Strategic value of outsourced accounting for government contractors and NFPs

Have you considered the significant investment required – both in time and in resources – when managing accounting for your business? Spoiler alert: It quickly adds up. Maintaining in-house accounting personnel for government contractors has substantial costs. Beyond wages and benefits, the financial commitment also includes overhead expenses, recruitment costs, anrtd investment into employee development, to name just a few examples.  

Outsourcing offers a solution that lightens the load and enhances accuracy, scalability, and efficiency. From handling routine bookkeeping to helping ensure compliance with federal regulations, outsourced accounting allows companies to focus on what they do best while leaving the complexities of financial management expertise to the professionals.  

It’s time to consider the invaluable advantage that outsourcing your accounting services may bring to your business. 

The invaluable advantage of outsourced accounting 

Outsourced accounting services allow you to redirect your attention to running your business, without the burden of day-to-day bookkeeping. Imagine having more time at your disposal to work on your business and pursue strategic initiatives such as: 

• Optimizing daily accounting operations and enhancing overall productivity 
• Integrating cutting-edge accounting and technology systems, staying at the forefront of innovation and efficiency 
• Conducting more insightful financial analysis empowered by strategic decision-making 
• Thoroughly preparing for audits, positioning you for a smoother process 
• Standardizing your operations by developing accounting policies and procedures 
• Producing comprehensive financial management reports that offer a deeper understanding of the financial landscape 
• Maximizing liquidity and optimizing working capital to strengthen financial stability by improving cash management 
• Mitigating risk with better oversight of your government contractors 

In highly regulated industries like government contracting, outsourcing can be the difference between meeting compliance standards and facing costly penalties. Experienced providers can bring deep knowledge of the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS), making sure your financial systems are compliant with DCAA (Defense Contract Audit Agency) requirements. They manage everything from invoicing through platforms like Wide Area Workflow (WAWF) to government audits, safeguarding your financial processes at every step.  

For NFPs, the challenge lies in managing the stringent reporting standards that donors and grantors require. Outsourced teams skilled in NFP accounting help streamline complex processes like functional expense allocation and grant billing, helping ensure financial transparency and compliance with GAAP. They can prepare your financial statements, including the Statement of Financial Position and Statement of Activities, so your organization can stay focused on its mission without worrying about financial missteps.  

Efficiency, cost reduction, and empowerment 

Harnessing the expertise of technical and financial outsourced accounting services can result in efficiency, cost reduction, and strategic empowerment for your in-house accounting – giving you the confidence to make informed and strategic financial decisions, adding tangible value to your business operations. 

• Efficiency – Processes are standardized, technology is easier to deploy, and the time it takes to close your books is greatly reduced. 
• Cost reduction – Cost and overhead associated with hiring, training, and managing full-time staff are eliminated. 
• Empowerment – Nonaccounting personnel can focus on what they do best. 

You and your staff should be doing what you do best – and leveraging outsourced accounting services can help you do just that. Eliminate non-revenue-generating tasks and direct your focus toward growth to truly drive what matters most for your company. 

How outsourcing allows you to scale 

Outsourcing provides scalability that in-house teams may struggle to achieve. Whether managing seasonal fluctuations or supporting rapid business growth, outsourced firms can quickly adjust to meet your needs.  

For government contractors, scaling requires a strong compliance foundation. As you take on more contracts, the burden of regulatory reporting increases. An outsourced accounting team familiar with FAR, CAS, and DCAA standards can help scale your operations while maintaining compliance. Additionally, they can manage the surge in transactions and reporting demands that come with growth, such as generating financial reports for banking requirements or investors.  

For NFPs, scaling might involve managing an increased volume of grants, donations, or new projects. Outsourced firms provide the flexibility to add resources during these periods.  

How technology enhances outsourced accounting 

Modern outsourced accounting firms leverage technology to improve efficiency and accuracy in financial reporting. The integration of AI and automated dashboards allows for real-time cash flow monitoring, predictive forecasting, and faster decision-making. By using advanced technologies, outsourced firms help organizations reduce costs associated with manual processes while providing the data needed to make more informed business decisions. This technology-driven approach allows businesses to respond faster to market changes, improve risk management, and reduce operational inefficiencies.  

Conclusion: The keys to a successful outsourced accounting partnership  

Outsourcing accounting services can deliver significant benefits, from cost savings to accessing specialized expertise and leveraging cutting-edge technology. However, the most important factor in helping ensure the success of this partnership is proactive communication. Outsourcing must feel seamless, as if the outsourced team is an extension of your own. Establishing regular communication cadences is crucial, especially at the start of the engagement. Weekly or bi-weekly meetings can help set expectations, align goals, and address issues. As the relationship matures, the frequency can be adjusted, but keeping lines of communication open is essential.  

Beyond communication, governance and oversight keep the relationship on track. Proper governance ensures that both parties remain aligned on objectives and that services are delivered smoothly.

Finally, process improvement should be an ongoing focus. Outsourced providers bring a wealth of experience and tools to drive efficiency through automation and innovation continuously. With technology advancing rapidly, businesses of all sizes can use automation solutions that were unavailable just a few years ago. Even minor, easily implemented improvements can save time and money without requiring major investments, allowing businesses to focus on growth.  

How CohnReznick can help 

CohnReznick provides scalable accounting services tailored to every client. We bring years of proven industry experience to help you reduce the cost of ownership and maximize the benefits you receive from your investment in Unanet, Deltek Costpoint, QuickBooks, and Sage Intacct accounting systems.  

Contact our team to learn more and get started.