Tonnesen Accounting Services Review: A Trusted Name in QoE Reports for SBA Buyers
In the world of small business acquisitions, few names come up as frequently in the ETA (Entrepreneurship Through Acquisition) and SBA lending communities as Josh Tonnesen and Tonnesen Accounting Services. Known for delivering high-quality Quality of Earnings (QoE) reports tailored to the needs of business buyers, Tonnesen has built a strong reputation among search fund operators, first-time acquirers, and SBA borrowers alike.
In this detailed review, we’ll explore what Tonnesen Accounting Services offers, why QoE reports matter for your SBA acquisition, and whether Josh Tonnesen’s firm is the right fit for your deal.
Who Is Josh Tonnesen?
Josh Tonnesen is a CPA who has carved out a niche serving the acquisition entrepreneur community. Rather than trying to be everything to everyone, Tonnesen Accounting Services has focused specifically on providing financial due diligence services — particularly Quality of Earnings reports — for buyers acquiring small to mid-sized businesses.
Josh is highly regarded in the ETA and SBA acquisition community for several reasons:
- Deep specialization: His firm focuses almost exclusively on buy-side financial due diligence for SMB acquisitions
- Community presence: Josh is active in ETA circles, search fund communities, and SBA acquisition forums, making himself accessible and visible to buyers
- Practical approach: His work is known for being thorough yet practical, focused on what actually matters for closing deals
- Buyer-friendly communication: He translates complex financial analysis into actionable insights that non-accountants can understand
What Is a Quality of Earnings (QoE) Report?
Before diving deeper into Tonnesen’s services, it’s important to understand what a QoE report actually is and why it’s essential for SBA acquisitions.
A Quality of Earnings report is a detailed financial analysis performed by an independent third party that examines a target company’s historical earnings to determine whether they are sustainable, accurate, and repeatable. Unlike a standard audit, a QoE specifically focuses on:
Key Components of a QoE Report
- Normalized EBITDA: Adjusting reported earnings for one-time expenses, owner perks, non-recurring revenue, and other items that don’t reflect ongoing business performance
- Revenue quality analysis: Evaluating whether revenue is recurring, concentrated among few customers, or subject to seasonality
- Working capital assessment: Determining the appropriate level of working capital needed to operate the business and establishing a working capital peg for the purchase agreement
- Proof of cash: Reconciling reported revenue with actual bank deposits to verify that the numbers are real
- Expense analysis: Identifying unusual or unsustainable expense patterns
- Trend analysis: Examining whether the business is growing, flat, or declining
- Customer and vendor concentration: Assessing risk from over-reliance on any single customer or supplier
Why SBA Lenders Care About QoE Reports
SBA lenders use QoE reports to validate the financial health of the business you’re acquiring. A strong QoE report gives your lender confidence that:
- The business generates enough cash flow to service the debt
- The purchase price is justified by actual earnings
- There are no hidden financial risks that could cause the loan to default
- The working capital assumptions in the deal are reasonable
Many SBA lenders now require or strongly recommend a QoE report for acquisitions above certain thresholds, making it a near-essential step in the process.
Services Offered by Tonnesen Accounting Services
Tonnesen Accounting Services provides a focused set of financial due diligence services designed specifically for business acquisition transactions:
Quality of Earnings Reports
- Comprehensive buy-side QoE analysis
- Normalized EBITDA calculations with detailed adjustment schedules
- Working capital analysis and peg recommendations
- Revenue and expense trend analysis
- Customer and vendor concentration risk assessment
- Reports formatted for SBA lender review
Financial Due Diligence
- Proof of cash reconciliation
- Balance sheet analysis
- Tax return to financial statement reconciliation
- Accounts receivable and payable aging analysis
- Inventory assessment where applicable
Deal Advisory Support
- Guidance on interpreting QoE findings for purchase price negotiations
- Communication with SBA lenders regarding financial diligence
- Support through closing process
Why Tonnesen Stands Out in the ETA Community
Reputation and Trust
In the relatively small world of ETA and SBA acquisitions, reputation is everything. Josh Tonnesen has built his through consistent delivery of quality work and genuine engagement with the buyer community. When first-time buyers ask for QoE provider recommendations in search fund forums, Twitter/X threads, or ETA communities, Tonnesen’s name consistently appears.
Right-Sized for SMB Deals
One of the biggest challenges in the SBA acquisition space is finding due diligence providers who understand the unique dynamics of small business deals. Large accounting firms often apply enterprise-level processes (and pricing) to SMB transactions, resulting in overkill analysis and inflated costs. Tonnesen’s firm is built specifically for this market segment, which means:
- Pricing that makes sense for the deal size
- Analysis focused on what actually matters for small businesses
- Understanding of SBA lender requirements and expectations
- Experience with owner-operated businesses and their unique financial characteristics
Practical, Actionable Analysis
The best QoE reports don’t just present data — they tell you what the data means for your deal. Tonnesen is known for producing reports that help buyers make informed decisions, whether that means proceeding with confidence, renegotiating terms, or walking away from a bad deal.
What to Expect When Working with Tonnesen
While every engagement varies based on the specific deal, here’s a general overview of the process:
- Initial consultation: Discuss your deal, timeline, and specific concerns
- Engagement and data collection: Provide financial statements, tax returns, bank statements, and other relevant documents
- Analysis phase: Tonnesen’s team digs into the numbers, identifies adjustments, and flags potential issues
- Draft review: Review preliminary findings and discuss any questions or areas needing deeper analysis
- Final report delivery: Receive the completed QoE report formatted for your lender and your own decision-making
- Follow-up support: Address lender questions and support through closing
Considerations Before Choosing Tonnesen
As with any service provider, there are factors to weigh:
- Availability: Due to his strong reputation, Josh Tonnesen may have limited availability during peak deal seasons. It’s advisable to reach out early in your process.
- Deal size fit: Tonnesen’s services are best suited for SBA acquisitions and small business deals. If you’re doing a large middle-market transaction, a larger firm may be more appropriate.
- Pricing transparency: As with many QoE providers in this space, pricing may vary based on deal complexity. Request a quote early to budget accordingly.
How GoSBA Loans Works Alongside QoE Providers Like Tonnesen
At GoSBA Loans, we see the financing and due diligence processes as two sides of the same coin. While providers like Tonnesen Accounting Services verify the quality of the business’s earnings, we ensure you have the best possible financing in place to close the deal.
Here’s how we work together to support SBA buyers:
- Financing expertise: GoSBA works with 50+ SBA lenders to find the best terms for your acquisition. With over $320 million in funded deals, we understand what lenders need.
- Free business plan: We provide a complimentary business plan valued at $2,500–$5,000 — a critical document that SBA lenders require. This frees up budget you can allocate toward quality due diligence.
- Lender coordination: We help coordinate between your QoE provider and your lender so that the diligence findings are properly communicated and any lender concerns are addressed quickly.
- Timeline alignment: We sync our financing timeline with your due diligence process to keep the deal on track and avoid unnecessary delays.
The best SBA acquisitions happen when strong financing meets thorough due diligence. We handle the financing side so you can focus on making sure the business is worth buying.
Final Verdict: Should You Use Tonnesen Accounting Services?
Tonnesen Accounting Services is an excellent choice for SBA buyers and ETA entrepreneurs who want a trusted, experienced QoE provider that specializes in small business acquisitions. Josh Tonnesen’s reputation in the community speaks for itself, and his focus on practical, buyer-friendly analysis makes him a go-to choice for many first-time and experienced acquirers alike.
Choose Tonnesen if:
- You’re acquiring a small business with SBA financing
- You want a QoE provider with a strong reputation in the ETA community
- You value clear, actionable financial analysis
- You need reports that satisfy SBA lender requirements
Consider alternatives if:
- You need the fastest possible turnaround and Tonnesen is booked
- Your deal is a larger middle-market transaction
- You’re looking for the lowest-cost option and don’t need community-vetted quality
Ready to Get Your SBA Acquisition Financing in Order?
Don’t wait until your QoE is done to start the financing process. GoSBA Loans can get you pre-qualified while your due diligence is underway, ensuring a smooth path to closing.
Contact GoSBA Loans today to discuss your acquisition and get matched with the right SBA lender for your deal.
