FloQast vs. AuditBoard for Commercial Solar EPC Contractors
A commercial solar EPC project bills against milestones, recognizes revenue on percentage of completion, and carries a performance guarantee reserve that doesn't release until the system has been producing for months after substantial completion. Layer in the paperwork a tax credit transfer buyer wants before closing, and a single project touches five or six reconciliations that have nothing to do with each other.
For a solar or energy EPC contractor, FloQast vs AuditBoard is really a question of which piece is failing: the percentage of completion tie-out itself, or the documented evidence a credit buyer, lender, or investor needs before they'll sign off.
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Milestone billing and percentage of completion rarely match
Say a contract bills 30 percent at mechanical completion and another 20 percent at interconnection approval, while the percentage of completion schedule recognizes revenue based on cost incurred against total estimated cost instead. Those two curves diverge constantly, especially when interconnection approval from the utility runs weeks or months behind the physical work. Reconcile billed versus earned revenue by project every month, and flag any project where the gap between the two has grown since the last close instead of narrowing as the work finishes.
Performance guarantee reserves sit open long after substantial completion
Many EPC contracts hold back a percentage of the contract value against a guarantee that the system will hit a production target over its first six or twelve months of operation. That reserve has to stay on the books, tied to the specific project and its guarantee terms, well after the crew has moved to the next job. A reconciliation that ages the reserve against its release date, rather than letting it sit as a static balance, catches the ones that should have released and didn't.
Tax credit transfer documentation is its own audit trail
A buyer purchasing a transferable investment tax credit wants documented evidence that the underlying project met the requirements the credit is based on, cost basis, placed-in-service date, prevailing wage compliance where it applies, before they'll close on the purchase. That's a different kind of evidence than a reconciled account: it's a file a third party will review directly. Confirm the specific documentation requirements with your tax advisor for each transaction, since credit transfer rules and buyer diligence standards vary by deal.
Where FloQast carries the mechanical reconciliation
Percentage of completion tie-outs, milestone billing schedules, and performance guarantee reserves are recurring, project-based reconciliations, so look for a close tool that shows a named preparer, a reviewer, and a variance that stays visible until it's explained, and confirm in a demo that FloQast handles them the way you need. For a contractor whose real problem is that the WIP schedule takes days to assemble every month, this is the direct fix.
Where a credit buyer's diligence team gets involved
Once a credit buyer, a project lender, or an investor in the EPC company itself wants documented proof that someone independently reviewed the cost estimates, milestone certifications, and guarantee calculations, not just that they reconcile, AuditBoard is built for that ask. It holds who reviewed what, when, and against what evidence, as testable controls a diligence team can sample directly instead of requesting supporting documents by email.
A decision test for an EPC contractor
- If your WIP schedule is the recurring bottleneck at close, start with FloQast.
- If a tax credit buyer, lender, or investor has started asking for documented review evidence, bring in AuditBoard well before the deal's diligence deadline.
- If performance guarantee reserves are the account nobody tracks after substantial completion, fix that reconciliation specifically, regardless of which platform you use for everything else. MeetMyCFO's AI CFO, Frank, can flag which project's guarantee reserve is past its expected review date before it becomes a year-end surprise.
Change orders on interconnection delays complicate the schedule
A utility taking longer than planned to approve interconnection often triggers a change order for extended standby time, additional site security, or remobilization once approval finally comes through. That change order adds cost to the project before the client has formally agreed to the additional revenue, the same gap a general contractor sees with an unapproved change order, but tied here to a utility's timeline instead of a client's decision. Track the pending change order separately from the base contract value, require documented client sign-off before recognizing the related revenue, and reconcile the gap monthly so it stays a small, explainable balance instead of a year-end surprise nobody can fully trace back to its cause.
A note on prevailing wage documentation
Some federal and state incentive programs condition credit eligibility on paying prevailing wages on the project, and the payroll documentation supporting that compliance is exactly the kind of record a tax credit buyer or an incentive program's own audit will want to sample. Check the specific prevailing wage requirements for each program and jurisdiction with your tax advisor or counsel, since they vary and change, and keep the certified payroll records organized by project from the start rather than reconstructing them once a buyer's diligence team asks.
What Good Looks Like
A contractor at this stage reconciles percentage of completion against milestone billing by project every month, ages performance guarantee reserves against their release terms, and keeps tax credit transfer documentation organized by project.
Building The Capability (5-Stage Skill Ladder)
How to Get Started
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Subcontracted electricians and specialty installers paid on a 1099 basis are common on EPC jobs, and Tax1099 keeps filing and TIN matching current for vendor review.
Equipment and panel purchases benefit from BILL's dual-approval routing, keeping the project manager requesting a purchase separate from whoever releases payment.
Field crews covering small equipment or permit fees on site is where receipt documentation usually slips, and Ramp's automated capture keeps that trail intact for review.
Frequently Asked Questions
How should we reconcile billed versus earned revenue on a milestone contract?
Track both curves by project every month rather than only at contract close. A growing gap between what's billed and what percentage of completion says is earned usually points to a milestone that was invoiced ahead of the actual work, which needs a documented explanation, not a silent catch-up later.
When does a performance guarantee reserve actually release?
On whatever terms the specific contract sets, typically after the system demonstrates its production target over a defined monitoring period. Track each project's release date separately and review any reserve that's aged past it, rather than treating the account as a static balance that only gets touched when someone remembers.
Do smaller EPC contractors need AuditBoard for tax credit transfers?
It depends on what the specific buyer's diligence process requires, which varies by deal and should be confirmed with your tax advisor. A contractor doing its first transfer often manages with reconciled project files; AuditBoard becomes more valuable once transfers are recurring and buyers expect a standardized documentation process.
About the numbers
This guide doesn't quote a sourced benchmark. Figures in it are estimates or general guidance, so check them against your own numbers.
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