Gather complete, consistent records before requesting a valuation. Start with financial statements, tax filings, general ledger detail, payroll summaries, receivables aging, work in progress, backlog schedules, debt, leases, owner compensation, and project-level performance. Provide several years of history so the professional can identify trends. Reconcile totals across reports, and flag any differences that remain.
Assign one person to coordinate the records, even if the CPA or controller prepares the schedules. Create a folder with separate sections for annual financials, tax returns, payroll, projects, contracts, debt, and ownership. Add an index that names each file, its period, who prepared it, and whether it is final. Use consistent file names and retain the source reports behind any summary you create. This makes follow-up requests easier to answer and helps prevent conflicting versions from circulating.
Prepare a short written explanation of accounting changes, unusual items, related-party transactions, disputed balances, write-offs, and material events. For every proposed earnings adjustment, include the amount, period, reason, and supporting document. For example, if you want a one-time legal expense excluded, provide the invoice and explain why it does not reflect recurring operations. Keep owner compensation, personal expenses, and related-party costs clearly identified. Have your CPA review the schedule and explain how it reconciles to filed tax returns.
Separate executed contracts and authorized task orders from proposals, options, and awards awaiting signatures. For each backlog project, show the remaining authorized fee, expected schedule, estimated remaining cost, billing status, and known delays or disputes. Tie the schedule to contract documents and project accounting. A headline backlog total alone does not show how much work is funded, when it may be performed, or what risks could affect delivery.
Gather records on client concentration, employee departures, claims, insurance matters, ownership responsibilities, and reliance on particular licensed professionals. Note gaps rather than filling them with unsupported estimates. If an estimate is necessary, identify its source, assumptions, and preparer. Do not alter historical records to improve the apparent result. Record corrections transparently and retain the prior version.
Protect sensitive information. Ask the valuation professional how records will be stored, who can access them, and how employee, client, and project details should be shared. Ask your attorney about confidentiality and disclosure duties before providing contracts or claim files.
This is general education, not accounting, tax, legal, investment, or engineering advice. Licensed PE judgment and local codes govern.
