Should Government Contractors Use Outsourced Accounting Consultants?
It’s always absolutely, unequivocally of the utmost importance that your accounting is as spot-on as possible. It’s 1,000 times as important when you’re a government contractor. Any slip-ups can lead to hefty fines and penalties, and maybe even worse.
Maintaining compliance is one of those things that any government contractor has to constantly be vigilant about, especially when it comes to your books. However, many small-to-midsize GovCons simply don’t have the staff on hand to devote all that time to being compliant while also doing, you know, the actual work that makes the company money.
That’s why outsourced accounting consultants are such an attractive alternative to doing your accounting in-house. As to the question of whether or not you should be using an accounting consultant for your government contracting business, the answer is usually a resounding YES.
What to Look for in a GovCon Accounting Consultant
All of that being said, not all accounting consultants are created equally. You want to be sure that you’re working with someone who really knows their stuff when it comes to government contracting.
Here are a few things to look for:
- Experience with the FAR and DFARS
- Robust understanding of complex accounting
- Reach-back capabilities for other services
- An understanding of the unique challenges that small businesses face
The simple fact is that accounting for government contracting businesses requires a vast amount of regulatory knowledge that other commercial businesses don’t have to sweat about. The accounting consultant that your business works with should be one that’s experienced and knowledgeable in these things, or else you might find yourself on the wrong side of compliance anyways.
The Benefits of Using a Consultant for Accounting
There are lots of benefits that come from working with an accounting consultant, but here are a few of the big ones:
- You’ll free up your internal resources to focus on other things.
- Your books will be accurate and up to date.
- You’ll get expert advice and guidance specifically relevant to your status as a government contractor.
- You’ll save money by avoiding the fringe expenses that come with in-house services.
- You’ll have access to multiple levels of accounting experience, from CFO down to staff level, without having to hire for each position.
- Virtual interaction rather than disruptive on-site presence
In the end, the decision of whether or not to use an accounting consultant for your government contracting business is one that should be based on what’s best for your company. If you don’t have the internal resources to keep up with the constant changes in regulations, it’s probably in your best interest to outsource that work to someone who specializes in it.
A Good GovCon Accounting Consultant is an Investment
Remember, a good GovCon accounting consultant is an investment in the future of your company. When you outsource that work to someone else, you’re freeing up your internal resources to focus on other things – like winning contracts and making money.
It’s always important to do your homework and vet anyone that you’re thinking about working with, but if you find a good consultant that you can trust, the benefits will speak for themselves.
We Can Help You With Your Books
At BOOST, outsourced accounting consultation for government contractors is just one of the back-office solutions we provide. We understand the unique challenges and complexities that small and mid-size government contracting businesses face, and we have the experience and knowledge to help you stay compliant.
Contact us today to learn more about how we can help your GovCon business succeed with accurate and compliant accounting.