Contractors
Alabama licence applications and renewals, surety bonding, bank lines and prequalification all run on financial statements a CPA firm prepares. We prepare them to the standard the board or the surety will accept, with the work in progress schedule behind them.
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What This Covers
The Alabama Licensing Board for General Contractors accepts an audited, reviewed or compiled statement prepared by a CPA under generally accepted accounting principles, less than a year old. Cash and tax basis statements are not accepted. At least $10,000 in net worth and working capital is required, and the board sets your bid limit from what the statement shows.
Bid, performance and payment bonds are underwritten on your statements, your work in progress schedule and your backlog. We prepare the package your agent and underwriter ask for and keep the presentation consistent year to year.
The same statements, plus covenant tracking and borrowing base support for the lender relationship.
Owner and general contractor forms that call for CPA prepared statements before you can bid the work.
Over and under billings, percentage of completion and backlog, built so the schedule ties to the general ledger rather than to a spreadsheet kept on the side.
Licensing rules differ by state. We confirm what your board asks for before the engagement starts, and say so plainly if a CPA statement is not required.
Florida Contractors
A Florida state contractor licence does not turn on a CPA financial statement. Florida looks at a credit report and, where the score falls short, a board approved financial responsibility course; a financially responsible officer posts a bond. If someone tells you that you need CPA statements for a Florida licence, ask which rule requires it.
Where a Florida contractor does need us is bonding, bank financing, prequalification, and a licence in Alabama or another state that asks for statements.
Construction accounting and CFO support Fractional CFO servicesHow It Runs
Step 01
Which board, surety or bank, and which level of service they will accept. Confirmed in writing before work begins.
Step 02
What the books need first: job costing, work in progress, retainage, equipment and debt. Cleanup is quoted separately.
Step 03
Preparation and report at the agreed level, delivered in the format the board or surety wants, and repeated on a set date each year.
What It Costs
Contractor work is billed at our hourly rate and quoted after a short call, once we know which board, surety or bank is asking and what the records look like. Every engagement gets a written scope and fee before work begins.
Statements prepared from your records with the schedules a board, surety or bank expects, with no assurance expressed.
Analytical procedures and inquiries providing limited assurance, the level many sureties ask for as a bonding programme grows.
Bringing the records to the point where a statement can be prepared: reconciliations, job costing setup, the work in progress schedule and retainage.
Scope Of The Work
The licence application, the qualifying agent role and the financially responsible officer role stay with you and your company.
Entity structure documents, contract terms, lien and bond claims and licence disputes belong with your attorney.
Your surety agent does that. We prepare and explain the numbers behind the bonding programme.
A CPA reports at the level performed: compilation, review or audit. We do not guarantee or vouch for a net worth beyond that report.
Common Questions
No. Florida evaluates financial responsibility through a credit report, and where the score falls short, a board approved financial responsibility course; a financially responsible officer posts a bond. Financial statements matter for bonding, bank financing, prequalification, and for licences in states that ask for them.
The Alabama Licensing Board for General Contractors accepts an audited, reviewed or compiled financial statement prepared by a CPA under generally accepted accounting principles, no more than one year old. Cash basis and tax basis statements are not accepted and a deficit is not accepted. Applicants need at least $10,000 in net worth and $10,000 in working capital, and the board sets the bid limit from the statement.
The board, surety or bank decides. Alabama accepts a compilation, a review or an audit. Sureties often ask for a review as the bonding programme grows, and a bank may accept a compilation. We confirm the requirement in writing before the engagement starts.
Yes for a compilation or a review, with the required disclosure that we are not independent. An audit is not available in that case.
It depends on the state of the records. Books that are current and reconciled with a usable work in progress schedule move quickly. Where cleanup is needed we scope and quote it before starting.
Next Step
A consultation on which board, surety or bank is asking, what they will accept, and what the records need first.
Individual tax prep online: 850 Tax (opens in a new tab). 850 CFO Online (coming soon).