Checklist to Know Your Current Business Financial Status:

  • Financial Statements

    This includes the balance sheet, income statement, and cash flow statement for the past few years, providing an overview of the business’s financial performance and position.

  • Tax Returns

    The business’s tax returns for the past few years can provide insights into its profitability, expenses, and tax obligations.

  • Sales and Revenue Records

    Detailed records of sales, revenue, and invoices for a specified period can help assess the business’s revenue streams and growth trends.

  • Accounts Receivable and PayableA breakdown of outstanding customer payments (accounts receivable) and outstanding payments to suppliers (accounts payable) provides a snapshot of the business’s cash flow and financial obligations.
  • Asset Inventory

    An inventory list of the business’s tangible assets, such as equipment, machinery, inventory, real estate, and intellectual property, helps assess the value of its physical resources.

  • Debt and Loan Documents

    Any loans, outstanding debts, or credit agreements should be documented to understand the business’s financial liabilities and obligations.

  • Contracts and AgreementsReviewing existing contracts and agreements with customers, suppliers, partners, and employees helps assess the stability and continuity of business operations.
  • Organizational Structure and Legal Documents

    Articles of incorporation, bylaws, shareholder agreements, partnership agreements, and other legal documents are necessary to understand the business’s structure and ownership.


  • Customer and Market Analysis

    Market research reports, customer surveys, and industry analysis can provide insights into the business’s market position, customer base, and growth potential.

  • Business Plan

    The business’s current or most recent business plan can provide strategic insights and growth projections.

  • Intellectual Property Documents

    Patents, trademarks, copyrights, or any other intellectual property documentation should be included to assess the value of intangible assets.

  • Employee Information
    Employee contracts, payroll records, and benefits information can help evaluate the workforce’s impact on the business’s operations and expenses.
  • Insurance Policies

    Details of insurance policies, including coverage and claims history, provide insights into risk management practices and potential liabilities.

  • Legal and Regulatory Compliance

    Documentation related to licenses, permits, regulatory compliance, and any pending or past legal issues is essential for assessing potential risks and compliance matters.

  • Industry and Competitor Analysis

    Reports and data on the industry, market trends, and competitor analysis can provide context for the business’s performance and competitive advantage.