By Paul Skurpski, PVBS Vice President of Sales & Marketing
Every government contractor is concerned with contract compliance which means cost of compliance is a big deal for them. It’s a particularly big problem for companies that run QuickBooks because there are many things they have to do manually in order to be contract compliant.
Automating the following will help you significantly reduce your cost of compliance:
1. Report generation
2. New workflow requirements
3. Streamlined time sheet data entry
Many emerging government contractors are under continual pricing pressures so they are trained to look at new business software purchase as purely an expense. And, true, if they are moving off of QuickBooks there are hard implementation costs. While there is always a return on investment from moving to a new business software solution, it’s not always as visible even though the return can be quite significant.
For example, if finance and accounting can generate reports that get to PMs quicker because data doesn’t need to be re-keyed into Excel, PMs can execute critical midcourse corrections to improve program profitability. What if all the PM needs to do is press a button to run a status or utilization report and get real-time information on their programs and not have to wait until the end of the month to take action? This would be a huge benefit to most government contractors. There are many other substantial benefits that might not be apparent when moving from QuickBooks to more full-featured business software, such as deep analytics, integration with other technologies such as CRM or project management software, and invoice automation.
But when it comes to moving off of Deltek Costpoint to Microsoft Dynamics NAV for Government Contractors, there are hard benefits that are immediately attainable. For instance, on-going maintenance costs will be significantly cut. For midsized companies, slicing back these costs will directly affect the bottom line.
Here’s another way to reduce the cost of compliance. For many of the legacy business software products that were designed for government contractors, the pricing is based on employee head count. As you add more employees, the cost of even the core accounting system functions (AP, GL, etc.) actually goes up, even if you don’t add more accounting staff. With Microsoft Dynamics NAV, the license model is based on the concurrent software users in the back office. Because of that, companies will have better visibility into their cost structure as they grow. They can understand projected software costs more succinctly and by providing an efficient system, they don’t have to add back office staff to support the software as the employee headcount grows.
And one additional strategy for reducing the cost of compliance is to leverage financing options. It’s possible to actually pay less for a new system than you are paying for just the maintenance and support of your old system. Leveraged business software financing can help with cash flow or up front expense reduction. The range of financing options for NAV customers helps companies find solutions that fit in with their business objectives whether it’s financing across multiple years to help with cash flow or extending payments due to a large hiring requirement.