Why this matters: This workbook creates a defensible audit trail for owner perk add-backs. Buyers and their accountants will scrutinize every normalization adjustment. Proper documentation prevents deal friction and protects your valuation.
How to use: Review each fiscal year tab below. For each expense line item, fill in the Account Code(s), P&L Category, Add-Back Type, and Documentation/Rationale. Click the flag button if any item needs discussion. Submit each year when complete.
Personal
Expenses that benefit owners personally, not the business (vehicles, travel, meals, boats/ATVs)
Discretionary
Business expenses a new owner might not incur (donations, golf promos, family discounts)
One-Time
Non-recurring expenses that won't repeat (legal restructuring, buyouts, settlements)
Not Add-Back
Legitimate business expense — no adjustment. Keep as operating expense.