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Wahms... any ideas on how to show proof of income when selling biz?
I am selling Beccabottoms. I have 3 mamas that are going to bid on it. I was wondering what a good way to show them proof of income would be? Any other way to show proof easily. We keep everything on the puter.
Thanks!!
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Becky
Wife to my second love Marc, (Jesus being my first!)
and SAHMama to
Isaiah David 7/21/99
Caleb Jonathan 8/31/00
Rebecca Grace 9/23/02
Sarah Elizabeth 4/6/04
Abigail Faith 3/21/06
Location: baking a happiness cake with the ingredients I already have...
Posts: 3,444
how do you keep track normally? Do you use quicken or something similar? You could run a repot to show income for the past year, or two years, and then fax the report. Or previous year's schedule c's for your biz (of course, that's assuming you filed for the biz, LOL)
If you've got nothing else, then you could always generate a merchant report in paypal and use that (assuming that most of your payments were through paypal)
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Theresa, Mama to AJ, Ethan, Greg + Rusty Little Turtle Knits
Most were through paypal. We had some money orders and checks but not many in comparison.
I'm going to go look at the merchant thing.. we have 2 pp accounts and use them for biz and personal so would that still work?
I'm wondering what will be enough and sufficent for them if they want a biz loan.
We use Microsoft money. I'll have dh check on that.
I have 3 mamas seriously interested and instead of allowing anyone to bid I'm just doing it between the 3 mamas. Kinda sad I'm doing it that way now but I wanted it to be as simple and quick of a process as possible. lol.
Anyone who has sold a biz before or bought your wahm biz wanna give me advice?
What did you include or get in the purchase of your biz??
Now that is gross not profit ... man it's such a process to figure all out.
Proof of income is shown on your tax returns. You should have one from 2003.
For this year, each month you should keep track of income minus expenses. That is your income.
If you don't have accurate numbers of that, I wouldn't buy the biz. Anyone who wants to get a business loan has to have proof of what they are purchasing.
You'll need both gross income and net profit. It doesn't matter so much how you receive your income such as paypal, checks, MO's, and CC's.
The main thing I would want to know is your expenses too. So, even if you come up with your sales per month, that is merely your gross income. Where that money goes is a huge deal so hopefully you have receipts for all your purchases. Otherwise the net profit amount is actually dishonest and can really hurt the bottom line of someone who purchases your biz.
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I have invoices on just about every transaction I do-even trades. I keep them in files on my computer so that I can do books and check my profits and losses.
Can you possibly go back through your pp and make invoices. That sounds liek alot of work, but if you need proof that could help.
Then you need to deduct all your fabric and thread (whatever you use for your dipe biz) and all expenses. That woudl be the best way to show what kind of money your biz currently brings in.
Can't you just give them a copy of your "Schdule C" from your personal taxes that you've filed every year in the past? And then give them a summary of your year-to-date income and expenses so far this year. Just summarize your payments and expenses made to date.
I already have all the other info given to them I just needed ideas on proving income etc.
I just sent them copies of the orders. If they need more I'll send pp info or some kind of report from our microsoft money.
We haven't filed taxes yet with the biz since it's only been more than a hobby since Jan. 04.
Thanks mamas. I think they are content on the info they need to make an educated decision now.
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