The SBA is now requiring all 8(a) companies to submit three full years of financial records. For construction firms, this is even more serious because your numbers are more complex—and the SBA wants proof that you can properly manage:
- Job costs
- Contracts and change orders
- Subcontractor payments
- Payroll
- Materials
- Equipment
- Retainage
- Bonding and cash flow
If your books are not clean, organized, and CPA-verified, your firm is at risk.
1. Construction Is the #1 Industry Where SBA Finds Problems
Many construction 8(a) companies rely on:
- A bookkeeper who posts invoices
- QuickBooks without proper job costing
- No monthly reconciliations
- No CPA review
- Unreliable cost-to-complete numbers
- Missing subcontractor paperwork
- Late financial statements
This will not satisfy the SBA.
Construction accounting must follow GAAP, and the SBA wants real evidence that:
- Your job costing is accurate
- Your revenue is recognized correctly
- Your contracts match your books
- Your payroll and subcontractor costs are documented
- Your financials can stand up to an audit
A bookkeeper cannot deliver this level of assurance.
2. What’s at Risk for Construction Firms
If your records are sloppy, the SBA can:
- Freeze your 8(a) benefits
- Stop you from winning new contracts
- Flag you for deeper review
- Question your bonding capacity
- Question your job costing and margins
- Remove you from the program
And because construction contracts are large and inherently risky, the scrutiny is even stronger.
3. Why Construction Firms Need CPAs — Not Bookkeepers
A CPA gives you more than data entry. A CPA gives you financial credibility when agencies, sureties, and the SBA are evaluating your firm.
- True job-cost reporting
Proper tracking of labor, materials, subs, equipment, and overhead—so your margins are real, not guessed. - Accurate percentage-of-completion revenue
SBA reviewers and bonding companies expect this methodology to be done correctly and consistently. - Bonding-ready financials
Sureties generally will not rely on bookkeeper-prepared numbers for meaningful bonding decisions. - Clean reconciliations
Every invoice, payment, and subcontractor balance ties out properly—no loose ends and no missing support. - SBA-ready documentation
Contracts, change orders, payroll, and bank activity all align with the financial statements and the job-cost detail.
4. If You Are a Construction 8(a) Firm, This Is Your Wake-Up Call
Your financial system must be as strong as your project delivery.
A bookkeeper can enter transactions, but only a CPA can protect your company when the SBA asks hard questions.
If your construction firm wants to stay safe, competitive, and ready for SBA review, now is the time to get CPA-level support.