Use IRS AUDIT METHODS  to reveal the Real Earnings of any business

A book and software combination expressly 
created for the non-financial entrepreneur or executive 
engaged in buying or selling Private Companies.    

What’s in this book?
Owner’s of Private Companies and their accountants work diligently to minimize declared income on their tax returns in order to avoid taxes.  Determining the real earnings for a Private Company is therefore sometimes difficult, especially if it is a Cash business.  This book and its companion software will lead you through the process of determining a company’s real earnings by employing the same methods used by the Internal Revenue Service.

•   How to determine the real profitability of an ALL CASH Business using IRS methods

•   An example of actual IRS Audit Instructions for a “Cash Business”

•   Compare your Target business operating results with those of its industry to reveal or confirm opportunities for improvement

•   How and why Public company accounting practices differ from those of Private businesses – How to avoid costly mistakes that are made by those who do not realize the differences  

•   Why financial professionals find it difficult and frustrating to analyze the financials of companies with less than 5 million in sales

•   Ratio analysis – What the various ratios mean and reveal about a company.  How to use the Ratios to confirm and expose opportunities for improvement

•   How the IRS uses Ratio Analysis to determine un-reported income

•   Simplify the construction of Balance Sheets and Income Statements

•   Convert “Accounting Jargon” in to plain English that a non-financial entrepreneur can understand

•   A Comprehensive Data Gathering worksheet is included – Compile data needed to demystify much of the financial data.  Without this information much of the financial position of the company and, the opportunity the company represents, will remain a mystery

Uncover the REAL EARNINGS potential for any business.

As they say on TV  But wait, there's more. . . 

IRS Audit Tools on Disk

• IRS Audit Tools on Disk has a unique ability to show you the real profits of any business - even Cash Businesses 

• IRS Field Agent Audit Guides by Industry - The Actual IRS Audit instructions and guides for scores of industries from Architect to Veterinarian

• IRS Tax Return Data by Industry - Data collected from actual Tax Returns - Use this data to determine the most profitable industries.

• IRS Audit Tools on Disk will automatically generate Comparative Income Statements and Balance Sheets 

• Risk Analysis Reviewer ~ Checks out factors other than "the numbers"

• You can perform countless "What if" scenarios and calculate scores of possible transaction structures quickly and easily to determine a Fair Price 

• Fairness Test and Justification of Purchase Price Calculations - Make sure the business can afford the price, and that your Rate of Return is commensurate with the risk involved - this is a double check on whether or not the price is fair.

• Pro-forma projections of profitability under your management - Easy and straightforward calculation that employ the scores of  historic operating ratios generated by the program.

• Cash Flows and working capital requirements - Make sure you will have adequate reserves and money to grow your new business

• Comprehensive Ratio Analysis with explanations - Scores of ratios are calculated by IRS Audit Tools on Disk along with an explanation of what each ratio means, why the ratio is important and how it is calculated

• Graphs to visually view key factors

IRS Tax Return Data by Industry
Who would have believed you would have direct access to Internal Revenue Service information directly from your computer and the IRS Audit Tools on Disk CD-ROM.  The financial data collected from tax returns filed with the IRS is compiled in spreadsheet format by Industry, Business Form, and other criteria.  

We have made it easy for you to use the data to justify/ratify your assumptions and compare your target business to other businesses of the same size within the same industry.  For example, you might want to use this data to ratify that the Gross Profit percentage you expect to maintain is realistic and attainable. This would be especially helpful in adding credibility to your projections and increasing a lender's confidence. 

Compare: 

• Gross Profit

• Net Expenses

• Recast Income and Profitability

• Rents

• Labor Costs  

• Real Profitability of one industry with another and more. 

Thanks to CD ROM technology, the copious amount of IRS data is readily available to you as dynamic information.  You can forget about the tedious data input that is required with static information found in books, articles and reports.  IRS Audit Tools on Disk has organized the data on CD-ROM - ready for you to use and analyze as you wish. 

IRS Field Agent Audit Guide by Industry
In addition to the IRS financial data the CD-ROM contains the IRS's internal Audit and Investigation Guides for businesses from Architect to Veterinarian.   Thanks again to CD-ROM technology, the vast amount of information involved is readily available for download to your printer or for on screen review by industry .  

Each Audit Guide provides an overview of the industry under review to familiarize the you with industry lingo, practices and then outlines just what questions should be asked, what documents should be requested and reviewed etc.  Actually the IRS agent's Audit is essentially the same as the Due Diligence Review one should conduct before acquiring any business.  Investigate and Audit your target business using IRS techniques and information

Now you can have the same 
Audit and Investigation Tools the IRS uses

Obtain a clear and concise understanding of any company's financial strengths and weaknesses quickly.  Ratify opportunities a company
represents in minutes using this unique book and software combination.  This combo was created for non-financial professionals and is based upon experience gained participating in more than two thousand Private Company acquisitions.  It is written in clear, plain, shirt sleeve English and not accounting jargon or code that is understood only by members of the "Financial Circle." 

No need to be intimidated by accounting and finance jargon any longer. 

Buying a Cash Business?  The book explains how to determine what the real earnings of any company might be under your ownership and the "IRS Audit Tools on Disk" software makes "crunching the numbers" easy.    Impress your accountant with the quality Due Diligence review the "IRS Audit Tools on Disk" software produces.  Save the hundreds if not thousands of dollars he/she would have to charge you for a similar work product.  The book and software enables you to fully understand any company's financial position and maintain complete control over the Due Diligence process.

Avoid Misuse of Advisors
After you complete this guide you will be in a position to use the financial professional you engage correctly.  Most business buyers do not completely understand how the relationship between advisor and client should work and as a result misuse their advisors and, as a result of this misuse, fail to attain their goal of business ownership.

Perhaps the best way to illustrate the ideal relationship between client and advisor would be compare the role of a spiritual advisor to that of an accountant.  A young man approaches his clergyman and asks “Should I marry this woman?”  The clergyman’s only answer is NO.  Why?  Simply because asking such a question indicates that the young man isn’t sure of what he is doing.  If he is not mature enough to answer the question himself is he mature enough to handle marriage?  That question has to be answered by the young man himself and is not a decision that should be shifted to another.  

Assume for a moment that you are an accountant or CPA and that your best friend in the world has just thrust a few tax returns into your hands and asks: “Should I buy this business?”  Did you feel a chill go up your spine?  The real life accountant certainly would have.  Your fear would be that your friend doesn’t know what he’s doing.  You also are mindful of the litigious society in which we live.  Your answer to his question eventually would probably be NO.  

Proper Use of Your Financial Professional
You should have completed the following tasks BEFORE you approach your financial advisor

IRS Audit Tools on Disk makes it easy to calculate:

• A comparative Analysis of Income Statements and Balance Sheets

• Developed a 5 Year Comparative Ratio Analysis

• Conducted a Gross Profit Test

• Researched the Company’s Industry and that of its major customers

• Obtained a full understanding of the opportunity the business represents

• Constructed a Pro forma of expected Company performance under your ownership.

Simply enter one to five years of financial data from accounting statements or tax returns, answer a few questions regarding the business, make a few decisions - press a key and PRESTO!  The program has calculated it all.

I have finished reading "Determine the Real Earnings 
of any Company ...." and it was extremely easy to read and understand.

We can keep the cost to you very low by providing the data on the IRS Audit Tools on Disk's CD-ROM rather than in a telephone book size document.  

How much does it cost?
Not as much as you might think.  Your accountant or CPA would certainly have to charge you several hundred dollars or more to produce the review "IRS Audit Tools on Disk" produces.  It is also unlikely your accountant wants to spend the time required to teach you how to interpret financial statements.  Accountants and CPAs make their living interpreting financial statements for their clients and not by teaching clients how to do it themselves.

Thanks, "Determine the Real Earnings 
of any Company" is just what I have been searching for, 
you would not believe it. I have been looking for a layman's guide for the longest time.  
I have purchased other materials from you and you continue to deliver.
Ron H.  Business Advisor

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