IntelligenceSpreadsheet DiagnosticsSample readout

Sample readout

Spreadsheet Diagnostics: the contractor pricing and margin model · Delivered October 2, 2026

Conclusion

The model is sound in structure, but two errors understate cost and overstate margin, and both reach the figures the lender will see. Correct those two before November; the rest can follow.

Findings

Most consequential first. Severity says how much it matters; confidence says how sure we are. Open a finding for its evidence.

#	Finding	Severity	Confidence
F1	Every quote leaves out the setup fee What it means: Each quote is low by the full setup fee, so margin on new accounts is overstated. The setup fee is entered on the Inputs sheet but never reaches the price on the Quote sheet. Three issued quotes were each low by exactly that fee. The CFO confirmed the fee should be included. Quote sheet; fee schedule on the Inputs sheet	High	Confirmed
F2	Freight-in is counted as operating expense, not cost of goods What it means: Gross margin is overstated; operating margin is right. The lender reads gross margin. The margin summary balances, but the freight-in block sits under operating expense. The CFO confirmed it belongs in cost of goods. Margin summary	High	Confirmed
F3	The forecast will show last year's rates next January What it means: Right today; wrong from January 1 unless someone remembers fourteen manual edits. The year is typed into fourteen formulas instead of read from one input date. Forecast sheet	Medium	Confirmed
F4	Average days-to-pay covers fewer than half of the accounts What it means: The headline figure looks precise but describes only the accounts with a payment date recorded. Most accounts have no payment date; the average skips them without saying so. Not established: Whether the missing accounts pay faster or slower than the ones recorded. Receivables tab	Low-Medium	Inferred
F5	Two branches price from last year's freight table What it means: Quotes from those branches undercharge freight on long routes. Two of the five branch tabs point to the 2025 freight table. Branch price overrides	Medium	Inferred
F6	Prices can be typed over formulas without a trace What it means: One routine edit can break the price on every later quote, and nothing shows it happened. The price cells are unprotected and there is no record of overrides. Not established: Whether any override has happened already. Quote sheet	Low	Inferred

What we did not establish

Whether quotes issued before March used the same version of the model.
Whether earlier margin figures have already gone to the lender.

Scope

What we checked

✓The pricing and margin model as received on September 15, and its two linked files.
✓Whether its figures are right for the decision they serve: quoting, and the margin reported to the sponsor.

Outside this review

–The accounting system's own figures, which the model takes as given.
–Whether management's inputs and assumptions are reasonable.
–Branch copies of the model that were not sent to us.

Reviews

Findings confirmed with the CFO, September 29.
The report checked in a separate review against its evidence.

Every finding in this report is backed by an evidence record of how it was established. inLightinment keeps that record for the period set out in your engagement letter. A reviewer acting for you may examine it under a confidentiality agreement; ask your engagement lead.

Illustrative example. Calder & Finch Supply is fictional; every name, figure, file, and date is invented to show the format, and nothing you type is sent anywhere.