Thursday, 13 June 2013

Consider Your End Goals When Completing Your Tax Return

Minimizing income taxes - short term strategy or long term mistake?

Many business owners and their accountants are absolutely fixated on minimizing taxes by showing no income.  But this can be misguided planning for trying to get top dollar when selling  the company. 
Business owners need to realize valuation is usually determined by a multiple of identifiable cash flow and that banks make acquisition loans based on tax returns. 
Not paying taxes can be a short term strategy that might not pay off at the end!

Do you have small business questions you would like answered about this article or others?  Please visit or call 519-903-7807. 
William Sivell is the Owner and Broker of Record of Liberty Business Brokers of Ontario; his blog appears every Tuesday.