We have recently changed banking and bonding companies and these new partners are now asking us for more detailed information on an interim basis. In the past I have only been asked for current work on hand by the surety when verifying our current bonding program for a bid – not financials or fully prepared WIP schedules.
Of course, I prepare these on a monthly basis for internal review, but we tend not to focus on where we’re at presently throughout the year, but on where we’re predicting to be at our year-end based on current job OH&P and total projected overhead. This focus is a little different from what our bonding company wants to see, so I've been struggling with how to present that early in the year.
I also don't generally make the over/under billing entries throughout the year unless required by a compilation, as they are cumbersome, but I wonder if 3rd parties are interpreting that correctly when reviewing the WIP and income statement.
I realize this is a sensitive subject, but I was just curious if anyone would be willing to share their process of submitting info throughout the year and if anyone struggles with the same issues I have identified.
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Beth Quinn CPA
Chief Financial Officer
RF Construction, Inc.
Manhattan KS
(785) 776-8855
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