Editor’s Note: This Article Has Been Updated 7/5/2023
Table of Contents:
- Office Space Planning
- Fringe Pool and Health Care Costs
- 401k Contributions
- Tax Planning and PPP/CARES Funds
- Budget Planning and Indirect Costs
- Incurred Costs Submissions and DCAA
- HR Reports
- Pipeline Report and Business Opportunities
- Conclusion and Contact Information
- Key Takeaways
- About BOOST’s CEO, Stephanie Alexander
July. How is that even possible??? We slugged through half of the year, most folks are considering a return to the office in some manner, everyone is back to working full time, and we haven’t seen a sourdough bread post in a really long time.
As we take stock of the first half of the year and start to turn toward mid-year planning, here are some key things to consider:
- Office Space. What are you doing?
Are there additional costs associated with your plan going forward? Fewer costs? Remember to take these into account as you ramp up or go completely virtual or downgrade for the hybrid model. If you need help finding space, let us know – we’ve got some great commercial realtor friends on speed dial.
- Fringe Pool. How are your health care costs running this year?
If you are on a self-pay plan, it might be time to take stock of how the plan is doing. Will there be a nasty surprise at renewal time? Start prepping now with your broker so you aren’t caught off guard. Most brokers we know generally have more time during the summer (so many clients are on 10/1 or 1/1 renewals). Have you reached out lately?
- 401k. Is it part of your model?
If you make your company contributions in chunks (i.e. not with every payroll), have you put this in your cash flow model? While employers can take until the filing of taxes, no employee likes waiting forever for the promised match. See if you can plan to dump the cash by year-end (if only for tax planning).
- Speaking of which…Taxes. Have you applied for forgiveness?
It’s been a wild 18 months, especially with PPP and CARES funds. Have you consulted with your CPA on the impact to your taxes? Now’s the time to start modeling out a few paths forward so you know where you need to be by year-end. For the owners, time to start paying the piper in September for estimated taxes versus waiting for the crunch in January. Painful no matter when you pay taxes but plan now.
- Budget. How are your indirects running this year?
Have you taken into consideration any changes to the business? New contract awards (or losses)? The costs mentioned above? Now is the time to assess and potentially rebaseline or plan. Especially with those on CPFF contracts – how are you running against your billed rates? No customer wants the surprise at the end of the year.
- Incurred Costs Submissions. Did it get submitted to DCAA?
Most were due on 6/30 (assuming a 12/31 fiscal year close). There may be a little grace period here if you ask nicely…but get it done. One less thing to worry about. If you have ICS Questions – you can catch up with our ICS Webinar replay here.
- HR Reports. Are you ready for submissions?
Many are due in the next few months. Are you starting to prep for them and pull the information required? Is someone taking the lead on the filing? Don’t just assume they will magically get done.
- Pipeline Report. Are they updated and realistic?
By now we’ve got a clearer view on what’s still potentially viable for the rest of the year. If you were planning on POLARIS or CIO-SP4 revenue this year…that’s cute. Time to scrub the low probability wins out of the report and get real clear on what’s feasible. Are those P-wins really accurate?
Time to reassess and plan out the second part of the year. The industry is heating up – we all are chomping at the bit to get back out on the road, and see customers, employees, and partners. Take the time to do a gut check before it gets crazy. If you’re already feeling overwhelmed with mid-year planning, reach out! BOOST has a variety of partners and friends to help meet your needs.
- Office Space Planning: Businesses need to consider the costs associated with their office space plans, whether they’re returning to physical offices, going completely virtual, or opting for a hybrid model.
- Fringe Pool and Health Care Costs: Companies on self-pay plans should assess how their health care costs are running and prepare for potential surprises at renewal time.
- 401k Contributions: Companies that make their contributions in chunks should include this in their cash flow model and aim to complete contributions by year-end for tax planning purposes.
- Tax Planning and PPP/CARES Funds: Businesses should consult with their CPAs or an outsourced accounting service for GovCons to understand the tax implications of PPP and CARES funds and start planning for tax payments.
- Budget Planning and Indirect Costs: It’s important to reassess the budget, considering any changes to the business, new contract awards, or losses, and adjust accordingly.
- Incurred Costs Submissions and DCAA: Companies should ensure their incurred costs submissions are submitted to DCAA on time to avoid complications.
- HR Reports: Businesses should prepare for upcoming HR report submissions and ensure someone is taking the lead on the filing. If they need help, they should contact an HR service for GovCons.
- Pipeline Report and Business Opportunities: Companies should reassess their pipeline reports, remove low probability wins, and focus on feasible opportunities.
About BOOST’s CEO, Stephanie Alexander
Stephanie Alexander has spent more decades than she wants to admit supporting high growth government contractors with an eye towards their bottom line. She is the CEO and founder of BOOST LLC which supports back-office functions for government contractors. She is a co-founder and Partner at govmates, a free teaming platform and technology scouting tool to connect business across the federal landscape.