Buying A | Small Business

: Often prepared by a CPA, this report adjusts for one-time expenses, personal owner "add-backs," and accounting errors to show the business's true earning power.

Ensuring the business is in "good standing" prevents you from inheriting undisclosed legal or regulatory problems. buying a small business

: Federal, state, and local returns are the most reliable documents for verifying reported income and expenses. : Often prepared by a CPA, this report

You should request financial records for at least the to identify trends and verify profitability. : Often prepared by a CPA

: These reveal how profitable the business has been over time and help identify declining margins or disproportionate overhead.

: Crucial for evaluating solvency; positive cash flow indicates the business can meet obligations and reinvest.