Selling a business is never just about numbers on paper—it’s about trust. Buyers, banks, and employees all need confidence that the business they’re stepping into has been well managed. That confidence starts with one thing: clean, accurate financials.
At Shepherd Financial Group, we recently walked alongside a Spokane business owner in his early 60s as he prepared to exit the company he had built over decades. What started as resistance to change became a story of clarity, trust, and successful transition.
The Challenge: Resistance and Complexity
This owner fit a profile we see often:
- Over 30 years in business.
- Two related companies with intercompany activity.
- Payroll, vendor, and customer complexity.
- A trusted way of “doing things” that had worked for decades.
But “what worked” in daily operations wasn’t translating to the financials. The books were inconsistent, unreconciled, and unreliable. Bank accounts didn’t tie to the general ledger. Vendor records were duplicated. Intercompany transactions were unbalanced.
When the time came to sell, the buyer’s first question was the same one every buyer asks: “Can I trust the numbers?” At that moment, the owner realized his financial records would not stand up to scrutiny.
Initially, he pushed back against our systems and processes. He was proud of his way of doing things and hesitant to let outsiders “rebuild” his books. That resistance delayed progress for months. But gradually, as we gained his trust, he gave us the access and authority we needed to put systems in order.
The Solution: Accounting Management, Not Just Bookkeeping
Over the course of 18 months, our staff accountants and managers rebuilt the company’s financial foundation.
Our process included:
- Complete reconciliation of all bank and credit card accounts back to prior tax returns.
- Vendor and customer clean-up, merging duplicates and correcting misclassifications.
- Intercompany balancing to ensure both entities reflected accurate due-to/due-from accounts.
- Implementation of a monthly close process, ensuring every transaction was verified and reconciled.
- Creation of credible financial statements, prepared to accounting standards—not just “bookkeeping reports.”
This wasn’t about clerical data entry. A bookkeeper could not have untangled the years of complexity or implemented a reliable close process. This was accounting management—professional oversight ensuring that financials were complete, compliant, and ready for external review.
The Results: Confidence and Transition
The results spoke for themselves:
- The financials for both companies were reconciled, accurate, and aligned with prior tax filings.
- Monthly closes provided the owner with timely, consistent reports for the first time in years.
- The buyer gained confidence that what he was purchasing was legitimate and sustainable.
- The seller gained peace of mind that his life’s work would transfer smoothly and fairly.
Perhaps most importantly, the owner himself developed trust in the process. What began as resistance to “outside interference” turned into gratitude for having a team that treated his legacy with care.
Why This Matters for Spokane Business Owners
Many Spokane business owners in their 50s and 60s are thinking about transition—whether selling to an outside buyer, passing the company to family, or preparing for retirement. Too often, financial records are the weakest link in that process.
Banks and buyers don’t want guesses. They want clean, reconciled, audit-ready statements. If your books are inaccurate or incomplete, your exit will stall—or worse, your business value will be discounted.
The difference between a bookkeeper and a staff accountant becomes crystal clear here:
- A bookkeeper keeps records.
- A staff accountant ensures your financials can withstand the scrutiny of lenders, auditors, and buyers.
When it comes to selling your business, that difference can mean hundreds of thousands of dollars in value.