How long did it take you to go from starting your business to automating it?

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My answer to How long did it take you to go from starting your business to automating it?

Answer by Ken Larson:

I found government contract job cost accounting challenging

I started with a rudimentary direct job cost accounting software, (Peach Tree) and crutched it with manually maintained records on spreadsheets for indirect cost allocation, time keeping, expense reporting, purchasing and supplier commitments. There was nothing wrong with such an approach as long as I could supply job cost (individual contract) records complying government requirements and demonstrate such things as:

Time Cards and time keeping process by worker and labor category by contract or indirect cost pool

Expense Reports and expense report process by worker by contract or indirect cost pool

Purchase Orders with job cost accounting data traceable thru invoices to contacts or indirect cost pools after payment

Overhead Allocations in a Government-unique cost center to individual contracts at month end based on individual contract direct labor cost

G&A Allocations in a Government-unique cost center to individual contracts at month end based on individual contract total cost

A semi-manual approach got burdensome as the company grew and the number of accounting transactions at the direct and indirect cost level increased in volume.

I then began looking for a good job cost software (Deltek) and began a plan strategically to implement it. I knew that progress billings and service contracting to include time and material and cost plus contracts were in my future.

Implementing a government compliant job cost system was a sensitive matter and had to be planned. It took me a year with some delicate timing, particularly during cut-over from the old system to the new.

How long did it take you to go from starting your business to automating it?

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About rosecoveredglasses

2 Tours in US Army Vietnam. Retired from 36 Years in the Defense Industrial Complex after working on 25 major weapons systems, many of which are in use today in the Middle East. Volunteer MicroMentor. I specialize in Small, Veteran-owned, Minority-Owned and Woman-Owned Businesses beginning work for the Federal Government. MicroMentor is a non-profit organization offering free assistance to small business in business planning, operations, marketing and other aspects of starting and successfully operating a small enterprise. You can set up a case with me at MicroMentor by going to: http://www.micromentor.org/ key words: "Federal Government Contracting"

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