Put all revenue through the books
Some owners of small businesses are temped to minimise taxation by not putting all income through the books. Many years ago this was thought to be a clever way to run a business. Today it is simply more efficient and straight forward to show all income and expenses.
When a Buyer looks to buy a business, these days, your financial accounts are going to be scrutinised by the Buyer, their acountant, their solicitor, the bank manager, and other 'so called' experts, such as friends, family and mates. This is because if a Buyer requires financial assistance, from what ever means, a clean set of books is the basis of raising such finance. Institutions or friends or family eventually want their money back.
Fund providers do not give much value to "there is cash on top of these figures" or "there is loads of potential" These comments no longer hold much credibility.
The best way to achieve maximum value for your enterprise is to have your business accounts ready for 'due dilligence' well before you are ready to sell. This will ensure there is no problems when a Buyer is found.
Financial documentation is easy now
Today it is easier than ever to have a good set of books set up and maintained. If you cannot read financial reports go talk to a Book keeper an Accountant, a Bank Manager a Financial Business Coach or sometimes the best unbiased free advice you will get from a AIBB Business Broker.