Numbers lie. Here is where to look.

Numbers lie. Not always illegally. Not always intentionally. But they lie.

A profit and loss statement is a summary. Someone chose what to include, when to record it, and what to call it. That choice is where the truth gets lost.

Start with cash

Profit is an opinion. Cash is a fact. Compare reported revenue to what actually reached the bank. If the two drift apart, ask why.

Look at the adjustments

Owners and sellers often adjust earnings upward. Some adjustments are fair. Many are not. Every add-back should tie to a source document. If it cannot, it does not count.

Follow the odd entries

Round numbers. Entries made just before a report is due. Payments to a vendor nobody remembers. None of these prove anything. Each one earns a closer look.

If something does not feel right, it usually is not. Call us before you decide anything. A quality of earnings review or a fraud investigation can tell you what is real.