Not all small business owners are great at keeping records. While this may not affect the day-to-day operations of your business it will critically affect the selling price of your business when you decide to put it on the market.

It is very important to have clear and concise financials, as financials that are perceived to be cloudy have the potential to kill a deal.

Here’s how to start:

-Give your financial statements a good restructuring so that they are easy to read. A shoebox full of receipts is not going to work here.

-Buyers typically want to see the last three years of tax returns as well as the last three years of financial statements, so along with your financial statements you will need to make sure that your taxes are up to date.

-Along the same line as having your taxes up to date, any outstanding IRS or lender issues will need to be addressed so that you don’t lose the trust of a prospective buyer.

-Keep your numbers clean and concise and keep any non-business personal extras out of the figures.

-Costs that the new owner will not inherit, like your salary or other personal expenses should also be left out.

Are you a business owner with immaculate records who has some great advice for owners who don’t have this as a natural talent? Leave a comment here and let us know.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com