If you are currently winning government contracts or would like to start getting awarded government contracts, project cost accounting software is an indispensable tool in succeeding. Government contracts are often flexibly-priced, cost-reimbursable contracts for example.
These types of contracts are also an example of how important the right project cost accounting software can be and the difference it will make. Along with these common types of government contracts come more stringent regulations and reporting requirements. It is here, where cost accounting software takes center-stage and becomes the star of the show.
Why Project Cost Accounting Software?
There are many accounting software packages to choose from, and there are those that can perform unique functions and serve specific industries, and there are those that are not designed for any industry in particular. Project cost accounting software is designed to track items such as direct labor on a project-by-project basis. Specifically, it is targeted toward tracking the financial components of each project. This gives project managers insight into the dollars and cents attached to each line item of the project.
With this information, managers have quicker and easier access to the reports they need to satisfy DCAA compliance. They also will have the added advantage of being able to identify where level of effort can be optimized or see trouble areas where profit margins could be impacted.
By using project cost accounting software that is purpose-built for government contractors, managers can feel confident about meeting the countless requirements, reporting protocols and regulations demanded by certain types of contracts.
The Burden of Reporting
Every project will have requirements that can often be satisfied with the right reports. When dealing with Government awarded contracts, however, you can expect those demands and requirements to exceed the standard reporting capabilities of your basic general purpose accounting software packages.
A quick look at the pre-award survey, (used to evaluate accounting systems of prospective contractors) will make the need for an excellent reporting system evident. The time, effort and energy saved from chasing down numbers, configuring and combining tailored reports and other reporting burdens are eased with a good project cost accounting software system. For flexibly priced contracts, the advantage of having the right project cost accounting software package is amplified.
Reporting for Government Contracts
Once you are awarded a government contract, it is possible that you will need to hire more employees, reach out to more contractors and expand your operations. Not only does the right project cost accounting package help improve the potential of winning government contracts, but it also helps keep you in compliance with the DCAA and its mandated reporting and invoicing requirements. In turn, this will promote your goals of successful project completion, and this will ideally lead to even more awarded contracts.
Software to Get the Job Done
It doesn't matter if you are in the transportation industry and need to log and align driver hours with the payroll system and DOT e-logs or if you are a DOD contractor building the next great weapon system. Perhaps your budget has reached a threshold and the government agency you're working with requires to be informed 60 to 90 days in advance, or else funding for the project could be delayed and the completion deadline could be interrupted. Regardless of your niche, once you have been awarded a flexibly-priced contract, compliance must be maintained.
In order to create and deliver the necessary reports and to do so without endless hours of extra work and back-breaking investment, means an investment in the right software. That investment will help you win, compete and succeed in working with the government. If this was a discussion about basic bookkeeping requirements or even creating a few new tracking categories, non-project based accounting software packages can work just fine. This isn't that discussion. This is about long-term jobs, big dollar contracts, and meeting government standards and regulations to win and report on those jobs. The right project cost accounting software package will help you to get the job done; from initial award through contract close out.