You may have heard the term F&I or F&I management, but may not actually know what it is. Well, it is related to automotive dealerships. After you purchase a car, a finance and insurance (F&I) manager handles the financing and leasing process. They also provide you with important insurance, warranty, and aftermarket product offers.
An expert F&I manager will guarantee that clients get the best financing available and inform them of options relevant to their needs and circumstances. If the nature of the profession interests you and you’re currently in the field of accounting, you may want to consider a career change to F&I management. You may even earn a better salary.
As the financial and insurance industry is expanding, you’re on the right track if you’re considering being part of it. Keep reading to find out how to make the switch from accounting to F&I management.
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Numerous financial and insurance managers use their in-depth understanding of a business to transition out of finance and into a more general management position. Some progress to the position of financial director or managing director, depending on their expertise.
In those positions, familiarity with the day-to-day operations of a car dealership business is critical. However, changing roles within an organization, whether connected or unrelated to finance, may need further professional training.
Thus, if your background is accountancy, you need to undergo training programs prior to changing careers. You may want to enroll in an F&I manager educational program online for convenience. If you sign up for F&I management courses, you can may significantly improve your performance once you’re hired.
With F&I training, current and future F&I managers learn how to do their duties properly. For anybody desiring to realize their most significant potential, this program is for you. You’ll be among financial managers, office managers, salesmen, sales managers, and parts managers in car dealership organizations.
How Accounting is Related to F&I Management
Accountants and financial and insurance managers have comparable educational requirements. Also, financial managers tend to be more well-rounded business professionals, with advanced degrees and many years of experience as financial or accounting professionals.
Both financial professions involve acquiring certain types of certifications, although these typically require many years of experience in addition to a degree. Certified public accountant (CPA) certifications are available to accountants and financial managers alike, as is the chartered financial analyst (CFA) designation.
Lastly, accountants and financial managers work in various sectors, including banking and insurance, government, and professional services. A quarter of accountants work in accounting and bookkeeping. In contrast, almost a third of financial managers work in finance and insurance. Accountants are also more likely to be self-employed than financial managers. F&I managers tend to who work in conventional offices with other managers and departmental workers. Thus, an accounting background is an excellent qualification to have if you want to be a highly successful F&I manager.
The Role of an F&I Manager
A finance and insurance manager is responsible for assisting clients with the financing of their car purchase by liaising with lending institutions. They’re also responsible for having thorough knowledge of the aftermarket options and warranties available for the vehicle for sale. Lastly, they’re responsible for training sales teams and ensuring that they achieve dealership sales targets.
Here are the other tasks of an F&I manager you should be aware of as someone with an accountancy background:
- Developing revenue projections such as revenue forecasts.
- Investigating methods for increasing profitability.
- Managing teams and training workers tasked with the responsibility of preparing financial data.
- Evaluating financial documents.
- Examining market trends to discover new business opportunities.
Bookkeeping in F&I Management
Various F&I tasks call for certain bookkeeping approaches. When you have to record F&I income on your balance sheet and your income statement, you’ll need to use associated general ledger accounts.
To ensure you’ve received all of your money, you should match receipts from each kind of revenue with the receivables. Check if you previously recorded something related to the vehicle sale, such as taxes and interest. You should’ve paid just what was needed and nothing more if your payables match your payments.
Also, any discrepancies should be examined to see why they exist in the first place. Perhaps the purchase rate was recorded incorrectly because the original lender refused to finish the transaction due to an inability to verify the customer’s income. The F&I management team then looked around for a lender willing to finance the vehicle at a slightly higher purchase rate so the customer was able to continue buying a car.
The Switch From Accounting to F&I Management – Summary
The best way to shift from accounting to F&I management is to continue your education with training programs. These training programs can give you the necessary skills to land a great F&I management role.
It’s an advantage on your part that in your accountancy experience, you’ve learned how to evaluate and implement financial laws and regulations and produce financial records and reports for internal and external stakeholders.
Additionally, you’ve acquired essential expertise in corporate strategy, risk management, and business ethics, which are also necessary in F&I management.