Businesses get sold – that’s a fact of life. Whilst some businesses retain ownership with the original founders and their families for years, many small businesses will end up being sold to new owners or larger businesses as their life goes on.
When you’re selling a business, it’s a hectic time. It’s easy to let things slip through the cracks. Often, as mentioned in an AccountingWeb article from a few weeks ago, one of those things is the businesses’ accountant. It’s all-too-easy to forget to let your accountant know about your sale, when it’s actually one of the most important steps to take. The article lists a lot of good reasons why you should make sure your accountant knows about your sale. The one we think is really important, though, is the accountant’s role as someone who knows your business, but doesn’t possess the same personal ties.
When you’ve poured blood, sweat and tears into a company, you’ve got a right to be proud of it. But when someone looks at buying a business, they aren’t just looking at the good parts. They’re looking at the whole picture – which the owner might not want to see. The accountant, however, has the financial insight into the business’ performance, without the overt attachment that ownership brings. A good accountant can help a business owner properly identify the strengths and weaknesses of their business, so they can negotiate a sale with all the knowledge they need.
An accountant might be retained by a business when sold, they might not. It depends on the new owners. But that doesn’t mean that they aren’t an important part of the sale process. Your accountant should always be in the know about any changes to your business – no matter what they may be!
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