Rockville, MD (PRWEB) April 14, 2014
Aronson LLC, one of the leaders in providing accounting, auditing, tax, and consulting services to federal government contractors, today released a new white paper with a straightforward message for companies doing business with Washington: You have to “rethink everything” you are doing given the enormous changes that are taking place in the government contracting marketplace.
“Federal government contractors have never faced as many significant changes as they will experience over the next few years,” said Lexy Kessler, lead partner of the Government Contract Services Group at Aronson LLC. “With flat-to-down budgets, dramatically increased oversight, higher costs of doing business, significant new rules and regulations, and severely squeezed profit margins, government contractors absolutely need to rethink both what they’re doing and how they’re doing it if they are going to thrive,” she said.
The white paper, “Rethink Everything: The New Imperative for Federal Government Contractors,” was produced by the senior leadership team in the Aronson LLC Government Contract Services Group. It includes sections on Pricing, Target Markets and Diversification, Strategic Positioning, Talent Management and Retention, Compliance, Increased M&A Activity, Accounting, Cybersecurity, and Tax Opportunities.
The major findings from the Aronson LLC white paper are:
1. Federal priorities are shifting in today’s very tight appropriations environment. Contractors who don’t quickly recognize and anticipate the changes will be left behind.
2. The General Services Administration has a mandate to increase its market share. This means big procedural changes and lower prices for contractors.
3. Strategy and positioning for both big and small contractors will be more important in the next few years than ever before.
4. The need for diversification will increase the opportunities and value for government contractors to consider mergers and acquisitions.
5. Compliance will be an even bigger focus over the next few years than it has been in the recent past. Noncomplying contractors will be in for some very unpleasant surprises.
6. Tax planning will be critical. Congress will soon consider comprehensive tax reform that will challenge many of the provisions most important to contractors.
7. Contractors face serious problems with talent recruitment and continuity as the Millennial generation fully moves into the workforce.
8. Protecting sensitive data and information has become one of the highest priority demands the government makes of all contractors.
9. There will be major changes in the next two to three years in the accounting standards that will apply to companies that do business with the federal government.
According to Kessler, the challenge for contractors will be the willingness to reconsider literally everything they are currently doing. “It won’t be enough for a contractor to address only one or two of the top findings identified in our white paper,” she said. “The government contractors who will be the most successful in the years ahead will be those that see the changes as the big opportunities they will be.”
The Aronson white paper, “Rethink Everything: The New Imperative for Federal Government Contractors,” is available at http://aronsonllc.com/rethink-everything/.
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About Aronson LLC
Aronson LLC has been thinking ahead for its clients for more than 50 years. Aronson’s government contracting, construction, real estate, nonprofit, technology and private industry experts provide innovative audit, tax, and consulting services that help its clients move to the next level. From start-up to exit strategy, Aronson works with companies throughout the entire business lifecycle by proactively identifying opportunities and addressing challenges so that clients are able to focus on their core business. Aronson shows companies how to rethink everything to be more profitable, more competitive and better prepared for the future. http://www.aronsonllc.com