Frequently Asked Questions

21. The seller has told me there the business has "unreported cash sales". Is that good?

No, inaccurate reporting to tax agencies is dishonest and illegal! Seller claims of unreported sales should never be counted to determine the cash flow of a business. These claims are unreliable at best. When making a purchase decision, the buyer should rely on financial information which can be documented (i.e. tax returns, accountant generated financial reports). Lenders only consider documented financial information. When a seller makes these claims, it brings into question the accuracy of financial data.

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The Arkansas Small Business Development Center is funded in part through a cooperative agreement with the U.S. Small Business Administration through a partnership with the University of Arkansas at Little Rock College of Business and other institutions of higher education. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. It is the goal of UALR to eliminate discriminatory harassment and to promote equal opportunity regardless of race, gender, color, national origin, sexual orientation, age, religion, veteran’s status, or disability.