Navigating the complexities of government contract accounting requires specialized software. Here is an overview of popular accounting system options and their pros and cons. Three players in this area are QuickBooks, Unanet, and Deltek.
Options
QuickBooks is a more affordable and user-friendly option that is suitable for small to medium-sized businesses/contractors. It offers modest project management, time tracking, invoicing, and reporting features.
Typical Government Contractor Size1:
- Employees: 1-50
- Contracts: 1-10
- Revenue: $0-10m
Pros: QuickBooks is a popular accounting software program that is known for its ease of use and affordability. There is also a government edition of QuickBooks that includes features specifically designed for government contractors, such as job costing and tracking.
Cons: QuickBooks is not specifically designed for government contracting; nonetheless, it can be made DCAA-compliant though with app integrations.
Unanet is a cloud-based accounting and Enterprise Resource Planning (ERP) software specifically designed for government contractors. It helps businesses streamline their operations and improve compliance.
Typical Government Contractor Size1:
- Employees: 50-1,000
- Contracts: 10-50
- Revenue: $5m-$100m
Pros: Unanet is a mid-market ERP solution that is specifically designed for government contractors. It is more affordable than Deltek and handles complexity better than QuickBooks. It’s biggest improvement over Quickbooks is contract and project management.
Cons: Unanet is not as comprehensive as Deltek, and it may not be suitable for large government contractors.
When to make the upgrade from QuickBooks: We often see clients make the change from QuickBooks to Unanet as the grow to have middle management that is overseeing multiple projects.
Deltek Costpoint is a powerful and comprehensive solution that is specifically designed for government contractors. It offers excellent project management, time tracking, billing, and invoicing, reporting and analytics, and compliance features. However, it can be more expensive and complex to use than other options.
Typical Government Contractor Size1:
- Employees: 50-1,000+
- Contracts: 10-50
- Revenue: $20m-$100m+
Pros: Deltek is the most comprehensive and feature-rich option. It is specifically designed for government contractors and includes all the features needed to comply with government regulations, such as DCAA compliance, indirect cost rates, and cost accounting. Deltek also has a proven track record and is used by many large government contractors.
Cons: Deltek is also the most expensive option. It can be complex to learn and use, and it may be too complex and expensive for small contractors.
Conclusion:
The best government contract accounting software for your business will depend on your specific needs and budget.
Here are some factors to consider when choosing government contract accounting software:
- The size and complexity of your business: If you are a small business with simple accounting needs, QuickBooks may be sufficient. However, if you are a large business with complex contracts, you will need a more comprehensive solution like Deltek or Unanet.
- Your budget: Deltek is the most expensive option, followed by Unanet and then QuickBooks.
- Your compliance needs: Make sure the software you choose meets all the government’s accounting and reporting requirements.
- Your ease-of-use needs: Consider how easy the software is to learn and use for your employees.
It is crucial to carefully evaluate your needs and consult with experts before choosing software. Consider consulting with an accountant specializing in government contracts.
Here at Bay Business Group, we offer expertise in DCAA compliant accounting and can work with you to decide the best path forward for your unique needs.
1 – Based on Bay Business Group experience and G2 Product Comparison: www.g2.com/compare/deltek-costpoint-vs-unanet-ae-erp
