If you are acquiring a new business or selling an established one, you should consider hiring a certified public accountant (CPA). When a company changes hands, there are many financial and legal aspects that you may not know, and learning about them is challenging without the proper training. Below is more information on what to think about and how a CPA can simplify the process.

When You’re Buying

You should only buy a business when you’re in a stable financial situation so that you can handle any changes in sales or profits. If you are, then you should find a business that has a strong history, excellent potential, and can benefit from future advancements in technology. You should also know how the value of the business is calculated, as there are several methods.

A certified public accountant can determine if the proposed cost is accurate and fair. They do this by analyzing records, paperwork, and bookkeeping for liabilities or concerns, such as inconsistent cash flow. They’ll inform you on the tax implications of buying that business, verify the company’s assets, and prepare appropriate paperwork, as well as handle the due diligence period. Plus, they can help you take over bookkeeping and payroll responsibilities, ensuring a smooth transition.

When You’re Selling

Whether you should sell or not depends on the business’s current condition, its opportunity for growth, and what you’ll do afterward. You must estimate whether you’ll get more money from selling now or if you should grow the business before selling for a higher price. You’ll also need a financial plan for income after the sale if it’s your only source of money. If you sell, you must perform repairs and renovations to make the business appealing, and all the books and records must be in order. A realistic valuation of your property is necessary, too, which is challenging for you to do objectively.

A certified public accountant will prepare your books and paperwork, review the tax implications of selling a business, and estimate a reliable value for it. They’ll also help determine if you should sell now and will handle negotiations, buyer vetting, and showings, allowing you to run the business as needed. They’ll make sure you get the best deal from the sale and present your business in a positive light to buyers.

Do you need help buying or selling a business? STL Tax in the St. Louis, MO, metro area has over 15 years of experience in tax services, business consulting, and payroll and bookkeeping services. Their team is practical, down-to-earth, and offers competitive rates on all services. Read more about their business services online, and schedule a consultation by calling (314) 645-1614.