Compliant Outsourced GovCon Accounting Services

outsourced government bookkeeping services for contractors

JamesonWorx unites our experienced CPAs and Accountants with an innovative user-friendly platform and three customizable service levels that range from basic set up and support to fully-outsourced turn key services. We give our clients visibility and expertise that provides peace of mind. Aprio can help you manage ever-changing regulations and navigate complex software implementations, all while meeting and exceeding operational goals. Outsourced accountants are skilled in identifying potential compliance risks and helping to mitigate them before they become problematic.

The BDO GovCon Week Ahead – August 2023

However, for many would-be contractors, DCAA compliance can feel like stepping into a bureaucratic labyrinth. That’s why Finsmart Accounting- trusted globally for accounting outsourcing services– decided to share valuable insights, strategies, and tips on how outsourcing accounting works for government contractors. Control costs and scale your business with technology-enabled outsourced accounting solutions that offer on-demand access to financials and expert advice. At Bench, we truly understand the competitive nature of business in New York City, and the importance of accurate and time-saving bookkeeping in accelerating your business growth. Our expert team is not just proficient in bookkeeping, but they are also well-versed in local New York tax laws and understand the ins and outs of taxes specific to your industry.

Connect With Experienced GovCon Accountants Today

These practices are vital for the functioning of government contractors and help maintain financial integrity with the utmost importance to regulatory compliance. No wonder, effective accounting processes support contractors in strengthening relationships with government agencies and help achieve organizational objectives. Our experience as former government auditors, CFOs and Controllers of government contractors fuels our passion for proactive service and innovative solutions. Navigate government contracting risks, advance operational efficiencies and drive profitable growth with Aprio’s team of experienced industry professionals. Managing your finances is often a challenge for individuals, independent contractors, and business owners.

Accounting Resources

BOOST’s managed accounting service is just one of the reasons why our clients are so successful. Specialized outsourced firms bring industry-specific knowledge and best practices, offering insights into cost allocation, indirect rate calculations, and contract profitability analysis tailored to government contracts. Since 2000, Invensis has been catering to the diverse outsourcing needs of clients for multiple industries and constantly striving bookkeeping companies to add value to clients’ businesses. Bench is proud to offer bookkeeping services to businesses across the United States. Whether your business is located in a bustling city or a quiet suburb, we have a team of experts ready to help and support you with any of the local details and tax laws you should know about, wherever your business is located. We are here to help you streamline your accounting needs efficiently and effectively.

Here’s why New York City business owners like you trust Bench with their bookkeeping

Outsourcing companies provide a full range of resource levels in part- and/or full-time capacity as required to manage the contractor’s accounting. Outsourced accounting firms understand the human aspect of DCAA compliance. They recognize that business owners and operators must feel confident in their financial reporting. By cultivating partnerships built on transparency, clear communication, and shared goals, these firms can become an extension of a contractor’s business, rather than a third-party service provider.

Why You Should Outsource to Finsmart Accounting?

outsourced government bookkeeping services for contractors

In government contracting (GovCon), you need to do more than simply deliver on contracts — you need to ensure compliance with government regulations, including Federal Acquisition Regulations (FAR). GovCon accounting systems are different than commercial accounting systems, so you need a firm that knows the ins and outs of GovCon compliance and can offer peace of mind. Deep Experience with the Federal Acquisition Regulations (FAR), Cost Accounting Standards (CAS) and Government auditor guidelines such as the Defense Contract Audit Agency (DCAA). The knowledge and experience of a company’s internal employees are limited to the knowledge and experience of those employees. This is where many companies fall into the “that’s the way we’ve always done it” approach to accounting. A contractor engaging an outsourcing company has access to the experience of all the accountants and financial professionals in the outsourcing company.

  • BDO discusses the potential impact and actions contractors can take to mitigate.
  • This transaction creates the industry’s deepest team of experts in government pricing and payer/provider contracting, areas that have simultaneously become more outsourced in Pharma and the focus of significant regulatory and commercial changes.
  • Navigate government contracting risks, advance operational efficiencies and drive profitable growth with Aprio’s team of experienced industry professionals.
  • Firms specializing in DCAA compliance understand the complex regulations and maintain stringent oversight to ensure their clients remain above board.
  • Our team walks you through the items that are most important to you and gets the job done.
  • With over 40 years of government award accounting experience, clients from coast-to-coast, and over $6 billion in awards managed, Jameson knows the agencies and regulations—and how to help our clients avoid the pitfalls.

outsourced government bookkeeping services for contractors

Invensis’ government contracting accounting solutions helps you manage your accounting and bookkeeping processes in several ways. First, we ensure compliance with government regulations and requirements, such as the Federal Acquisition Regulation (FAR) and the Defense Contract Audit Agency (DCAA) guidelines. Our expertise assists you in providing accurate and timely financial reports, including project costs, overhead rates, and indirect costs, which are critical for managing contracts and ensuring profitability.

The legislation is set to expire in 2026, meaning we are now more than halfway through its effective period. In the Q2 edition of BDO’s Unanet ERP Newsletter, our team discusses the benefits of Unanet’s Advanced Costing functionality, reviews recent enhancement features, and shares our favorite new user suggestion submissions. Download Invensis’ Finance & Accounting services case study on Automobile Mortgage Loan Processing to find out how Invensis delivered positive outcomes.

A few of the GovCon accounting services we offer include:

Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here. Whether you’re a small, mid or large business, Aprio’s experienced Government Contracting professionals are here to advise you through a tailored solution on maximizing value and minimizing risk while you contract with the federal government. Anyone you may consider as your accounting or bookkeeping services provider should have a similar process for scoping out the work required to take on your company’s accounting, whether you’re a small business or a growing enterprise company. Ongoing support to ensure all your accounting and bookkeeping is being recorded in line with current government regulations.

Horizontal Analysis: What It Is vs Vertical Analysis

horizontal analysis formula

Now comes the fun part—analyzing what these changes mean to business performance. To standardize the output for the sake of comparability, the next step is to divide by the base period. Per usual, the importance of completing sufficient industry research cannot be overstated here.

Comparative Balance Sheets With Horizontal Analysis

They are also in a position to determine growth patterns and trends, such as seasonality. The method also enables the analysis of relative changes in different product lines and projections into the future. At least two accounting periods are required for a valid comparison, though in order to spot actual trends, it’s better to include three or more accounting periods when calculating horizontal analysis. From this, it is seen that, for instance, with vertical analysis, every item on an income statement is expressed as a percentage of the gross sales.

horizontal analysis formula

Example 1: ABC Corp Income Statements Analysis

Here are the straightforward steps which prove not to be as difficult as some other analytic accounting processes. A financial professional will offer guidance based on the information provided and offer a no-obligation call to better understand your situation. For information pertaining to the registration status of 11 Financial, please contact the state securities regulators for those states in which 11 Financial maintains a registration filing. Finance Strategists has an advertising relationship with some of the companies included on this website.

horizontal analysis formula

Horizontal and Vertical Analysis

For example, a business may compare sales from their current year to sales from the prior year. The trending of items on these financial statements can give a business valuable information on overall performance and specific areas for improvement. It is most valuable to do horizontal analysis for information over multiple periods to see how change is occurring for each line item. The year being used for comparison purposes is called the base year (usually the prior period). The year of comparison for horizontal analysis is analysed for dollar and percent changes against the base year. Carrying out horizontal analysis of the income statement and balance sheet helps investors and creditors to determine the current financial position of a company.

horizontal analysis formula

Vertical analysis serves as a more feasible technique compared to horizontal analysis. It is also useful for inter-firm or inter-departmental performance comparisons as one can see relative proportions of account balances, regardless of the size of the business or department. As seen from the above example, every ratio is given in relation to the revenue in the case of income statement. Horizontal analysis may be executed in a manner that makes a company’s financial health look way better than it is. It is mostly done by companies when presenting external stakeholders with information about the business in a bid to deceive them.

Horizontal analysis is most useful when an entity has been established, has strong record-keeping capabilities, and has traceable bits of historical information that can be dug into for more information as needed. This type of analysis is more specific relevant for analyzing the value we maybe selling or acquiring. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Horizontal analysis also makes it easier to detect when a business is underperforming. Consistency and comparability are generally accepted accounting principles (GAAP).

Consistency in Financial Reporting

Horizontal Analysis, also known as Trend Analysis, is an analysis technique in accounting used over financial statements such as balance sheets, statements of retained earnings, and income statements, among others. In horizontal analysis, the changes in specific items in financial statements i.e. net debt on the balance sheet or revenue on the income statement– are expressed as a percentage and in a specific currency – for example, the U.S. dollar. Obviously financial statements for at least two accounting periods are required, however, using a larger number of accounting periods can make it easier to identify trends within the financial data. The analysis can be carried out on any of the financial statements but is usually performed on the balance sheet and income statement together with appropriate accounting ratios.

  • It is also useful for inter-firm or inter-departmental performance comparisons as one can see relative proportions of account balances, regardless of the size of the business or department.
  • For instance, the increase of $344,000 in total assets represents a 9.5% change in the positive direction.
  • Consequently, it has an increase of $10 million in its net income and $2 million in its retained earnings year over year.
  • You can also choose to calculate income statement ratios such as gross margin and profit margin.
  • This increase in relation to total assets of $3.95 million is only 1% and could easily be just one piece of equipment, or a vehicle.

Misinterpreting Data

  • By assessing the changes in revenues, expenses, profits, assets, and liabilities, you can gauge the overall financial well-being of the organization.
  • Horizontal analysis of income statements also produces worthwhile information.
  • There seems to be a relatively consistent overall increase throughout the key totals on the balance sheet.
  • For example, let’s take the case of the income statement – if the gross profit in year 1 was US$40,000 and in year 2 the gross profit was US$44,000, the difference between the two is $4,000.
  • In this way, percentage changes are better for comparative purposes with other firms than are actual dollar changes.
  • The final step involves you reviewing these changes and making appropriate use of the information you get from your analysis.

Conversely, less favorable readings may be isolated using this approach and investigated further. For this technique to be used, at least two financial statements (of the same type) need to be in existence. To get a more valid analysis, however, at least three financial statements are used. The more statements available and used for analysis, the greater the results obtained. You can do horizontal analysis using only two periods for the comparison, but it’s highly recommended you use more to avoid drawing and acting on less accurate conclusions. In the current year, company XYZ reported a net income of $20 million and retained earnings of $52 million.

Although this type of analysis is not a comprehensive approach, it can help as a starting point to evaluate a potential investment opportunity. Therefore, when a company complies with these GAAP rules, it makes horizontal analysis easier. The evaluation and comparison through this analysis are in line with GAAP rules as well. Whether you do a horizontal analysis quarterly or yearly, it’s worth the time and effort to perform this calculation regularly.