For all contractors either applying for a contractors license or increasing (or even decreasing) their bid limit, the State of Nevada requires that an independent Certified Public Accountant either compile or review the Company’s financial records. In this video, Erin Jones, CPA discusses the financial statement requirements when applying for a contractors license in the State of Nevada. Erin also discusses the process related to a compilation and review.
Links discussed in the video:
For bid limits under $10,000 you can find the packet to complete by yourself by clicking here.
For discussion of the requirement related to bid limits (and our pricing), click here.
Find out more about a compilation or review by clicking here.
A compilation is the most basic financial statement service that a Certified Public Accountant (CPA) can perform for their clients. The CPA simply presents the information that management gives them in basic financial statement form. The CPA does not provide any assurance as to whether or not there are any material misstatements (or errors) in the information presented. A review is a bit more complex than a compilation. During a review, the CPA takes the information given to them by management and compares the current information to the prior year information. The CPA talks to management and performs analytic procedures over the information to determine if there are any material misstatements in the financial statements.
There are times that a business may need to get a compilation or review performed. Here are just a few examples:
- In Nevada, contractors who wish to either perform work in the state or who wish to increase (or decrease) their bid limit are required to have a compilation or review performed. Click here for more details.
- Contractors (or businesses) who require certain bonding are required to have a compilation or review performed.
- Businesses who wish to obtain a business loan (sometimes even an SBA loan) are required to have their financials compiled or reviewed. Additionally, when a bank loans businesses money, they require their borrower to maintain certain debt covenants. To calculate these covenants, the banks require reviewed financial statements.
- Businesses who are looking into buying or leasing real estate require compilations or reviews.
- When business owners are looking to sell their business, a compiled or reviewed financial statement is helpful when presenting their business to prospective buyers.
Belle Business Services, LLC provides fixed priced compilations and reviews starting at $250. There is no compilation too small or no review too big for us to handle. Call us today at 775-525-1829 or email Erin Jones, CPA at firstname.lastname@example.org for more information.