There is a wealth of useful information that comes out of your accounting software. CFOs and Controllers can leverage these accounting reports by teaching Project Managers to use them to monitor their contracts. Project Managers can use these reports as a means to understand the profitability of individual contracts and even a group of contracts with the same customer.
When used properly, accounting software that is designed for government contracting can monitor budgets, backlog and profitability. All too often, Project Managers rely on the accounting staff to pay attention to the dollars flowing in and out of contracts. Involving the Project Manager in the monthly monitoring of the profitability of contracts, ensures that costs are captured at the correct dollar value, recorded in the correct period and posted to the correct contract. The same goes for the contract value itself, even down to the task and CLIN level. In fact, making Project Managers responsible for ensuring that the financial details of their projects are accurate and correct, allows management to make more timely and informed decisions regarding individual contracts and their overall profitability. This can aid not only the budgeting process, but the bid and proposal process as well.
And your auditors will especially appreciate the attention to detail. Project Managers that are involved in the finances of their contracts provide an extra level of internal control that can help to avoid costly audit adjustments.
Let the professionals at CohnReznick and WJ Technologies show your organization how to set up your accounting system to maximize your reporting. We can even train your Project Managers how to read and monitor the reports.