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.

We hope you will visit and take part in the discussions on our blog on a regular basis. If you ever have any questions or would like to discuss how our experts can help, do not hesitate to contact us at any time!  


 

Outsourced Accounting and Cloud Computing Means Compliance

Posted by Mike Anderson on Tue, Feb 14, 2012 @ 09:02 AM

How do small businesses survive in the world today, especially when they are primarily government contractors?  The government has such a twisted path of regulations concerning contractors and then they control the amount of fee or profit that the small business can earn.  There is definately a cost in doing business with the government that many businesses don't realize when starting.  One of the constants we have noticed over the years is that experience in government contracting makes a difference.  Small businesses usually can't afford to hire someone with experience on their staff but they can hire a consultant and outsource this experience level on an "as needed" basis.  We have found that fully outsourcing back office services such as bookkeeping, accounting, payroll, contract management and even HR or purchasing can be valuable to the small business.  This allows those services to be performed by "experts" in the area and allows the members of the small business to focus on the tasks that they are experts at - thereby increasing their value to the bottom line.  A web hosted accounting system is a great tool for this scenario because both the outsourced consultant as well as company management can access the financial records at any time.  The following video outlines some of the benefits of such a web hosted solution, just imagine the cloud shared application is your accounting system!

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Topics: business consultants, Government contract consultants, DCAA compliance, Outsourced CFO


Top 5 Reasons Small Government Contractors should outsorce their CFO

Posted by Mike Anderson on Fri, Oct 28, 2011 @ 08:21 AM

In small businesses executives must wear many hats.  There simply isn't enough revenue to fund specialists in various "non-direct" areas like accounting.  For this reason alone, the Chief Financial Officer (CFO) duties are often carried out either by a founder with limited financial experience or carried out by someone who does not have enough time to devote to the duties to do the job in a complete and efficient manner.  As a result, the business usually suffers.  To hire, as a consultant, an outsourced CFO for your business you can focus on the tasks that will bring the most benefit to your firm again and rest assured that the financial health and strategic growth of the company are being watched.  Here is a quick list of the top 5 reasons for hiring a consultant to serve as your CFO:
  1. Cash flow:  Cash flow is the lifeblood of a small government contractor or subcontractor.  Managing cash for a small government contractor requires knowledge of government contract types and specific clauses related to contract payment.  Negotiating the most favorable terms may mean the difference between long term success or failure of the contract and possibly even the firm. 
  2. Pricing:  Pricing in the proposal stage of a contract is crucial.  Knowing how to leverage government cost rules when budgeting and pricing new proposals will directly affect cash flow after the award of the contract.  With all the FAR regulations and other flow-downs on most government contracts it is critical that the small business has an expert CFO that can anticipate and construct pricing models that will be in the best interests of the firm going forward. 
  3. Compliance: Depending on your mix and dollar amounts of the contracts, your financial and business systems may be heavily scrutinized by the government.  Most small businesses simply don't have the expertise to survive the scrutiny if it focuses on your firm.  An experienced outsourced CFO can provide that expertise and stability.
  4. Profitability:  Success as a government contractor means monitoring profits and threats to performance on a job-by-job basis.  Understanding the special contractual obligations imposed by government work is key to assuring this success.  Understanding all of the government's complex matrix of requirements and applying them strategically can also lead to the maximization of a limited "fee" under government contracting guidelines. 
  5. Company Vision:  An outsourced CFO provides a "second set of independent eyes" on your business that assures the best possible long term strategy.  This helps control costs because you pay for only the CFO duties that you need and don't need to pay 6 figures to receive the benefit of this position.  A part-time CFO makes you look "bigger" and helps assure the government of your ability to survive and grow in the market.  Also, by hiring a consultant you may have the benefit of more than one CFO at the outsourced agency that can "poll" their ideas and strategies resulting in a better final strategy for the small business.  To top it all off, this is an allowable expense for government contractors.
Tech BizSolutions offers experienced CFO personnel on an outsourced basis.  All of our CFO's have over 20 years experience with government contracting and financial responsibilities.  Call me today if you want to discuss how this could positively impact your business.
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Topics: Outsourced CFO, Government Contractors