Selling or closing a business

It is important that your tax and any official records concerning your business are up-to-date when you sell your business.

Business records when selling your business

One of the major reasons for this is that the buyer's solicitors and accountants will have to carry out due diligence checks. This involves gathering information about all aspects of your business so that the buyer can make an informed decision and modify the terms of the sale if necessary. Among other things, they will want to see:

• profit-and-loss statements
• tax returns
• any relevant leases and details of any outstanding loans, with repayment schedules

See undergoing due diligence.

Customers and suppliers

You should also inform all your customers and suppliers so that:

• they have the chance to raise any outstanding payments, credits and liabilities
• you can account for any outstanding payments, credits and liabilities when you finalise your accounts and tax affairs