Government contractors, who do business with the Department of Defense or other government entities (e.g. states that now follow federal regulations), face an enormous challenge: you must provide detailed cost information—direct, indirect, and overhead expenses—for each contract, project, and task in order to remain compliant to government requirements and/or the Defense Contract Audit Agency (DCAA).
Moreover, among other controls, you must prove to the government you have accounting software and procedures that adequately track and report on costs, demonstrate a purchasing system that efficiently and effectively spends government funds, and have a well-trained financial management team ready for annual and surprise “floor-check” audits.
What’s more, because the majority of your business is on a project basis, you need the capability of tightly integrating project management and financial accounting.
Below are three essential ingredients you need as a government contractor. When you have these three essentials as a foundation for fulfilling your government contracts, you are well on your way to becoming a profitable government-contracting organization.
1 - An Expert Partner - First, you need a partner who has expertise in government compliance, project accounting, and software systems. Too often, companies needing a new accounting solution to handle government contracts focus so much on searching for the right product at a price that fits their budget, that they overlook how crucial it is to find the right implementing and supporting partner--one who can effectively implement, configure, support, and/or customize your accounting software to fit your needs and give you ongoing advice on financial management, project accounting, and government compliance.
2 - Optimum Software - You need softwarethat easily delivers what project accounting and the government require. Synergy Business Solutions implements and supports Microsoft Dynamics SL, a mid- and enterprise-class financial management software system, especially designed for the needs of project-centric companies and government contractors. Dynamics SL is easily configured to meet the requirements for complying with government contracts. An optimum financial management software system, such as Microsoft Dynamics SL, will help you handle multiple contracts, provide accurate estimates, submit professional bids, create historically-based budgets, account for direct, indirect, and other overhead costs, maintain an efficient purchasing system, control goverment equipment, excel in project management, manage materials, master government invoicing, create a time and expense audit trail, cap revenue postings, master incurred cost (ICE) and other reports, and be prepared for audits.
3 - Initial and Ongoing Proofs - You need proof that FAR regulations and CAS standards can be easily met through software functionality and integration. You need software that has clients with testimonials and case studies that speak to successful, efficient, and easier government compliance. You need a partner with excellent references and who has the ability to provide you a proof-of-concept system (before you purchase) that has all the functionality you require for your compliance needs.
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