Government contracting moves fast and brings with it a dense web of compliance requirements. For small to mid-sized contractors, staying compliant with Federal Acquisition Regulation (FAR), Defense Contract Audit Agency (DCAA) standards, and other regulations, while also focusing on growth, can feel like solving a puzzle with missing and shifting pieces. Each contract award introduces new requirements for cost tracking, timekeeping, reporting, and audit readiness, often with little room for error. What’s more, evolving guidance, shifting contract types, and limited internal resources can make it difficult to build a financial infrastructure that both supports operations and withstands government oversight. Without the right support, compliance gaps can go unnoticed until it’s too late.
Cost-Effectiveness
Building and maintaining a full-time, compliant accounting team gets expensive quickly, especially for contractors managing cost-type work or audit exposure. Salaries, benefits, continuing education, recruiting, and software expenses can all eat into profitability.
Outsourcing helps reduce this burden by aligning resources with actual business needs, whether that means basic transactional support, help managing indirect rates, or preparing for an upcoming audit. It gives contractors access to qualified expertise without the fixed costs of hiring internally, freeing up resources for other priorities like operations, pricing, or growth planning.
Specialized GovCon Accounting Expertise
Government contract accounting is a specialized field. It’s not just bookkeeping with a few added requirements. It demands a clear understanding of indirect rate structures, FAR Part 31, timekeeping compliance, and cost accounting standards. Mistakes in these areas don’t just lead to inefficiencies; they increase compliance risk. Working with professionals who focus solely on GovCon accounting helps reduce those risks. The right partner brings familiarity with real-world contract structures, audit expectations, and financial reporting that supports more confident decision-making and audit readiness.
Flexibility and Scalability
As contract portfolios grow, so do accounting needs. One day a team may be managing time-and-materials (T&M) billing. The next, they’re preparing provisional billing rates for a cost-plus-fixed-fee (CPFF) contract. Outsourced accounting provides flexibility that’s often difficult to match internally. Contractors can scale support up or down depending on contract volume, complexity, or budget constraints, without the delays or costs of recruiting and onboarding new staff. And if a contractor eventually chooses to bring accounting in-house, a good partner can support a smooth and well-documented transition.
More Than Just a Cost Decision
Outsourcing accounting is not only about controlling costs. It’s about managing risk, meeting compliance expectations, and building a financial structure that supports long-term growth. That’s especially important when entering new contract types or preparing for increased oversight.
Redstone GCI’s Collaborative Accounting Group provides outsourced accounting tailored to government contractors, supported by our compliance team to ensure alignment with FAR and DCAA expectations. Whether you're managing cost-reimbursable contracts, navigating changing contract requirements, preparing for an audit, or simply need additional capacity, our team can help you maintain compliance and stay ahead of what’s next.
Dylan McMurrey is a Senior Managing Consultant in Redstone Government Consulting’s Collaborative Accounting Solutions Group, where he provides strategic accounting support, government contractor-specific reporting, and financial system optimization. With experience spanning public accounting, financial management, and compliance, Dylan offers a comprehensive approach to accounting solutions that helps government contractors navigate complex financial environments. His expertise in account reconciliations, project analysis, revenue recognition, and software implementations allows him to support clients in streamlining processes and improving operational efficiency. Dylan began his career in the banking industry, supporting financial operations and developing a strong foundation in accounting systems and reconciliations. He later transitioned into public accounting, where he gained extensive experience in financial reporting, tax preparation, attestation services, and compliance for various industries, including government contracting. His background in managing financial closes, payroll and sales tax compliance, and financial analysis gives him a well-rounded perspective on the unique challenges government contractors face. Before joining Redstone GCI, Dylan held roles in accounting and financial consulting, where he was responsible for monthly and annual financial closes, accounts payable and receivable, tax filings, and developing financial models to support budgeting and forecasting. His expertise extends to accounting software solutions, where he has supported clients using multiple accounting software packages. At Redstone GCI, Dylan plays a key role in collaborative accounting support, assisting government contractors with monthly accounting and reporting activities, financial system implementations, and process improvement initiatives. He also supports Redstone GCI’s compliance and software implementation teams, leveraging his experience to assist clients in DCAA-compliant system set-up, including supporting policies. Dylan’s strong technical background, problem-solving skills, and commitment to client success make him a trusted resource for government contractors seeking to enhance financial operations and maintain compliance with confidence.