It’s the middle of the night, and you are wide awake…from a nightmare about the state of your GovCon accounting system. It happens all the time. The accounting system struggle is real for government contractors. Your accounting system is the backbone of your company. If your accounting system is in pain, the effects are felt in all areas of your company. And let’s get real…nobody wants to hear from an employee that their paycheck was incorrect (again) or hear from a customer that an invoice has to be resubmitted because the proper format wasn’t followed. Never mind the impact on cash flow!
Do you have any clue what is really going on inside your accounting system?
- Are you panicked, wondering if it is DCAA compliant?
- Do you have an accurate understanding of your indirect rates? Where do things stand from a cash flow perspective?
- What about did you fudge on a proposal that your system is DCAA compliant and you have no idea if it is?
- Are your invoices a nightmare to produce? Are you preparing them manually in excel?
- Is your timekeeping system cumbersome, clunky or not syncing correctly?
- Are your managers not approving timesheets when they are supposed to?
- Is payroll a stressful event that everyone dreads?
- When is the last time your books were closed?
- Do you have the financial reporting to guide your company?
It can be difficult to see the big picture of your accounting system when you are in the weeds. Hence the need for an accounting assessment. Process improvement is best done by an outside party to evaluate what you currently have in place. GovCons should work with companies that have expertise in govcon accounting (not only for an assessment but for all things accounting).
What can you expect from an accounting assessment?
A good accounting assessment will evaluate:
- current accounting system (chart of accounts, AR/AP, general ledger)
- systems information and set-up (timekeeping, payroll, bill pay, expense reimbursement)
- reporting capabilities (balance sheet, profit/loss, cash flow, income statement, job costing)
- banking, 401K requirements (what reporting is required, what is being submitted)
- timekeeping system (project codes, approvals, prime/sub timekeeping)
- invoices (process, how they are generated, accuracy, timeliness)
- policies and procedures (what is currently being documented)
An assessment final report should provide you with insight into your current system overview, what can be streamlined for greater efficiency and what is needed for DCAA compliance. The report should include recommendations for resolving any identified issues.
BOOST can help you with an accounting assessment. This assessment will provide insight into your accounting system, a plan forward for fixing any issues and creating a seamless, fully functional, effective accounting department. This will give you peace of mind and help you sleep better at night. Or at the very least, you won’t be able to blame your accounting system for your lack of sleep.