Like any other industry, government contractors face both the challenge of running a business in general, but also meeting the challenges of their particular marketplace and regulatory environment. Management responsibilities address these challenges in ways that may be different, sometimes drastically different, than what’s experienced in a purely commercial environment.
The responsibilities of a Chief Financial Officer (CFO) are no different. Traditionally, CFO activities include:
- Controllership – Recording and reporting accurate financial information
- Treasurer – Capital structure, financing opportunities
- Forecasting – Economic modeling
Controllership is important no matter the industry. The reporting requirements for government contractors can quickly fall into a highly complex and scrutinized environment.
In government contracting, the Treasurer function relies primarily on managing risks and understanding the regulatory environment. Just knowing how to read a government contract is valuable.
Forecasting requirements are enhanced, since the majority of bids and the measurements of profits are cost-based. Believe it or not, but your pricing philosophy and accounting structure can either be an economic engine or a barrier to success.
We will examine some of these govcon-specific CFO responsibilities (in detail), as well as the importance of managing your indirect rates, in soon-to-be-released blogs in the coming weeks. Please visit and/our subscribe to our blog, and keep an eye out for these follow-up blogs, as well as emails, white papers and webinars on the topic.
Can’t afford a full time CFO veteran familiar with the nuances of government contracting? ReliAscent offers Outsourced CFO-level services designed to swiftly meet the challenges experienced by government contractors. Contact us today to learn more about how an outsourced CFO can help your business.