How do I check a flower shop’s funeral home account paperwork and payment habits?

Start with the receivables. Ask for an aging report showing what each funeral home owes and how long it has been outstanding. Slow payers can strain cash, especially when you pay your growers and suppliers promptly.

Then look at the paperwork. Is there a written account agreement, or does the relationship run on habit and a phone call? Check how orders are placed, who confirms details, and how errors are handled. Funeral orders are urgent and personal, so mistakes cost goodwill. Ask how the shop handles last-minute and after-hours orders for funerals, since that responsiveness is often why the funeral home chose the shop. If the owner personally takes those calls, find out how they will be covered.

Ask about concentration. If one or two funeral homes provide a large share of sales, losing one hurts. Ask how long each relationship has lasted and who in the shop maintains it. If it is the owner personally, plan a proper introduction. Last, look for gaps between orders and receipts. Compare invoices to deposits and ask about disputes or credits. Your accountant can help you check these figures, and your lawyer can advise on how the sale should deal with accounts that are outstanding at closing.

Key takeaways

• Ask for an aging report showing what each funeral home owes.
• Find out whether the relationship is written down or just habit.
• Plan an introduction so the accounts stay after the sale.