As you are settling into 2019, now is the perfect time to start thinking about how to add value to your Business. Throughout this year, we will highlight a way to add value to your Business each month.
It is crucial to Maintain Quality Financial Information. January is the month to prepare your financials for the CPA. Accurate financials are a roadmap of where you have been, and they are necessary to plot your course for the future. Potential buyers will want to have a clear picture of your Company’s financial position.
- Show all income. For every dollar saved in taxes, you may be giving up $10-12 of Business value.
- Understand the true cash flow of the Business. Look for expenses that are not necessary or can be reduced and not affect the operations of your Business.
- Clean up the balance sheet by taking off all personal items that will not transfer with the sale of your Business.
- Keep accounts receivable up to date freeing up cash to pay your payables and take discounts when available.
- Businesses that have inventory should streamline the process of taking inventory so that it leads to a more uniform and accurate inventory.