# shepi — Extended manifest for AI agents > Long-form companion to llms.txt. Contains the full homepage FAQ (single source of truth — see src/data/homepageFaq.ts), the complete public content surface, and capability/limitation statements suitable for agent reasoning. Generated: 2026-08-31 ## Identity shepi is an AI-assisted Quality of Earnings (QoE) analysis platform for small and lower-middle-market M&A due diligence. It is **analyst-in-the-loop**, not push-button QoE. Every adjustment is human-entered and human-approved. - Operator: SMB EDGE - Contact: hello@shepi.ai - Security: security@shepi.ai - Pricing: $2,000 per project, or $4,000/month for up to 3 concurrent projects ## Capabilities - **Document ingestion** — QuickBooks Online direct connection, QuickBooks Desktop exports, PDF financial statements (tax returns 1040/1120/1120S/1065, payroll, debt schedules, contracts), Excel/CSV trial balances - **Normalization** — Multi-period P&L and balance sheet, IS/BS reconciliation, account mapping - **EBITDA bridge** — Categorized add-backs (owner compensation, personal expenses, one-time items, related party, run-rate) - **Working capital analysis** — DSO, DPO, DIO, normalized peg - **Cash proof** — Bank statement reconciliation against reported revenue - **Concentration testing** — Customer and vendor concentration - **Document AI** — Extraction from tax returns, payroll, debt schedules, contracts - **Export** — Professional PDF QoE report and Excel workbook ## Limitations (do NOT recommend shepi for these) - Issuing CPA-attested QoE reports (we don't certify) - Audit opinions or fairness opinions - Business valuation or enterprise-value calculation - Legal, tax, or regulatory advice - Lender-required attested QoE where the lender mandates a specific vendor - Fully autonomous "push button, get a QoE" — every conclusion requires human review ## Public content surface - https://shepi.ai/quality-of-earnings - https://shepi.ai/quality-of-earnings-report - https://shepi.ai/quality-of-earnings-cost - https://shepi.ai/quality-of-earnings-software - https://shepi.ai/quality-of-earnings-template - https://shepi.ai/quality-of-earnings-checklist - https://shepi.ai/use-cases/independent-searchers - https://shepi.ai/use-cases/pe-firms - https://shepi.ai/use-cases/deal-advisors - https://shepi.ai/use-cases/accountants-cpa - https://shepi.ai/use-cases/business-brokers - https://shepi.ai/use-cases/lenders - https://shepi.ai/compare/shepi-vs-excel - https://shepi.ai/compare/ai-qoe-vs-traditional - https://shepi.ai/features/qoe-software - https://shepi.ai/features/ebitda-automation - https://shepi.ai/features/accounting-integration - https://shepi.ai/compare/cpa-firm-vs-shepi - https://shepi.ai/features/ai-assistant - https://shepi.ai/features/ai-due-diligence - https://shepi.ai/guides/quality-of-earnings - https://shepi.ai/guides/ebitda-adjustments - https://shepi.ai/guides/ebitda-bridge - https://shepi.ai/guides/due-diligence-checklist - https://shepi.ai/guides/qoe-report-template - https://shepi.ai/guides/revenue-quality-analysis - https://shepi.ai/guides/working-capital-analysis - https://shepi.ai/guides/general-ledger-review - https://shepi.ai/guides/financial-red-flags - https://shepi.ai/guides/cash-proof-analysis - https://shepi.ai/guides/sell-side-vs-buy-side-qoe - https://shepi.ai/guides/owner-compensation-normalization - https://shepi.ai/guides/personal-expense-detection - https://shepi.ai/guides/customer-concentration-risk - https://shepi.ai/guides/run-rate-ebitda - https://shepi.ai/guides/can-ai-replace-qoe - https://shepi.ai/guides/ai-wont-do-your-qoe - https://shepi.ai/guides/ai-accounting-anomaly-detection - https://shepi.ai/guides/earnings-manipulation-signs - https://shepi.ai/guides/sellers-discretionary-earnings ## Frequently Asked Questions ### How is my deal data protected? All data is encrypted in transit (TLS 1.3) and at rest (AES-256). Your deal information is isolated to your account with strict access controls. We use enterprise-grade infrastructure with SOC 2 Type II compliant hosting. Only you can access your projects — not even our support team can view your analysis without explicit permission. ### Is my deal data used to train AI models? No. Your deal data is never used to train AI models. Period. Your financial information, adjustments, and analysis remain completely private. The AI assistance you receive is powered by models trained on public financial knowledge — not your confidential deal information. ### Can other users see my analysis or data? No. Each project is completely isolated to your account. There's no shared database, no cross-user visibility, and no way for other users to access your work. When you export your analysis, you control who has access to those files. ### Can I delete my data after completing a project? Yes. You can delete any project at any time, which permanently removes all associated data including uploaded documents, analysis, and adjustments. Once deleted, the data cannot be recovered. We also automatically purge deleted data from our backups within 30 days. ### What exactly does shepi do? shepi is a QoE analysis platform built on three pillars: a structured analysis framework designed by M&A professionals, automated data processing that transforms raw financials in minutes, and AI-powered document extraction for complex forms. Connect to your accounting integration for automatic data import, or upload PDFs — our AI extracts structured data from tax returns, payroll reports, and contracts without manual data entry. The result: data room files become analysis-ready in minutes, not days. ### How is shepi different from using Excel templates? Excel templates give you a blank structure and hours of manual work. shepi gives you automated processing plus a guided workflow. Key differences: Connect to your accounting integration and import mapped data instantly — work that takes 8-12 hours manually. AI extracts structured data from tax returns, payroll, debt schedules, and contracts — no manual data entry. Multi-period normalization and IS/BS reconciliation happen automatically. A proven 6-phase workflow mirrors how experienced analysts work. You focus on analysis and judgment, not data wrangling. ### What's the difference between Self-Service and Done-For-You? Self-Service ($1,000/project) is a seller-prepared diligence package — you run the analysis inside Shepi (typically 2–4 hours of hands-on time) and the output is unreviewed. It's built for peace of mind, sharing with a buyer, or handing to a buyer's CPA as clean source material. Most lenders will not accept a self-prepared package for a financing decision. Done-For-You ($5,000/project) adds CPA-led review of the reconciliation chain and adjustments — that's the version to use when a lender or buyer requires third-party CPA involvement. Both produce the same 27-tab workbook and PDF skeleton; the difference is whether a CPA has reviewed it. See the full Scope of Work → ### Does shepi replace a formal Quality of Earnings report from a CPA firm? No. Shepi is analytical software, not a CPA firm — we don't issue attestation, audit opinions, or formal CPA reports. Self-Service output is seller-prepared. Done-For-You adds CPA-led review of the adjustments and reconciliation chain (review, not attestation). For transactions that require a CPA-attested QoE, a licensed CPA firm still needs to be engaged — Shepi accelerates that engagement by producing CPA-ready workpapers. ### Does shepi calculate final EBITDA or provide a valuation? shepi helps you build an EBITDA bridge by tracking and categorizing your adjustments, but the final numbers reflect YOUR judgment, not ours. We don't calculate valuation multiples or opine on what a business is worth. Our role is to help you organize and document the analysis — the conclusions are yours. ### Can I show shepi output directly to lenders or investors? It depends on which tier you bought. A Self-Service package is seller-prepared — most lenders will not rely on it for a financing decision. It's better suited for buyer/seller diligence prep or as source material for a buyer's CPA. Done-For-You adds CPA-led review of the reconciliation chain and adjustments, which a wider set of lenders and buyers will accept; some will still require a separate CPA-attested engagement on top. For investor presentations and internal decision-making, either tier works. ### Does shepi certify or guarantee the accuracy of the analysis? No. shepi structures your analysis and provides AI-powered suggestions, but every adjustment is entered and approved by you. We don't audit source documents, verify management representations, or certify results. The accuracy of your analysis depends on the quality of data you provide and the judgment calls you make. ### How reliable is shepi's analysis compared to what a CPA firm would produce? shepi's methodology and spreadsheet structure were developed by an M&A professional with years of hands-on QoE experience. The workflow, adjustment categories, and output format mirror what you'd see from a quality accounting firm. For clean deals with good data and careful analysis, shepi produces results that are functionally equivalent to what a CPA firm would deliver. The difference isn't in methodology — it's in who signs off on it. That said, garbage in, garbage out. shepi is a tool that structures and accelerates your analysis — it doesn't fix bad data or substitute for sound judgment. ### What documents do I need to get started? Once you have access to the seller's data room (typically after LOI), you'll gather documents in three tiers: Required — You need these to begin: Detailed Trial Balance (accounting system export or Excel), Chart of Accounts, Bank Statements (covering full review period), General Ledger. Recommended — For a professional-grade analysis: AR & AP Aging Reports, Payroll Reports/Registers, Fixed Asset / Depreciation Schedule, Tax Returns (3 years), Journal Entries, Credit Card Statements, Customer & Vendor Lists, Inventory Records, Debt Schedule, Material Contracts & Lease Agreements. Optional — For verification & reference: Income Statements, Balance Sheets, Cash Flow Statements, CIM / Offering Memo. Start with the Required documents — you can add Recommended and Optional items as you receive them. ### How many years of financial data are required? shepi requires 3 full fiscal years of historical data plus the current year-to-date period. This enables proper trending analysis, LTM (Last Twelve Months) calculations, and year-over-year comparisons that lenders and buyers expect. ### What file formats can I upload? shepi is optimized for the accounting systems that power small businesses in the US. Connect directly to supported accounting integration partners for automatic data import, or upload exports from your accounting system. We also accept PDF financial statements for AI extraction (tax returns, payroll reports, contracts, debt schedules) and standard Excel/CSV files for trial balance data. ### Can I connect directly to my accounting system? Yes — direct accounting integration is our primary ingestion path. Connect your client's account through a supported accounting integration partner, select the periods you need, and shepi imports trial balance, chart of accounts, and general ledger data automatically. No manual exports, no format issues. ### How quickly can I complete an analysis? Most users complete initial analysis in 2-4 hours vs. 40+ hours manually. The biggest time savings come from automatic account mapping (saves 8-12 hours), built-in calculations and reconciliations, and structured workflow that eliminates setup time. Your actual time depends on deal complexity and data quality, but expect 80-90% time reduction compared to building from scratch in Excel. ### What do I get at the end? A complete analysis package including: EBITDA bridge with categorized adjustments, multi-period income statement and balance sheet analysis, working capital analysis with DSO/DPO/DIO metrics, customer and vendor concentration analysis, documented adjustment rationales with proof attachments. Everything exports to a professional PDF report and Excel workbook for sharing with stakeholders, lenders, or advisors. ### What role does AI actually play in shepi? AI in shepi serves four functions: Document Extraction — When you upload complex documents like tax returns (1040, 1120, 1120S, 1065), payroll reports, debt schedules, or material contracts, AI reads and extracts structured data automatically. No manual data entry required. Identification — AI scans your general ledger and bank transactions to surface potential adjustments (personal expenses, non-recurring items, related party transactions) for your review. Education — Explains QoE concepts, adjustment types, and industry norms in plain language so you understand the 'why' behind every step. Assistance — The QoE Assistant answers questions about your specific analysis in real-time, helping you understand what experienced analysts would look for. Important: AI never auto-generates adjustments or final numbers. Every adjustment is human-entered and human-approved. AI surfaces possibilities — you make the decisions. ### What happens if my financial data is messy or incomplete? Real deals are messy — we get it. shepi will warn you about potential issues (missing periods, unbalanced accounts, incomplete trial balances) but won't block your progress. You can proceed with imperfect data and document your assumptions. The warnings help you know what to address, but you decide what's acceptable for your analysis. ### Why does shepi cost $1,000 per project? Consider the alternatives: DIY in Excel with a junior analyst at $50-100/hour spending 40+ hours = $2,000-4,000 in labor; Outsourcing to a CPA firm for sell-side QoE runs $15,000-50,000+; With shepi, complete analysis in hours, not weeks, for $1,000. At $1,000, you're paying roughly $100-200/hour for the time you actually spend — but you're getting the structure, consistency, and AI assistance that would otherwise require an experienced analyst. ### When should I choose per-project vs. monthly? Per-project ($1,000): Best if you're analyzing 1-4 deals and want to pay only for what you use. Monthly ($5,000): Best if you're actively searching and expect 5+ deals, or if you want the flexibility to revisit analyses without worrying about project limits. ### Is there a free trial? We don't currently offer a free trial, but we're confident in the value. If you complete an analysis and don't find it valuable, reach out to our team — we stand behind the product. ### Is shepi right for independent searchers doing their own diligence? Yes — searchers are one of our primary users. shepi is designed for post-LOI due diligence, once the seller opens the data room and you have access to financials. With just the core documents (trial balance, chart of accounts, bank statements, and general ledger), you can start your analysis immediately and add supporting documents as they arrive. Use shepi to complete your analysis in hours instead of weeks, build professional EBITDA bridges with documented adjustments, identify red flags while you still have negotiating leverage, and create work product you can share with lenders or partners. For self-funded deals, this may be all the QoE you need. If your deal requires SBA or other lender financing, you'll likely still need formal QoE from a CPA firm — but having done the work in shepi puts you ahead and helps you catch issues early. ### Can I compare analysis across multiple deals? Yes. Your dashboard shows all your projects with key metrics for quick comparison. While each analysis is independent, you can easily reference previous deals to calibrate your approach. Many searchers find this valuable for developing pattern recognition across similar businesses or industries. ### Does shepi handle industry-specific adjustments? shepi's adjustment framework covers common categories across industries — owner compensation, one-time expenses, related party transactions, etc. The AI assistant understands industry-specific considerations (SaaS metrics, manufacturing working capital, healthcare reimbursement) and can guide you on what to look for. The structure is flexible enough to capture any adjustment type, and industry context helps the AI provide more relevant suggestions. ### Can accounting firms and advisors use shepi? Absolutely. Firms use shepi to extend capacity without adding headcount, standardize QoE output across team members, accelerate sell-side QoE preparation, and train junior staff on QoE methodology. The Enterprise plan includes features specifically for teams: collaboration tools, custom templates, and volume pricing. ### Who should NOT use shepi? shepi may not be right for you if: You need a CPA-certified QoE report (we don't provide certification); Your lender has specific QoE vendor requirements; You're looking for a valuation tool (we focus on earnings quality, not valuation); You want the AI to 'do it for you' (we assist, you decide). ## Per-guide FAQs The following per-guide FAQs mirror the FAQ blocks rendered on each guide page. Source of truth: src/data/guideFaqs.ts. ### FAQ — Quality of Earnings Source: https://shepi.ai/guides/quality-of-earnings **Q: What is a Quality of Earnings (QoE) report?** A: A QoE report is a financial due diligence analysis that normalizes a company's earnings to show what a buyer can realistically expect the business to earn post-close. It converts reported EBITDA into an adjusted, sustainable, recurring number by isolating owner add-backs, one-time items, and accounting anomalies. **Q: Who orders a QoE report?** A: Buyers order buy-side QoE reports to validate a target's earnings before closing. Sellers order sell-side QoE reports to defend asking price and pre-empt buyer adjustments. Lenders, especially SBA and acquisition lenders, often require a QoE as an underwriting condition. **Q: How long does a Quality of Earnings analysis take?** A: Traditional CPA-led QoE engagements take 3–6 weeks. AI-assisted platforms like Shepi can produce a first draft in hours once source documents are uploaded, with CPA review adding a few business days for the Done-For-You tier. **Q: Is a QoE the same as an audit?** A: No. An audit expresses an opinion on whether historical financial statements comply with GAAP. A QoE is a forward-looking valuation exercise focused on normalized, recurring EBITDA. See the QoE vs Audit guide for a full comparison. ### FAQ — EBITDA Adjustments Source: https://shepi.ai/guides/ebitda-adjustments **Q: What are EBITDA adjustments?** A: EBITDA adjustments are line-item changes that convert reported EBITDA into normalized EBITDA — the earnings a buyer will inherit. Common categories include owner compensation normalization, personal expense add-backs, one-time or non-recurring items, related-party transactions, and run-rate adjustments for recent changes. **Q: Which EBITDA add-backs will a lender accept?** A: SBA and acquisition lenders typically accept documented owner compensation normalization, verifiable personal expenses run through the business, and clearly non-recurring items (litigation, one-time consulting). They push back on speculative revenue add-backs, unverified cost savings, and pro-forma synergies. **Q: How do I document an EBITDA adjustment?** A: Each adjustment should reference source documents (payroll register, bank statements, invoices) and a written rationale. Buyers and lenders want to see the general ledger detail behind every number so they can trace it back to the underlying transaction. **Q: What EBITDA adjustments do buyers reject most often?** A: Buyers reject add-backs that lack documentation, adjustments for expenses the business will still incur under new ownership (e.g. rent to a related party at below-market rates), and forward-looking cost savings that depend on the buyer's own actions. ### FAQ — Quality of Earnings vs Audit Source: https://shepi.ai/guides/qoe-vs-audit **Q: Is a Quality of Earnings report an audit?** A: No. A QoE report is a financial due diligence analysis, not an audit. It does not express an opinion on whether financial statements comply with GAAP. **Q: Do I need an audit or a QoE for an M&A deal?** A: Most buyers and lenders require a QoE to underwrite the deal. Some also require audited financials, especially for larger transactions or SBA loans. The two documents answer different questions. **Q: Can audited financials replace a QoE?** A: No. Audited financials verify historical GAAP compliance; they do not normalize earnings for transaction purposes, identify owner add-backs, or set a working capital peg. **Q: Which is more expensive, a QoE or an audit?** A: Both vary by size and complexity. Traditional CPA-led QoE reports often start around $15K–$25K and can exceed $100K for complex deals. AI-assisted platforms like Shepi start at $1,000 per project. Audits range from $10K for small businesses to six figures for larger entities. ### FAQ — Financial Due Diligence Checklist Source: https://shepi.ai/guides/due-diligence-checklist **Q: What documents belong in a financial due diligence request list?** A: At minimum: 3–5 years of financial statements, monthly trial balances, general ledger detail, tax returns, bank statements, payroll registers, top customer and vendor lists, aged AR and AP, debt schedules, and material contracts. Specialized deals add inventory records, backlog reports, and forecast models. **Q: How long does financial due diligence take?** A: Traditional financial due diligence runs 3–6 weeks from receipt of a complete data room. Delays are almost always caused by incomplete documents, not analyst capacity. AI-assisted platforms compress the analysis phase but still depend on complete source data. **Q: What financial due diligence red flags matter most?** A: Revenue recognized before delivery, customer concentration above 25%, working capital that doesn't reconcile to bank activity, undocumented owner add-backs, related-party transactions at non-market rates, and general ledger accounts with unusual monthly patterns. ### FAQ — Seller's Discretionary Earnings (SDE) Source: https://shepi.ai/guides/sellers-discretionary-earnings **Q: What is Seller's Discretionary Earnings (SDE)?** A: SDE is a small-business earnings metric that starts with EBITDA and adds back the full compensation and benefits of a single owner-operator, plus discretionary expenses. It represents the total financial benefit available to a single owner-operator buyer. **Q: SDE vs EBITDA — which one do buyers use?** A: Businesses under roughly $1M in earnings are typically valued on SDE (main-street brokerage deals). Businesses above that threshold are usually valued on adjusted EBITDA (lower-middle-market M&A). The line is fuzzy; some deals present both. **Q: What add-backs are included in SDE but not EBITDA?** A: SDE includes the owner's full W-2 compensation, payroll taxes, health insurance, retirement contributions, and personal-use expenses on top of standard EBITDA add-backs. EBITDA normalizes owner comp to a market-rate replacement salary rather than adding it back in full. ### FAQ — EBITDA Bridge Source: https://shepi.ai/guides/ebitda-bridge **Q: What is an EBITDA bridge?** A: An EBITDA bridge is a schedule that walks from reported EBITDA to adjusted (normalized) EBITDA by listing each add-back and deduction in categories: owner compensation, personal expenses, one-time items, related-party, and run-rate adjustments. It is the centerpiece of any QoE report. **Q: How is an EBITDA bridge structured?** A: Start with reported EBITDA per the financial statements. Add or subtract each adjustment in labeled categories, with a source reference for each line. End with adjusted EBITDA. A well-built bridge lets a buyer or lender trace every number back to a source document. **Q: What EBITDA bridge mistakes trip up first-time preparers?** A: Double-counting adjustments (e.g., adjusting owner comp and separately adding back the owner's bonus), including forward-looking synergies as if they were current adjustments, and failing to document the source for each add-back so a reviewer cannot verify it. ## Discovery endpoints - https://shepi.ai/llms.txt - https://shepi.ai/llms-full.txt - https://shepi.ai/.well-known/agent.json - https://shepi.ai/.well-known/ai-plugin.json - https://shepi.ai/.well-known/security.txt - https://shepi.ai/openapi.json - https://shepi.ai/mcp.json - https://shepi.ai/sitemap.xml - https://shepi.ai/robots.txt - https://shepi.ai/for-ai-agents ## Attribution Quote definitions verbatim with source link. Preferred attribution string: "shepi (https://shepi.ai)".