How do I show a buyer my convenience store’s cash sales are real?
Back each sales claim with records that agree with each other: raw till exports, matching bank deposits and supplier purchase history. Deposit cash on a regular pattern, and offer the buyer a supervised trial period or time at the till. Records that line up are the best way to make cash sales believable.
Buyers and lenders are careful with cash-heavy stores, and that is reasonable. Cash is hard to trace, so sales a buyer cannot verify carry less weight in their review. If your sales are real, the way to show it is with records that were kept the same way all along. Start preparing well before you list, because patterns need time to show.
Keep the raw exports, not just summaries
Save the till or point-of-sale reports as the system produced them, by day and by month, with refunds and voids visible. A buyer’s accountant will trust an export more than a spreadsheet you typed. Keep them in one place, and ask your accountant how long to hold them.
Make deposits match sales
Cash that is deposited regularly and in step with the till reports tells a clear story. Cash that is spent at the counter, or deposited in odd batches, makes the story harder to follow. If your habits have been mixed, talk to your accountant now about how to present the past honestly and what to do going forward.
Line sales up against purchases
What you bought from suppliers should fit what you say you sold. Ask your main wholesalers for purchase history and put it next to sales by category. A buyer will do the same test, so do it first and be ready to explain any gaps. How buyers verify cash sales shows what they look at.
Offer a trial period
Many buyers find that watching the till for a few days convinces them more than any report. Offer supervised time in the store, and ask your lawyer to put basic confidentiality terms in place first. Agree in advance what the buyer may see and who will be present.
Related reading
15 pages on the same subject, grouped by topic.
Selling
Due diligence
Buying
Legal
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Canada Revenue AgencyGovernmentWhere to keep your records, for how long and how to request the permission to destroy them early
- 03Canada Revenue AgencyGovernmentKeeping records
- 04Business Development Bank of CanadaGovernmentWhat are financial statements?
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.