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Submitted by: Anonymous

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If you don't have funds for an accountant, then you should probably look at purchasing a cheaper business. It is a bit more complicated than looking for some totals at the bottom of the page.

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Submitted by: Ageeko Computer Repair

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I don't have the funds to hire an accountant. What kinds of things should I look for in their financial statements? How can I tell if there are underhanded things going on financially? <h3>Your Answer</h3> Financial statements can be extremely complicated and even very experienced Accountants can miss things, so if you really can't afford an accountant to look over the books I'm afraid I agree with the poster of the previous comment. Most people trying to sell a business will produce a set of accounts that portray the business in the best possible light and they do not necessarily present all of the facts. Without a finance or accounting background you will be hard pressed to identify fact from fiction and a 10 minute primer from a website is not going to cut it. Having said that some of the things to check out are salaries and wages, do they cover all of the hours the business is open and have they been paying the correct pay rates (family is often paid less than the going rate). The lease and outgoings - are they all included in the financial statements. What are the assets of the business and is any of the stated income related to assets that are not included in the purchase? How much have the current owners been paying themselves and is that amount included in the salary expense or as drawings?

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