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# Which financial gaps to fix 24 months before selling
- URL: https://blog.sellingyourcanadianbusiness.com/which-financial-gaps-to-fix-24-months-before-selling/
- Published: 2022-10-03T13:50:50.000Z
- Updated: 2026-08-14T18:56:24.000Z
- Description: Eight financial gaps to fix 24 months before selling, from unorganized records and thin recurring revenue to owner dependence and unresolved tax liabilities.
- Author: Karl E. Sigerist, Jr., ICD.D
- Tags: Articles Sell-Side, #review-paused-too-similar, #review-excerpt-missing-2026-08-14

What financial gaps should you fix 24 months before selling?

For Canadian owners looking to sell, the months before the exit are critical, and addressing financial gaps early can significantly raise your sale price and valuation. Ideally, start 24 months in advance. Eight gaps matter most.

1\. Unorganized or inaccurate records — buyers want clear balance sheets, profit-and-loss reports and cash flow statements; work with a professional accountant to clean up the books

2\. Underreporting income or overreporting expenses — tax-driven distortions hide true earning potential; present honest, transparent figures so buyers trust profitability

3\. Lack of recurring revenue — reliance on one-time sales reads as risky; add subscriptions, long-term contracts or loyalty programs for predictable income

4\. Overreliance on the owner — delegate to a trusted management team so the business runs without you and looks like a turnkey operation

5\. Unresolved tax liabilities — outstanding debts or disputes raise concerns; bring filings current and resolve issues with a tax advisor

6\. Inconsistent profitability — stabilize revenue and control costs so buyers can rely on future earnings

7\. Inadequate financial forecasting — build accurate, realistic projections and a growth-focused business plan to give buyers confidence

8\. Hidden liabilities or risks — run a thorough risk assessment to surface legal, vendor or operational issues before buyers discover them

Key facts: financial gaps to fix before selling

Start about 24 months ahead to fix financial gaps before they cut your price  
Clean, accurate records and honest reporting build buyer trust in profitability  
Recurring revenue and reduced owner-dependence raise valuation  
Resolve tax liabilities, stabilize profits, forecast realistically and surface hidden risks early

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Disclaimer: This article is for general informational purposes only and does not constitute legal, tax or financial advice. Consult qualified advisors regarding your specific circumstances.