Nevada Contractors License – Financial Statement Requirement

In my career, I have assisted over 100 contractors trying to get their Nevada Contractors License. A lot of these contractors are from California, and are shocked to find out about this requirement. Most contractor’s don’t understand why Nevada requires compiled, reviewed or audited financial statements. Here is a list of the most frequently asked questions.

Why does Nevada require that I have a compiled, reviewed or audited financial statement? 

Nevada was one of the hardest hit states, when the 2008 recession hit. Many contractors were forced out of business due to the state of the economy. Because of this, it left the paying customers high and dry. Nevada wants to protect the homeowners and ensure that companies are liquid enough, while their doing business in Nevada. Therefore, they instated this requirement.

Do I need a compilation, review or audited financial statement?

The financial requirement is based upon the desired bid limit. Upon viewing your provided balance sheet, I will be able to calculate the bid limit that the State of Nevada will approve you for. In short though, you will need a compilation for bid limits under $245,000 and a review or audit for bid limits above $250,000. I always recommend a review over an audit, as it is less in scope and will cost you less money.

How much will a compilation, review or audit cost me?

Our costs are fixed and depend on your bid limit. Our fixed fees are discounted for contractors and are contingent upon your books being in good order. Nevada only requires that you have a compiled or reviewed balance sheet. You can see our fees here: Fixed Fees for Contractors

How long does it take to complete?

In most cases, from the time I receive a clean balance sheet, I can complete the compilation within 2 business days and the review within 4 business days.

I live in California and you’re in Nevada, can you still do my compilation or review?

Thanks to technology, we can preform compilations and reviews remotely. We can do everything via email.

 

What are your questions? Feel free to comment below, or you can call/email me!

 

 

Financial Statement Requirement for the State of Nevada Contractors Board

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.