Government Contractor CFO Services - Cashflow Management IRead More
DCAA Compliance Blog
Your Source for DCAA & FAR Compliance News and Discussion
ReliAscent® LLC is the only government contract accounting firm that specializes in all aspects of government contracting compliance. From our DCAA compliant accounting services, to monthly government contract accounting for all government agency awards, contract management & administration, and financial services & planning, our goal is to ensure the success of our clients, and all small business government contractors and grantees.
In our DCAA Blog, we discuss the latest government contracting news from the Federal Government, the DCAA, and DCMA, as well as promotions offered by ReliAscent, and helpful tools and resources for contractors.
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Government Contractor CFO services – Risk Management IRead More
David Letterman has a popular segment every night on his show of the day's Top Ten list. Most of the time it is a funny look at some current event, like the Top Ten things a President might say in a particular situation. I like the issue of a Top Ten list related to sports. You always strive to be in the Top Ten to get noticed for being the best. Many businesses also use a Top Ten list to show prospects some of the best reasons that you might want to use that business. Whatever the source, I think most people are familiar with the Top Ten concept. So I thought today we might use that concept to identify the Top Ten Signs that your small business would be in need of a Chief Financial Officer. It is a lighthearted way to look at a serious topic.
Last week we talked about the top reasons a government contractor needs to outsource their CFO function. I think it is prudent to step back and look at why a small business needs a Chief Financial Officer to begin with. What does a CFO do that an accountant doesn't do? Why would a small business need a CFO if they have already contracted to have their books kept up to speed meeting GAAP, FAR and other regulations? These are good questions and not always obvious to answer.
A few years ago we wrote a blog about the importance of a CFO in a small business. Most small businesses either think they don't need one or that they can do it themselves. I think this topic is important enough to re-do the blog on the CFO.
We have talked recently about outsourced CFO help as well as some of the reasons for outsourcing a small firm’s complete accounting function. By complete accounting function, we mean not only doing the books for a small business, but helping that business with budgeting, reconciliations, financing options as well as other strategic recommendations. A large company has a full accounting department to perform these functions but a small business cannot afford a full accounting department. Outsourcing the full accounting function can provide for all of those skills on an “as needed” basis or as some refer to it, “by the drink”. ReliAscent also has a group of partners that can be utilized in order to provide an even wider range of services to our clients. One of these partners is Federal National Commercial Credit (FNC2), a provider of working capital solutions to government contractors & other small businesses. I thought it might be good to talk about the importance of these partnerships, especially when it applies to a real-life situation. Recently, ReliAscent performed a number of services for a client of FNC2. FNC2 needed to verify their client had an adequate accounting system to support the amount of financing that the client was requesting. ReliAscent was able to go in and:
I have had several discussions recently with small businesses that are concerned with finding ways to fund their small business. Anyone that has started a business knows that certainly is one of the major concerns with starting a new business. But to someone new to this field, it can be a very frustrating exercise. Many people assume that the funding has to come from an independently wealthy founder. While this is certainly a way that some companies are founded but by no means is this the only way. This is part of what is affectionately known as one of the 4 F's for financing an early stage business (Founder, Friends, Family and Fools). Countless businesses are started with one or more of the 4 F's. Most of the time, this type of funding is only sufficient to get the firm started or only take the firm to a certain size. Relying on this type of financing will almost certainly limit the ultimate size of the organization.