GovCon Wednesdays
Estimated Read Time: 5 minutes
Congratulations, you’ve made it through your GovCon year-end close!
After weeks of reviewing invoices, reconciling accounts, validating entries, and preparing reports, it’s time to take a step back and look at the bigger picture: What’s next for 2026?
This final tip in the GovCon Year-End Closing Series focuses on strengthening internal processes, refreshing compliance requirements, and setting a solid foundation for the new year.
Reflect on Your 2025 Close
Before moving forward, reflect on what worked well this year and what didn’t.
- Did your accounting system make reporting easier, or are there gaps to fix?
- Were your indirect rate calculations accurate and timely?
- Did communication between your accounting, contracts, and tax teams flow smoothly?
A brief year-end review meeting helps identify operational bottlenecks and opportunities for improvement before your next cycle begins.
Renew Registrations and Filings
As you move into 2026, ensure all business registrations, certifications, and licenses are active and accurate:
- SAM.gov registration renewal
- State business licenses and annual reports
- CAGE/UEI and SBA certification updates
- BDO Alliance and professional memberships
Staying current on these filings keeps your company eligible for new contract awards and avoids interruptions during active projects.
✅ Tip: Add these renewals to your compliance calendar to ensure they’re never missed.
Refresh Internal Policies and Controls
Year-end is also the perfect time to revisit your internal accounting and HR policies.
Confirm that your procedures align with FAR and DCAA standards and reflect your current operations:
- Expense approvals and documentation standards
- Timesheet and payroll accuracy
- Indirect rate tracking and project reporting
- Data security and remote work policies
If your business has grown or changed structure, these updates ensure your policies keep pace with your team and contracts.
Set Your 2026 Financial Strategy
With clean books and renewed compliance, turn your focus to strategic planning:
- Establish target indirect rates for budgeting and pricing.
- Forecast cash flow based on 2025 results.
- Identify opportunities to improve margins or reallocate costs.
- Plan training or system upgrades to strengthen your financial operations.
✅ Pro tip: Use your 2025 results to benchmark indirect rates against DCAA norms a key step before submitting your next Provisional Billing Rate (PBR).
Build Momentum for the Year Ahead
The end of one year marks the start of the next. A successful close isn’t just about compliance it’s about creating a roadmap for smarter financial management, stronger controls, and sustainable growth.
By reviewing, renewing, and refining your processes now, you’ll enter 2026 ready to compete and thrive in the federal contracting space.
Closing Thoughts
The GovCon Year-End Closing Series was designed to help government contractors take the guesswork out of closing their books and to build a consistent, compliant process for every fiscal year.
VSINGH CPA supports GovCons across every stage of the accounting cycle from system setup and indirect rate analysis to DCAA audit readiness and long-term financial strategy.
👉 Check out our YouTube Shorts for all 7 Year-End Tips: https://www.youtube.com/@vsinghcpallc
✅ This Concludes the GovCon Year-End Closing Series
- ✅Tip #1: Know Your Accounting System & Year-End Checklist
- ✅Tip #2: Communicate Early with Tax Professionals & Auditors
- ✅Tip #3: Reconcile and Analyze Accounts
- ✅Tip #4: Validate Revenue & Lease Entries (ASC 606 & ASC 842)
- ✅Tip #5: Prepare 1099s & Charitable Contributions
- ✅Tip #6: Review Contract Status Reports & Submit Data to Tax/Audit Teams
- ✅Tip #7: Final Wrap-Up — Year-End Complete, What’s Next?