Talking Cents

How Can an Accountant Help You Acquire Or Buy Another Small Business?

Being a business owner is very challenging. You have to manage the workforce, make executive decisions on a daily basis, handle your employees and invest in growth opportunities. You perform all these activities whilst being prepared for any sudden shocks such as lockdowns, accidents, mismanagement, etc. Therefore, when you decide to buy another small business, it is best that you consult an expert. 

An accountant can make your job easier by indicating the different facets of buying another business that you may have neglected otherwise. Here are four such ways an accountant can help when you have decided to acquire another business.

If It Is Worth The Investment

There are many ways for your accountant to figure out the actual evaluation of the investment. When you buy out a business, you do not just pay the upfront price. You also pay for any outstanding debts, repairs or restorations, streamlining business processes and much more. These costs need to be considered before buying any company, and accountants know that. Therefore, they can help you with weighing the assets and liabilities so that you can make an informed decision. 

If You Have The Potential Or Resources

A business cannot run on its own like a machine. It requires management, skills, administration and so on and so forth. Therefore, an accountant can help you gauge if you have the necessary potential or resources while running your own small business. Taking on more than what you can chew is never a good idea. And your accountant can help you with having a clear understanding of that. 

Examine The Liabilities Of The Business

It is not necessary that each business that is selling has a long list of outstanding debts and a plethora of pending court cases against them. Some of them sell out due to personal reasons of the owner. Other times, the owner wants to retire. An accountant can very well figure out if the liabilities of the business exceed the advantage of investing in it.

Analysing If There Are Any Unpleasant Surprises

While it is much more likely for businesses to not be able to survive long term, you may want to consider if there are any hidden facts regarding the owner or the company. These things are usually not easy to figure out at face value. However, numbers don’t lie, and when an accountant audits the business, these things become very clear quickly. An accountant can also help by analysing the competitors, evaluating the risk factors and determining what kinds of input you would need to give to receive high returns. 

Consider MAS Partners for your small business accounting needs:

We are expert accountants with experience in doing small business accounting in Sydney and Zetland. There are many accounting services your small business needs. These can be bookkeeping, cash flow forecasting, budgeting, strategies to reach financial goals, etc. Click here to learn more.