We have compiled financial statements, but our local CPA has only done reviews rather than full audits. How do we prepare our internal finance seat for a rigorous institutional Quality of Earnings assessment without completely distracting them from managing our daily cash flow?

Question

Tyler Smith · Accepted Answer

A Quality of Earnings assessment, or QofE, is a rigorous financial examination that goes far beyond a standard CPA review. It will consume your finance team's time and energy, which can easily distract them from their core job of managing daily cash flow and supporting operations. To prevent this disruption, you must prepare your internal finance seat well in advance. Start by reviewing your Accountability Chart. Ensure you have a qualified financial leader in the finance seat who has the capacity to manage both daily operations and the upcoming audit. Use your Level 10 Meetings to isolate and manage the audit preparation. Instead of letting audit requests disrupt your daily workflow, create a specific Rock to build a data room with all your financial records organized. By systematically preparing your data and utilizing your EOS tools to keep daily operations running smoothly, you protect your business's performance during the sale process. This preparation ensures your finance team can handle the intense scrutiny of a QofE assessment without drop-offs in your weekly Scorecard metrics, proving to buyers that your team is highly capable.