No matter what business you are in, we all know that life becomes much easier when we have our finances in order. Whether preparing for Tax season, doing an audit, or ensuring that your business is operating at its highest potential, having accountable financials is vital. This becomes especially true when you are trying to sell your business. Not only do your financials need to make sense to you, but they need to be as attractive as possible to potential buyers. A key to making this financial transition as smooth as possible lies in the hands of one person: your bookkeeper.
Financials are often one of the first requests received when a buyer looks at a business to see if it may be a good fit. After looking at the business’ operations, the next question becomes, “What does their year look like so far?”. Being able to explain that as simply as possible will help you go far, and the first step to being able to do this is having a good bookkeeper.
Roles of your bookkeeper.
Bookkeepers are crucial to a business in many ways. They manage your income and expenses, ensure your Income Statements and Balance Sheets are accurate, handle reconciliations, and aid in preparing the business for Tax season. All this and more are some general roles that your bookkeeper has within the company. In addition, they offer a snapshot of where your business finances currently stand so that you can know precisely how well your business is doing. This financial snapshot helps you keep tabs on your profitability and takes the responsibility off your shoulders while you focus on making decisions to help your business grow. Understanding your financial health without having to reconcile and dig through your statements helps you as a business owner understand what your next decision for your company will be, but it also allows buyers, as they look at your business and can see your financial health as well. Whether a buyer is looking at a highly profitable business or if your business is in distress, the more organized the information that can be provided, the better.
Having a good bookkeeper aids in the successful flow of information.
When trying to sell your business, it is crucial to ensure that you continue running your operations as you always have. Buyers are interested in seeing consistency and growth above all else. This can become a juggling game when you are trying to schedule calls or visits and, on top of that, trying to provide information to buyers. With a good bookkeeper on board, they can aid in helping manage some of the newfound excitement that has entered the scene. Whether they are helping to provide the information to your potential buyer or whether you are pulling the data yourself from your system, having a good bookkeeper can ensure that fewer questions are had and more answers are available. Regardless of who it is that is pulling the financial information for review, having readily available and up-to-date financials is an incredible tool to have at your disposal. Not only that but being able to look at your finances and easily explain the present data will be helpful to all parties involved in a transaction. If you have to explain or justify your financial history, it is easier to do so when 1) it is clearly outlined and recorded, allowing for an accurate history to be shown, or 2) when you have a bookkeeper who is keenly aware of the finances and can help account for any questions that may arise.
Take the burden off of you.
Having a good bookkeeper helps your business run smoother as a whole. They allow you to focus your efforts on the business and its operations and provide you with the information necessary to make decisions that benefit your company. They help take some of the burdens of being a business owner off your shoulders and will be a helpful asset when assessing the next step of taking your business to market.
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ABOUT BENCHMARK INTERNATIONAL:
Benchmark International is a global M&A firm that provides business owners with creative, value-maximizing solutions for growing and exiting their businesses. Benchmark International has handled over $10 billion in transaction value across various industries from offices across the world. With decades of M&A experience, Benchmark International’s transaction teams have assisted business owners with achieving their objectives and ensuring the continued growth of their businesses. The firm has also been named the Investment Banking Firm of the Year by The M&A Advisor and the Global M&A Network as well as the #1 Sell-side Exclusive M&A Advisor in the World by Pitchbook’s Global League Tables.