No doubt about it—the exciting part of your GovCon business is developing products and services and then promoting them with inspired strategies to win over the federal marketplace.
But just as nutrition and exercise are the foundation of health, solid accounting practices are what support your GovCon’s growth and profitability. All that bookkeeping and number crunching are necessities that feed your company’s success.
Start the year on track by downloading CAVU’s FY2024 Important Accounting Dates calendar, then keep reading for four reasons why this basic tool can pack a punch when it comes to your bottom line.
Four Reasons Why An Accounting Calendar Is Good For Business
The value of an accounting calendar starts with an explanation of ‘fiscal year’—a one-year period that companies and government agencies use for financial reporting and budgeting. Many GovCons’ fiscal year (FY) runs from January 1 to December 31, with important due dates occurring in most months. Here is why tracking these deadlines can have a domino effect on your financials:
- Tax Compliance – Quarterly federal and state tax return deadlines and other tax-related tasks—941 reconciliation, extension requests, W2s for employees, and 1099s for subcontractors—are nonnegotiable for financial stability. Get tied up in tax trouble, and you will drain time, money, and energy from building a great business.
- Regulatory Compliance – Meeting your regulatory obligations are also a nonnegotiable when you do business in the federal marketplace. A few examples: Defense Contract Audit Agency review and audit of incurred cost submissions, Small Business Administration review of audited financials, and payment of General Services Administration Industrial Funding Fees for participating in Multiple Award Schedule contracts. Meeting your regulatory deadlines with well-prepared information builds your reputation as a well-run GovCon.
- Companywide Coordination – Not everyone on your team who feeds information to accounting has the same day-to-day priorities. In addition, budgeting, invoicing, and financial reporting are often handled by different divisions. A basic accounting calendar can keep everyone aware of due dates.
- The Domino Effect – The data fed into accounting lays the foundation for advanced financial planning and analysis, which in turn allows your execs to hatch strategic plans based on real-time data. Suddenly, the direct line between meeting basic accounting deadlines and the exciting aspects of your business becomes clear.
Contact CAVU to find out how our government accounting and financial planning experts can set you up with the systems you need to take full strategic advantage of your accounting data.