When it comes time to put up your accounting practice for sale, you may require expert help. This is not the kind of sale that you want to conduct entirely on a “Do it Yourself” level. There are many legal and financial considerations to keep in mind. The single most important one will obviously be to sell at as high a rate of profit as possible. We’ll look at how you can overcome common accounting practice problems to achieve this.
One of the first questions you should ask is, “Is this the best time to sell my accounting firm?” This is an issue that we can break down into a few different considerations.
The first thing to keep in mind when you offer your accounting practice for sale is the state of the market in general. Is your sale taking place in a period where the sale of businesses is booming? Or is the market in the midst of a drought period that it may better to wait out?
It’s always better to put up your accounting practice for sale during a boom rather than a bust period. Does your practice have a particularly strong and reliable yearly cycle? This gives you the option of being able to make an offer to sell just before the height of a profitable season.
You want to give a prospective buyer the option to buy your practice when it begins to increase in value. The prospect of such an immediate increase in value may also allow you to name a higher sale price.
The next question you should yourself is, “Have I handled all of my accounting practice problems?” You can start by first making sure that all of your accounts receivables are properly cleared up. It’s a given that you have already received payment for the ones that have been squared away. But what about the strays?
The last thing that a prospective buyer wants to do is spend valuable time and money chasing after accounts that they have inherited from you. So you will definitely want to clear up as many as possible so that your buyer can start with a fresh slate.
It’s also a good idea to make sure that your in-house tech is fully up to speed. You want to be using the latest and most up to date software programs. Keep in mind that this is one of the key areas that a potential buyer will judge you on.
You want to be able to show buyers that every aspect of your operation is ship-shape and ready to hand over. The tighter the grip you have on the running of your practice, the better. Your client needs to be able to take the reins in a seamless transition.
We also have an article on how to find the best buyers for your firm.
If you are fully committed to the idea of listing your accounting firm for sale, you may as well get all of the info you need to make it happen. You can get valuable aid and counsel from Fusion CPA. We are here to give you the expert assistance you need to overcome any accounting practice problems and make the sale of your accounting firm a highly profitable one.
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