Reference
Evidence Definitions
Canonical rules used across ProfitBooks. If an input does not survive these definitions, it does not influence scoring.
Core rules
- Observed behaviour only
- One unit of value only
- Realised revenue only
- Founder labour is always a cost
- Missing evidence scores zero
Domain standards
Unit economics
- Blended units are invalid
- Discounts, refunds, and credits are stripped from revenue
- All direct variable costs must be itemised
- Margin must survive variance
Cash reality
- Cash timing outweighs accounting comfort
- Burn must be decomposed into real components
- Committed outflows matter more than narrative runway
- Working-capital gaps count even when revenue looks healthy
Scale & profit
- Growth is neutral until economics improve
- Control matters more than peak profit
- Concentration and dependency reduce durability
- Stress resilience matters more than upside theory
Evidence weighting
Highest weight
- Bank statements
- Payroll records
- Cleared customer payments
- Vendor invoices with dates
High weight
- Contracts paired with collections
- Unit-level delivery cost evidence
Medium weight
- Accounting exports reconciled to cash
Zero weight
- Forecasts
- Plans
- Fundraising assumptions
- Narratives
- Slideware
Scoring rules
- Missing evidence = zero
- Blended units = fail condition
- Uncosted founder labour = subsidy flag
- Cash reliance on perfect timing = downgrade
- Growth increasing fragility = negative
ProfitBooks does not reward ambition.
It evaluates economic truth under enforcement.
If the business survives scrutiny, it earns the verdict.
Related tools
Unit Economics Truth
See these rules applied to single-unit profitability. Review Unit Economics Truth.
Cash Reality & Runway
See these rules applied to liquidity and timing risk. Review Cash Reality & Runway.
From the knowledge base
Read how blended metrics hide failure before evidence rules are enforced. Read: Why Unit Economics Break Before Growth Stalls.