Last month we talked about what goes into finding and winning government business. In the third installment of our series, we assume that you have won the business. Hurray! Once the celebration is over, it will be time to roll up your sleeves and address the unique accounting requirements that come with government clients.
Cordia Partners is pleased to offer you Chapter 3 of Deltek's ‘Government Contracting for Dummies – You’ve Won! Now Comes the Accounting Challenge’ in a PDF format that you may download here.
Government Contractors Cost Matrix
This chapter is designed to help the non-accountant understand how costs are classified, segregated, and reported. This means you must have an understanding of FAR (Federal Acquisition Regulation) to accurately and efficiently bill the government for payment.
There are four cost buckets that make up the matrix: direct allowable, direct unallowable, indirect allowable and indirect unallowable. The download will give you a helpful definition of these terms so that you can quickly identify and assign costs properly.
Employing the Right Tools and Expertise
If you do not track costs timely, carefully, and accurately profits can quickly evaporate. Spending a lot of time manually addressing accounting matters can signal two problematic concerns for your business: lack of accounting expertise and the absence of an appropriate accounting solution. Cordia Partners can solve both of these problems for government contractors.
Revenue Recognition Practices and Government Contractors
With revenue recognition rules changing (ASC 606) it is critical that your reporting and billing are in compliance. The team at Cordia Partners is well versed on ASC 606 and can help you select the best tool to automate the process. We encourage using an industry-specific software solution to ensure compliance and avoid billing/payment delays that could jeopardize your cash flow.
The professionals at Cordia Partners help organizations remove the accounting challenges that come with government contracts. We are proud to have earned the trust of government contractors.
Contact Cordia to discuss your questions and needs for assistance.