Bookkeeping, Controller & Advisory Services For GovCon DCAA Compliance

WELCOME HUBZONE 2019

Who Am I?Bill Gerber, Co-Founder of AccountingDepartment.com

• AHC Foundation Board Member• Maverick 1000 Member – On a mission to transform an

industry• Forbes Young Entrepreneur Council Member• Gold Stevie Winner – Company of the Year• Gold Stevie Winner – Employer of the Year• Hartford Business Journal 40 Under 40 Award Recipient• CPA Practice Advisor 40 Under 40 Award Recipient

NOT an Accountant

History/Life Lessons

First company 10% ownership

1Second company 100% ownership• It was too late for

me… I was done. Bankrupt!!!!!!

2One day I was in business, the next day I wasn’t.

3And it was a huge surprise I didn’t expect.

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The Learning of “Why”▪ Behind every great “What” is a

great “Why”

The Basement Break Down

Along the way, I learned 3 things make a business capable of scaling to great

Sales Delivery – Service/ProductAccounting

Entrepreneurs love the Sales & Product/Services The “easy” ones—they’re the “reason” for your business.

Accounting? Not so much.

The Epiphany

▪ If I didn’t have the right accounting data to keep me afloat…

▪ A lot of other business owners probably didn’t either.

▪ And even if they did have the information—they rarely had anyone to digest it into actionable information that could be understood by the non-accountant.

How could I make a service that we (the business owners) could understand and leverage to actually HELP our businesses?

Meet AccountingDepartment.com

Needed HelpDennis Najjar, CPA, CGMA

• Accounting since 1982• Process Expert• Big Picture inspired

Bill Gerber

• Entrepreneur• Visionary• Big Picture inspired

Co-Founders50/50

The “Old” Outsourcing Model

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Overseas

Cheap

Data Entry

No Insights / Reporting

Needs Oversight

Manual Processes

The “New” Outsourcing Model

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Value

U.S. Based, Full-Time

W-2 Employees

Includes Oversight by

CPAs

Full Charge Bookkeeping, Full Accrual Accounting

Proactive Financial Analysis

Integrated Technology

& Automated Processes

Overseas

Cheap

Data Entry

No Insights / Reporting

Needs Oversight

Manual Processes

Who Is AccountingDepartment.com?

Technology-driven accounting services

built by entrepreneurs on a mission to support

businesses nationwide

Alleviate the burden of managing

accounting and protect companies from the risks of poor accounting

practices.

Provides a turnkey, customized accounting

department uniquely developed to

specific requirements,

offering the opportunity to scale

and adjust as growing business

needs require.

Full accrual, outsourced accounting

department capable of scaling to meet

evolving needs

Providing financials needed by companies with $1-50 million annual revenue

Advising on key decision making with insights and

expertiseComprehensive,

easy-to-utilize deliverables driven by accountability and

process

3 Disciplines All Companies Need

Bookkeepers – Controllers – Advisory Services

Signs To Watch For With Your Accounting Department

• The Obvious:• Internal or external bookkeeper is quitting, always

behind, committed any level of fraud or theft• CPA is doing the books, either too expensive or

inaccurate• Financial reports are late or non-existent• You expect more but realize the staff can’t supply

But what are some “Not So Obvious” signs?

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Signs To Watch For With Your Accounting Department

• The “Not So Obvious”:• Financial reports give no meaningful data or support

to decision making• Other business decisions are hard to reach (due to

lack of information)• You are concerned about efficiencies but doesn’t

know where to begin shoring up issues• You are contemplating hiring a CFO but expresses

concerns about current accounting department• CFO is unable to sort out problems in finances

FOR INTERNAL USE ONLY. © 2016 VISTAGE WORLDWIDE, INC. ALL RIGHTS RESERVED 12

Who We Can Help

Prime Contractors or Sub to Prime

✔ Time and Material

✔ Cost Plus

✔ Firm-Fixed-Price

Doesn’t matter what contracts you have!

Being DCAA compliant gets you more Gov work

The GovCon Rock and a Hard Place

DCAA COMPLIANT

ACCOUNTING

SUB-CONTRACTOR PRIME CONTRACT

Bid on new contracts knowing your accounting process is audit ready.

Does yourACCOUNTING SYSTEM

Satisfy the STANDARD FORM 1408

Pre-award SurveyForm SF1408

IT’S NOT THE SOFTWARE YOU ARE USING.

IT’S THE ACCOUNTING SYSTEM THAT MAKES YOU COMPLIANT

Accounting Technology

How AccountingDepartment.com WorksSTAFF/TRAINING | PROCESS/SYSTEMS | ACCOUNTABILITY

Staff Acquisition, Training & DevelopmentDIFFERENT FROM DAY ONE TO YEAR 15+

Applications

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100% full-time, W-2, work-from-home positions with full medical benefits and a 401k/match

Over 6,000 applicants received a year

Of 6,000, ~240 were invited to take proprietary 4 hour accounting test to gauge skill set

91% of those tested failed All take a personality, cognitive & aptitude test

Those that pass have a minimum of 4 interviews to gauge fit, accountability, work ethic and virtual abilities

Source Professionals Across The Country

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Extensive Onboarding & Training

▪ 30 day initial training period▪ 4 hours a day working on a $6 million training file and 4

hours a day supporting other staff▪ At the end of 30 days the staff votes whether to keep the

new employee based on culture fit and ability.

▪ 6 month start up and probation period

▪ All work done on remote servers

▪ All emails, chat messages and calls are tracked and recorded

▪ Extensive manuals to outline every process and procedure

▪ Systematized email templates, virtual filing system, automated tasks

▪ Industry technology to learn

▪ Daily oversight and sign out with controller

Bookkeeper Best Practices – 224 Page Internal Manual

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Overseen by CPA/Controllers

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CONTROLLER MANUAL

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A Process for EverythingTHE KEY TO SUCCESS IS IN THE STEPS

Accountability At The Heart of It

▪ AccountingDepartment.com is responsible for establishing the process that will ensure successful accounting, which in turn translates to ensuring the accuracy and integrity of financial reporting and decision making.

▪ Every aspect is governed by established rules and processes

▪ Automate as much as possible to eliminate risk of human error and need for client involvement

▪ Making accounting as simple and direct as possible▪ Things that don’t follow standard process “stand out” for immediate questioning and are able to be

addressed quickly and easily

▪ Proprietary, comprehensive Client Procedure Manuals define everything

Customized Client Procedure Manual

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Unique Client Procedure Manual

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Task Management System

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Accounting Technology▪ Streamline & Automate Processes

▪ Knowledge of Key Players and Industry

▪ Expense Reporting / Time Tracking

▪ Third Party Accounting Integrations

Bill Pay Example

Bill Pay Phone App

Phone App Expenses

Phone App Time Sheets

ICAT DCAA Compliance Solutions

Fully Loaded ReportingContract Reports✓ Indirect Rate Calculation Report, with Wrap Rate

✓ Contract Cost Report

✓ Contract Profit and Loss Report

✓ Indirect Rate Variance Report

✓ Labor Distribution Report

✓ Contract Status Report - Labor Format

✓ Contract Status Report - Cost Type Format

✓ Contract Status Report - Time & Materials Format

Budget Reports✓ Provisional Rate Calculation Report✓ Budgeted Labor and Benefits by Employee✓ Contract Budget Report✓ Contract Budget to Actual, Summary and Detail✓ Billing Rates by Job Title

Incurred Cost Proposal Workbook

Generate All Required Schedules for an adequate submission pursuant to FAR 52.216-7Select and generate any Optional Schedules to include with your proposalAutomatically populate all cost data into Schedules from QuickBooks and ICATNavigate cross reference amounts using automatically generated hyper-links within the SchedulesCustomize the workbook to match your accounting practicesExport all Schedules, including an index, to ExcelComplete user-friendly templates for narrative portionsTypically saves contractors 40 hours or more

ICE Reporting

Reason Businesses Choose Us

Hire a Company - Not A Person – Inc. Process Controlls

Accountability DCAA Requirements

Cost Burden of Hiring Accounting

Professionals

What Happens When It Works

When you have the right accounting systems in place, things “work”

For example, in November of 2018 I knew:

Estimated sales we could expect to generate each month

How many people we were going to hire every month of 2019 (salaries, raises etc.)

Marketing team had a budget w/ expenses for each month

Sales team – w/ 47 trades shows, travel, meals, hotels

What our gross and net profit would be… BEFORE the year even started.

With the right accounting processes & procedures, you always know

exactly where you are. ($$$ to invest or take out)

Thank You

Bill GerberCo-FounderInfo@AccountingDepartment.com888.858.9919 x 202

AccountingDepartment.com serves the businesses of entrepreneurs, forward-thinking owners and executives, government contractors, and the like by providing an entire outsourced accounting department known for a level of expertise in processes and personnel commonly unattainable by small and mid-sized businesses. On a mission to empower businesses with accurate, timely and insightful financial data, our outsourced bookkeeping and controller services enable established, growing, and early-stage SMBs with between $1 and $50 million in revenue to access enterprise-level accounting department functionality without the corresponding prohibitive costs and infrastructure requirements typical of enterprise resources.