We all like to save money on our taxes. But hiding personal expenses in your tax return can do more harm than good. Most businesses are purchased as a multiple of cash flow (EBITDA). If buyers and lenders can’t find your personal expenses in the financials, they’ll be suspicious of our add-backs. It’s in your best interest to drive cash to the bottom line in the last 2-3 years before a sale. Take a hit on your taxes and get a much larger return when you sell your business.
