Maintain clean financial statements (P&L, balance sheet, cash flow)
When you sell, a buyer's first question is 'show me the numbers.' Clean, complete financial statements — profit & loss, balance sheet, and cash flow — are what make a business credible, financeable, and worth a premium.
Do this
- Produce all three statements from your accounting software each month.
- Make sure they reconcile and tie out to your bank.
- Keep them consistent in format month to month and year to year.
- Have your accountant review them so they'd survive scrutiny.
Clean Financials Checklist
- Monthly Profit & Loss statement
- Balance sheet that reconciles
- Cash flow statement
- Everything tied out to the bank
- Accountant-reviewed and consistent year to year
