Challenges Facing Gas Stations Today And How Technology Can Help

Engagement of third parties can provide expertise and independent perspectives to surmount challenges related to integration, helping companies to realize the most value from their acquisitions. If you decide to combine them, several additional considerations arise, including gas station accounting the implications for significance testing, financial statement requirements, and financial reporting. These factors need to be carefully weighed and addressed to ensure accurate and compliant accounting practices in the complex landscape of multiple concurrent transactions.

Pricing gas too high will send customers to your competition, while pricing it too low will cut your profit margin. That’s why striking a balance between sales volume and per-gallon profits should be at the core of your fuel pricing strategy. Some changes happen frequently, are well understood, and have relatively low impact if errors occur. Other changes happen less frequently, but can have significant impact if not handled properly. For example, the process for a new customer contract is well understood and happens every day. The change process may entail sending email to stakeholders with the customer’s profile, contract details, and planned start date.

The Five Pillars of Fuel Pricing

Looking forward, the future of nonfuel consumption is likely to be shaped by three consumer trends driven by lifestyle choices and technological developments. One is “fresh and frequent,” referring to consumers’ tendency to cut down on big weekly shopping trips at out-of-town supermarkets and to purchase more of their groceries at small local stores. The second trend, “delivery and on the go,” refers to the increase in online ordering of food for delivery and the rise in consumption outside the home. The third trend, “frictionless customer experience,” refers to the use of digital menu boards and contactless payment solutions in stores to streamline the shopping experience. Technology comes in many forms and different solutions work for different types of companies (and people). Getting connected to a central source of truth not only allows you save tonnes of time and run a more efficient organization, but it can also provide you with analytics and insight that we mention in point 3.

Balances may be carried over at book value for fair value purposes, but the lack of understanding about these balances can lead to indefinite delays or eventual write-offs. These revenue-related challenges become the responsibility of the acquiring team, even if they originated prior to the acquisition. The lack of historical context can lead to a surge in owner relations inquiries, leaving the team ill-equipped to address them adequately.

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Keri Johnson is director at Stout and has over 16 years of accounting and reporting experience with both public and private companies. Considering the expected increase in deals, we highlight common reporting challenges that may arise in your back office as well as best practices to fully realize the potential of your own acquisition. Stout’s Keri Johnson highlights common reporting challenges for oil and gas firms that complete mergers or acquisitions and suggests ways to adhere to best practices. However, the speed at which this transition will happen will differ dramatically around the world. In China and developed countries, the fuel value pool will decline at –2 to –3 percent CAGR; NFR and e-charging will grow considerably, representing more than 40 percent of the EBITDA by 2030. Five best practices to steer you through the good and the bad times.

Less expensive and messy than completely renovating pumps, retrofitting for EMV can take hours, whereas messy digging could take days or weeks. On the other hand, entirely new pumps tend to be more efficient and save business owners money in the long run. Fuel retailers will need to partner with other players, such as shopping malls, convenience retailers, and parking companies. These three trends will put some core convenience categories—tobacco, sugary drinks, salty snacks, magazines, and phone cards—under structural pressure. Fuel retailers will need to prepare for a new world that requires hyperlocal and customer-centric skills and involves an unfamiliar set of competitors.

The Power of Real-Time Fuel Cost Insights

As the market changes, doing the same thing won’t get you the same results, so it’s vital to think about the above (and more) to optimise your fuel business. For many years the market had been influenced in its thinking that the only way to optimize overall profitability of fuel was to have an algorithm determine the price for you. Competitive surveys are defined as observing and reporting on the competitive price movement for the defined competitors surrounding your company operated locations. The next store manager you talk with is very focused on maintaining fuel margins.

• In addition to capturing and using relevant data, you also need the right analytics to help understand and know when to act on price fluctuations.
• These digital tools automate tedious tasks, reducing human errors and saving valuable time.
• Prices move more every day, and even during the day, creating additional opportunities for pricing errors.
• The best operators have concluded that the investment of arming their fuel team with smart devices yields an exponentially greater return on a minimal investment.