taxes | Front Range Business, Inc.

Tip #25 – Burying Excessive Personal Expenses in the Business Financials Can Lower the Business Value!

The most popular method of valuing a business uses a multiple of earnings over a period of years.

Business owners should be aware of that while attempting to reduce the bottom line with personal expenses to minimize taxes. Though there are a number of deductions that may be added back to determine true cash flow, not all add-backs are considered legitimate by buyers or lenders.

Being too aggressive in minimizing taxes today may cost a business owner big dollars at closing. Click here for an article […]

Tip #7 – Beware of Understating Your Inventory.

Reporting a lower inventory to their accountant is something many business owners have been doing for a long time. And many accountants just accept the number.

In addition to the obvious concerns, when it comes to selling the business, big problems can arise. How will the inventory be valued in the Purchase Allocations? And who is going to have to pay the various taxes on the larger amount?

Business owners should give their accountants an accurate inventory value each year to avoid troubles at the closing table!