“Terrific” you may think. You need not endure the hassle of looking for a repair shop, nor must you do any “homework” looking for body shops to get one that’s dependable and that you can trust to do good work. After all, you would like to get your vehicle fixed at the earliest opportunity. But what if you prefer to utilize a body shop that you are already familiar with?
When you pre-select an auto body shop, you approach your investigation at your leisure and when your head is clear. It is possible to take the time to ask around among your friends and business associates about any recommendations they might have for you. A good report from a friend who has had dealings with the shop can be invaluable. People involved in the automobile industry generally have opinions on good body shops. This could be servicemen at your local gas station, or even salesmen at used car dealerships.
If you ask someone “Are you a government employee or IRS agent?” and they lie to you; that might be considered entrapment and a good possible defense in court. But, I ask you. Is it worth the grief?
Next thing to check on the financials is the real, current value of the equipment you are buying with the business. The balance sheet might, if it shows all the equipment the company owns, give you the cost of the equipment when it was purchased. If you are buying assets rather than cash flow, the equipment valuation becomes more important. No one wants to overpay for used equipment. Also check that the equipment works and is actually being used rather than sitting behind the building with other junk.
Regular maintenance is important to help you monitor the conditions of your car and its components. If you regularly check your car, you can spot early signs of wear and tear and remedy it before the condition worsens. You have to check both the interior and exterior parts of the car to make sure that everything is still functioning well. For the interior parts, you can take your car to professional mechanics. For the exterior parts, you can take your car to an automotive paint tool in Manhattan Beach.
Some sellers are so paranoid of the IRS, they are not willing to show anyone their private records or computer tapes for fear that the buyer could be an IRS agent. My personal opinion, and what I advice sellers to do, is to get their books legal and honest and hire themselves a top notch CPA, like Donald Trump, and use every legal trick in the book. Martha Stewart didn’t go to jail for inside trading. They got her on lying. There are legal ways to avoid taxes so that fraud is not necessary. If you cannot find a good accountant, I will recommend one.
The phrase is composed of two words. “Due” which the dictionary defines as “Proper or Adequate” and Diligence, which is defined as “Degree of care or caution expected of a person. Especially as a party to an agreement.” Caution: is the watchword in this definition.
The second reason for checking inventory is that if a seller doesn’t take inventory at least yearly and adjust his inventory value in his accounting records, accurately, the profit figure you are receiving will not be accurate. As a rule, the higher cost of goods sold, the lower the profit. Some business owners reduce the inventory value on the books, intentionally, to a lower value so as to make the business show a higher cost of goods sold, which then creates a smaller taxable profit. If they do this year after year, the profit may or may not be accurate for the current year. It might take a cpa to figure this one out for you, if you do not have a background in retail.