DCAA COMPLIANCE BLOG

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The Benefits of Contract Accounting Services

Posted by Brian Ormsby on Wed, Aug 17, 2016 @ 09:00 AM

In the world of government accounting having a compliant accounting system is critical.  Small firms that are dealing the government and keep their accounting in-house spend far too much money in percentage to gross revenue on in-house accounting.  Take a look at the detail in just pure dollars.

 

Annual

Fringe

G&A

Grand

 

Rate¹

23%

22%

Total

Senior Accountant

 $    73,903.00

 $    16,997.69

 $  19,998.15

 $  110,898.84

Oversight²

 $      2,848.11

 $          655.06

 $        770.70

 $      4,273.87

Accounting Clerk I

 $    35,981.00

 $      8,275.63

 $    9,736.46

 $    53,993.09

CFO³

 $    14,251.29

 $      3,277.80

 $    3,856.40

 $    21,385.49

       

 $  190,551.29

 

In a company with $5M of annual revenue this expense will raise your G&A rate by 3%.  While out-sourcing your accounting services would provide all of these services at approximately one-third the cost and a G&A rate bump of 1%.  When bidding your next proposal, how competitive would you be if you could reduce your G&A rate by 2%?

Let’s look at it from another angle…experience.  If you are exceptionally lucky you will find someone who has experience with government accounting that truly knows the ins-and-outs of the FAR, DCAA, DCMA and CAS.  Not to mention finding an expert with eRAPT (WAWF), Timekeeping and Incurred Cost Reporting (ICE).  This generally takes a village, and not just one expert.  Here at ReliAscent we have the village.  ReliAscent will provide your organization with a trained team that includes experts in every discipline.

For most of our clients we provide full accounting services for less than the cost of the Accounting Clerk salary used in the cost example above.  However, ReliAscent isn’t just a full accounting services company.  ReliAscent provides all aspects of government contracting assistance, from accounting to proposal preparation.  We have in-house capabilities or partner providers that assist in payroll, patents, logistics, negotiation, proposals, tax preparation, marketing, asset management, etc.

To learn how ReliAscent's Federal Agency / DCAA Compliant Accounting experts can help your business reduce costs, mitigate risk, and gain access to our other government contracting experts, contact us today. 

¹ Rates taken from Salary.com - 8-9-2016
² 8 hours oversight quarterly - Controller level
³ CFO - 8 hours per month

Topics: DCAA Compliant Accounting, Outsourced governement accounting, Outsourced Accounting