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Accountant at Work

Surety Bond Accounting

Accounting For Surety Bonding

At Payless Taxes, we offer bookkeeping services tailored for contractors needing surety bonding, which requires a specialized understanding of the surety process, the associated financial requirements, and how bookkeeping can support the parties involved (principal, obligee, and surety). Here’s an outline for structuring such a service:

Accurate bookkeeping is essential for contractors seeking surety bonds, as it demonstrates financial stability and reliability to surety providers. Proper financial records can lead to more favorable bond terms and increased bonding capacity.

Key Bookkeeping Services for Surety Bonding:

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  1. Financial Statement Preparation: Providing clear and accurate financial statements is crucial for surety bond applications. These documents offer insight into your company's financial health and operational efficiency.

  2. Cash Flow Management: Maintaining positive cash flow ensures you can meet project obligations promptly, a factor that surety providers closely evaluate.

  3. Job Costing and Budgeting: Implementing detailed job costing and budgeting practices helps in tracking project expenses and profitability, which is vital for both project management and financial reporting.

  4. Work-in-Progress (WIP) Reporting: Regular WIP reports provide updates on project status and financial performance, aiding in transparency and informed decision-making.

Accountant

Our accounting tools helps construction business owners analyze

  • How each job performance impacts your overall company results (good or bad)

  • How the backlog you have determines the amount of cash you have to operate with

  • How soon you'll breakeven for the year and start making a profit

  • What your target revenue needs to be to hit your net income goal

  • Whether or not you have enough cash/working capital to cover overhead

  • We provide the complete reporting package that surety bond companies needs in a periodic basis- books done in percentage of method completion

Our bookkeeping and accounting services include:

  • Capturing and properly coding all bank and credit card transactions

  • Bank and credit card reconciliation

  • Job costing

  • Fixed asset management

  • Financial reporting for surety bonding

  • Work in progress schedule for long term contracts

  • Management reporting

  • 1099 filing

BENEFITS OF HIRING US

  • Know whether your new job will be profitable

  • See if you'll reach your net income goals

  • Find out how much cash you need to operate with

  • More time available for important things nobody else can do at your business

  • Less stress

  • ​Free time to enjoy the things you like

Making Notes

WHAT WE OFFER

We are an outsourced bookkeeping and tax preparation firm for commercial contractors. Our service entails month end closing of books, financial accounting & reporting, cash management and surety advisory.

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We provide you with books done in percentage of method completion accompanied with a WIP Schedule needed for bonding purposes.

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Working with our accountants is a breeze, and it starts with a meeting to determine your needs and how you want to handle your accounting. Payless Taxes offers a FREE 45-minute consultation to review your situation and to explore how we might be able to help you! 

Young Accountant

FINANCIAL ACCOUNTING & REPORTING

For most contractors, financial reporting starts at the job level. Each job’s financial status directly impacts the contractor’s overall financial statements. Prime CFO has the expertise to design and implement the project level reporting processes and controls to keep you informed of each job’s progress and where it is headed. Let us design executive level reports to give contractors insight into how their company is performing

  • Gross profit by job

  • Cash flow by job

  • Over/ under billing by job

  • Backlog schedule

  • Percentage completion / work in process

  • Backlog forecast

Co-working space

CASH MANAGEMENT

Cash flow is what every business needs to survive and thrive. Cash management is at the heart of a company’s overall effort to increase profitability. For many businesses, the key to success is the management of the company’s cash flow. Unique aspects of the construction industry make it challenging to manage cash. Construction is cyclical and project based. Most contractors have to contend with retainage payments and wait long periods to receive payment, while they are paying certain project costs, payroll and overhead expenses up front. The multiple relationships between owner, contractor and subcontractor also tend to complicate the cash management process. The most successful contractors know where their cash is on a daily basis and are focused on the cash flow cycle.

SURETY ADVISORY SERVICES

We can assist your company with its surety company relationship. Surety credit is the lifeblood of contractors. Surety companies want to know they are extending credit to contractors with a track record of completing successful projects. They also expect to be provided with quality financial information and internal management reports on a timely basis. Work in process schedules, cash flow and financial forecasts are an important part of every bonding meeting. Payless Taxes can assist with the preparation of financial statements, forecasts and the necessary internal reports so you can obtain the greatest amount of credit available. We will help you manage your balance sheet so your surety company will extend the maximum support it can to your company. 

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