In case you hadn't heard, we wanted to notify all of our clients of news and a new requirement coming out of the GSA for all Federal Contractors and Grantees:Read More
DCAA Compliance Blog
Your Source for DCAA News and Information for Contractors
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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The most important thing for any business is to generate revenue and then collect that revenue. When there is a difficulty in collecting the revenue that was generated, the business can suffer from cash flow problems. It has been estimated that 70% of businesses that go bankrupt were profitable when they closed their doors. In addition, if a small business only plans cash flow once per year, they are nearly three times more likely to go bankrupt than a small business that does monthly cash flow planning. If this is so critical, shouldn't more small businesses pay attention to this management tool? The answer is yes but in many cases, unfortunately, the business owner my either not know how or not realize they should do this or have the knowledge or expertise to do it properly. The savvy business owner will enlist the help of someone or some organization that can help them with this critical task. This task becomes more onerous when the business is a government contractor. The cash flow analysis itself may not be any more complicated, but the factors that affect the cash flow may be more dynamic. It is smart to employ an expert to help the small business in this area.
Many government contractors are familiar with the System for Award Management (SAM) that recently replace several different government registrations including ORCA and CCR. What many contractors may not be aware of is that the SAM system requires contractors to update their registration at least annually. There has recently been an update published by the Small Business Administration to the Code of Federal Regulations (13 CFR Parts 121, 124, 125, 126, and 127) that not only reiterates this annual recertification but outlines penalties if the certification is fraudulent. The new rule establishes that there is a presumption of loss by the government equal to the value of the contract if this is misrepresented by the business. It also provides that the business will no longer be classified a small business (or other socioeconomic status qualification) if they fail to update SAM at least annually until such time as they update SAM. This revision is a result of the Small Business Jobs Act of 2010. The new rule becomes effective August 27, 2013.