Annual audits are a reality for most construction organizations. The teams that move through them with confidence share a common pattern: disciplined planning, reliable data pulled directly from an enterprise resource planning (ERP) system, and a clear stance on independence. Drawing on a conference session led by Aprille Bell and Jim Wagner, this article offers practical steps CFOs and controllers can take to help streamline audit preparation, strengthen internal controls, and support independence of mind and appearance—all anchored in Trimble ERP systems, Vista and Spectrum.
Healthy information beats heroic effort. The more your ERP does the heavy lifting, the smoother your audit will go.
What Auditors Want to See: Accuracy, Reconciliation, & Governance
Construction audits hinge on how well job costs, revenue recognition, and work in progress (WIP) flow through to the trial balance. Employee stock ownership plans (ESOPs), joint ventures, and contingent litigation add complexity, and payroll is often a focal point. Internal controls—who has access, which flags and exceptions are in play, and how changes are governed—matter as much as the numbers. The theme across the conference session was consistent: use Trimble ERP to produce audit-ready reports that tie to the general ledger (GL), and then layer thoughtful communication on top.
Actions to Take Now
- Build an audit timeline and prepared by client (PBC) list early, and then keep regular check-ins with your audit team.
- Identify the core reports your auditors rely on, confirm period settings, and align totals to the GL.
- Consider granting auditors read-only ERP access with scoped permissions to reduce ad hoc requests.
Trimble ERP Reports That Shorten Audit Cycles
Efficient audit preparation starts with knowing which ERP reports matter most and how to use them for fast, accurate reconciliation. Below are practical tips for leveraging key Vista and Spectrum reports to help streamline your audit cycle and confirm that your financials tie out to the GL.
Bank Reconciliation
- Vista: Use the “Cash Management (CM) Account Statement” report to identify outstanding items. Focus on reconciling the bank balance to the GL, providing only necessary items for audit review.
- Spectrum: Run the “CM Transaction History” report. This provides both the GL balance and a list of uncleared transactions, making it easier to update your bank reconciliation and support your audit trail.
Accounts Receivable (AR)
- Vista: Generate the “AR Aged Analysis By Customer/Contract” report. Always select aging by Invoice Date, and confirm that the total matches your GL. This helps prevent discrepancies that can slow down the audit process.
- Spectrum: Use the “AR Aged Open Items” report. Check the “Include Paid Invoices” option to capture invoices that were open as of the report date but paid later, checking that your aging ties accurately to the GL.
Inventory (IN)
- Vista: The “IN Value of Inventory at Month End” report should be run monthly. This report ties directly to your inventory GL, supporting both audit and internal controls.
- Spectrum: Use the “IN Items-on-Hand Valuation” report, available in summary or detail formats. Confirm the report period matches your GL reconciliation for accurate inventory valuation.
Accounts Payable (AP)
- Vista: Run the “AP Aged Open Payables by Job/WO” report, selecting the correct period-end dates. If applicable, include “Aged Non-Retainage Hold Invoices” to help capture all relevant payables.
- Spectrum: Use the “AP Aged Payables” report and check “Include Paid Invoices” when reconciling to the GL. This helps ensure completeness and accuracy in your payables aging.
Job & Project Cost, Including WIP
- Vista: Use the “JC Cost and Revenue” and “JC Work in Progress Report – Landscape.” The Open Job Schedule is especially useful for identifying unbilled contract portions and cost to complete, supporting WIP reconciliation.
- Spectrum: Run the “JC Job Billing History,” “JC Contract Status,” and “JC Cost Type Summary” reports. Select Active, Inactive, and Complete statuses to help capture all jobs and reconcile with the GL.
Fixed Assets (FA)
- Vista: The EM Asset Depreciation Schedule provides a clear view of asset depreciation for audit support.
- Spectrum: Use the FA Maintenance – Fixed Asset Master Listing to document and reconcile your fixed assets.
Payroll (PR)
- Vista: The “PR Payroll Register Totals” report summarizes annual payroll processed through Vista. Reconcile these totals to your payroll GL accounts for a material tie-out.
- Spectrum: Run the “PR Wage and Tax History” and “Quarterly Federal Tax Report” reports. Supplement with Add-On and Deduction History in summary format to capture pre-tax and taxable items.
Tip: For each report, confirm that period settings are correct and totals align with the GL. This not only speeds up audit fieldwork but also can help reduce the risk of follow-up requests.
When WIP reconciles to the trial balance every month, the year-end is an extension of your routine, not a fire drill.
Workflow Discipline That Pays Off
During the conference session, several teams noted that audit preparation is resource-intensive for large or complex organizations, as much as 150 to 250 hours or more, with regulatory-heavy or multientity audits exceeding 300 hours. The way to help reduce the lift at year-end is to transform audit prep into a monthly habit. Implement monthly project reviews, reconcile WIP to the trial balance, reconcile subsidiary ledgers, and investigate unusual balances to identify misstatements. Inventory becomes far less painful when cost reports are aligned to GL and physical counts are supported with digital documentation.
Practical Moves
- Standardize data definitions across accounting and operations.
- Assign report owners who verify period selections and GL tie-outs.
- Keep a concise narrative with each monthly financial package to explain movements.
Independence of Mind & Appearance
Independence is both a mindset and a governance practice. For CFOs and controllers, the test is how decisions are made and documented. Maintain objectivity and professional skepticism in attest-related processes. Avoid circumstances that could compromise perceived neutrality. This includes separating duties around posting and reviewing entries, documenting management judgments on estimates, and keeping clear records when exceptions or overrides occur.
Steps to Take
- Map access to sensitive flags, exceptions, and posting permissions in Vista and Spectrum.
- Document judgments for revenue recognition, WIP adjustments, and contingent liabilities.
- Use read-only views and audit trails for any information shared with external parties.
Efficiency Aids: Excel & SSRS With Secure Report Access
Trimble ERP does the heavy lifting, and Excel or SQL Server Reporting Services (SSRS) can augment presentation and analysis. Teams export data for board or lender packages, build targeted queries, and apply visualizations that highlight trends. Keep security tight by setting VA Report Security and using consistent naming conventions.
How to Prepare
- Build the audit timeline and PBC list: Clarify deliverables, owners, and due dates. Schedule regular check-ins.
- Reconcile WIP to the trial balance monthly: Investigate variances promptly. Use standardized templates for forecast updates.
- Confirm report settings in the ERP system (Vista or Spectrum): AR aging by invoice date, AP and AR options to include paid invoices, correct period-end dates.
- Document internal controls: Identify who controls flags and exceptions. Keep access and approval logs current.
- Formalize cybersecurity and AI acceptable use policies: Auditors are reviewing incidents and policy coverage. Keep policies current and accessible.
- Use Excel and SSRS to package information: Provide clear narratives for movements, especially in cash, backlog, and WIP.
A calm audit starts months earlier. Make good habits routine and the audit becomes confirmation, not discovery.
Ready to Talk Through Your Plan?
Forvis Mazars works with construction finance leaders to help streamline audit preparation and Trimble ERP reporting.
Connect with professionals at Forvis Mazars today if you’d like assistance with any of these actionable steps or have questions about preparing for an audit.