It is no secret that owning and operating a business is not for the faint of heart. Deciding when to buy or sell a business is particularly daunting. Whether you’re seasoned in business acquisition or looking to sell your own business, consider the types of questions buyers need to ask before making any decisions.
- What is the financial health of this business? Best practices suggest sellers will compile and make available three to five years’ worth of detailed financial records. If a business owner is reluctant to provide financial records, it may indicate problems. Tidy bookkeeping lends to smoother transactions for both seller and buyer.
- What will it take to keep the business running? From small startups to large employers, keeping a business compliant takes time and commitment, especially when payroll duties are considered. Utilizing a payroll provider can ensure efficiency and timely tax filings. By outsourcing these functions to experts, business owners have more time to focus on building the business.
- Can the business become profitable? Utilizing prior years’ financial records to project future growth is a great way to gauge profitability. Creating comparative profit and loss and cash flow statements can give an idea of where the business could be in one to five years.
Bukaty Companies Payroll & Accounting services can provide you with an abundance of tools to support buying and selling a business. For everything from cloud-based bookkeeping services to custom-tailored accounting solutions, learn more about the value-based services we offer, or call 913-653-8374 to speak to one of our staff.