Managing for Recovery – Marketing & Sales

We have reviewed the three principle areas that your management must focus on to survive and prosper in this period of change:

1)  YOUR VALUABLE FORMULA  - (read article here for detailed overview )

Re-assess the competitive element that generates profit and sustainable success for the business.

2)  MODIFY OPERATIONS – (read article here for detailed overview)

Change the way business works to adapt quickly to the changed environment.

3)  CASH MANAGEMENT – (read article here for detailed overview)

Establish the absolute priority of cash over profit and investment while the storm is blowing.

These are the inter-related and ignoring any of them will be detrimental to the long-term success of the business.

Another area of concern during times of crisis is “how do we grow revenue?” and to a conversation about marketing and sales.

MARKETING AND SALES

If products and services represent the nuts and bolts of the business, marketing and sales is the engine room that provides the drive for the business. In a classic episode of the TV show ‘yes Minister’, civil servants argued that the best run hospital in the health system was the one which had no patients. They had lost sight of what it was all about. In tough times it is quite vital that you do not lose sight of the importance of customers and sales.

All Posts

Overhead Rate Audits Explained

overhead-rate-audits-explained


What is a FAR overhead rate?

Technically known as a firm's "indirect cost rate," the more familiarly known "overhead rate" is the percentage of general expenses that consultants can bill to contracting government agencies. More specifically, it is the ratio of allowable indirect costs to total allocable direct labor costs.

What does a FAR overhead rate include?

Overhead is the sum of a firm’s indirect costs. A firm’s FAR overhead rate is the ratio of indirect costs to direct labor costs, based upon provisions in the Federal Acquisition Regulation and Cost Accounting Standards.

Why do I need it audited?

Government agencies base reimbursements to firms on their audited FAR overhead rates.

What are the requirements for receiving reimbursement from a government agency?

A/E firms must prove that costs are allowable, reasonable and allocable, per the provisions for contracts with commercial organizations detailed in FAR 31.2. 

What are management's responsibilities in an overhead rate audit?

Management "bears the sole responsibility for identifying, segregating, and removing unallowable costs from all billings to Government contracts," according to the AASHTO Uniform Audit & Accounting Guide to government transportation contracts.

Where can I get more information?

The AASHTO Uniform Audit & Accounting Guide (2012 Edition) prepared by the American Association of State Highway and Transportation Officials is the leading source of information related to indirect cost rate schedules and overhead audits.

You are also welcome to contact us by phone or email.

 

Hunter & Associates
ABOUT THE AUTHOR | Hunter & Associates
At Hunter & Associates, P.A., we are driven by the belief that within each of us is the power to achieve greatness. This belief is not just for us, but for our clients as well. In fact, our client roster includes a great many small businesses with aspirations for greatness. We have even been recognized as an award-winning firm for client diversity.
Preparing-For-Business-Transition-Workbook-Hunter-CPA

Preparing for
Business Transition

Download your free Business Transition Planning Workbook to start planning your transition on your terms, for your price.

Get Your Copy >
Recent Posts

Managing for Recovery – Marketing & Sales

We have reviewed the three principle areas that your management must focus on to survive and prosper in this period of change: 1)  YOUR VALUABLE FORMU...

Read more

Managing for Recovery – Cash Management

Business owners and managers have probably never faced such a period of change as we are currently seeing. Change carries great risk, but where there ...

Read more

Managing for Recovery – Modify Operations

Business owners and managers have probably never faced such a period of change as we are currently seeing. Change carries great risk, but where there ...

Read more

Managing for Recovery - Understanding Your Valuable Formula

How to position your business for recovery the right way. How do we navigate our way through the economic turmoil? How do we ensure that our businesse...

Read more