Internal accountants, bookkeepers and certified public accountants (CPAs) often have limited expertise in managing government contracts, placing organizations and companies at risk due to improper accounting and severe audit penalties.

Are you struggling with financial planning, bookkeeping, payroll, and other accounting tasks? If so, outsourcing might be the right solution for you.

This article will walk you through six types of accounting functions government contractors can outsource to ensure compliance and efficiency.

6 Types Of Accounting Functions You Can Outsource

Listed below are six accounting functions you can outsource to ensure smooth business operations and DCMA and DCAA compliance:

Managing Accounts Receivable & Accounts Payable

Outsourcing your accounts payable and accounts receivable management helps accelerate cash flow and ensures timely payments.

Whether you are a small business or a new startup, you should consider outsourcing this service, especially if you don’t have a designated finance team to manage all functions.

Outsourced accounting firms can assist your team members and may offer the following functions/services:

• Order management
• Invoice approval
• Invoice storage and imaging
• Expense reporting
• Check processing
• Online payments
• Debt management
• Collections management
• Cash forecasting
• Cash reporting
• Customer billing
• Managing vendor inquiries

Bookkeeping Services

Bookkeeping is a ‘must’ service for small to mid-size government contractors. It can be increasingly time-consuming, requiring constant updates and attention-to-details.

It may overwhelm other team members if you don’t have a full-time skilled bookkeeper to take care of every day entries. Inefficient or poorly managed bookkeeping causes frequent mistakes and adversely impacts your business.

Avoid bookkeeping mistakes by outsourcing this service to a credible outsourced accounting company. With outsourcing, you can manage expenses and time, handle employee expenses, invoice processing, and balance ledgers.

Also, you will have the ability to run periodic comprehensive reports to understand financial statement visibility and utilize that data to make informed decision-making.

Here are a few other tasks your outsourced bookkeeper can manage:

• Expense management
• Multi-currency and multi-entity consolidation
• Order-to-cash (O2C) management
• Invoice payments
• Accounting software setup
• E-payments or procure-to-pay (P2P) handling
• Maintenance and subscription renewals management

Controller Services

Controller services help businesses with comprehensive cash flow management, analysis and financial oversight.

These services are perfect for both growing and well-established government contractors requiring strategic insights and guidance to promote revenue and overall business growth.

An outsourced accounting firm can help you perform the following controller services tasks:

• Audit reporting
• Management reporting
• Cash flow management and analysis
• Compliance management
• KPI reporting
• Vendor and employee communication
• Adherence to procedures and policies
• Expenses oversight
• Implementing cost-reduction techniques
• Reviewing products, services and performance indicators

Financial Planning & Analysis

Companies require operational oversight and analysis to review business health and guide decision-making.

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.

However, not every emerging business or new startup can afford a full-time, skilled CFO. Outsourcing this task allows small government contractors to have a financial planning service at an incredibly low cost.

Here are some tasks your outsourced CFO service may perform:

• Process mining
• Audit support
• Data interpretation and collection
• Management reports preparation
• Board reporting
• Bank reporting
• Forecasting, budgeting and planning
• Creating improved profitability opportunities
• Financial data reporting and analysis
• Investor communication
• Cash flow reports

Tax Reporting & Filing

Government contractors must comply with federal, state and local taxation laws requiring accounting expertise.

An excellent outsourced accounting service ensures you remain compliant while reducing errors that may adversely affect your contracts and company.

Many companies hire CPAs who can file and prepare business taxes timely. By outsourcing tax reporting services, firms can manage payroll tax filing and collection per tax rules and regulations and help minimize tax liability.

No matter the government contracts – small or big – businesses can benefit tremendously from credible outsourcing services.

Here are a few tasks that your outsourced accounting company will undertake:

• Payroll tax filing, payment and collection
• Reviewing statement of compliance
• Tax planning
• State and federal tax return preparation
• Tax assistance to collect, file and maintain compliance with all tax regulations
• Franchise tax assistance

Payroll Processing

Outsourcing payroll processing enables you to automate and streamline this function, leading to reliability and increased efficiency. Many seasoned outsourced accounting agencies utilize software and tools to offer cost-effective payroll services.

Technology can significantly minimize the risks of tax return and payment processing errors, saving government contractors from paying hefty penalties. Small businesses and new startups benefit most from payroll processing outsourcing services as they help manage various payroll needs and improve efficiency.

Let Diener & Associates Help You Take Care Of Contractor Accounting Needs

Diener & Associates outsourced accounting solutions offer experience and flexibility to accommodate government contractors’ varying needs.

Whether you require back-office transactional assistance or strategic financial reporting and planning, they have reliable outsourced accounting solutions to fill gaps and meet set goals. For more information, visit our website or contact us directly.

The post Accounting Functions That Government Contractors Can Outsource appeared first on Diener & Associates.

According to one report, the number of small businesses that receive government contracts plummeted sharply by 12.7% in four years. Companies and organizations require reliable resources that have implemented various governmental accounting and reporting systems, and passed DCAA audits.

Outsourcing your accounting needs to Diener & Associates can help reduce risks and improve regulation-related expertise, helping you to maintain compliance and grow your business.

Why Outsource Your Government Contractor Accounting?

All government contractors must follow the necessary accounting and reporting requirements. This means managers or other officials of small and mid-sized government contractors must ensure the accounting practices remain fully compliant. Managers have to bridge differences between data-based decisions and available resources while reducing costs and increasing financial resources.

Listed below are a few of the reasons to outsource accounting as a government contractor:

Meet Regulations

Outsourced accounting services make it easier for contractors to comply with all major auditing and regulatory agencies. This is particularly true for DFARS Clause 252.204.7012 hosting requirements (government contractors) as it assists in maintaining data security.

Improve Accuracy

Outsourced accounting for government contractors allows companies to leverage accounting experts who can enhance the internal accounting system’s reliability and accuracy. These experts can also help organizations manage finances and reporting.

Enhance Reports

Accounting systems for various government contracts provide data analyses and precise reports, enabling deeper insights and knowledge into a contractor’s performance. This allows for better cash flow management and efficient decision-making necessary to seek growth opportunities.

Staffing Effectiveness

Government bodies often experience staffing challenges, especially when filling public finance vacancies. Outsourcing accounting positions to professionals allows government contractors to manage various operations efficiently on a long and short-term basis.

The wide variety of staffing benefits government entities can accrue from outsourced accounting include reduced costs, little to no disruption in day-to-day functions and optimizing financial resources. An additional benefit is that of the services for various ancillary responsibilities including reconciliation, etc.

Moreover, outsourced accounting for government contractors does not need to be a full-fledged commitment. For example, you can outsource a specific position or task or give complete control of government contractor accounting operations. Outsourced accounting helps companies bridge the gap efficiently.

DCAA Audits

Conducting a DCAA audit (annual incurred cost, systems, etc.) is a common occurrence in the life of a government defense contractor. However, it is increasingly challenging for small and mid-sized government contractors to provide the abundance of information required for these audits with varying reporting and standards.

Outsourcing these responsibilities to seasoned CPAs ensures the audit preparation and/or audit is performed with reliable practices and results.

Improves Efficiency

Managed accounting solutions for government contracts improve effectiveness by outsourcing or automating essential accounting operations, freeing resources and saving money and time. In addition, professional outsourced accounting services help increase business efficiency by guarding access to primary data.

Reduce Cost significantly

Outsourced accounting for government contracts helps you reduce business costs significantly. You no longer have to maintain in-house accounting advisors on payrolls. Moreover, you could see considerable savings as accounting experts may uncover significant tax benefits that would not have been otherwise discovered.

Get In Touch With Qualified CPAs At Diener & Associates

Small contractors and startups require low-cost, effective accounting services to help save money, time and effort while improving their profitability. The expert CPAs at Diener & Associates can provide efficient outsourced accounting solutions for companies requiring assistance with payroll, bookkeeping, taxes and much more.

Government contractors must adhere to a wide range of complex accounting requirements, including tax regulations and laws, that must be accurately managed to maintain the contract, and are overall beneficial to ensure the smooth functioning of a business. For a small or midsize business, or first time contract holder, this can lead to exhaustive work hours and as a result, create poor operational inefficiencies.

Outsourcing accounting services for your government contracts (including FAR and DCAA compliance) to a professional accounting firm such as Diener & Associates can save your company money directly and indirectly.

Their experience will help you achieve and maintain compliance with SBA, FAR, DCAA, CAS, etc., keeping your business financially secure before, during and after the contract.

With their professional CPAs, you will receive expert accounting solutions with their service and help with tax filing and submission of financial statements and reports allowing you to put your focus on the contract.

For more info, visit our website or contact us directly!

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