Financial Statements – Understanding the Concepts &
Audits — How to Navigate through the Process
• Balance Sheet – the company’s statement of Net Worth
• Income Statement (or Profit & Loss) – the report card on the company’s performance
• Statement of Cash Flow – “Cash is King”
• Basic Industry Ratios – Used by lenders, customers and suppliers
• Insurance Audits – Worker’s Comp, Liability & Auto
• Financial Audits – Required for larger contracts and certain public work qualification
• Unemployment Audits – Routinely performed by the State of Md.
• Sales & Use Tax Audits – Not frequent, but intense and laborious when they occur
• Unclaimed Property – Often overlooked by businesses
• Job Audits – Requested by owners, public agencies and other stake holders
• DOL/DLLR Audits – Payroll, Worker Classification, Employee Records, Wage Restitution

Contractor Compliance – Recordkeeping & Reporting &
Tax Reporting – What you need to understand to minimize cost and avoid excess taxation 
• Lien Waivers
• Wage Scale, Certified Payroll
• Maryland Apprenticeship Training Fund
• MBE Participation
• Certificate of Insurance
• Bonding
• W-9 Forms
• Personal Property Tax – planning ahead and accurate reporting
• Payroll Taxes – Accuracy and timing are critical
• 1099s – who should get one, and who should not
• Work Opportunity Tax Credit – who qualifies and how to secure tax credit

Job Costing – Why it’s important and how to track costs &
Accounts Receivable and Accounts Payable
• Measurement of job profitability
• Organize costs by Job, Phase or Division, Cost Code and Cost Type
• Construction specifications Institute Division Codes
• Estimated cost compared to actual costs
• AIA Progress Billings
• Customer payment and cash flow
• Common issues that delay AR processing
• Purchase Orders, Confirmation & Approval, Invoice payments
• Internal Controls and fraud protection
• Avoid AP errors that can cause over-payment