Outsourced Accounting for Government Contractors: 8 Insights and Strategies

Given our extensive experience and our good working relationship with many government agencies, we are well equipped to assist you as you prepare and price your proposals, draft accounting policies and procedures or prepare for a DCAA audit. At BlueStone Services, we pride ourselves on our unparalleled local and national market expertise, a deep understanding of the cultural nuances, and our commitment to excellence. Over the years, our reputation has been built on trust, consistent results, and forging long-term partnerships with businesses. In large, established companies, chief financial officers (CFOs) perform these roles and responsibilities. They provide companies and organizations with much-needed business sense to promote growth. It may overwhelm other team members if you don’t have a full-time skilled bookkeeper to take care of every day entries.

• KatzAbosch has decades of experience serving the needs of government contractors in a number of industries.
• Let our Virginia CPA firm focus on handling your complicated Government Accounting issues while you do what you do best — run your business.
• At Invensis, we offer DCAA bookkeeping services to comply with various government contracts compliance across accounting systems.
• Democratic U.S. presidential candidate John Kerry called U.S. firms that outsource jobs abroad or that incorporate overseas in tax havens to avoid paying their “fair share” of U.S. taxes “Benedict Arnold corporations”.

QuickBooks Accounting – DCAA Compliant

We find talent that meets your exact requirements and expectations, including controllers with Big Four experience and specialized government contracting backgrounds. The DCAA conducts various audits, including pre-award audits, post-award audits, incurred cost audits, and forward pricing rate audits to ensure compliance with government contract accounting standards. They recognize that business owners and operators must feel confident in their financial reporting.

• Many providers now offer comprehensive digital marketing services that integrate across multiple channels and platforms.
• Bid and proposal requirements vary based on the contract type, whether it be fixed price, time and material or cost reimbursable.
• We provide a range of accounting, tax and consulting services specifically geared to the needs of government contractors.
• Upon a complete analysis, we make recommendations for navigating compliance issues, with professionals who can execute effective solutions at the ready.
• Government contracting moves fast and brings with it a dense web of compliance requirements.

Audit Readiness: Essential Practices to Ensure Your Business is DCAA or IRS Audit-Ready

This is especially beneficial for government contractors who may have multiple contracts with various agencies, each with unique requirements. Some businesses make the mistake of not only failing bookkeeping for contractors to use outsourced accounting, but also failing to pay the government regulations the proper respect. Thinking that they can get away with something less than proper accounting for government contractors, these businesses run an ongoing risk that is likely to catch up with them at one point or another.

• Government contracts often involve handling sensitive information, so it is crucial to ensure that the outsourcing partner has strict compliance and security measures in place.
• Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms.
• He later transitioned into public accounting, where he gained extensive experience in financial reporting, tax preparation, attestation services, and compliance for various industries, including government contracting.
• Instead of guessing and risking non-compliance, contractors can ask their dedicated outsourced accounting team what costs are allowable and how to maintain compliance in their procedures as they prepare for their next audit.
• These practices are vital for the functioning of government contractors and help maintain financial integrity with the utmost importance to regulatory compliance.
• Consider overlapping work hours where possible and use asynchronous communication tools effectively to maintain productivity across time zones.

Research and shortlist potential providers

Whether you’re a startup looking to build capabilities rapidly or an established enterprise seeking specialized gross vs net talent, understanding the mechanics of outsourcing staff can transform your business operations. The provider should have a proven track record of working with government contracts and a thorough understanding of the relevant regulations and compliance requirements. For government contractors, this includes handling all financial transactions related to their contracts with various agencies. Our onboarding process configures your systems quickly and accurately while setting the foundation for long-term compliance. From setup to audit support, we include outsourced accounting and DCAA-compliant timekeeping so your business is prepared from day one. Engaging an outsourced accounting service can be more cost-effective than building and maintaining an in-house team.

• First, businesses identify functions suitable for external delegation based on factors such as required expertise, frequency of need, and strategic importance.
• As companies expand outsourcing across multiple functions, coordinating various provider relationships can become complex and time-intensive.
• This includes their level of expertise, quality of services, and any additional support or resources they offer.
• Not only does this lead to better financial reports, but it also helps relieve stress and allows you to understand things like tax obligations more clearly.
• Partner with us to navigate the complexities of DCAA compliance efficiently and confidently.
• Companies often choose onshore outsourcing for functions requiring deep understanding of local regulations, customer preferences, or market dynamics.

However, you should still consider the overall value for money that an outsourcing partner can provide. This includes their level of expertise, quality QuickBooks Accountant of services, and any additional support or resources they offer. Cherry Bekaert offers CFO and controller services, project reporting, month-end close, revenue recognition, financial reporting, billing/payment systems, and more. The decision to outsource accounting should not just be seen through the lens of cost or efficiency.

Cherry Bekaert’s team of government contracting professionals have significant experience in outsourced accounting. As more guidance comes forth, we are here to provide regular updates and thought leadership to guide your journey forward. If you have any questions specific to your situation, Cherry Bekaert is here to discuss solutions tailored for you.