The importance of keeping accurate and complete financial records is obvious when you sit down to prepare your income tax return. What about other records such as permits, licenses, advertising analytics, insect treatments, occupancy rates, equipment warranties, etc? When a Bed and Breakfast for sale is under review by a buyer, accurate financial data is essential. Both the buyer and her lender expect to be fully informed, in order to make an intelligent decision. That information gathering goes beyond tax returns. For example, a buyer must know if the Inn for sale is permitted to operate by the local authority. On the other hand, the roof doesn’t have to come with a warranty, but if it has one, documentation of that is helpful and will strengthen the deal. Good record keeping will expedite the due diligence phase of a contract to buy a Bed and Breakfast, enabling both parties to reach settlement sooner.
Some of us are naturally more organized than others. If you are like me, after preparing your tax returns, you will promise yourself to be more precise during the coming year. If you are contemplating listing your Bed and Breakfast for sale any time in the future, now is the time to start organizing.
Eliot Dalton
Inn Broker and Consultant
Bed and Breakfast Real Estate
(610) 717 8083
Tuesday, April 13, 2010
Subscribe to:
Posts (Atom)
