Luke Potter on 
Most funeral home owners don’t spend much time digging into financial statements— and understandably so. Your focus is on families, staff, facilities, and the day-to-day operations that make your business what it is. But when the time comes to plan for retirement, transition ownership, or even apply for financing, the numbers matter. And often, they don’t reflect the full picture. Recasting financials is the process of adjusting your financial statements to show the true earning potential of your business. It’s not accounting manipulation—it’s about separating personal or one-time expenses from your actual operational performance so a buyer, bank, or successor sees the business as you run it, not just as it appears on paper.
For many funeral home owners, traditional financial statements understate profitability because they’re built around minimizing taxes. You may run personal expenses through the business, like a vehicle, travel, or even payroll for a family member who isn’t heavily involved. Maybe you’ve made a large one-time repair, paid yourself a bonus, or taken a salary below market rate. All of these things can obscure how well your business is actually doing. Recasting helps translate your work into numbers that an outside party can understand. You (or your advisor) go through your financials, identify what wouldn’t apply to a new owner, and adjust accordingly. The end result is a normalized, realistic view of what your business earns—one that you can stand behind and that makes sense to someone who hasn’t walked your halls or served your families.
This process isn’t just about selling. Recast financials also help with succession planning, especially when transitioning to a family member or long-time employee. By showing a clear, consistent financial picture—adjusted over three to five years—you’re providing a roadmap for continuity and giving your successor the confidence to step in with eyes wide open. It also gives you leverage. When you can demonstrate a higher, sustainable profit, you open up opportunities for better lending terms, higher purchase offers, or smoother buy-ins. Even if you’re not planning a transition anytime soon, starting the recast process now puts you in a proactive position. It allows you to clean up your numbers, organize supporting documentation, and present a business that’s just as well-run financially as it is operationally.
At the end of the day, recasting is about owning your narrative. You’ve spent years— maybe decades—building your business and reputation. You deserve to be credited for the full value of what you’ve built. The earlier you start this process, the more prepared you’ll be when opportunity knocks. Whether your next chapter involves retirement, growth, or simply gaining clarity on your performance, recasting your financials ensures the numbers reflect the true strength of your business—not just what shows up on a tax return.