When looking ahead to selling your business in the coming years, here’s something you can do to help make it easier for buyers to gain a better understanding of your business.
Devote some thoughtful consideration to laying out an orderly chart of accounts that works best for your business, and then stick to it. If a particular expense was treated in one way in prior years, falls into another category last year and shows up in yet another category this year, it tends to make it harder to track and makes year-to-year comparisons considerably more confusing for a prospective buyer. Hopefully, you are able to settle on a chart of accounts that will work well for your business and establish a series of years using that same chart of accounts.
The less confusing, the less risk, the higher the value of your business!