Tip 1: Know Which Type of License you are Seeking:
The dollar amount of the project you are bidding on will likely be the determining factor of which license type is right for your company. See the chart at the bottom of the post for the license thresholds, financial requirements and whether an audit is required to be performed by an independent CPA.
Tip 2: Possess the Necessary Working Capital:
Even though you may want a certain license type (i.e. unlimited), you may not meet the eligibility criteria for one, so be sure to review all of the eligibility requirements before submitting your application.
Tip 3: Engage an Independent CPA:
Please know that not all CPAs can perform audits. Make sure you are working with a firm who has prior experience performing audits of general contractors.
Tip 4: Assemble all Documents Necessary for an Independent Audit:
Typical documents requested as part of an audit or review engagement include: a) access to QuickBooks or other accounting system used by the contractor; b) bank statements; c) access to source documents (checks received or paid); d) organizational documents including articles of incorporation.
Tip 5: Submit Audited Balance Sheet along with Completed License Application to your State Board of General Contractors:
Ensure that all of the necessary documents are attached to the State application form and the proper reports prepared by the independent CPA are attached. States will not process your application without an attached audited balance sheet (if necessary). Failure to include the audited balance sheet will result in costly delays in processing of your application.
For a quick outline of the requirements and thresholds for a GC licensure audit, CLICK HERE.
If you have any questions or would like to speak to a certified public accountant at LBA Haynes Strand regarding your General Contractor's License Audit, click the button below for your no-cost consultation: