--- title: "Financial Statement Preparation in Surrey BC | Bonding, WIP" url: https://www.everstonecpa.com/financial-statements-surrey description: "Year-end statements for Surrey construction and logistics corporations — work in progress, surety reporting and CSRS 4200 compilations. Ask a remote CPA." type: service-in-a-city updated: 2026-10-08 summary: "Year-end statements for a Surrey contractor are typically a CSRS 4200 compilation, though bonded work often calls for more. Work in progress, over and under billings and the split between current and long-term items are what determine the working capital and equity a surety underwriter uses to set bonding capacity." faq_count: 7 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Year-end statements](https://www.everstonecpa.com/financial-statement-preparation-canada) Surrey Year-end statements · Surrey # Financial statements for *Surrey* construction and logistics companies A construction company’s year-end statements are read by a surety underwriter differently from the way a bank reads them, and Surrey has more contractors who need bonding than anywhere else in the Fraser Valley. It is part of [EverStone’s work for Surrey businesses](https://www.everstonecpa.com/accountant-surrey). Bonding capacity is set from the statements. EverStone prepares [year-end statements](https://www.everstonecpa.com/financial-statement-preparation-canada) for incorporated corporations remotely. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **Quick answer:** Year-end statements for a Surrey contractor are typically a CSRS 4200 compilation, though bonded work often calls for more. Work in progress, over and under billings and the split between current and long-term items are what determine the working capital and equity a surety underwriter uses to set bonding capacity. For a one-owner Surrey corporation, bookkeeping, payroll and the year-end T2 with financial statements together usually run from $500 to $700 a month. Filings include T4 slips. An item moved from current to long-term can change the bonding line. ## A surety underwriter is a different reader from a banker A bank lending on an operating line mainly wants to be repaid. A surety issuing performance and labour-and-material bonds guarantees that jobs get finished, so it underwrites capability rather than collateral. The two read the same statements for different things. Surety underwriting leans heavily on working capital and shareholders’ equity, because those are the buffers that let a contractor absorb a bad job without walking off a site. Capacity — the aggregate value of work that can be bonded at one time — is generally derived from those figures. So classification matters: moving an item from current to long-term changes nothing in the business but can change the bonding line materially. ## Work in progress across a year end Construction revenue rarely lines up with the fiscal calendar. Jobs are part-finished, costs have been incurred that have not been billed, and progress claims have been submitted for work not yet fully performed. Recognizing revenue on a percentage-of-completion basis means estimating how far each contract has actually progressed, usually by comparing costs incurred to total estimated costs. That estimate is the soft spot. If the total estimated cost on a job is optimistic, completion is overstated, revenue is pulled forward and the job looks profitable right up until it is not. A supporting work-in-progress schedule — contract value, costs to date, estimated cost to complete, billings to date, for every open job — is what makes the revenue figure reviewable rather than asserted. ## Over-billings, under-billings and what they signal Where billings on a contract exceed the revenue earned to date, the excess is a liability: billings in excess of costs and estimated earnings. Where earned revenue exceeds billings, the difference is an asset. Both belong on the balance sheet as separate lines rather than netted into receivables. A large over-billing means customers are financing the contractor: good for cash, but a liability worked off through future performance. A large under-billing often means billing lags the work, a cash problem and sometimes a paperwork one. A surety reads the trend in both lines as a sign of how well jobs are run. ## Holdbacks, receivables and the aging that matters Contract holdbacks are receivable but not yet collectible, so lumping them into trade receivables overstates liquidity. Shown separately, with expected release timing, they give an honest picture of near-term cash. Holdbacks payable to subcontractors deserve the same separate treatment on the liability side. Receivable aging carries weight beyond the total. A careful reader spots concentration in one general contractor, a balance too old to be paid in full, or a disputed claim carried at full value. Where a receivable is genuinely doubtful, an allowance is more credible than optimism, and the [bad debt write-off](https://www.everstonecpa.com/blog/writing-off-bad-debts-canada) rules govern when it becomes deductible. ## Subcontractor payments and the reconciliation nobody expects A construction corporation that pays subcontractors files [T5018](https://www.everstonecpa.com/blog/t5018-subcontractor-reporting-construction) information returns, and the total reported there should reconcile to the subcontract costs in the statements. Gaps usually have a reason, such as timing, materials-only purchases or payments outside the reporting scope. That reason belongs in the file now, not built later under a CRA query. Related to this is the classification question underneath the payments. Workers treated as subcontractors who function as employees create a liability that does not appear anywhere on the balance sheet until it is assessed. The [worker classification](https://www.everstonecpa.com/blog/subcontractor-vs-employee-cra) guide sets out how the tests apply. ## When a compilation is not enough for bonded work A CSRS 4200 **compilation engagement** presents information the contractor supplies. The accountant does not verify the work-in-progress estimates, does not confirm receivables and expresses no opinion. It is not an audit and it is not a review. With so much judgement in a construction year end, sureties know that limit matters. Many will write modest bonding lines on compiled statements. Above a certain capacity they generally require a **review engagement**, and at higher levels an **audit**. A contractor planning larger bonded work should confirm what its surety will require before the year end that supports the application. Assurance cannot be added retroactively, and a first review or audit takes longer than later ones. ## How a Surrey year end is handled remotely EverStone is a sole practitioner CPA firm that works online; there is no Surrey office. Job cost reports, WIP schedules and supporting documents move by secure upload link, questions are handled by video call, and signing is electronic. The year end runs alongside the construction season. This suits incorporated general contractors, site services and excavation businesses, mechanical and electrical trades, and the freight and warehousing companies along the Surrey industrial corridor. Related reading: the [Surrey small-business CPA](https://www.everstonecpa.com/accountant-surrey) page, [Surrey contractor accounting](https://www.everstonecpa.com/contractor-accountant-surrey), and [construction accounting in BC](https://www.everstonecpa.com/construction-accounting-bc). The year end this all feeds into is [corporate tax in Surrey](https://www.everstonecpa.com/corporate-tax-accountant-surrey). None of this works on records that are behind, which is what [our Surrey bookkeeping page](https://www.everstonecpa.com/bookkeeping-surrey) keeps current. Where a lender or an agreement calls for assurance rather than a compilation, the next question is [what an external engagement asks for](https://www.everstonecpa.com/audit-review-readiness). Bonding capacity is built over years, not at year end. See [fractional CFO support for Surrey contractors](https://www.everstonecpa.com/cfo-services-surrey) for backlog and working capital per job. About this article **EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. Updated September 2026 . [About the firm](https://www.everstonecpa.com/about) · [Send an enquiry](https://www.everstonecpa.com/book-online) ## What a year-end file contains What a year-end file contains Statements and the tax return come from one set of numbers — for a business operating in Surrey, British Columbia | Component | What it shows | | Balance sheet | What the corporation owns and owes at the year-end date | | Income statement | Revenue and expenses over the fiscal year | | Compilation engagement report | The CPA communication that accompanies compiled statements | | T2 schedules | Schedules 100, 125 and 141, built from the same figures as the statements | | Sales tax where you operate | 5% GST plus 7% BC PST: two registrations, two returns | Source: [What a compilation engagement is](https://www.everstonecpa.com/compilation-engagement-canada). General information, not advice. ## Who this is for, and who it is not This suits a Surrey contractor whose bank or surety accepts compiled statements. If the bonding line now calls for a review or an audit, that is a separate engagement, and the first call confirms what the surety wants. The fee is then [quoted in writing](https://www.everstonecpa.com/pricing). ## What happens when you get in touch Statements for a Surrey business are prepared the same way wherever the business sits, on a fee agreed up front. - **A free thirty-minute conversation.** Who is going to read the statements, and what that reader needs to see in them. - **The books brought to a closing position.** Balances agreed, cut-off checked, and anything unexplained resolved before a single statement is drafted. - **Drafted, reviewed, issued.** Statements walked through with you, then issued with the [compilation engagement report](https://www.everstonecpa.com/compilation-vs-review-engagement) the reader is expecting attached. [Send an enquiry](https://www.everstonecpa.com/book-online) and bring the lender’s request with you, or [ask what they will want](https://www.everstonecpa.com/quick-question) first. Common questions ## Surrey construction statement questions **How does a surety company decide my bonding capacity?** Primarily from working capital and shareholders’ equity in the year-end statements, adjusted for the underwriter’s own view of the business, its track record and the type of work. Because capacity is derived from those figures, balance sheet classification decisions that do not change the business at all can change the capacity available. [Ask about your case →](https://www.everstonecpa.com/quick-question) **What is a work-in-progress schedule and do I need one?** It lists every open contract with the contract value, costs incurred to date, estimated cost to complete, and billings to date. It is what supports percentage-of-completion revenue. Without it the revenue figure is an assertion. Any surety underwriter and most construction lenders will ask for it alongside the statements. **Should billings in excess of costs be netted against receivables?** No. Over-billings are a liability and under-billings are an asset, and they are shown separately. Netting them hides the direction and size of both, and the relationship between them is one of the clearest signals a reader has about how well jobs are being billed and managed. **Can I get bonded on compiled statements?** Often, for smaller bonding lines. As capacity requirements rise, sureties commonly require review-level and then audited statements, because a compilation carries no assurance over the work-in-progress estimates that drive construction revenue. The level cannot be added after the year is closed, so plan it ahead of the application. **Do holdbacks receivable count toward working capital?** They are receivable, but they are not collectible until the holdback period expires, so a careful reader discounts or excludes the portion not releasing within the year. Showing holdbacks as a separate line rather than inside trade receivables gives an accurate picture of near-term liquidity instead of an optimistic one. **Is EverStone based in Surrey?** No. Surrey engagements run entirely remotely through secure document exchange, video meetings and electronic signature. For a contractor, that generally works better than an appointment does, since nothing has to be scheduled around a site day. **Do you work with businesses outside Surrey itself?** Yes. Year-end statements for businesses in Cloverdale, Newton, Fleetwood, South Surrey and White Rock are prepared exactly as for Surrey ones, from the same closed books, at the same fee. ## Related services and local guides Nearby cities, the rest of what we do for Surrey businesses, and the reference pages behind this one. [Tax preparation in Surrey](https://www.everstonecpa.com/personal-tax-accountant-surrey) [Multiple corporations: when a second company makes sense](https://www.everstonecpa.com/blog/multiple-corporations-when-it-makes-sense) [The company car taxable benefit: what owning a vehicle in your corporation really costs](https://www.everstonecpa.com/blog/company-car-taxable-benefit-canada) [Accounting for trucking and logistics operations](https://www.everstonecpa.com/trucking-logistics-accounting) [Realtor accountant in Surrey](https://www.everstonecpa.com/realtor-accountant-surrey) [Financial statements in Vancouver](https://www.everstonecpa.com/financial-statements-vancouver) [GST/HST filing in Surrey](https://www.everstonecpa.com/gst-hst-filing-surrey) [Payroll in Surrey](https://www.everstonecpa.com/payroll-services-surrey) [CFO services in Surrey](https://www.everstonecpa.com/cfo-services-surrey) [Financial statement preparation](https://www.everstonecpa.com/financial-statement-preparation-canada) [Year-end hub Everything due at a corporate year-end](https://www.everstonecpa.com/year-end-hub) [Compilation engagements](https://www.everstonecpa.com/compilation-engagement-canada) [Accountants across British Columbia](https://www.everstonecpa.com/accountant-british-columbia) [British Columbia tax facts](https://www.everstonecpa.com/bc-tax-facts) [Accountants in the Fraser Valley](https://www.everstonecpa.com/accountant-fraser-valley) [Which engagement your statements need](https://www.everstonecpa.com/compilation-vs-review-engagement) [What a lender asks to see](https://www.everstonecpa.com/for-lenders) ### Starting fees Every fee is fixed in writing before any work begins. - **Corporate year-end and T2 return** fixed fee, quoted in writing *This page* - **Monthly bookkeeping, GST/PST filing included** from $325 a month - **Payroll, remittances, T4s and ROEs** included in monthly bookkeeping - **Books, payroll and the year-end T2 together** $500–$700 a month - **Personal tax return (T1)** from $125; self-employed or rental $275–$500 - **Catch-up bookkeeping** from $2,200 per year of records - **Controller or CFO support** controller from $1,650, CFO from $2,750 a month - **One-off advice call with a CPA** $225 plus GST [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) --- Source: https://www.everstonecpa.com/financial-statements-surrey Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online