Accounting for Government Contractors – Benchmark your Organization with the 2017 GAUGE Report

After several years of uncertainty in the government contracting world we have entered a time of stability. This stability and potential growth is allowing GovCons to loosen their belts and do some long overdue strategic investing and accounting. We are seeing additional investments in business development, infrastructure, training employees, maturing project management practices, and recruiting key personnel. 

To invest, an accurate financial picture of the coming year is critical. The best indicator of health is the current revenue plan. It is also helpful if a longer horizon revenue plan is available so that at even 2-5 years out, sound decisions can be made with confidence. The GAUGE report provides tips for preparing a revenue plan. 

The GAUGE report also provides insight into expenditures as a % of revenue. This information will give you the confidence that your expenditures are in line with other GovCons. It will also give you an indication of how much you can invest going forward to remain competitive. 

Gauge Tip 1.png

Some examples of expenditure as a % of revenue that are in the report are:

 

Gauge EBITDA.png

Gauge Tip 2.png

 

Average Costs.png Gauge Tip 3.png Gauge Tip 4.png

 

For professional services firms organization labor is the main generator of your revenue. With this in mind, understanding what the industry average of direct and subcontract labor as a % of total revenue is useful. Seeing how you stack up against your peers can provide necessary insight to areas where you may need to make adjustments.  

SubContractor as a Percentage of Revenue.png
Direct Labor as a Percentage of Revenue.png  

 Gauge Tip 5.png   


Just a quick reminder of the benefits of external benchmarking:

  • Gives a perspective of the overall industry
  • Provides an understanding of what others are doing to be successful
  • Produces ideas for improvement
  • Makes you more competitive
  • Helps you win more business and grow your organization


If you'd like to see the full GAUGE Report, click here.

Kim Koster

Kim Koster

Kim is an experienced executive who brings over 30 years of experience in project management, project accounting, EVMS,  government contract and accounting compliance, and communications.

"We initially used to use Unanet for our timesheets. Now we use it to rework our business. It's amazing. It saves us millions. It improves process and has changed the way we manage our business." Finance Manager, CB Richard Ellis
"Unanet has enabled us to improve revenue forecasting models and share the same real-time revenue data across the organization."President, Mid-Sized Government Contractor
"Unanet billing is so great. I don't know why anyone wouldn't use this!"- Jackie York Controller, Quallion
"The Unanet support team provides the best support I have ever encountered.  Great job and thank you!"- Nick Wagner Director of Quality Management, The ESCO Group
An invoice that used to take 1 person 2-3 days that is now complete in 30 minutes, and a report that used to take 2 hours that is now produced in 2 minutes! - TJ Guarino, Tessada