Posted: May 25th, 2022
Contractor Estimating and Accounting Systems
When negotiations between the government and a contractor are taking place, a conventional estimating system becomes necessary. The DOD policy mandates every contractor to have an estimating system. Moreover, the policy places a requirement to maintain, disclose, and support the estimating system’s review on every contractor (Semaan & Salem, 2017). In the wake of technological advancements in the last few decades, the industry has benefited differently, such as innovations. Contractor estimating systems have a positive effect on how business is conducted and determine the achievement of goals. Accounting systems are also essential tools for contractors. These are systems of procedures and methods that have been established to record, analyze, interpret, and show, among other activities, timely and accurate data on financial statements. They are used in decision-making and compliance with regulations and laws.
Today, companies and firms have been forced to move towards automated systems that use specialized software and activities. Accounting systems and contractor estimating have become essential tools for contractors in their line of operations. According to Lambart (2018), these tools are essential in determining the feasibility of a project and help achieve the goals set and fulfill the vision that a company or project hopes to achieve.
Accounting systems are valuable tools in managing expenses, income, and other activities that are finance-related. With accounting systems, a company, firm, or contractor can keep track of every financial transaction, such as the sales, liabilities, and purchases. Moreover, accounting systems are designed to generate comprehensive financial reports that give the contractor, management, and any interested party a precise data set helpful in making decisions. Another essential aspect of accounting systems is a review of an accounting system whose main objective is determining an accounting system’s suitability and adequacy and the practices which accumulate costs under prospective government contracts or those that already exist (Lambart, 2018).
According to Alshanti (2017), an estimator’s most crucial task is compiling accurate information for a project. Erroneous estimates have severe consequences for both parties involved since it translates into extra costs. A well-prepared estimate helps to draw a proper budget that the contractor operates within, all the way to the completion of a project. In general, a well-prepared estimate helps the contractor avoid making losses in the long run and maximize profits.
Estimating systems have become popular over the last few decades with the increase in technological advancement and innovations. Contractor estimating systems provide valuable solutions in the industry, so the increasing popularity is not mysterious. As a result, many contractors have embraced it. With these systems, accuracy is no longer an issue, especially in the fluctuating and competitive economy. Under such conditions, keeping track of expenditures in terms of equipment and materials and other budgetary expenditures is critical to the success and profitability of any project (Alshanti, 2017). Estimating systems provide the necessary tools to keep track of essential data and establish the closest total cost of the project to be undertaken.
The estimating systems are also helpful and applied to manage a project better. It enables a contractor to manage their project better since the operations can be appropriately aligned with the estimation software to ensure that purchases and procurements are cost-effective. These systems also ensure that the tracking of items is seamless and efficient. These systems are also used to bring about consistency, convenience, efficiency, and integration (Alshanti, 2017).
Similarly, accounting systems are of great use to contractors. Geiger & Ittner (2019) write that contractor accounting tools provide most data on pricing and cost and other information related to cost that a contractor or a firm avails for the government in their dealings. Contractors make use of accounting systems when decisions related to cost data are made. Such data include the commencement of progressive payments, pricing of contracts, and responsibility of the contractor as far as the fixed-price contracts are concerned.
A review of accounting systems is applied when determining the sustainability and adequacy for cost accumulation under an existing or a prospective contract. In case of an inconsistency between the contractor’s application requirements and accounting practices, then costs that arise from such practices are not allowed excessively over those that would have been incurred from consistent practices. They are also applied in tracking finances that have specific purposes for a project and give feedback on the completed amount of work. They are also used to develop budgets, payroll management, collaboration with other contractors, and monitoring the use of equipment (Geiger & Ittner, 2019).
Conclusion and Recommendation
Accounting systems help track the expenses and income of a company or a project. They are also valuable for tracking finances and provide feedback on the work completed. They are also used to develop budgets, payroll management, collaboration with other contractors, and monitoring the use of equipment. Using these systems, the contractors and companies can perform their operations seamlessly and efficiently while staying organized. The overall outcome is that the profit margin increases (Semaan & Salem, 2017).
Additionally, accounting systems help reduce or remove errors that may occur manually and entries that appear twice, and classifying receipts and data entry. Contractors estimating is of equal importance when it comes to project management and execution. These help the contractor avoid losing money since everything is projected in advance. Any error that is likely to occur is remedied before affecting the whole project (Lambart, 2018).
Ultimately, the most crucial aspect of a project is affordability. Using the relevant estimating services and accounting systems will guarantee that costs are appropriately managed. Therefore, more future research should be done to understand better these tools and how they can best be applied, especially as the world continues growing in technology and innovation.
Al-shanti, Y. A. E. R. (2017). A cost estimate system for Gaza Strip construction contractors.
Geiger, D. R., & Ittner, C. D. (2019). The influence of funding source and legislative requirements on government cost accounting practices.Accounting, Organizations and Society,21(6), 549-567.
Lambert, R. A. (2018). Contracting theory and accounting.Journal of accounting and economics,32(1-3), 3-87.
Semaan, N., & Salem, M. (2017). A deterministic contractor selection decision support system for competitive bidding.Engineering, construction, and architectural management.
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
There is a very low likelihood that you won’t like the paper.
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!
Place an order in 3 easy steps. Takes less than 5 mins.