Government contracts are big business, especially when it comes to the federal government. But contracts with federal agencies require extra care due to the rules and regulations imposed by the federal government. One misstep can result in not only the loss of a contract but a possible investigation. Start auditing your contracts with our comprehensive guide to internal contract audit projects, but know that general protocols may not be enough for when you audit government contracts. Creating specialized processes can help your business grow government-based business opportunities without violating the terms of the contracts.
Don’t assume that all of your government contracts include the same language and terms. A government contract may not just serve a federal agency but also a state-level one or a local municipality.
Reviewing the contract terms as they apply to the specific project is imperative for verifying if the project is on-course. Government contracts can contain complex details that may leave your contract team feeling confused or stressed.
A contract management system like ContraxAware can help with collaboration across departments. If the contract team has a question about a legal matter, the legal department can weigh in simply by using the online dashboard. The easy access and one-stop management system can help to create a system of checks and balances, especially for complex government contracts.
Government money is taxpayer money — which means there need to be transparency and quality deliverables. While even the most private clients expect quality deliverables or prompt payments for their own deliverables, government contracts demand it.
A contract audit can alert your contract team to whether the right deliverables — and the quality of those deliverables are matching the contract agreement.
In addition to quality deliverables, any form of government expects the contract to honor, and not exceed, the allowable costs. Billing costs in excess of the funded amount are a red flag during the contract audit process. When you audit government contracts to determine the costs and remaining budget, your team may consider adjusting or amending the contract, if allowable.
Balancing the fine line of quality deliverables along allowable cost lines isn’t easy. Depending upon the terms of the contract, this may require closer monitoring of your government contracts prior to the audit process. Involving your procurement and accounting team members can help you better gauge if the project is meeting the allowable costs as outlined in the contract.
If your contract includes subcontractors, the process may require additional team members. The more complex the project and audit process, the more you need the right team members reviewing your government contracts.
The above list contains just a few ideas for how to best audit government contracts. The attention to detail these contracts require cannot be overstated. With more than 4 million contractors serving the federal government, the allure to businesses of all sizes is very real. How you manage — or don’t manage — a government contract can greatly affect the financial future of your business.
At ContraxAware, we developed our software to fill a void that most offices face when it comes to contract management. Multi-tasking places your team at risk for missing important details of government contracts. Streamlining these processes is easier with one, centralized system.
With ContraxAware, all team members can access the same information in a collaborative manner. Sharing files across departments improves the workflow and results in a system of checks and balances. There are no more massive email chains regarding a document or countless voicemails that a colleague fails to return.
Government contracts are manageable, and auditing them is made easier with ContraxAware. So let our friendly and professional staff provide you with a free demonstration. Should you decide to sign up for one of our subscription plans, we will provide you with the training you need to get started.
Contracts are often a necessary part of doing business. Auditing a contract makes good business sense. Auditing a government contract is vital to ensuring a positive relationship with your local municipality, your state, or the local federal government.
Be Proactive and Protective of Your Business When You Audit Government Contracts
Don’t let complex government contracts stress out your contract team. If you’re using an outdated system and would like to learn more about how ContraxAware can integrated your current contracts and provide you with better management, call us at (800) 460-9052. Be sure to ask about our free demonstration.
ContraxAware is a game-changer when it comes to better contract management. Our system is 100 percent cloud-based and ready to start when you are. Once you implement the system, you and your team will wonder how you ever lived without it.
Take your government contract management to the next level and provide your team with the tools they need to perform their job well. Proper contract management leads to an easier contract audit with the right software. Let us show you how ContraxAware can streamline your government contract audit process by contacting us online today.