Drive Cash to Your Tax Return’s Bottom Line – Net Income

We all like to save money on our taxes. However, hiding personal expenses in your business tax return may do more harm than good. Most businesses are purchased as a multiple of cash flow (EBITDA). If buyers and lenders can’t find your personal expenses in the financials, they’ll be suspicious of our add-backs and will not ‘count’ towards your bottom line/value. It is in your best interest to drive cash to the bottom line in the last 2-3 years before a sale. Take a hit on your taxes and get a much larger return when you sell your business.

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