Danny Chiha from Kelly+Partners is ServoPro’s partner for all things accounting. Danny has a wide range of clients but specialises in Service Stations. The retail fuel business is complicated and requires specialised advice and expertise. That’s why Danny has been helping ServoPro members with their accounting and financials.
I sat down with Danny to pick his brains about himself, his business and what accounting advice he has for Service Station owners.
Can you tell us a bit about yourself and Kelly+Partners?
I have been in the accounting game for over 10 years and built multiple business myself. I am passionate about helping others formulate and achieve their life goals and get huge amounts of satisfaction from being a part of this journey with my clients.
I was the Finance Manager for Coca-Cola Amatil and managed a team of 18 accountants so have seen how “the big end of town” runs and what makes them great.
My constant ambition to help more people lead me to meet Brett Kelly and subsequently launch Kelly+Partners, Northern Beaches.
The Kelly+Partners philosophy is simple – expert advice that is tailored to the client’s unique personal and business circumstances.
Most people know they need an accountant for taxation purposes but an accountant can do so much more for your business. A good accountant is aware of the economic, legal and financial environment affecting you and your business and uses their knowledge and experience to anticipate changes and plan for survival and growth.
How do Kelly +Partners differ in their service offering from your average accountants?
At Kelly+Partners, our mission is simply to make our clients ‘better off’.
The centerpiece of our service offering is the Kelly+Partners ‘Integrated Advice Model’, which is a proven system to assess and optimise the financial management of Private Clients, Private Businesses and their Owners, and Families.
This process culminates with our proprietary ‘Flight Plan’ framework which sets out a clear pathway to:
- get control of your financial universe,
- understand your financial objectives, and
- achieve your financial goals.
At Kelly+Partners, we will help assess and manage your complete financial universe – both personally, for your business, and your family.
The Client Director will be your point of contact and will co-ordinate the delivery of services from the firm’s accountants and specialist advisers in an integrated manner. The comfort of knowing that your financial universe is optimised is tremendously valuable to those business owners seeking long term success.
In your experience working with Independent Service Stations, what are the main areas you see that are not receiving the attention they deserve?
Pricing – There are huge benefits to be had by those that understand their Gross Profit and Pricing Cycles. Not enough people are watching this closely enough.
Cash Flow – It’s an extremely capital-intensive game and business owners need to be saving for the next pump refit etc. Alternatively, they need to find a funding solution and be preparing their accounts from two years out to ensure the lenders will look at the deal.
What are the most important figures and reports a Service Station Operator should be looking at regularly to get an accurate picture of how their business is going?
Being a mostly retail business, the working capital is a great health check of the business. That is our Cash-at-Bank + Inventory – Trade Creditors. This needs to always be moving the right way.
Gross Profit Margin on the Profit and Loss. In any high volume business, every cent counts. That is more true in the petrol industry than anywhere else. If you can achieve a one cent improvement in your gross profit, that has a massive daily impact on the bottom line. This must be monitored consistently.
You look after some of the best Independent Service Station Operators in Australia – what are they doing that your average business owner isn’t?
They do pricing great. They understand the local area and what people are willing to pay for fuel.
The other major and difficult point in the petrol industry is achieving a differentiation factor to the local competition. The great operators are able to stand out as quality businesses that people will drive past other service stations to stop at.
Any other general business advice you would like to share with Independent Service Station Owners?
The money is in the details. Fall in love with the numbers behind your business and get out of running the shop. There is a lot more upsides in getting the little things right and someone needs to be focused on that.