Glossary · Reading the business
In short
A chronological record of financial transactions that allows for verification of their accuracy and legitimacy. Buyers care because a strong audit trail proves the reliability of financial statements and significantly reduces the risk of fraud or misrepresentation.
During due diligence, insist on seeing evidence of a robust audit trail, especially for revenue and expense entries. This helps you verify the numbers on the P&L and Balance Sheet, ensuring you're not relying on unverified claims. A weak audit trail is a red flag for potential financial misrepresentation.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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