Finmil believe that at least 80 percent of the success of managing and running a filling station is effective financial management; considering cash flow; mitigating variances to budget; and making sure that cost centres and expenses are well controlled.
Back in the day, month-end financial reports at filling stations consisted of an income statement, balance sheet, and maybe a cash flow statement. These three statements made up your financial-management statements for month-end reporting. Technology has advanced and people are smarter about tracking trends, analysis, and operations, so your filling station month end financial statements should include much more.
When you have an accurate overview of your business today – you can take better decisions for tomorrow.
Examples of key elements of Finmil-prepared monthly management statements
1. Income Statement – the month compared to the approved monthly budget, previous months, and the year-to-date summary.
2. Balance Sheet – accurate representation of all your assets and liabilities, as well as the net effect of your trading.
3. Cash Flow Statement – this is a statement on how much cash was generated by the business and how much cash was paid out, reconciled with the opening and closing balance of your bank account.
4. Fuel and Diesel Analyses – the actual gross profit made by selling your wet-stock is compared to the gross profit you should have made, taking cognisance of fuel and diesel price increases as well as evaporation.
5. Shop, bakery, and fast–food analyses – separate gross profit reports on all different profit opportunities compare your gross profits to approved budgets, as well as monthly point-of-sales reports generated by the system installed by the oil company.
6. Risk report – a report is generated to indicate any high-risk areas that might influence future profits and cash flows.
7. Statistical analyses report – this report indicates any material variances in shop-department gross profits and compares average fills, average basket size, number of customers on the forecourt, and number of customers in the shop, etc.
8. Statutory submissions – Finmil will submit monthly statutory returns reconciled to your monthly financial statements, such as VAT201 and EMP201, etc.
Take Note
Finmil cannot overemphasize the importance to the dealer of receiving proper monthly management financial statements and finding time to go through these reports; making sure there is awareness; quickly identifying and resolving any queries; and making all the shareholders very aware of any important financial implications.
Finmil is well known by financial institutions such as the National Empowerment Fund, banks, and the Industrial Development Corporation, etc.: as they receive our monthly financial statements on behalf of their funded dealers.
Finmil-prepared monthly financial management statements will also assist in strategic tax planning and reducing the cost of your yearly audit fee. Finmil is a registered accountancy company that can sign annual financial statements and submit all statutory tax returns.
