Rose Report: Issue 47
GovCons and Project Based Companies:
How Project Controls Can Make or Break Your Success in Unprecedented Times
While there was much hope that the impact of the pandemic on businesses would subside this past year, the rate of Covid-19 cases has increased since July due to the highly contagious Delta variant. According to The National Federation of Independent Business’ recent Covid-19 Small Business survey, nearly half of small business owners report that the recent rise in Covid-19 cases over the past couple of months has had a large or moderate impact on their business.
Across the U.S., half of small business owners report that supply chain disruptions have a significant impact on their businesses and over one-quarter report significant staffing shortage with another 18% experiencing a moderate staffing shortage. From supply chain shortages to a tight job market, the health crisis has created an unprecedented environment for small businesses, and government contracting and project-based industries are no different than other sectors.
For small to mid-sized project-based companies, who may not have the acquisition power of large organizations, it is especially important to make certain that projects remain profitable, despite shortages in human and material resources. That is why it is more critical than ever to have project controls in place to provide budgeting and forecasting, track project progress, and guarantee that project objectives are met in terms of both time and money.
While many large project-based companies organize their internal finance and accounting departments with project controls as a specific function, many smaller project-centric companies have accounting-centric solutions that focus on the past performance of a contract rather than the ‘big picture’ and the future performance of the company. What’s missing is a connection between accounting transactional data, contract administration, and the project manager overseeing project success on a customer site. Project managers often place a higher priority on project operational success than on other administrative tasks such as reviewing time sheets, analyzing the profitability of individual contract employees, estimating project completion forecasts, and validating client billings.
At Rose Financial Solutions (RFS) we connect finance and accounting functions in the same way as bigger project-centric government contractor clients do. Small and mid-sized project-based companies can use RFS Project Controls to gain the capabilities that major companies have built into their finance and accounting systems. Our Project Controls solution, which combines people, processes, and technology, not only connects your typical accounting department, contracts, and project management, but also offers the knowledge and ability to help you navigate federal contracting laws and regulations.
RFS Project Controls leads to:
- Greater visibility into project performance—from both a timeline and financial perspective
- Enhanced ability to perform Estimates to Complete
- Better progress monitoring capabilities also known as earned value analysis (EVA). This can reduce cost overruns and is used for progress monitoring at every step of the contract
- Improved profitability of projects over the life of the engagement
- Accounting functions that are aligned with contracts
- Increased accuracy and lower rejection rates on invoices that are submitted to customers
- Increased cash flow by reducing the amount of time for accounts receivables to collected
- Improved reconciliations, contract compliance including reduced cost and burden of Incurred Cost Submissions
RFS puts our clients in the best possible position for project success. At a fraction of the cost, our Finance as a Service (FaaS) solution gives you the capabilities of an entire in-house finance, accounting, and tax department. Our solution goes beyond standard accounting outsourcing by combining our cutting-edge technology platform, Easby™ powered by RFSWorkflow™, with our team of finance, accounting, tax, and technology professionals. By combining the best people, processes, and technology, we help our clients achieve more with financial clarity.
Find out how our project controls solution can put you on the path to project success. Schedule an introductory meeting below.