Cherry Bekaert: Government Contractors Guidance

In this episode of Cherry Bekaert’s Government Contracting podcast, we discuss the do’s, don’ts and pitfalls of outsourced accounting. Host Eric Poppe, a Managing Director in the Government Contracting Industry practice, is joined by Jonathan Reid, a Director in Outsourced Accounting Services.   

Tune in to learn more about:

• How outsourced accounting helps government contractors 
• Differences between bookkeeping and outsourced accounting 
• Situations in which government contractors need accounting help 
• How to make a smooth transition into outsourcing accounting needs
• Tips for forming a positive relationship with an outsourcing firm
• Pitfalls a company should avoid before getting into an outsourcing relationship
• Questions you should ask during the interview process

Cherry Bekaert’s team of government contracting professionals have significant experience in outsourced accounting. As more guidance comes forth, we are here to provide regular updates and thought leadership to guide your journey forward. If you have any questions specific to your situation, Cherry Bekaert is here to discuss solutions tailored for you. Contact us.

Related Guidance 

• Podcast: How to Get the Most Out of Your Outsourcing Firm
• Article: Outsourced Accounting Frequently Asked Questions (FAQs)

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In this episode of Cherry Bekaert’s Government Contracting podcast, we discuss how to choose the right Enterprise Resource Planning (ERP) system that fits your company’s unique needs. Host Eric Poppe, a Managing Director in the Government Contracting Industry practice, is joined by Christine DeYuliis, a Senior Manager.  

Tune in to learn more about steps your business can take to find the right ERP, including:

• Conducting an initial discussion with stakeholders
• Defining and documenting current business processes, strengths and pain points
• Determining required features and functions 
• Identifying needed software integrations 
• Integrating accounting and reporting considerations 
• Considering compliance requirements

Cherry Bekaert’s team of government contracting professionals have significant experience in ERP solutions. As more guidance comes forth, we are here to provide regular updates and thought leadership to guide your journey forward. If you have any questions specific to your situation, Cherry Bekaert is here to discuss solutions tailored for you. Contact us.

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In this episode of Cherry Bekaert’s Government Contracting podcast, we discuss ways to optimize the benefits of outsourcing your accounting operations. Host Craig Hunter, a Director in the Government Contracting Industry practice, is joined by Mike Cippel, Managing Director, and Directors Irwin Kaplin and Jonathan Reid.

Tune in to learn more about:

• Deciding if outsourced accounting is your best option 
• Uncovering the benefits of using an outsourcing firm
• Optimizing the working relationship with an outsourcing firm

Cherry Bekaert’s team of government contracting consultants have significant experience in outsourced accounting solutions. As more guidance comes forth, we are here to provide regular updates, thought leadership, current and future state consulting, change management advisory and ready to stand up services. If you have any questions specific to your situation, our government contracting and tax consultants are here to discuss solutions tailored for you.

Contact us.

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In the fourth episode of Cherry Bekaert’s Cost Accounting Standards (CAS) podcast series, Brendan Halloran, a Director in Cherry Bekaert’s Government Contracting Industry practice, is joined by Jeff Annessa, a Senior Manager in the Firm’s Government Contracting practice. Bringing extensive knowledge and experience in the government contracting space, Brendan and Jeff discuss cost impacts, as well as the differences between General Dollar Magnitude (GDM) and Detailed Cost Impacts (DCI).

Brendan was previously a Divisional Administrative Contracting Officer (DACO) at the Defense Contract Management Agency (DCMA) and Jeff has spent over 13 years with the Defense Contract Audit Agency (DCAA), while also holding positions such as quality manager, supervisory auditor and field audit office manager.

• Tune in to find out more about:
• What cost impacts are 
• When cost impact proposals are necessary
• Different types of cost impact proposals
• A detailed overview of GDM and DCI
• Cost Impact Materiality 
• How to position the cost impact

Cherry Bekaert’s team of government contracting consultants have significant CAS experience and can help your growing government contracting business navigate CAS. If you have any questions specific to your situation, our consultants are available to discuss your situation with you. Contact us today.

If you haven’t already, catch up on other parts of the series :

• Cost Accounting Systems Series: Part 1 – A Comprehensive Overview
• Cost Accounting Systems Series: Part 2 – Considerations for Growing a GovCon
• Cost Accounting Systems Series: Part 3 – Implications When Acquiring Companies

Related Guidance

• Webinar Recording: Cost Accounting Standards (CAS): Part 1 – CAS Coverage Types, Common Standards, and CAS Applicability
• Webinar Recording: Cost Accounting Standards (CAS): Part 2 – Cost Accounting Changes and Impact

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In the second episode of Cherry Bekaert’s Operational Effectiveness podcast series, Eric Poppe, a Managing Director in Cherry Bekaert’s Government Contracting Industry practice, is joined by Todd Angioli, a Director in the Firm’s Government Contracting practice with 20+ years of financial operations experience.

Together, Eric and Todd discuss mid-year considerations when budgeting and forecasting.

Listen to this episode to find out more about:

• What government contractors should consider at the mid-year point when forecasting for the remainder of the calendar year
• High-level considerations when reforecasting the operating plan:
  • Revenue
  • Direct Labor
  • Fringe
  • Overhead
  • General and Administrative Expenses (G&A)
  • Bottom Line 
• Key forecasting and planning areas:
  • Recompete andNew Business
  • Current Execution
  • Improvement Initiatives
  • Need Assessment for Mid-Year Burden Recalculation
  • The Need to Move Investments
  • Other Course Corrections
• What growing government contractors should be doing at the mid-year point

Cherry Bekaert’s team of government contracting consultants have significant operations and contracting experience to help you navigate any operational considerations. If you have any questions specific to your situation, our government contracting consultants are available to discuss your situation with you. 

If you haven’t already, catch up on part one of the budgeting considerations series: 

Effective Operational & Financial Performance:  Budget Considerations During Year-End

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In this episode of Cherry Bekaert’s GovCon Podcast host Eric Poppe, a Managing Director in Cherry Bekaert’s Government Contracting Industry practice, is joined by Vivian Kohrs, Director, Strategic Tax, and Bryan Weems, Senior Manager, Tax Credits and Incentives. Together they give an overview of research and development (R&D) credits for government contractors. 

Listen to learn about:

• What R&D credits are
• Who is able to take advantage of these credits
• Contract R&D Credits
  • Rights and risks
  • How subcontractors could potentially qualify 
• R&D credits by state: 
  • Virginia 
  • Georgia
  • Texas
  • Maryland
  • Florida
• Section 174 impact to tax liability and cashflow
• Recommendations on how to collect R&D Credits and prepare for the potential impact of Section 174 capitalization

Cherry Bekaert’s team of government contracting and tax credit and incentives consultants have significant experience in R&D credits and Section 174 analysis. If you have any questions specific to your situation, our government contracting and tax consultants are available to discuss your situation with you. Contact us.

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In this episode of Cherry Bekaert’s GovCon Podcast, Brynn McNeil and Craig Hunter both Assurance Partners in Cherry Bekaert’s Government Contracting Industry practice, discuss  revenue recognition for government contractors. Listen to learn more about:

• The five steps for recognizing revenue under Accounting Standards Codification (ASC) 606
• Understanding how costs drive revenue 
• Common errors in recording revenue 
• Best practices for government contractors regarding processes and controls for recording revenue 

Cherry Bekaert’s team of government contracting consultants have significant experience in navigating the SBA 8(a) business development program and can assist your business with the best accounting practices. If you have any questions specific to your situation, our government contracting consultants are available to discuss your situation with you. Contact us.

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In the third episode of Cherry Bekaert’s Cost Accounting Standards (CAS) podcast series, Brendan Halloran, a Director with Cherry Bekaert Advisory, is joined by Jeffery Annessa, a Senior Manager in Cherry Bekaert’s Government Contractor Industry practice, to discuss CAS implications during mergers and acquisitions. 

Cherry Bekaert’s government contracting consulting team has years of CAS experience and can help you navigate CAS compliance issues or disclosure statement development.

This episode highlights key topics to help guide your business forward, including:

• Scenarios and implications to CAS when:
  • A CAS-covered company acquires a company that is non-CAS covered
  • A non-CAS covered company acquires a company with CAS coverage
• The two most common approaches on how to treat the company you are acquiring, specifically:
  • A legal entity dissolved and integrated fully
  • A legal entity being maintained as a wholly owned subsidiary
• Understanding CAS structure as it relates to the company
• Steps to consider when merging with or acquiring a company
• Common areas that do not constitute a cost accounting practice change
• Impacts and considerations when the acquired company is CAS covered
• Areas a CAS-covered company should focus their attention on when acquiring, including:
  • Transitional accounting period
  • Indirect rate structure
  • Similarity of labor
  • Allocations
  • Restructuring cost
  • Pitfalls to avoid
• Areas a non-CAS covered company should focus their attention on when acquiring, such as:
  • Analysis of the CAS-covered contracts to understand period of performance, numbers and money magnitude
  • Additional exposure
  • Compliance requirements

If you haven’t already, catch up on part one and two of the series:

• Cost Accounting Systems Series: Part 1 – An Overview
• Cost Accounting Systems Series: Part 2 – Growing a GovCon 

Related Guidance

• Webinar Recording: Cost Accounting Standards (CAS): Part 1 – CAS Coverage Types, Common Standards, and CAS Applicability
• Webinar Recording: Cost Accounting Standards (CAS): Part 2 – Cost Accounting Changes and Impact

View all Government Contracting Podcasts

On December 26, 2023, the proposed rule for the Department of Defense (DoD) Cybersecurity Maturity Model Certification (CMMC) Program was published in the Federal Register. 

Listen to Eric Poppe, a Managing Director in Cherry Bekaert’s Government Contractor Industry practice and Brian Kirk, Senior Manager in the Firm’s Information Assurance & Cybersecurity practice, as they share insights into the proposed rule, including the surprises that came out and DoD’s timing for implementation.

• Refresher on CMMC Level 1 Self-Assessment, CMMC Level 2 Self-Assessment + CMMC Third-Party Assessment Organization (C3PAO) Assessment, and CMMC Level 3 Government-Led Assessment
• Equivalency: Cloud Service Provider (CSP) and External Service Provider (ESP)
• Phased Implementation (DoD rollout in solicitations)
• Final Certification vs. Conditional Certification
• CMMC Level 3 requires a CMMC Level 2 Final Certification
• Defense Industrial Base Cybersecurity Assessment Center (DIBCAC) High conversion to CMMC Level 2 Final Certification for perfect scores
• Cost Considerations

How do I prepare for CMMC certification?

If you have any questions regarding CMMC, Cherry Bekaert’s Information Assurance & Cybersecurity and Government Contracting advisors are available to discuss your situation with you. 

Cherry Bekaert is an authorized CMMC Third-Party Assessment Organization (C3PAO) by the Cybersecurity Maturity Model Certification (CMMC) Accreditation Body, Inc. (The Cyber AB). We assist Organization’s Seeking Certification (OSCs) with CMMC readiness assessments for Levels 1, 2 and 3. Additionally, as an authorized C3PAO, Cherry Bekaert partners with the Defense Contractor Management Agency (DCMA) Defense Industrial Base Cybersecurity Assessment Center (DIBCAC) under their Joint Surveillance audit program to perform DIBCAC High (NIST 800-171) Assessments which are convertible to CMMC Level 2 Certification, if a perfect score is obtained. 

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In this episode of Cherry Bekaert’s GovCon Podcast series on the Small Business Administration’s (SBA) 8(a) Business Development Program, Brynn McNeil and Craig Hunter, assurance partners in Cherry Bekaert’s Government Contracting Industry practice, discuss accounting best practices for 8(a) companies. Listen to find out about:

• Setting up an accounting system to segregate costs
  • Chart of Accounts
  • Indirect rates
• Reporting functionality for:
  • Contract revenue summary by contract
  • Showing cumulative revenue
  • Annual revenue
  • Direct costs
• Importance of month end reconciliations of balance sheet account 
• Recent accounting pronouncements that impact accounting 
  • ASC 505
  • ASC 842
• What to consider when selecting an accounting system 
• Accounting department general housekeeping best practices

Cherry Bekaert’s team of government contracting consultants have extensive experience in navigating the SBA 8(a) Business Development Program and can assist your business with accounting best practices. If you have any questions specific to your situation, our GovCon consultants are available to discuss your situation with you. Contact us.

If you haven’t already, catch up on other episodes in our podcast series discussing various aspects of the Small Business Administration’s (SBA) 8(a) Business Development Program:

• The SBA 8(a) Business Development Program – What Is It and What Are the Requirements?
• The SBA 8(a) Business Development Program Application Process and Requirements
• What Are the Compliance Requirements for 8(a) Certified Companies?
• Winning an SBA 8(a) Sole Source Award Contract – What’s Involved and What to Know
• Winning an 8(a) Competitive Contract
• Small Business Administration (SBA) Mentor-Protégé Program
• SBA Mentor-Protégé & Joint Venture Arrangements – Important Elements of the Agreement
• The lifecycle of an 8(a) Company
• OIG Report: SBA’s Business Development Assistance to 8(a) Program Participants
• Contract Performance After the SBA 8(a) Business Development Program

View all Government Contracting Podcasts