As we move into a new year, tightening up your business’s financials is one of the best ways to set yourself up for success. Poor financials and financing issues are the biggest obstacles we commonly see when trying to complete a business sale. Here are some practical steps to help you tighten up your financials in 2025:

1.     Review and Update Your Statements Regularly

Your financials are the true diagnostic of the company, and if they are hard to understand, it will be hard for you or a potential buyer to get a true gauge on profitability. Staying on top of the numbers helps you know the business’ financial health so you can make informed decisions. Set aside time every month or quarter to go over your statements and make sure everything is accurate.

2.     Include Your Bookkeeper and Accountant

The right bookkeeper should help you know what is going on financially with the business. If updated regularly, they will be able to provide you with monthly or quarterly reports that you can use to stay informed. They will assist you with tax planning, identifying unnecessary expenses, and tracking discretionary expenses. Set aside time to connect with your bookkeeper regularly to keep you informed.

3.     Don’t Ignore the Balance Sheet and Net Working Capital

Net working capital shows the short-term financial health of the business and its ability to fund operations and respond to financial stress or opportunity. It is also important when exploring a sale. As a seller, you keep the cash and also pay off the debt with the proceeds of a sale. Understanding this will help you in your short-term operations and also to be better prepared for a sale. 

Work With Professionals

Whether you are working on tightening up your financials or anything else in preparation for the sale of your business, work with the pros. Making the business as appealing as possible for a potential buyer is what we do and we are ready to help you take the right steps to enter your next chapter. Let’s get a plan in place together. Start the conversation with a no cost or obligation valuation.