As we previously discussed, there is a fine line between providing flexibility in cost accounting software while maintaining tight internal controls. You need both, and at first blush it might present a challenge in identifying a system that lends itself to easily correcting mistakes or performing what should be a routine task, while at the same time providing you with the "speed bumps, guard rails and stop signs" necessary in order to maintain data integrity. But, the concept of "flexibility" is rather nebulous without providing just a few real world examples that are inherent in modern and flexible accounting software design:
Example #1- You employ 1099 consultants who invoice you for their labor charges (1099 eligible) and also for their other reimbursable expenses, such as travel (not 1099 eligible). Do you - A: Setup two separate vendor records under unique ID's for an individual consultant; one for non-1099 expenses and the other for 1099 eligible expenses, or B: Setup but one, single vendor record for a given consultant and have the ability to select or deselect 1099 eligibility on an invoice line item transaction level?
Example #2- You process your payroll in-house, and a W-2 employee moves from one State to another during the course of the year. Do you - A: Deactivate the employee under their existing Employee record and then setup the same employee with new Employee ID in order to accommodate the change in State tax tables, or B: Deactivate the tax table from the previous State the employee lived in and then activate the tax table for the current State of residence within the same, existing employee record?
Example #3- You have a Labor Hour or T&M contract with multiple option years, and with each option year you have an escalation in your billing rates for each existing Labor Category. Do you - A: Setup "new" Labor Category ID's each year with the higher billing rates under the same contract to reflect the increase, or B: Use the existing Labor Category identifiers under the contract but with the new, higher billing rates?
The correct answers to the above questions in terms of which option best illustrates "flexibility" are B, B & B. By doing the above example scenarios the correct way and not the "legacy" way, SYMPAQ provides the flexibility to streamline your data processing, while maintaining the internal controls to adhere with DCAA compliance guidelines.