The Business Valuation feature on the Xenon Connect allows you to keep track of the potential value of the business.
Note: It is recommended that you discuss with an expert an appropriate business valuation model to use for your particular business.
A business valuation is provided for each of the previous 6 months, based upon your choice of valuation model.
The calculation can be tailored to your own business and the industry it is in within settings.
Base the business valuation calculation on… – The business valuation for each month can be tailored based upon your choice of valuation criteria, with the options being as follows:
But disregard the following accounts… – If there are Xero account codes that you wish to disregard from the calculation, then you can add those accounts here.
For example, you may choose to disregard the Director’s Remuneration from the “Average Annual Profit (Last 24 Months)” calculation.
And then apply a multiple of… If you determine that your business has a valuation multiple of 3, for example, then you can enter “3” here. The multiplier value is applied to the valuation model chosen (e.g. based upon Sales, Net Profit or Net Assets).
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