One key feature that makes Deltek Costpoint the top solution for government contractors is its ability to manage the segregation of direct and indirect costs, especially through its Project Account Groups. In this blog, we'll discuss Project Account Groups in Costpoint, what they are, their importance, and how to use them to segregate costs properly.
Project Account Groups, or PAGs, are a fundamental component of Costpoint's project accounting module. They serve as a critical organizational tool that helps structure and categorize financial data related to projects. Project Account Groups are sets of predefined accounts and cost elements, or account function codes, grouped together to simplify financial reporting, analysis, and compliance tracking for specific projects.
Financial Reporting
Project Account Groups provide a systematic way to organize project-related financial data. This simplifies the process of generating financial reports tailored to individual projects or contracts, making it easier for organizations to monitor the financial health of each project.
Compliance
Compliance with regulations such as the Federal Acquisition Regulation (FAR) and the Defense Contract Audit Agency (DCAA) guidelines is essential for government contractors. Project Account Groups enable organizations to maintain compliance by ensuring that project-related costs are correctly allocated and accounted for. In the government contracting world, this means that your direct and indirect costs are correctly segregated. This also means that individual indirect costs are also properly segregated. This means you can systematically keep G&A, fringe, overhead, material, and handling from intermingling on your general ledger.
Cost Control
With Project Account Groups, organizations can monitor project costs, ensuring they stay within budget. This proactive approach to cost control can help prevent budget overruns and identify cost-saving opportunities.
Auditability
In the event of an audit, having well-organized Project Account Groups makes it easier to trace and substantiate project-related expenses, minimizing the risk of compliance issues.
Project Account Groups and Deltek Costpoint
Project Account Groups are a vital component of Costpoint's project accounting capabilities, providing organizations with a systematic way to manage financial data for projects. By implementing and maintaining these groups effectively, organizations can streamline their financial reporting, ensure compliance with DCAA regulations, and maintain efficient audit trails. Costpoint's Project Account Groups can become the cornerstone of successful project accounting in government contracting and project-based industries with the right approach.
If you have concerns about current Project Account Groups, please reach out to one of our Deltek Costpoint consultants here at Redstone Government Consulting, Inc. We can help assess the need for any changes and plan the proper path forward to keep your GL and project ledger balances clean.
Heather is a Senior Managing Costpoint Consultant with Redstone Government Consulting, Inc. Her areas of expertise include supporting government contractors in the implementation and operation of Costpoint, assisting with employee training, and providing outsourced accounting services, including program control deliverables, financial analysis, forecasting, general ledger, unbilled analysis, reconciliation, accounts payable, accounts receivable, payroll, and payroll taxes. Heather specializes in best accounting practices, from setup and training to monthly processing. Heather has over 19 years of experience in government contracting, supporting a wide range of contract types and customers. Her areas of expertise include program control, financial analysis, forecasting, government cost accounting, and procurement. Heather’s hands-on technical experience in all aspects of the business department provides a unique set of expertise for our clients. Heather has led and participated in numerous Costpoint implementations and re-implementations for the Accounting, Projects, Subcontractor, and Planning modules. She has worked directly with our clients to design accounting systems that are meaningful and useful for each client. She provides training in these modules and has developed desktop procedures that allow for a quick and seamless transition and implementation of these modules. Her experience in utilizing and implementing Costpoint gives our clients a unique perspective on the best practices related to both implementation and government accounting procedures. Her knowledge and guidance of the setup and end-user experience helps to ensure our clients receive a fully configured system that not just meets their current needs but will also allow them room to grow within the Costpoint system in the future. Heather is also experienced in assisting clients with “day-to-day” accounting processes. She has experience with all the normal accounting processes, such as accounts payable, account receivable, journal entries, reconciliations, reporting, etc. She helps multiple clients to produce, review and submit all types of project billings, including experience with WAWF, NASA 533s and MORADO. She processes, reviews, and submits timekeeping, leave and payroll data for multiple clients on a regular basis. Heather’s knowledge and experience in all business departments provides an invaluable resource to our outsource clients.