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Preparing Your GovCon Business for the New Fiscal Year and Beyond
As we enter a new fiscal year, government contractors face a unique set of challenges than other non-government contractors. From shifting budgets, competitive bidding for contracts, and the need for compliance with strict regulations, the start of the fiscal year is an important time to assess where your business stands. Whether you’re aiming to win new contracts or preparing for a potential exit or sale down the road, taking an anticipatory approach will bring long-term success.
At KBS CFO, we’ve helped many GovCon businesses navigate the complexities of financial management, audits, and future planning. Here are some of the ways we set our clients up for success – both now and for future growth or succession planning.
- Strategic Budget Planning for the New Fiscal Year
The new fiscal year is a perfect time to reassess your budget and align it with your business objectives. Whether your focus is new contracts or maintaining your current client base, your financial strategy needs to reflect your goals.
Key Considerations for GovCon Budgeting:
• Assess New Contract Opportunities: Government budgets change yearly, and so do opportunities. We help our clients review upcoming government recruitment schedules and adjust their budgets to cover proposals, certifications, and hiring needs for meeting contract demands.
• Resource Allocation: We check that their budget reflects the right allocation of resources. Whether it’s funding new technologies, investing in talent, or improving operational efficiencies, prioritizing where our clients allocate resources is critical to remaining competitive.
• Cost Control and Compliance: In the world of government contracting, staying compliant with rules and regulations is not just important – it’s essential. We review our client’s cost control measures and see that they are aligned with federal guidelines.
KBS CFO can help you create a budget that not only prepares you for the immediate fiscal year but also positions your company to grow and thrive in the long term.
- Preparing for Audits and Inspections
Government contractors often face audits, either from government agencies or from potential suitors if you’re considering a sale or merger. With these audits comes intense scrutiny of your financial records, operational systems, and overall business. Preparing now helps you be ready for any inspection that comes your way.
How to Prep for Audits and Exits:
• Financial Records: Accurate, up-to-date financial records re important in any successful audit. From contracts to payroll and expense tracking, we make sure that every aspect of our clients finances are carefully documented and compliant with both government and internal regulations.
• Systematic Reporting: By implementing robust accounting systems, you’ll have the necessary documentation ready when an audit arises. Having integrated systems can help automate and streamline reporting, reducing the stress that comes with an upcoming audit or exit.
• Risk Management: Do internal audits to find and fix any problems with following the rules ahead of time. Regular reviews of your business’s internal controls and adherence to federal guidelines not only help in audits but also in preparing for any unexpected legal or regulatory changes.
At KBS CFO, we understand that preparing for audits requires more than just crunching numbers. Our outsourced CFO services keep your accounting systems and controls in top shape, giving you peace of mind before audits or inspections.
- Building Systems and Processes Now for the Future Success of Your Business
As your GovCon business grows, planning for the future becomes more important. Whether your long-term goal is succession planning or a potential sale, the steps you take today can set the foundation for a smooth transition later.
Succession Planning and Preparing for Exit:
• Implementing Strong Accounting Systems: One of the most important parts of planning for succession or selling your business is having a robust accounting system in place. Buyers or new owners will want to see clear, well-organized financial records that show how healthy the business is. If your accounting systems are current and can grow with the business, it’s easier to show how valuable your company is.
• Documentation and Transparency: Building a business that is attractive to buyers or successors means having everything in writing. This includes financial reports, client contracts, internal processes, and intellectual property documentation. Buyers want transparency, and unorganized documentation can deter them from moving forward.
• Streamline Operations for Future Leadership: Set up your business to operate smoothly even when you’re not handling the day-to-day tasks. This might include documenting processes, delegating leadership roles, or investing in training programs that empower your team to handle key business functions.
By focusing on these long-term goals now, you’re not only securing the future of your business, but you’re also positioning it to thrive under new leadership or ownership when the time comes.
The KBS CFO Approach to Growth and Future Success
At KBS CFO, we understand that growing and preparing for the future requires more than just number-crunching. We specialize in providing outsourced CFO services that help businesses manage their finances while keeping long-term goals in mind. Whether you’re navigating the complexities of government contracts or laying the groundwork for a successful business transition, we’re here to help your business succeed.
With a focus on personalized, data-driven solutions, our team is ready to support your GovCon business as it navigates the new fiscal year, audit preparedness, and future planning.
At KBS CFO, we’re invested in your success, today and long into the future. Contact us today.