Outsourcing certain administration functions within an organization has become a trending practice among government contractors. In fact, we have seen a noticeable uptick in outsourced accounting, human resources and contracts administration functions over the past year.

Whether a company chooses to outsource a certain administrative function to fill a temporary void or a permanent one, looking to subcontractors for help makes sense for a number of reasons.

1. They are readily available

Changes in an organization happen all the time (significant growth; change in accounting systems; loss of a key person; unexpected surges), and depending on the size of that organization, change can have a huge impact, especially if a company is small.

Whatever the reason for the change, finding resources to handle the changes can be difficult, costly and time consuming. Because of this, outsourcing missing functions to a company that specializes in those services can be cost effective, efficient and timely as consultants can be ready to immediately begin filling those gaps.

2. In-house resources are expensive

Great in-house resources are expensive to hire and retain (or terminate if need be). The process of sifting through a multitude of resumes and sitting through interviews, only to find that you’re no better than when you started, is both exhausting and costly.

Most consulting/outsourcing companies, including Redstone Government Consulting, have gone through that expansive process for you and have hired the best and brightest in their field, whether it be accounting, HR, contracts, government contract compliance, pricing. By outsourcing these services, a company can afford industry experts at a reasonable price.

You’ll also only pay for what is needed, which is often less than the cost of a full time employee or a staff of employees.  Not only can a company cut costs on salaries, but there is also a savings in facility and occupancy cost, fringe benefits cost, training cost, and management cost, all of which impact the incredibly important and sensitive G&A rate of a company.  

When you come to the conclusion that the relationship with your outsourced consultant is no longer needed, it is as simple as notifying that services are being terminated and that is the end of the story. Terminating an employee that isn’t working out or that no longer possesses the skill set that is needed by a company can be difficult and painful. It usually involves costly meetings with internal management, HR and often times legal counsel (terminated employees are a risk in terms of allegations of wrongful termination or even worse, calling a government hotline alleging fraud by the ex-employer).

3. They possess a high degree of expertise and knowledge

Consultants are experts in their field and offer a wealth of knowledge and experience. On a daily basis, consultants are exposed to new and challenging circumstances and face a magnitude of questions and inquiries from companies of all shapes and sizes. This fact alone means that consultants have to stay ahead of the curve in their knowledge and research.

Also, a majority of consultants are professionally certified (e.g. CPA) and as such, have not only an expectation, but a mandate to attend regular training and be continually educated to ensure they possess the knowledge expected by their clients.

4.  Auxiliary services create added value

In a firm like Redstone Government Consulting, not only do our clients benefit from the one or two individuals in which the client most closely interacts, but they benefit from the expertise of our other industry specialists. For example, our accounting outsourcing group for government contractors has the reach back and availability of retired government auditors, which is helpful when a government compliance issues arise.

They also have access to our accounting system implementation experts (CostPoint, Unanet, Quickbooks) for instances when software issues are rearing their ugly head, and even to HR expertise when there is a benefits issue that needs resolution.  

The list goes on, but the peace of mind a company gains in knowing that there is a team of experts available for advice and assistance at the drop of a hat, is invaluable.

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Written by Courtney Edmonson

Courtney Edmonson Courtney has extensive experience with Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS) compliance, evaluation and preparation of Cost Presentations, cost accounting systems setup and reviews, and policy and procedure preparation. Prior to joining Redstone Government Consulting, Courtney served as a financial statement auditor for large and mid-tier government contractors. Courtney works with small and large contractors in pro-actively preparing contractors for government contracts challenges as well as resolving complex DCAA and government procurement issues. Courtney’s expertise includes establishing and/or evaluating job cost accounting structures; management and preparation of complex incurred cost and forward pricing rate proposals; evaluation of internal controls most often evaluated by DCAA to include billing and estimating systems; preparation/evaluation of policies and procedures; development of cost allowability evaluation programs, and; preparation of corrective action plans for overcoming DCAA audit findings. Courtney is a lead instructor for the Federal Publication Seminars course, “Government Contractor Accounting System Compliance”, and provides class instruction for other compliance courses and webinars such as “Preparation of Incurred Cost Submissions”, “Cost Accounting Standards”, and “Cost and Price Analysis”. Education Ms. Edmonson earned a Bachelor of Science Degree from Jacksonville State University and obtained her Master of Accountancy Degree from the University of Alabama in Huntsville, Alabama.

About Redstone GCI

Redstone Government Consultants are a team of the most senior industry veterans and the brightest new talent in the industry. Many have held senior government positions including leadership roles in the DCAA. Our new talents bring significant accounting and software experience along with fresh perspectives, inspiration and energy to our team. Through our leadership and combined experience, we provide a unique perspective, bringing both government and contractor proficiencies to bear and ensuring rock-solid government compliance for our clients.

Topics: Business Systems Review, Small Business Compliance, Contracts Administration