Looking to raise capital or sell your business? A major stumbling block for many entrepreneurs is often the clarity of their financial statements. Evidence of good financial management and reporting is a critical “deal or no deal” factor for potential investors. The key to overcoming this is preparation. Review your financial statements through the eyes of a financial institution or investor, know how much to ask for if looking for financing and what sort of financing package is achievable. Breaking up your financial statements into manageable key elements, such as a putting together a profit and loss statement, separating personal vs. company transactions, understanding your working capital cycle, and preparing financial forecasts will aid in this process. Anticipate questions and be prepared to backup your numbers. All of this will go a long way in helping you get the financing and in getting through the due diligence when raising money or selling your company.