Connect with BOOST to discuss how we can help with your accounting initiatives. [email protected]
Connect with BOOST to discuss how we can help with your accounting initiatives. [email protected]
BOOST was founded to support GovCons as they get to the next level. After reinventing the wheel many times and banging our heads against numerous walls, we have learned what works and what doesn’t. We love working with executives who want to see their organization grow and who value advice from those who have “been there, done that.” We want our small clients to outgrow us. We want our large clients to use us when they need us and then call us back for the next project. We want you to sell your business for the multiplier you want. We want you to be successful.
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 accounting. Here are just a few of the top examples of accounting mistakes we have seen. (At least the ones that we can write about.)
We have all closed doors and tried to ignore things that look scary. 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
As GovCons grind through the rest of the year, it is hard to think about 2019. We’re a little worn out from proposal season and if you are lucky, new contract awards. We’ve been recruiting hard in a difficult market, transitioning from incumbents, and getting new starts off the ground. Depending on which agency you work with, you’ve had an upswing in work or you’ve spent most of the year trying to help your clients scrape together budget and “do more with less.” (Is anyone else sick of hearing this?!) Some may be putting the finishing touches on their OASIS bid or hunting a few of the large elephants out there (JEDI subs, CMS PEO, etc.). Not sure about you, but we’re ready to start the holiday party networking scene and drink and eat away our cares.
While that may be tempting, now is the time to plan for FY19. Corporate budgeting season should be well underway. What are your goals for next year and what are your priorities? What can you divert investment to and what do you hold off on? We all have our wish lists of things we’d spend money on, but what has the best ROI for your company? In our capitalist hearts, money drives all things…which is why the budget is so important.
If you have the attitude that the budget is just an exercise for accounting folks or it is just a spreadsheet drill, you are missing the point and the opportunity to align your company under a set of consistent goals.
Best practice has budgeting from both top-down and bottom-up approaches. CEOs – what are your goals for next year? Some folks think too small, while others pull a random number out of their ass and demand that BD/Capture/Ops get them there. Some take a % increase off of the current year. There is nothing worse than sitting in budget meeting after budget meeting listening to what the “stretch” goals should be. Unrealistic and completely unattainable goals will demotivate a sales team faster than anything. That being said, a goal shouldn’t be easy street either. Take a cold hard look at your pipeline report. Look at your customer’s budget. Do the environmental scan. Don’t make up a number in a bubble.
From a bottom-up approach, take a good look at actual run rates, utilizations, and project budgets. Review indirect costs for efficiencies. What did you waste money on this year? What led to no ROI? Now’s the time to cut it or reevaluate for next year. Ripe off the Band-Aid and make tough decisions.
Finally, tie the budget directly to your corporate goals. Tie performance evaluations to goals and budget. Then effectively communicate the goals and any changes to everyone so there is an understanding of where the company is going, company priorities and how each individual can contribute to those goals.
Or, if you would rather stick your head in the sand, a la the ostrich, there are always holiday parties to attend. Let us know how that works out.
BOOST can show you how to go back to the basics – pay your people and get paid. From there we can set up a monthly financial review meeting to analyze all financial aspects of your business. BOOST reviews your system with stakeholders and documents operational procedures. We help provide a structure and organize effective accounting systems that scale with your growing business. Let’s get you on the right path for FY19, today! [email protected]
At BOOST LLC we are lucky to rub elbows with some pretty smart people and businesses. So much so, that we’re going to share them with you! Periodically we’ll feature a govcon guest/business alongside their thoughts and hot-takes relevant to their industry.
What is your best advice to solve the biggest problem in your industry?
Businesses aren’t just looking for a “one trick,” partner anymore. They are looking for a firm with dynamic capabilities that can evolve and serve them as their needs change. Additionally, technology continues to break down walls within organizations therefore the scope of where our expertise is needed has changed. As a result, we continue to develop offerings that address the most pressing needs of our clients. This evolution solidifies the need to hire, train and retain employees with diverse backgrounds and expertise to be able to provide our clients with the expert advice they require to succeed.
What has been the weirdest experience you’ve had working within the government contracting community?
The weirdest experience I had relates to an M&A deal I was brought in to potentially perform due diligence on behalf of the buyer. I was contacted by the buyer that they were trying to close on the deal within five days. I let the buyer know that typical due diligence requires at least 30-60 days of lead time depending on the size and scope of the seller’s business, however, I did agree to at least look at whatever internal documents were available from the seller in the data room. After reviewing the limited number of documents provided in the data room, I recommended that the buyer delay closing on the deal at least another 30 days to allow our firm to perform adequate due diligence services as there were some very large red flags that gave me great concern. Sadly, the buyer ignored my advice and closed on the deal within the five-day period. That buyer is now in the process of determining whether to declare bankruptcy less than a year after making the acquisition. In this extremely active M&A market for the government contracting industry, I cannot stress enough to companies that are looking to acquire or sell a business to please do adequate due diligence to mitigate risk and avoid similar outcomes.
What is your “hot take” on a current industry’s trending topic?
One current industry trending topic in the government contracting industry is the use of Other Transaction Authority (OTA’s or OT arrangements) as a mechanism for the federal government to bypass typical onerous procurement rules. OT arrangements are legally binding instruments typically used to engage companies, as well as academia, for a broad range of research, development, and prototyping activities. These OT arrangements are not bound by the normal federal laws and regulations that apply to government procurement contracts (e.g. FAR/DFARS). Recently I have attended many government contracting industry conferences and seminars espousing the benefits of OT arrangements to help government contractors grow their business. However, recently the GAO has begun to investigate the use of OT arrangements for production type contracts, which is not the original intent of the legislation. Accordingly, I recommend business owners seeking to win new business via OT arrangements ensure they seek expert advice from a government contracting attorney with experience and expertise in OTs.
Where do you see yourself/your company in 5 years?
SC&H Group will continue to evolve to meet the changing needs of businesses all the while keeping a pulse on the best strategies to deploy for our clients across industries. Our growth will run parallel to ensuring our employees continue to have educational development opportunities, including insights into how innovation will play a significant role in shaping our services and our clients’ strategic plans. Additionally we will continue to be a thought leader and valued resource to business owners and executives in the government contracting industry to help them succeed in their goals to grow a profitable business, organically and/or through acquisitions, through sound business and tax advice as well as provide expert advice to owners looking for potential exit strategies (e.g. sell to PE/strategic buyer, ESOP transaction, or management-buyout).
Purgatory to Paradise
The second govmates institute, GovCon Lifecycle: Purgatory to Paradise met at the Northrup Grumman location in McLean, VA. In an authentic meeting-of-the-minds, industry experts discussed topics pertinent to growing the local govcon footprint.
Highlights from the institute include:
Purgatory: That Awful Time Between Submission and Award
30-60 Day Transition & Ramp-Up
Opportunities in Loudoun County
Now That You’ve Won – How Do You Pay for It?
Capture & Business Development for FY2019
Join govmates to be updated on future opportunities for continuing education and targeted matchmaking!
GSA: Schedule 738X GS-02F-007GA
NAICS: 541219, 541611, 541612, 541618, 541990, 561110, 561499, 611430
Email: [email protected]
Address: 12110 Sunset Hills Road, Suite 600, Reston, VA 20190