Explore the sections of a QoE report, then see how Shepi turns financial records and human review decisions into PDF and Excel workpapers.
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Common QoE sections
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Sample previews
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What's in the Quality of Earnings Template
This Quality of Earnings template page covers common sections used by CPA firms, deal advisors, and lenders. Use it as a workpaper framework for manual diligence, or as a reference for what your QoE analysis should contain. Explore the sample project to see review decisions alongside PDF and Excel previews.
Executive Summary
One-page deal overview with adjusted EBITDA, key adjustments, and risk flags
Adjusted EBITDA Bridge
Net income → EBITDA → Adjusted EBITDA with categorized adjustments
Revenue Quality
Recurring vs non-recurring, customer concentration, AR aging, and trend analysis
Working Capital Schedule
Multi-period NWC with turnover ratios and normalized peg calculation
Proof of Cash
GL-to-bank reconciliation surfacing unrecorded liabilities and commingled items
GL Anomaly Findings
Flagged transactions with confidence scores and suggested adjustment amounts
Supporting Schedules
Account-level detail, vendor analysis, and trial balance walkthroughs
Evidence Index
Stable references connect supported adjustments to source GL transactions
Standard QoE Report Sections Explained
Most professional QoE reports follow a predictable structure. Here's what each section contains and why it matters:
- Executive Summary — Adjusted EBITDA, headline adjustments, and the 3–5 most material risks. This is what most readers actually read.
- EBITDA Bridge — Walks from reported net income to adjusted EBITDA with every add-back categorized (owner comp normalization, non-recurring, personal, accounting cleanup).
- Revenue Analysis — Trends, recurring classification, customer concentration, and any one-time revenue items that distort run-rate.
- Working Capital — Trailing-twelve NWC schedule, turnover ratios, and the normalized peg amount used in the purchase agreement.
- Proof of Cash — Reconciles total bank deposits and disbursements to GL — the section where commingled expenses and missing liabilities surface.
- Findings & Risks — Anomalies that don't roll into adjustments but still affect deal terms (e.g., poor segregation of duties, late filings).
How to Use the QoE Template
Review the structure
Use these sections as a reference for a lower-middle-market analysis
Pull your trial balance
Multi-year TB plus current TTM is the minimum data set required
Map the chart of accounts
Map each account to the QoE categories defined in the template
Build the EBITDA bridge
Identify add-backs and document each one with supporting evidence
Layer in working capital and proof of cash
Use the schedules to compute peg and reconcile to bank statements
Write the narrative
Translate the numbers into the executive summary and findings sections
Or Skip the Template Entirely
Excel templates are useful for understanding QoE structure, but someone still needs to map the data, examine the evidence, and decide on adjustments. Shepi organizes those steps into a reviewable workflow and prepares PDF and Excel workpapers. Walk through the sample to see the evidence and deliverable previews.
Self-Service starts at $1,000 per project and does not include Shepi CPA review. Compare the available paths before starting.