Small businesses and Government Contractors face a unique set of financial challenges. Managing finances, maintaining compliance, and keeping up with bookkeeping can be overwhelming and time-consuming. The cost of hiring a full-time accountant can be prohibitive for many small businesses. Fortunately, Managed Accounting Services offer a practical solution that can save businesses time and money while improving financial management and the timeliness of financial reporting.
Managed Accounting Services are a popular trend in the world of accounting, where a business outsources its financial management to a third-party provider. The third-party provider has a team of expert accountants who work for multiple clients at a time, which helps businesses to save costs and improve financial management. In this blog post, we discuss the benefits of using Managed Accounting Services for small government contracting shops.
1. Improved Financial Management: Managed accounting services provide business owners with the tools they need to make informed financial decisions. These services provide a wide range of financial reports that help businesses track their expenses, revenue, and investments. Furthermore, the reports can help businesses measure their financial health, manage cash flow and make informed decisions.
2. Compliance Management: Businesses in the government contracting space are required to comply with various regulations and standards. With managed accounting services, businesses can rest easy, knowing that their financial records are always up to date and accurate. Having an outsourced team of accountants that specialize in government contracting accounting ensures that businesses comply with local, state, and federal regulations thus avoiding costly penalties and fines. They do this by properly segregating allowable and unallowable expenses in the books, establishing a proper indirect rate structure and accurately capturing project costs.
3. Cost Savings: Hiring a full-time accountant to manage your finances is expensive and inefficient. Managed accounting services offer small GovCon businesses a much more effective solution. By working with a third-party provider, such as Arrative, businesses save significant costs related to employee salaries, benefits, equipment, and office space. Additionally, managed accounting services often offer flexible pricing options, which means businesses pay only for the services they require.
4. Scalability: As businesses in the government contracting space grow, so do their accounting and financial management needs. Managed accounting services offer businesses the scalability they need to grow and expand. With these services, businesses can quickly ramp up or scale back their financial management requirements as needed. Clients can structure their level of support based on their needs.
5. Expertise: Outsourcing financial management to a third-party provider, like Arrative, means businesses get access to a team of expert accountants with vast knowledge and experience in the GovCon space. These professionals can offer invaluable insights and advice that businesses may not have access to otherwise. Expertise thus helps businesses make better informed decisions and strategies that help them grow and succeed. In addition to day-to-day transactions, our consultants have experience in areas such as mergers and acquisitions and joint-venture relationships.
Managed accounting services offer small businesses in the GovCon space a practical solution to their financial management challenges. By outsourcing their accounting needs, businesses can improve financial management, ensure compliance, save on costs, scale their operations, and access expert insights and advice. As a business owner, you owe it to yourself to explore managed accounting services as an effective way to manage finances. Contact us at [email protected] to learn how our services can help your business stay on top of financial management and grow sustainably.