Tips For Hiring An Accountant When 
Buying A Business



Here are some things to think about when hiring an accountant:


1/ Ask other business owners who their accountant is. Ask your bank manager and financial advisor for recommendations. You may have a personal tax accountant; ask them for help (if they are qualified to deal with helping you to buy a business).  Accountants normally specialize in different areas and industries, so you want an accountant with experience in your area.  Keep a list.


2/Decide what you want an accountant to do for you. Do you want them to do the books, your taxes and give financial advice? Help you with buying a business? Maybe you just want them to undertake your business taxes? 


3/ Once you know what you want from an accountant, start contacting the accountants on the list. Tell them what you are looking for and ask about their qualifications and experience.


4/  Are they easy to contact and do they return calls promptly? When you are buying a business you don’t want to be waiting around for your accountant to return your call – it could lose you the business.


5/  When talking with prospects look at how they speak with you.  Are they easy to understand, or are they confusing? Your accountant needs to communicate with you easily and in a way you understand.


6/  Ask about their fees. You want to know what it is going to cost upfront.


Once you have all the information consider each carefully and take your time making a decision. 

When Buying a Business ensure you understand Fidelity Guarantee Insurance


What is Fidelity Guarantee Insurance?

Fidelity Guarantee Insurance is insurance against loss of goods, negotiable instruments or other property resulting from the fraudulent or dishonest acts by employee/s.

One of many insurances you must be aware of when buying a business is Fidelity Guarantee Insurance. It's vital to know how many claims have been made in the last 3 years of the business operation, why/when they occurred and by whom.

5 Business Risk Factors To Consider Before Buying A Business

1. Are all processes and procedures clearly documented (position descriptions, supplier agreements, customer agreements, etc)?

2. How good is the communication within the organization (free flowing, honest, ‘no blame’ culture)?

3. What condition is the plant and equipment (modern, efficient – not outdated)?

4. What level of cooperation is there within the business (no silos, compartments, internal rivalry)?

5. Can the business run without the bosses for extended periods?

These are just a few areas I recommend investigating before you buy a business.  You can find more business buying tips in previous articles or the BizBuy Kit.

Buying A Business - Buying The Right Business

Do You Have What It Takes To Buy A Good Business?

Do you have the type of personality to work for yourself?
How do you truly feel about risk?
Have you always worked for other people?

Before going ahead and buying a business, it's important to put things in perspective and really envisage physically being in a business.

Leaving the security of regular pay each week can be a big step and how you feel about this is just one of the things we look at in determining whether self-employment is for you or not.

You don’t want to quit your job just yet.

Being a small business owner can be exciting, rewarding, challenging and…your biggest nightmare; and that’s all on the same day . Many new business owners will find themselves working longer hours than before, particularly in the early stages.

The payoff is that it is under your control. You and your family will benefit directly from your efforts . As your business develops and grows, it should become less dependent on you.

Straight talk:

Businesses that are heavily dependent on the owner will have limited appeal to future business buyers.

When Selling A Business - What Does Right of Assignment mean?


Right of Assignment - in relation to business premises, is a right given in the lease agreement for a tenant to assign the lease to another tenant when the business is sold.

Small Business Buying/Selling Term Definition


AMORTIZE is the gradual process of writing off the cost of an asset, or paying off a liability by means of a sinking fund, over a period of time.

The period of time over which the loan will be amortized, usually expressed in months.
To write off an expenditure for (office equipment, for example) by prorating over a certain period.

Valuation is the process of appraising the worth/value of property according to some recognised criteria .

A Business Valuation is often sourced from a Business Broker but this is not the only option and can be a costly exercise, however necessary.

Whether you have engaged a business broker or not, it is always wise to have the business valuation calculated by a third party.

By keeping this critical element at arm's length, you will never have to second guess the motivations of your business broker

If you do not wish to engage a business broker, you have an accurate alternative with the business valuation software tool.

Business Buying And Selling Terms -

What is Business Succession Planning?

Specifically, business succession planning is the process of preparing to hand over control of the business to others in a way that is the least disruptive to the business's operations and value

This is the reason why having a formal, written business succession plan is so important from the beginning of business ownership.

For many small business owners maintaining a profit and a steady balance sheet can be a daily, never ending battle that engulfs virtually all of their time.

And often retirement can appear too far in the distance to think about, let alone plans to hand over the business.

However, establishing a sound business succession plan is beneficial, some might say vital, for most business owners.  For those business owners that are at or near retirement, the issue of succession cannot be ignored.

You're probably aware that a small business needs the correct planning to conceptualise, start, build, and grow. But did you know that being fully prepared to sell your business is just as important? Well it absolutely is! Ideally, right at the inception of your business, your business plan should include a good strategy for selling whether through choice or necessity.

It is important to be fully prepared for the unexpected than not. Even if you have no intention of selling it in the beginning because you would want to run it for the rest of your life, a comprehensive plan right at the start of your business that includes selling your small business will be a driving force for you to strive to steer your business to success and bring in the profits.

Just as your small business needs the correct planning to conceptualise, start, build, and grow, being fully prepared to sell is vital. Ideally, right at the inception of your business, your business plan should include a good strategy for selling whether through choice or necessity.  It is important to be fully prepared for the unexpected than not.  Even if you have no intention of selling your business it in the beginning because you see yourself running it for the rest of your life, a comprehensive plan right at the start of your business that includes selling your business will be a driving force for you to strive to steer your business to success and bring in the profits.

There are varied reasons for deciding to sell a business but the most common are:

- Disability due to health reasons
- Retirement
- Death of the small business owner or a business partner
- Disagreement with a business partner
- Change of location
- Bid for new venture/s

Small Business Planning - 

Remember, that the main goal of your small business plan is to achieve and constantly improve your bottom line and to provide you financial security throughout the life of your business as well as build your business value so to maximise your profit returns when the time comes to sell your business. Also, bear in mind that the bottom line will be the first consideration that interested buyers will look into. It is, therefore, important to understand the rationale as to why a good strategy for selling your business should be included in your small business plan.

Accurate financial records help you keep track of your small business' performance –


Many people believe that numbers generally do not lie. Accurate, complete, and factual financial records should be maintained at all times for you to be able to track the performance of your business. They should also be available for review by your financial advisors and government regulators. Serious business buyers get turned off with disorderly and inaccurate records.

Efficient systems and processes save time, effort, and unnecessary costs –

Simplifying and optimising systems and processes help avoid unwanted wastage on resources and the time needed to do certain tasks. An efficient implementation of these systems and processes likewise contribute to healthier profit margins.

A well developed work force is a motivated work force –

The right people are your business' most important asset and they are indeed key participants in the achievement of a robust bottom line. They should, therefore, be properly trained, developed, and fairly compensated to win their loyalty and raise their morale. An well managed work force means an well managed bottom line.

Cultivating relationships promote the proper connections –

Acquiring friends and fostering healthy professional relationships inside and outside your organization will help you a lot in your search for potential buyers for your small business. Interested employees, customers, suppliers, brokers, advisors, other business owners, or even competitors can be prospective buyers or can provide useful referrals.

Small Business Planning 


Good housekeeping projects a good image –

All throughout the life of your business, everything should be in its assigned location. A clean and organised work place can inspire and motivate your employees to do their best to help realise a satisfactory bottom line as well as promote a good image for your company. Your company properties should be regularly maintained, repaired, refurbished, renovated, or reconditioned for optimum performance.

Several contingency plans lead to better options –

It is prudent to have on hand several business selling options to fit the requirements of the specific circumstance compelling you to sell your business. Among these are:

• Selling your business yourself
• Selling your business through stock options
• Going into partnerships or mergers or simply liquidating all your assets

Keep in mind it is always worth while having a step by step business selling plan of action at reach in order for you to sell your own business anytime and on your terms.