benefits administration.

Wins… and a Few Missteps

The first move was AP. They set up a centralized AP team at its headquarters office. Using cloud-based workflows and standardized procedures from the guide, they were able to reduce invoice errors, speed up vendor payments, and negotiate better bulk terms.

“Suddenly, we had visibility,” said Jake, their corporate controller. “We could see all our vendor relationships in one place... and that let us act like a larger organization when it came to purchasing power.”

Payroll was another win. By consolidating payroll and benefits administration, the group cut redundant software licenses, standardized PTO policies, and tightened internal controls.

But not every attempt worked out.

They tried consolidating title and registration processing for all nine stores. The idea was to create consistency and speed. Instead, it created frustration.

“For us, title work is extremely local,” Julie admitted. “We didn’t fully appreciate how different the state and even county-level requirements were. In the end, we reversed course and moved that function back to the stores.”

The guide’s chapter on unintended consequences came in handy then. “It helped us see that pulling everything into HQ isn’t always the smartest move,” Julie said. “Some things need local knowledge to function properly.”

Building Professionalism and Predictability

Where consolidation did stick, the payoff was more than just dollars saved.

Creating a centralized general ledger team allowed the auto group to close books faster and catch irregularities more quickly. They implemented standardized financial reporting formats across all stores which gave their executive team a much clearer view of profitability by location.

Just as importantly, consolidation created a platform for consistent training. Using the guide’s chapter on training and cross-location learning, they developed a structured onboarding program for new office staff, regardless of location.

“Before, each store trained people their own way,” said Jake. “Now, we have shared standards, better documentation, and fewer compliance issues.”

Lessons Learned... and Shared

Today, the auto group’s back office is a hybrid. Some functions... like AP, payroll, and financial reporting... are fully centralized. Others, like inventory control and dealership-level HR, remain at the store level where local knowledge makes the difference.

What’s changed most is our mindset. “We no longer assume we have to figure it all out ourselves,” Julie said. “This guide gave us a menu of smart options. It helped us weigh trade-offs and avoid some very expensive mistakes.”

Your Group’s Story Starts Here

If your dealership group is growing... or even just aiming to operate more efficiently... The DealersEdge Guide to Back Office and Accounting Consolidation is an essential tool. It doesn’t offer a rigid formula. It offers insight, structure, and the flexibility to build a plan that works for your unique organization.

Consolidation isn’t about doing everything the same way... it’s about finding the right opportunities to scale wisely, protect profit, and lead with professionalism.

---

Available at a Deep Discount to Members / PDF and Hardcopy Available /
Click Below To See Full Table of Contents.

Unsure of your membership status? Contact memberservices@dealersedge.com

---