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Tip #107: Do the financials tell the real story about the business?
As a business grows, it usually will add new products or services. Oftentimes, the financials do not properly show the specific revenues and costs associated with these growth items. This can make it difficult for buyers and lenders to fully understand the history of the company and to make accurate projections. Business owners must make sure there is an accurate breakout of revenues and costs. They may even have to go back a few years and make adjustments to the financials.
