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5 Tips to Prepare for a General Contractor’s License Audit

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.

Results of the Contractor Payment Survey

A CPA Firm should not just strive to be your accountant, but strive to be an industry resource to you. Your CPA Firm should be active in local trade organizations and in local chambers, to keep you up to speed with recent changes that may affect your business. As a firm that includes a large number of construction related clients, we are members of the Construction Financial Management Association (CFMA). We do this to be active in the local construction community as well as to represent our clients.

As a member, we receive valuable information, in many different forms, that we can in turn communicate to our clients. At the bottom of this blog, you can find the results of a survey titled, “Contractor Payment Survey.” This survey was put together by the Institute of Certified Construction Industry Financial Professionals. On August 10th, the survey was mailed to 925 CCIFPs and was also posted on the CFMA Cafe website that reached approximately 7000 members. The survey was then closed on August 17th with 142 respondents. 

Questions included in the survey are:
  • On average, how long does it take to collect payments?
  • How does your current collection time compare to last year?
  • How does your current collection time compare to three years ago?
  • Of all payment transactions you received during the last year, what percent were checks, ACH/wire, or credit card?
  • When considering your total revenue for the last year, what percent was received from checks, ACH/wire, and/or credit card?
  • What is your gross annual revenue?
  • What is your total number of employees?

Results of Contractor Payment Survey: CLICK HERE

Top 25 Largest General Contractors in Charlotte

Congratulations to the “Top 25 Largest General Contractors” in the Charlotte, NC region! This ranking was reported by The Charlotte Business Journal and was based off of local billings in 2014. To take a look at the companies, click the individual links below.

Top 25 Largest General Contractors
  1. Turner Construction Co.
  2. Balfour Beatty US
  3. Choate Construction Co.
  4. The Whiting-Turner Contracting Co.
  5. JE Dunn Construction
  6. Blythe Development Co.
  7. Blythe Construction Inc.
  8. Rodgers Builders Inc.
  9. Shelco LLC
  10. Adolfson & Peterson Construction
  11. Vannoy Construction
  12. A M King
  13. Samet Corp.
  14. Carocon Corp.
  15. Edifice Inc.
  16. Myers & Chapman Inc.
  17. Matthews Construction Co., Inc.
  18. G.L. Wilson Building Co.
  19. Robins & Morton
  20. Hickory Construction Co.
  21. Doerre Construction Co., LLC
  22. Shiel Sexton Co., Inc.
  23. Concorde Construction Co.
  24. Bradley Construction Group
  25. Dellinger, Inc.

The Top 25 General Contractors in the Triad of North Carolina were announced last week. Click here to see those companies.

Top 25 General Contractors in the Triad of North Carolina

Congratulations to the top 25 general contractors in the Triad as reported by the Triad Business Journal! This ranking was based off of 2014 billings in the Triad including Greensboro, Winston-Salem, High-Point and surrounding areas.

The Top 25 General Contractors in the Triad region are:

1. Samet Corp.

2. Thompson Arthur Division of Apac Atlantic

3. Landmark Builders of the Triad

4. Frank L. Blum Construction Co.

5. D.H. Griffin Wrecking Co, Inc.

6. Shelco, LLC

7. Lomax Construction, Inc.

8. Windsor Commercial

9. Brasfield & Gorrie LLC

10. Omega Construction, Inc.

11. D.H. Griffin Construction Co. LLC

12. Parr Construction, Inc.

13. Magnolia Construction, LLC

14. Davie Construction Co., Inc.

15. New Atlantic Contracting, Inc.

16. Signature Development Group, LLC

17. Wishon & Carter Builders, Inc.

18. Whiting-Turner Contracting Co.

19. Sterling Building Group, Inc.

20. LMI Builders, Inc.

21. Miles-McClellan Construction

22. Ramey, Inc.

23. H.M. Kern Corp.

24. D.H. Griffin Infrastructure, LLC

25. Holden Building Co., Inc.

To see the full breakdown of the top General Contractors in the Triad region, click here. Our team would be happy to make an introduction to one of these companies if needed. Contact us today!