Checklist to Know Your Current Business Financial Status:


Financial Statements

This includes the balance sheet, income statement, and cash flow statement for the past few years, providing an overview of the business's financial performance and position.


Tax Returns

The business's tax returns for the past few years can provide insights into its profitability, expenses, and tax obligations.


Sales and Revenue Records

Detailed records of sales, revenue, and invoices for a specified period can help assess the business's revenue streams and growth trends.


Accounts Receivable and Payable

A breakdown of outstanding customer payments (accounts receivable) and outstanding payments to suppliers (accounts payable) provides a snapshot of the business's cash flow and financial obligations.


Asset Inventory

An inventory list of the business's tangible assets, such as equipment, machinery, inventory, real estate, and intellectual property, helps assess the value of its physical resources.


Debt and Loan Documents

Any loans, outstanding debts, or credit agreements should be documented to understand the business's financial liabilities and obligations.


Contracts and Agreements

Reviewing existing contracts and agreements with customers, suppliers, partners, and employees helps assess the stability and continuity of business operations.


Organizational Structure and Legal Documents

Articles of incorporation, bylaws, shareholder agreements, partnership agreements, and other legal documents are necessary to understand the business's structure and ownership.


Customer and Market Analysis

Market research reports, customer surveys, and industry analysis can provide insights into the business's market position, customer base, and growth potential.


Business Plan

The business's current or most recent business plan can provide strategic insights and growth projections.


Intellectual Property Documents

Patents, trademarks, copyrights, or any other intellectual property documentation should be included to assess the value of intangible assets.


Employee Information

Employee contracts, payroll records, and benefits information can help evaluate the workforce's impact on the business's operations and expenses.


Insurance Policies

Details of insurance policies, including coverage and claims history, provide insights into risk management practices and potential liabilities.


Legal and Regulatory Compliance

Documentation related to licenses, permits, regulatory compliance, and any pending or past legal issues is essential for assessing potential risks and compliance matters.


Industry and Competitor Analysis

Reports and data on the industry, market trends, and competitor analysis can provide context for the business's performance and competitive advantage.