Quality of Earnings
An independent review of whether reported or recast earnings are real, repeatable, and correctly classified.
Last updated September 5, 2026
A quality-of-earnings (QoE) analysis tests revenue recognition, margins, add-backs, customer concentration, and whether cash conversion matches the P&L. It is more common as deal size grows, but even a focused accountant review helps on Main Street. QoE is not a full audit and does not replace tax, legal, or operational diligence. Lenders sometimes require a form of QoE or CPA-prepared statements before funding.