Buying an existing business How do I figure worth when they don’t keep good books?
scared buyer asked:
I know small businesses hide profits from IRS but if your wanting to sell our business how do you show its worth
Florencio
I know small businesses hide profits from IRS but if your wanting to sell our business how do you show its worth
Florencio
When buying an existing business, especially one with poor bookkeeping, I would always recommend having a professional audit done first. You can hire an accountant for this one-time job if you don’t already have one.
Small businesses shoudlnt hide profits from the IRS unless they want to risk being shut down and jail time by the IRS. With the turn-in program the IRS now has, which rewards people that turn in companies and individuals that cheat on their taxes, any disgrunted employee that knows the “secret: has a very strong incentive to turn you in. That being said, the answer above this that says getting a professional audit done is spot on.