accounting system Archives

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New Accounting System Implementations and Why They Suck

May 26, 2020/in Services /by BOOST

Editor’s Note: This Article Has Been Updated March 03, 2023

At some point, your business will have to implement a new accounting system (if you haven’t already). That’s a good thing because it signifies growth, and growth is one of the goals of any government contracting business. Past the “we need a new system” discussion, things tend to get a bit dicey and there’s no way around it. What do you need to know before you start a new accounting system implementation? We’re glad you asked, read on to learn the points of interest surrounding accounting implementations.

New Accounting System Implementation Questions for GovCons

Implementing an accounting system? The Managed GovCon Accounting Experts at BOOST have compiled our “hit-list” of questions that keep us up at night when it comes to implementing a new accounting system. As usual, we’ll provide you with things to expect and how to better manage those expectations for a semi-smooth transition to a new accounting system implementation.

Should you DIY (do it yourself) when it comes to implementing a new accounting system?
Absolutely not, and here’s why. The main reason for needing a new system is that the company’s leadership is already spending too much time in the weeds outside of their current accounting system. Adding the task list of a transition and implementation on top of an already full plate will only cause stress and mistakes. When it comes to your accounting systems, we are trying to minimize mistakes.
Will you hit your desired deadline for implementation?
Deadlines are nice, but they are really just guidelines, right? In all seriousness, when you realize you need a new accounting system implementation, you’re probably three months behind. Any accounting system implementation team will do their absolute best to implement a new system close to the desired deadline, but discrepancies with current data or gaps within the current process may come to the surface. Additionally, there may be cultural resistance to change (yes this is a thing). Deadlines will be extended; the goal is a system that works for all users with accurate and consistent reporting. To cut down on this time, work to clean the data in your old system before beginning a new accounting system implementation. You want a clean slate, not a system full of errors at the get-go.
Who needs to be involved in a successful new accounting system implementation?
You’re not going to like this, but someone from your team needs to have a finger on the implementation process. We’re talking FTE time in the amount of ¼ – ½ of their hours during implementation. They need to be well-versed in the new system in order to train users, have process knowledge of the business specifically to configure the system appropriately, and to communicate effectively the needs of the business with the implementation leader. The individual needs to be a change champion to help others in your organization embrace the change and learning a new system. Above all else, the team from both sides, needs to be made up of those who are really good listeners and communicators.
Do you need a fully customizable solution for your new accounting system?
Again, this one is a big no. It is much easier to transition a system instead of changing a business’ culture, and how you manage your accounting is a big part of your culture. You want a system that you can take off the shelf and minimally configure (i.e. posting rules, chart of accounts, how key fields are populated and utilized) versus redesigning and customizing from the ground up. If you find that you’re trying to customize each option, report, and configuration, you may want to check out a different solution option (more on this in an upcoming blog).

The very bottom line to all of this is that if you’ve outgrown your current GovCon accounting system, you need a dedicated and integrated team to help manage the new accounting system implementation. Do your homework, ask the experts (us), and begin your transition well ahead of your “must-have” date. While these new accounting system implementations are no walk in the park, the end result should provide you with better visibility, more time back in your day, and the ability to grow as your company grows.

For more information about changing accounting systems, read our GovCon checklist. Need help with your accounting system implementation? Contact us today.

Why You Can’t Afford to Close the Door on GovCon Accounting

March 19, 2019/in Services /by BOOST

Editor’s Note: This site was updated on 12/27/2022

So, you are a small GovCon, living on a wing and a prayer. You are bidding on a ton of proposals, winning some work, growing, adding employees, and maybe making a small profit. When you are small, growing is a grind and it’s fun (thinking this keeps us sane!). Sometimes, you might close your eyes and keep your fingers crossed that your back office, especially accounting, is just running itself. It’s like your teenager’s messy room; you just close the door so you don’t have to look at it.

Trust us, we have seen our fair share of companies who have closed the door on their GovCon accounting. Here are just a few of the top examples of GovCon accounting mistakes we have seen. (At least the ones that we can write about.)

Bank account balance accounting – Are you running your business on your bank account? Are you thinking “Hey, I’ve got enough money in my checking account to make payroll, all is good”. Short answer: It’s not. On this system you can’t run your company effectively, pay taxes, be compliant or scale your company, simply by checking the bank account balance.
Forgetting to record small transactions – You need a good chart of accounts that is GovCon compliant, with explanations as to what gets recorded where. Then follow it. All transactions need to be recorded. This includes those monogrammed golf balls you thought were a great idea, or the wine tasting that was a “team building activity”. Don’t be lazy and just enter something as a general journal entry. Be specific, do the work and your books will look a lot better.
Make a budget – It takes time, but it’s a must do. You have a budget for your personal life, right? Well, maybe not if you are also running your personal life on bank account balance accounting. You need a corporate budget to plan and track. Assign budgets for each project/contract as well. Track funding, track burn rates and learn where you are missing or making the mark. Do this routinely, we suggest quarterly as well as annually.
Doing it all – It’s okay not to know much about accounting. Really, we think you are fabulous and have amazing strengths. But, own the fact that you don’t know accounting and outsource it! Accounting is not an area where you should use shortcuts or be cheap. Outsource your weaknesses and free up mind space for business development that will help you grow your company. The risk is too high to find out otherwise.

We have all closed doors and tried to ignore things that look scary. GovCon Accounting is just not one of these areas where you can afford to do this. Contact BOOST if your accounting is messy and needs a good clean up. We can help you clean the room so you can keep the door open!accou

Accounting Keeping You Up At Night?

March 13, 2019/in Services /by BOOST

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.

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New Accounting System Implementation Questions for GovCons

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