Our monthly accounts are always late. What should we fix before putting the business up for sale?

Question

Tyler Smith · Accepted Answer

Make a dependable monthly close an exit-preparation priority before launching a sale process. Buyers need consistent information to evaluate performance, and late accounts make it harder to distinguish an operating problem from a reporting problem.

Start by identifying what holds up the close. Common areas to investigate include missing supplier invoices, unreconciled bank accounts, delayed inventory counts and adjustments that only the owner can approve. Assign responsibility for each task and establish a close calendar your team can realistically maintain.

Your monthly reporting process should include:
- Reconciled bank, debt and material balance-sheet accounts.
- Consistent treatment of revenue and expenses across periods.
- A profit and loss statement and balance sheet, with cash-flow reporting appropriate to the business.
- A short explanation of significant changes from prior periods and budget.
- Documented review and approval by someone accountable for accuracy.

Do not solve lateness by publishing incomplete numbers and repeatedly replacing them without explanation. Keep a record of material corrections so your team can explain what changed and why.

Test the process over successive reporting periods before relying on it in buyer discussions. The objective is not simply faster delivery. It is a repeatable reporting process that lets management evaluate improvements and gives buyers dependable evidence of performance.

If the close still depends on your memory or personal intervention, document those decisions and train a responsible team member to handle them.