How should I present fuel, store and car wash income when selling my gas station?
Show each income stream on its own line and tie it to a source record: fuel to supplier statements, store sales to point-of-sale reports, car wash to its own counts. Explain any owner add-backs in writing. Buyers and lenders trust numbers they can trace, so have your accountant review the package first.
A station earns money in different ways, and a buyer wants to see each one clearly. If fuel, store and car wash income arrive as a single total, the buyer has to guess which part is steady and which is not. A package that separates them, and shows where each number comes from, answers most of the questions before they are asked.
Separate the streams in the books
Ask your bookkeeper or accountant whether fuel, store and car wash sales are recorded separately. If they are blended, split them going forward and rebuild the past periods as well as the records allow. The aim is a clean statement for each stream. How buyers check fuel and store sales separately shows how they will read them.
Tie each number to a source
Fuel litres sold should match your supplier statements. Store sales should match the point-of-sale reports, and both should match what reached the bank. Car wash use should match its own counts or tokens. When a buyer tests one stream against its source and it holds up, they tend to trust the rest.
Explain owner add-backs
If your statements include costs that belong to you rather than the business, such as a family member’s pay or personal expenses, list them with a short note and the paper that supports each. This page on legitimate add-backs shows how they are usually judged. Your accountant should decide what belongs.
Let the package speak for itself
Write a short plain note beside the numbers describing how the station runs, who works there and what changed during the period. Leave out forecasts and any claim about what the station could earn. A buyer will form their own view, and so will their advisers.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I check a gas station’s fuel and store sales separately?
- Expert answerHow do gas station owners make money: the fuel or the store?
- Expert answerDo gas station owners set their own fuel prices?
- Expert answerWhat should I do in the first month after buying a gas station?
- Expert answerHow do I stop a buyer from asking for too much too early?
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Valuation
Selling
- Expert answerHow do I prepare my gas station for the handover to a buyer?
- GuideSelling a gas station in Canada
- Expert answerWhat will a buyer’s lender want to know about my gas station?
- Expert answerHow should I present detailing and add-on services when selling my car wash?
- Expert answerWhich customer tanks and contracts go with my propane business when I sell it?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are financial statements?
- 02Business Development Bank of CanadaGovernment4 types of financial ratios to assess your business performance
- 03Business Development Bank of CanadaGovernmentWhat is a confidential information memorandum (CIM)?
- 04Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
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