What Financial Statements Do You Need to Get a Surety Bond?
Last Updated on September 17, 2026 by Pamela Chowdhury
You’ve got the crew. You’ve got the experience. You’ve got the bid ready to go. But when the project owner or general contractor asks for a surety bond, everything comes down to one thing: can your financial statements back it up?
What Is a Surety Bond and Why Does It Matter?
A surety bond is a performance guarantee that a contractor will complete a job as contracted. To issue one, your surety needs confidence in your financial health, and that confidence comes from your financial statements.
What Do Sureties Look for in Your Financial Statements?
Sureties look for four things: a strong balance sheet, consistent profitability, an accurate Work-in-Process (WIP) schedule, and the right level of CPA assurance. Here’s what each one means:
| What Sureties Look For | What It Means |
|---|---|
| Strong balance sheet | Healthy working capital, manageable debt, and adequate liquidity. |
| Consistent profitability | Job-level and company-wide margins that show you can deliver. |
| Accurate WIP schedules | A clear picture of where every open job stands: estimated costs, costs to date, billings, and over/under positions. |
| Audited or reviewed financials | As bonding needs increase, sureties often require a higher level of CPA assurance, such as a financial statement audit or review. |
What Is a WIP Schedule, and Why Do Sureties Care About It?
A Work-in-Process (WIP) schedule tracks every open job’s estimated costs, actual costs to date, billings, and over/under-billed position. Sureties rely on it to see whether your jobs are tracking to plan. An inaccurate or incomplete WIP is one of the fastest ways to lose a surety’s confidence.
Do I Need an Audited or Reviewed Financial Statement to Get Bonded?
It depends on your bonding needs. Smaller bonding capacity may only require compiled or reviewed financials, but as the size of the jobs (and the bonds) increases, many sureties will require an audit.
How Does Lucida Help Construction Contractors Get Bonded?
Lucida has expertise in the construction industry, and we work with contractors on exactly the accounting and reporting sureties check before extending bonding capacity. Here’s how our Audit team helps you get bonded:
- Audit & review engagements built for construction — Our team understands percentage-of-completion accounting, retainage, and under/overbillings, and the nuances sureties care about most.
- WIP schedule support and review — We make sure your WIP is accurate, complete, and tells the right story to your surety.
- A year-round relationship, not just a year-end scramble — Bonding capacity isn’t built overnight. We work with you throughout the year so you’re always ready for the next opportunity.
The biggest jobs go to contractors who can get bonded — and contractors who can get bonded have financial statements that are accurate, timely, and prepared by a team that knows construction. Don’t let your financials be the reason you miss out on the next big project.
Talk to Lucida’s Audit team and let’s make sure you’re ready.
Frequently Asked Questions
What financial statements do sureties require?
Most sureties require a balance sheet, income statement, and a Work-in-Process (WIP) schedule at minimum. Larger bonding capacity typically requires a CPA-reviewed or audited financial statement rather than a compilation.
What’s the difference between a reviewed and an audited financial statement?
A review provides limited assurance based on analytical procedures and inquiry, while an audit provides the highest level of assurance through testing and verification of financial records.
How far in advance should I prepare my financials before bidding on a bonded job?
Ideally, months before you need the bond — not during the bid. Bonding capacity is built through a consistent track record of accurate, timely financials, which is why an ongoing relationship with your CPA matters more than a rushed year-end engagement.
Still have questions about getting bonded? Lucida’s Audit team works with contractors on exactly this, every day.