So many times the business owner runs their business and really doesn’t think about the future. And so it’s important to take time to prepare a business, to allow that owner and their partners to exit the business.
If you’re tracking your finances the right way to start with, you’re going to be able to have a set of books that any type of business broker would be able to put on the market to make a successful sale.
A common error I see business owners make is to commingle the use of credit cards. In other words, they have multiple credit cards and use them for both personal and business. What happens is that at some point they want to sell their business or get a loan and their financials are not as “pretty” as they like because of the commingling. It’s so important to segregate expenses. I always encourage the small business owner to try and keep business business and personal, personal, because that will only help with a more positive result with planning an exit strategy.
If you have more questions, I suggest consulting with an experienced bookkeeper.
