A DMRE Financial Plan and Projections are mandatory developments to attain a fuel license. This is in accordance with the Department of Mineral Resources and Energy (DMRE) in South Africa. Providing a financial plan with projections to the Department shows that the business is a viable one.
DMRE Financial Plan
Financial plans provide financial guidance so that you are prepared to meet your fuel business obligations and objectives. It is a road map and guideline of what your goals are, and what the business is trying to achieve in the short-term and the long-term. Therefore, a well-developed financial plan keeps you focused and on track as the company grows, when new challenges arise, and when unexpected crises hit. It helps you clearly communicate the financial viability and goals of the business with staff, or investors, and the DMRE.
The plan helps to build a modern, transparent business. It lays out realistic business costs, and addresses avenues for how to manage these costs. Financial plans include information on the company’s income, expenses, and cash flow. Furthermore, the plan also include a description of the business’s current financial situation, along with its long-term goals.
DMRE Financial Projections
Financial projections, in line with the financial plan, include a set of financial statements. The projections help you see if your business plans are realistic. Financial projections are the cornerstone of informed decision-making, as they are a comprehensive financial roadmap that enables businesses to anticipate future financial performance, analyse potential risks, to allocate resources effectively, and set attainable goals. The projections provide information on future revenues and profits for a company. Your fuel business will use them to estimate the success of its products, services, and processes. These projections forecast future revenues and expenses. The projections include cash inflows and outlays, general income, and the balance sheet.
Regularly comparing your actual financial performance to the projections in the financial forecast of your fuel business gives you the ability to monitor your business’s financial health and make necessary adjustments as needed.
For more information on attaining a DMRE Financial Plan and Projections – Contact Us