Quality of Earnings CPA

Quality of Earnings (QOE) studies are used by a buyer of a business to evaluate whether the business will continue to operate as represented by the seller. The Quality of Earnings report can also be used by a seller to advocate for the stability of future cash flows.  

Our studies can be tailored to the needs of either buyers or sellers. They are designed to give an indication about the “certainty” of current income and project what will happen in the future.  

A QOE study is not an audit! Quality of Earnings studies revolves around the business metrics that are used to generate earnings and sustainability. We isolate these metrics and make determinations regarding the ability of the operation to continue to generate cash flows at their current or predicted level.  

Quality of Earnings studies are used by both buyers and sellers of businesses to understand the metrics and the risks of the business in its current environment. The analysis is done by benchmarking the target business within the industry that it operates to give both buyer and seller an understanding of the inherent risks and potential rewards that the transaction will yield.  

Read the article, “Providing Hidden Income” by Kim Joseph Onisko from Family Lawyer Magazine

Kim J. Onisko

Partner, Consulting And Forensic Accounting

(562) 420-3100 |

If you require a CPA that goes above and beyond in the areas of tax and accounting, please contact Onisko & Scholz today.