Reviews and Compilations Built for the Construction Industry
Surety underwriters and lenders evaluate contractor financials differently. We prepare reviewed and compiled financial statements that meet those standards and support your bonding capacity and financing goals.
Review or Compilation — What's the Difference?
Understanding which engagement your surety or lender requires.
Compilation
A compilation involves a CPA organizing and presenting your financial information into proper financial statement format. The CPA does not verify the underlying data or provide any assurance that the statements are accurate.
Compilations are typically used for smaller contractors, internal reporting, or situations where a lender or surety requires a basic level of CPA involvement without full assurance.
Review
A review provides limited assurance that your financial statements are free of material misstatements. The CPA performs analytical procedures and inquiry to identify anything that appears inconsistent or unusual.
Reviews are commonly required by sureties for contractors pursuing larger bonding programs, and by lenders evaluating financing applications where an audit is not required.
Why It Matters for Contractors
Surety underwriters and lenders see your financials differently than a standard CPA would prepare them.
Bonding and Surety Requirements
Surety underwriters use your financial statements to evaluate working capital, net worth, and the strength of your balance sheet before approving bond capacity. A reviewed financial statement prepared by a CPA who understands construction, including job cost schedules, WIP reporting, and the percentage of completion method, carries significantly more credibility than one prepared by a generalist. The quality of your financials directly affects how much work you can bond and at what rate.
Lender and Financing Applications
Banks and lenders evaluating construction companies want to see financials that reflect how the business actually operates, including how revenue is recognized on long-term contracts, how overbillings and underbillings are treated, and whether the balance sheet accurately reflects the health of the business. Lender-ready financial statements reduce friction in the approval process and improve your position when negotiating terms.
Construction-Specific Reporting
Standard financial statements prepared without construction knowledge often omit or misstate the schedules and disclosures that matter most to the people reviewing them. MC4 CPA prepares financial statements that include the supporting schedules sureties and lenders expect, presented in a format that reflects the realities of how contractors earn revenue and manage project risk.
What MC4 Prepares
Financial statements and supporting schedules built for the construction industry.
Compiled Financial Statements
Balance sheet, income statement, and statement of cash flows prepared in accordance with applicable standards and formatted for contractor use.
Reviewed Financial Statements
Limited assurance engagement including analytical procedures and inquiry, producing financials that meet surety and lender requirements for larger bonding programs and financing.
Schedule of Contracts
A detailed schedule of completed and in-progress contracts showing contract amounts, billings, costs, and estimated gross profit, a key document for surety underwriters.
WIP Reporting
Work in progress schedules that accurately reflect overbillings, underbillings, and projected profitability across active jobs, presented in the format sureties expect.
Footnotes and Disclosures
Construction-specific footnotes and disclosures that explain revenue recognition methods, significant contracts, related party transactions, and other details reviewers look for.
Lender and Surety Coordination
We work directly with your surety agent and lender contacts to ensure the engagement meets their specific requirements and that deliverables are provided on their timeline.
Who This Is For
Contractors at different stages who need credible, construction-ready financial statements.
Contractors Pursuing Bonding
General contractors and subcontractors who need reviewed financial statements to qualify for larger bond programs or improve their bonding capacity and rates.
Contractors Applying for Financing
Construction companies seeking bank loans, lines of credit, or SBA financing who need lender-ready financial statements that accurately reflect their financial position.
Growing Contractors
Contractors moving into larger projects or new market segments who need financial statements that reflect their growth and support their credibility with new sureties, lenders, and project owners.
Ready to Get Started?
MC4 CPA, LLC — North Royalton, Ohio
We work with construction contractors across the country to prepare reviewed and compiled financial statements that meet surety and lender requirements.