Reported profit and cash are not identical
A business can report earnings while cash is tied up in receivables, retainage, inventory, or uncompleted work. A quality-of-earnings review may examine how recorded performance relates to collections, costs, and working capital.
Job-level records matter
For project-based roofing work, estimates, change orders, labor, materials, subcontractors, warranty reserves, and completion status can inform whether margins are understood consistently. Work-in-progress practices deserve particular clarity.
Revenue and customer concentration
Reviews may test when revenue is recorded, whether contracts support it, how customer credits or claims are treated, and whether a small number of customers or referral sources drive results.
Preparation is not a promise of outcome
Organized records can make questions easier to answer but do not guarantee a favorable report, price, or transaction. Engage appropriately qualified accounting and legal professionals.