Resource
Quality of earnings report template
A free Excel quality of earnings databook — income statement, EBITDA bridge and proof of cash. No email address, no sign-up, no macros.
Written by CA Pranay Bhansali, Founder & Principal, Volaxi — Chartered Accountant (ICAI), former senior buy-side research analyst.
Last reviewed October 2026 · LinkedIn
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Quality of earnings databook — Excel workbook
Formula-driven, with every adjustment tied to an evidence reference. This is the same sample databook linked from the homepage — the structure Volaxi uses for a first fixed-price pilot engagement, with illustrative figures throughout.
The template in summary
| Topic | What it covers |
|---|---|
| Format | Excel workbook (.xlsx), seven tabs including a monthly bank-to-revenue reconciliation, evidence index and findings note; no macros, no email required. |
| Income statement | Reported revenue and earnings by period, as the starting point for normalization. |
| EBITDA bridge | Reported to adjusted EBITDA, with each normalization adjustment stated and evidenced separately. |
| Proof of cash | Reported earnings reconciled to cash actually received — the test that catches phantom revenue. |
| Scope | A sample structure — net debt, working capital peg and a full data book are not included. |
01
Cover
The cover states the subject company, the periods under review, the purpose of the databook and the sources relied on. In a live engagement this is where scope limitations are recorded — what was provided, what was not, and what the analysis therefore cannot speak to.
02
Income statement
Reported revenue, cost of sales, operating expenses and earnings by period, laid out so that every normalization adjustment downstream can be traced back to a reported line. A quality of earnings report that cannot be tied back to the trial balance is an opinion, not an analysis.
03
EBITDA bridge
The bridge walks from reported EBITDA to adjusted EBITDA, one adjustment per line: owner compensation, one-off items, related-party transactions, non-operating income and run-rate changes.
Each adjustment carries its own evidence note. The discipline that separates a credible QoE from a marketing document is that every add-back can be challenged individually — and removed individually if the evidence does not hold.
Owner compensation
Excess or below-market remuneration normalized to a market rate, with the benchmark stated.
One-off items
Non-recurring income and expenses identified and removed — but only where the non-recurrence is evidenced, not asserted.
Related parties
Transactions with connected entities restated at arm's-length terms where they differ.
Run-rate adjustments
Contract wins, losses and price changes annualized only where the effect is already visible in the numbers.
04
Proof of cash
Reported earnings are reconciled to cash received: revenue per the books against bank inflows, adjusted for receivables, deferred revenue and timing. This is the test that catches revenue recognized but never collected — the single most common way reported earnings overstate a business.
Where the proof of cash does not reconcile, the gap is a finding, not a rounding difference.
05
What the template deliberately does not do
This is a sample structure showing how a QoE databook is organized, not a transaction-ready report. Stating the limits is more useful than pretending a free download replaces diligence on a live deal.
Net debt and debt-like items
The debt schedule, leases, deferred consideration and other debt-like items are not built out.
Working capital peg
The monthly working capital analysis that sets the peg is not included.
Customer and revenue quality
Concentration, cohort retention and contract analysis sit outside this workbook.
Signed opinion
No template produces an opinion. Volaxi does not sign audit or attest opinions in any jurisdiction.
Common questions
Is the quality of earnings template free?
Yes. The Excel file downloads directly with no email address, sign-up or payment required.
What is included in the quality of earnings databook?
A cover stating scope, the reported income statement, an EBITDA bridge with an evidence reference and status for every adjustment, a monthly bank-to-revenue reconciliation with unexplained differences flagged, a proof of cash, an evidence index, and a short findings note with unresolved questions for management.
Can I use this template for a live acquisition?
It shows the structure of a QoE databook. A live engagement also needs net debt and debt-like items, a working capital peg, revenue quality analysis and evidence for every adjustment — scoped to the specific deal.
What does a full quality of earnings engagement cost?
Fees depend on the size and complexity of the target. The quality of earnings report cost guide explains the variables, and Volaxi offers a fixed-price pilot for a first engagement.
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