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To want to understand finances

(7 Posts)
Wetbankhols Sat 28-May-16 21:30:51

If you don't, who do you ask? confused

It isn't just my finances - otherwise the bank might be able to help - it's related to a business I am considering buying.

Any ideas?

IceMaiden73 Sat 28-May-16 21:37:48

If you are thinking of buying a business you should employ an accountant to do due diligence for you before you part with any money

Wetbankhols Sat 28-May-16 21:49:12

Yes, accountant was my first thought too, but the one I spoke to was very 'ooh, don't know if that is the sort of thing we do'.

44PumpLane Sat 28-May-16 21:53:33

I'm an accountant but there are lots of different types of accountants- so yes you need to consult an accountant but just find the right kind.

Have a ring about and you'll find one that's used to advising on business aquisitions.

readytorage Sat 28-May-16 21:54:27

What is exactly that you want to know/ understand?

Wetbankhols Sat 28-May-16 21:55:46

Thanks, 44 smile

It's the profit and loss breakdown from the business, ready

topcat2014 Sat 28-May-16 22:10:13

(Another accountant here):
What line of business is it?
Do you understand how it 'makes money'

ie does it buy and sell products, or perhaps time.

What would you expect to be the main costs in providing that activity.

Most businesses have similar categories of costs.

A lot of business accounting is to do with the fact that things are bought and sold on credit - given from one business to another by sending in invoices and waiting to be paid.

Thus, a firm can have money in the bank but no profits, as it has just held off paying all it's suppliers.

Remember a business that is up for sale will have done all it can to try and make things look good - known as putting lipstick on the pig - so keep your wits about you.

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