Strong financial visibility
Our team provides accounting and financial reporting support designed for contractors seeking to maintain strong financial visibility and support their surety relationships.
Financial Reporting Built for Bonding. Clear Numbers for Better Surety Decisions.
For construction companies, strong financial reporting can be an important part of maintaining a successful surety relationship.
Surety companies evaluate contractors before providing contract bonds, considering factors such as financial strength, capacity, experience, and other underwriting information. Financial statements and related contractor information can play an important role in that process.
Our construction and surety accounting professionals help contractors prepare reliable financial information, including audited and reviewed financial statements, work-in-progress reporting, job cost analysis, and other financial documentation used in bonding and construction finance.
Construction accounting requires specialized financial reporting because contractors need to track individual projects, costs, progress, billings, retainage, profitability, and cash flow.
Our team provides accounting and financial reporting support designed for contractors seeking to maintain strong financial visibility and support their surety relationships.
Our goal is to help contractors maintain accurate, organized financial information that can support management decisions, lenders, bonding relationships, and other stakeholders.
Our services include:
A contractor's financial position can be an important part of the surety underwriting process. Surety companies evaluate a contractor's ability to perform its obligations and consider factors that can include financial strength, experience, capacity, and other underwriting information. The SBA describes the traditional surety evaluation framework using the “three Cs”: Capital, Capacity, and Character. For contractors, that means financial reporting needs to do more than satisfy year-end accounting requirements. Your financial statements should help communicate the items below. Accurate financial information gives your surety, lender, management team, and other stakeholders a clearer view of the company's financial position.
Many contractors work with sureties that require financial statements at a particular level of assurance as part of their bonding relationship. We help construction companies prepare for and obtain financial statement services appropriate to their circumstances, including audit and review engagements. Our process focuses on understanding the contractor's accounting system, revenue recognition practices, job costing, work-in-progress schedules, accounts receivable, accounts payable, retainage, equipment, debt, contract assets and liabilities, equity, and cash flow.
A well-organized financial reporting process can make it easier to provide reliable information to the parties evaluating your business.
Work-in-progress reporting is an important part of construction financial management. A WIP schedule connects individual project performance with the contractor's overall financial statements. Our team can support contractors with reviewing the project items below. Accurate WIP reporting can help management understand project profitability and provide stakeholders with better visibility into the contractor's active backlog.
Construction companies need to understand where money is being spent across every project. Better job-cost visibility helps contractors identify project performance trends and understand how individual jobs contribute to overall financial results.
Managing construction accounting and financial reporting through disconnected processes can create unnecessary work. From monthly accounting data to annual financial statements, we can support the financial information needed throughout your business cycle.
Our construction accounting support can help organize and analyze job costs such as labor, materials, subcontractors, equipment, overhead, and other project expenses.
Obtaining and maintaining bonding capacity requires contractors to provide financial and operational information to their surety and bonding partners. We help contractors organize financial information that may be requested during the bonding process. The exact requirements vary by surety, contractor, bond program, and circumstances.
A surety needs reliable information to evaluate a contractor's financial position and project capacity. We do not determine whether a contractor will qualify for a bond. That decision belongs to the surety and its underwriting process. Our role is to help contractors maintain accurate and well-organized financial information.
Growth can create additional financial complexity. Taking on larger projects may increase revenue while also increasing requirements for working capital, labor, materials, subcontractors, equipment, and project management.
Our team brings together construction accounting knowledge and financial reporting support to help contractors maintain a more consistent financial process.
Profitability and cash flow are not the same thing. A contractor can show accounting profit while still experiencing cash-flow pressure because of retainage, delayed collections, project costs, equipment purchases, payroll obligations, or changes in working capital. Cash-flow analysis can give management an additional perspective when evaluating new projects and growth opportunities. Construction sureties may also consider project backlog, work-in-progress information, and financial metrics when evaluating contractor risk. Our financial analysis can help contractors review:
Preparing for an audit can be significantly easier when your accounting records are organized throughout the year. We help contractors prepare relevant financial information and supporting documentation, including:
Review significant accounts and financial activity.
Organize and review bank and cash information.
Review customer balances, aging, retainage, and collections.
Review vendor balances and outstanding obligations.
Review project information and reconcile WIP data with the accounting records.
Preparing for an audit can be significantly easier when your accounting records are organized throughout the year. We help contractors prepare relevant financial information and supporting documentation, including:
Review significant accounts and financial activity.
Organize and review bank and cash information.
Review customer balances, aging, retainage, and collections.
Review vendor balances and outstanding obligations.
Review project information and reconcile WIP data with the accounting records.
Our construction and surety accounting services can support the contractor types below. Whether you manage a small contracting company or a growing construction operation, our services can be tailored to your financial reporting requirements.
Construction financial reporting requires an understanding of project accounting, WIP schedules, job costing, retainage, contract revenue, and project profitability.
We understand why contractors may need financial information that clearly communicates their financial position to bonding and other stakeholders.
We help contractors organize project information and financial data used in work-in-progress reporting.
We help contractors maintain financial statements that present their financial position and operating results clearly.
Job-cost and WIP analysis can help management understand project-level performance and identify financial trends.
As your backlog and project size increase, your financial reporting needs can become more complex. Our services can scale with your organization.
Your next construction opportunity may depend on more than your ability to win the project. Your surety, lender, owners, and other stakeholders may need confidence in the financial strength and operational capacity behind your company. Accurate financial statements, reliable WIP schedules, organized job-cost information, and clear cash-flow reporting can help you present a more complete financial picture. Our construction and surety accounting specialists help contractors prepare the financial information they need to manage their business and support their bonding relationships.
A construction surety bond is a three-party agreement involving the contractor, the obligee, and the surety. Contract surety bonds can provide protection related to the contractor's obligations under a construction contract. Common contract bonds include bid, performance, and payment bonds.
Sureties use financial and operational information as part of their underwriting process. Financial statements can help provide information about a contractor's capital, financial condition, profitability, liquidity, and other factors relevant to evaluating bonding risk.
Requirements vary by surety, contractor, bond program, and circumstances. Some sureties may require audited financial statements, while other contractors may qualify for different levels of financial reporting. Contractors should confirm the specific requirements with their surety or bonding professional.
A work-in-progress schedule provides information about active construction contracts, including contract values, costs incurred, estimated costs to complete, billings, revenue, and estimated profitability.
WIP reporting can help contractors understand the financial performance of active projects and connect project-level information with overall financial reporting.
Overbillings and underbillings generally describe differences between amounts billed to customers and revenue recognized based on the applicable accounting method and project progress. Their financial statement treatment depends on the applicable accounting framework and circumstances.
Yes. We provide construction financial reporting and financial statement services based on the contractor's circumstances and the applicable engagement.
We can help organize financial statements, WIP schedules, job-cost information, accounts receivable and payable data, cash-flow information, and other financial documentation that may be requested by a surety.
Yes. Ongoing construction accounting support can include financial reporting, reconciliations, job-cost analysis, WIP reporting, cash-flow analysis, and other financial management services.
We do not determine or guarantee bonding capacity. Bonding decisions are made by sureties based on their underwriting criteria. We can, however, help contractors maintain accurate financial information and analyze areas such as working capital, project profitability, cash flow, and WIP reporting that may be relevant to financial presentation.
Depending on the surety and bonding program, information can include financial statements, WIP schedules, accounts receivable and payable, backlog, cash flow, debt, organizational information, and contractor experience. Requirements vary by surety and circumstances.
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