GovCon Wednesdays
Estimated Read Time: 5 minutes
Closing out the year successfully requires more than accurate books it requires clear communication with the professionals who depend on your data.
For government contractors, early coordination with tax advisors and auditors is one of the simplest ways to avoid filing delays, audit issues, and missed compliance deadlines. When your accountant or auditor has what they need when they need it your close becomes faster, cleaner, and far less stressful.
Why It Matters
Your tax professional and auditor both rely on accurate, timely information to complete critical year-end deliverables. Delays in communication can lead to:
- Missed tax deadlines or extensions.
- Rushed adjustments and reporting errors.
- Increased audit costs due to additional requests.
- Gaps in documentation that raise compliance concerns.
Early collaboration ensures your accounting team, auditor, and tax preparer all work from the same information and deadlines keeping your close organized, compliant, and on time.
Communicate Before the Year Ends
Don’t wait until January to start conversations with your advisors.
By reaching out early, you can confirm reporting deadlines, understand what supporting data they’ll need, and address potential issues before they cause delays.
Most auditors and tax professionals will provide a year-end data request list, which often includes:
- Your trial balance and general ledger
- Contract revenue and cost detail reports
- AR/AP aging reports
- Lease schedules and depreciation reports
- Payroll summaries and indirect rate calculations
Providing this data before the holidays gives your advisors time to review your information and flag any missing items long before deadlines start to pile up.
Keep Communication Consistent
Once you’ve shared your information, stay accessible.
Your accountant or auditor may need clarification or additional documentation. Prompt responses help them meet filing timelines and show your professionalism as a contractor.
If you have a larger accounting or project team, designate one point of contact for all auditor and tax correspondence. This keeps communication organized, avoids duplicate responses, and ensures your messaging is consistent.
Catch Issues Early
Early collaboration also helps you spot and resolve issues while there’s still time to act like missing W-9s, lease accounting errors, or unrecorded accruals.
For example:
- Missing vendor W-9s can delay 1099 filings.
- Incorrect or incomplete lease schedules may cause ASC 842 reporting errors.
- Indirect rate variances can create audit flags or require restatements later.
Finding and fixing these before the year closes saves you time, money, and frustration once audit season begins.
Common Pitfalls to Avoid
⚠️ Waiting too long to reach out. Auditors and tax professionals book up early contacting them in December puts you ahead of the queue.
⚠️ Sending incomplete data. Missing or messy reports can slow down your filings.
⚠️ Poor internal coordination. Make sure your accounting, HR, and contract teams share updates with one another.
⚠️ Forgetting to track progress. Keep a simple log of what documents were sent and when.
Strong Communication = Strong Compliance
A successful close isn’t just about clean books it’s about partnership.
When you collaborate early with your accountant and auditor, you ensure that your financials, indirect rates, and contract reports are accurate and DCAA-compliant.
At VSINGH CPA, we help GovCons prepare for smooth year-end closings and efficient audits through structured documentation, proactive planning, and effective communication.
👉 Check out our YouTube Shorts for quick GovCon year-end tips: https://youtube.com/shorts/MjiBDeLgP_o
Coming Up in the GovCon Year-End Closing Series
- ✅Tip #1: Know Your Accounting System & Year-End Checklist
- ✅Tip #2: Communicate Early with Tax Professionals & Auditors
- 3️⃣Tip #3: Reconcile and Analyze Accounts
- 4️⃣Tip #4: Validate Revenue & Lease Entries (ASC 606 & ASC 842)
- 5️⃣Tip #5: Prepare 1099s & Charitable Contributions
- 6️⃣Tip #6: Review Contract Status Reports & Submit Data to Tax/Audit Teams
- 7️⃣Tip #7: Final Wrap-Up — Year-End Complete, What’s Next?