A cartoon man stuck in an hourglass
Property Casualty

Timeliness & Surety Credit: Quick, Quicker…Quicksand

Don Appleby
Don Appleby
Surety Director

For those of you with a December year-end, let’s talk!

Do you know what’s considered “timely” reporting?

Sureties and banks expect your final certified public accountant (CPA) statement within 90 days of year-end. But is that really timely these days? Most of you have a backlog of work that’s solid right now — or even stretched. The construction pendulum certainly swung in the right direction the past few years. Every street has an infill construction project, and cranes abound along your skyline. Good for everyone!

So, you may need more surety credit. Wouldn’t it be nice if you had your CPA statement ready 60 days after year-end or at least a draft of it? You’re ahead of the pack. Certainly this degree of timeliness requires organization, cooperation with your CPA, and some pushing. Let’s push! You need big bonds.

We routinely get favorable comments from surety underwriters when clients report their results early. Does it translate to more credit? Maybe. Does it translate into a better credit relationship? ABSOLUTELY!

Don’t let yourself (or your projects) and future bond needs get stuck in quicksand by delaying your year-end financial reporting.

Alternative: Share your internal year-end results and work-in-progress schedule now with comments on adjustments that will be made by your CPA.

Final Tip: Don’t forget to attach your internal accounts receivable (AR) aging schedule.

And the bonus is you have an extra day this year — leap day, today, February 29!

Have questions on what you need to do or need our help? Do you have any advice on what’s worked best for your organization? Let us know. Comment below! Others may have the same questions or use your advice to better their practices!

Explore more from Holmes Murphy