ROSE Insights - GovCon Finance, DCAA Compliance & Accounting Blog | Rose Financial Solutions

In 1994 Ted Rose founded Rose Financial Solutions (ROSE), the Premier U.S. Based Finance and Accounting Outsourcing Firm. In 2010, the Blackbook of Outsourcing named ROSE the #1 FAO firm in the world based on client satisfaction. As the president and CEO of ROSE, he provides executives with financial clarity. Ted has also acted as the CFO for a number of growth companies and assisted with various rounds of financing and M&A transactions.

ROSE Insights: The Two Finance Gaps Slowing Your Growth

Thu, 16 Apr 2026 12:56:39 GMT

Issue 118 - ROSE Insights: The Two Finance Gaps Slowing Your Growth

The Finance Problem Nobody Wants to Talk About

Your Systems Are Talking. Your Finance Team Can't Hear Them.

If Structural Foundation is the load-bearing wall, Systems Architecture is the plumbing and wiring. When it is designed well, everything flows. When it is not, the team spends most of its time doing work the system should be doing for them...
read more

The Finance Problem Nobody Wants to Talk About

Thu, 16 Apr 2026 12:13:58 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Pillar 3 is Operational Discipline, and it is the hardest pillar to talk about because it is the least glamorous. Nobody walks into a leadership meeting and says, "I want to talk about our process documentation." Nobody wins a client by leading with close management cadence.

But here is what I know after thirty years of building finance infrastructure for growing companies: operational discipline is the difference between a finance function that holds up under pressure and one that quietly falls apart every time the business hits a growth phase, a key departure, or an audit. Everything else we have discussed, controls, systems, reporting, AI readiness, depends on this. And most companies have not built it.

What Operational Discipline Actually Is

Let me be precise, because this pillar gets misunderstood. Operational discipline is not about working harder. It is not about adding more oversight or making the finance team's life more complicated. It is about whether the finance function runs as a system or as a collection of individual efforts held together by a few talented people who carry too much in their heads.

Specifically, it covers four areas.

Process documentation. Are the workflows, procedures, and close steps written down, current, and accessible? Or do they live in the institutional memory of whoever has been in the seat the longest?
Workflow ownership. Does every critical finance process have a clear owner, a defined timeline, and an accountable reviewer? Or does it get done when someone gets around to it, with variable quality depending on who is doing it?
Execution cadence. Does the finance function operate on a consistent, predictable rhythm: close deadlines, budget reviews, cash flow updates, variance analysis? Or does it run reactively, lurching from month-end to month-end?
Data quality and budget discipline. Is financial data being reviewed and validated as part of a standard process, or corrected after the fact when something looks wrong? Are budgets being tracked and reviewed consistently, or built once a year and forgotten?
When these four things are in place, the finance function is a system. When they are not, it is a dependency on specific people performing heroics under pressure.

The Problem Most Companies Misdiagnose

When a month-end close runs long, leadership almost always asks the same question: do we need more people? Sometimes the answer is yes. But more often, the real issue is that the process was never designed. It accumulated the same way fragmented systems accumulate. Someone figured out how to do it. It worked. Nobody wrote it down. That person became the only one who could do it reliably. And now the close is hostage to their availability, their memory, and their continued employment. This is not a staffing problem. It is a process design problem.

Adding headcount to an undocumented, inconsistent process does not fix it. It creates more expensive inconsistency. The new hire learns the process the way everyone else did: informally, incompletely, and dependent on whoever trained them.

The same principle applies to budget management, cash monitoring, and variance review. When those activities depend on someone remembering to do them rather than on a defined cadence and a documented process, they become unreliable. Not because the team is careless. Because the system was never built to make them reliable.

The Key-Person Risk Nobody Prices In

I want to spend a moment on this because it is one of the most consistently underestimated risks in growing companies. Finance teams at the $10M to $50M stage tend to be lean. Often there is a CFO or controller who is deeply capable and deeply embedded in how the finance function operates. They know the close process. They know the quirks of the ERP configuration. They know which numbers to watch and which variances to investigate. They are invaluable.

They are also a single point of failure. When that person leaves, which they eventually will, through promotion, departure, health, or any number of other reasons, the institutional knowledge goes with them. What remains is a finance function that cannot close reliably, cannot produce trusted reporting on cadence, and cannot onboard a replacement without significant disruption.

I have seen this play out more times than I can count. A company that looked financially healthy from the outside suddenly cannot produce a clean month-end close. The board notices. The bank notices. Sometimes the auditors notice. The solution is not to hold on to key people tighter. The solution is to build a finance function that does not depend on any single person to operate correctly.

That means documented processes. Defined ownership. Cross-trained teams. A close management system that runs on procedure, not memory. When operational discipline is built correctly, the departure of even a strong finance leader is a transition, not a crisis.

Why This Is a GovCon Requirement, Not Just a Best Practice

In commercial environments, weak operational discipline creates internal pain: slow closes, inconsistent reporting, key-person dependency. That is damaging enough. In government contracting, it creates compliance exposure.

DCAA does not just audit your numbers. It audits your processes. Timekeeping consistency, billing accuracy, indirect cost segregation, and incurred cost submissions all depend on operational discipline being embedded into the daily and monthly rhythm of the finance function.

When processes are informal and depend on tribal knowledge, the audit risk is not theoretical. It is present in every transaction that was posted based on habit rather than documented procedure. Every timesheet that was approved outside of a defined workflow. Every indirect cost that was allocated through a process that exists only in one person's head.

The contractors who perform best in DCAA audits are the ones who can produce, quickly and completely, documentation that shows not just what was done but how the process ensures it is done consistently. That kind of documentation does not exist without operational discipline. It cannot be created the week before an audit. It has to be built into the operating rhythm of the finance function.

What Strong Operational Discipline Enables

Like structural foundation and systems architecture before it, operational discipline is most usefully framed not by what it prevents but by what it makes possible. When it is built correctly, several things shift.

The close becomes predictable. Not fast because everyone worked harder. Predictable because every step has an owner, a timeline, and a documented procedure. The close runs the same way every month regardless of who is in the seat.
Quality improves without effort. When processes are documented and consistently followed, errors surface earlier because the review steps are built in. The CFO is not catching mistakes in the final review. The process catches them before the CFO ever sees the file.
Automation becomes achievable. You cannot automate a process that lives in someone's head. Process documentation is the prerequisite for automation. Every workflow that is documented and consistently followed is a workflow that can eventually be systematized. Operational discipline is not just valuable today. It is the foundation for how the finance function scales tomorrow.
Talent transitions stop being crises. When processes are documented and owned by the system rather than by individuals, a departure triggers a handoff, not a disaster. The new person learns the documented process. The close runs. The reporting lands on time.

What We See When We Assess It

Operational Discipline is consistently one of the lowest-scoring pillars when we run the FSRR. That is not because companies are careless. It is because process documentation and execution cadence are never urgent until they suddenly are.
The most common findings:
The close process has no written procedure. It exists in someone's head or in a spreadsheet checklist that has not been updated in two years and is not shared with anyone else.
Budget versus actual reviews happen sporadically. They are on the calendar but get pushed when something more urgent comes up, which means they rarely happen on a consistent cadence.
Cash management is reactive. The bank balance is monitored, but there is no documented cash flow forecast process, no defined trigger points for escalation, and no standard cadence for reviewing receivables and payables aging.
Process ownership is unclear. Multiple people touch the close, but nobody owns it. When something goes wrong, it is not clear who is accountable.

What this looks like in practice: A fast-scaling firm came to us not because something had broken, but because their finance leader had the self-awareness to see what was coming. The company had grown from $5M to $15M in two years. The close process had grown with it, but informally.

When we conducted our onboarding review, which we now call the FSRR, we documented more than twenty discrete close steps. Fewer than a third had any written procedure, and nearly all of them were owned by the same person. Once we implemented our team-based approach, key team members could take extended leave and the close still ran on schedule. That outcome was the result of time spent in the prior months building out the documentation, assigning ownership, and implementing a close management system. That is what operational discipline looks like when it is working: resilience that the organization never has to think about because it is built into the process.

The Sequence That Makes Everything Else Work

I want to close with something that applies across all five pillars but is most clearly illustrated here. The path to modern, automated, AI-enabled finance is not a technology decision. It is a sequence. Stabilize first. Address the foundational gaps: controls, governance, compliance posture. Get the structural foundation right. Standardize next. Document the processes, define the ownership, build the execution cadence. This is operational discipline. It is unglamorous. It is essential.

Then automate. Layer technology, integration, and eventually AI on top of a stable, documented, consistently executed foundation.

Companies that skip standardization and go straight to automation do not get automated finance. They get faster versions of the same inconsistencies they had before. Operational discipline is the bridge between having good infrastructure and being able to use it.

Where to Start

Most companies do not know the full extent of their operational discipline gaps until they look carefully. The risks tend to be quiet. They surface during audits, during leadership transitions, and during periods of rapid growth when the informal processes that held at one size stop holding at the next. The FSRA will give you a clear picture of where your operational discipline stands across the five pillars in about fifteen minutes.

Ted Rose

Your Systems Are Talking. Your Finance Team Can't Hear Them.

Thu, 16 Apr 2026 12:04:37 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Last week I wrote about Structural Foundation, the governance, controls, and compliance framework that everything else in the finance function depends on. If you missed it, the short version is this: growth covers structural cracks until it doesn't. And by the time you find out the foundation is weak, the cost of fixing it is much higher than it would have been to build it correctly.

This week we move to the second pillar: Systems Architecture. If Structural Foundation is the load-bearing wall, Systems Architecture is the plumbing and wiring. When it is designed well, everything flows. When it is not, the team spends most of its time doing work the system should be doing for them.

The Accumulation Problem

Here is how fragmented systems architecture happens in almost every growing company. You launched with QuickBooks or a basic accounting platform. It worked. Then you added a payroll system. Fine. Then a project management tool. A CRM. A time-tracking platform. A billing tool. An expense management app. Each decision made sense in isolation. Each one solved a specific problem at a specific moment.

Nobody decided to build a fragmented financial system. It accumulated. And somewhere between the third and fifth tool, the finance team quietly became the integration layer. Every system that does not connect to the ERP is a manual step. Every manual step is a reconciliation risk, a delay, and a constraint on how fast, and how accurately, the close can happen.

Most leadership teams do not see this as a systems problem. They see it as a workload problem. So they hire another person to manage the reconciliations. That is the wrong solution to the right problem.

What Systems Architecture Actually Means

Systems Architecture is the second FSRA pillar, and it covers the infrastructure layer that either enables scale or creates drag.

Specifically, it evaluates:

ERP configuration. Is your system of record actually configured for the way your business operates? An ERP set up for a $5M company without project-level tracking, cost pool structures, or multi-entity logic is not the same tool as one configured correctly for a $25M company with real complexity.
Systems integration. Do your financial systems talk to each other, or does data have to be re-entered, exported, and reconciled manually between platforms? The integration standard is straightforward: if data has to move between systems by human hands, that is a gap worth closing.
Data flow and automation. Are reconciliations, approvals, and journal entries happening automatically based on rules, or are they happening because someone on the team remembers to do them? Automation that runs on memory is not automation. It is managed risk.
AI and technical readiness. Is the underlying data architecture clean, structured, and centralized enough to support automation and AI? This is where systems architecture becomes a future constraint or a future asset.
When architecture is working, financial data flows automatically from operations into reporting. The finance team spends its time analyzing and advising. When it is broken, the finance team spends its time moving data, and the organization gets a delayed, manually assembled version of the truth.

The Hidden Cost Nobody Quantifies

I want to make the cost of fragmented architecture concrete, because it rarely shows up cleanly on a budget line. When systems are not integrated, here is what actually happens.

A team member exports a report from the project management tool, reformats it in Excel, reconciles it against the accounting system, corrects the inevitable discrepancies, and sends a version to the CEO three days after month-end. The CEO reviews it, finds something that does not match the billing platform, asks for a revised version, and the cycle repeats.

That process probably takes 15 to 25 hours every month. In a $30M professional services company, that is somewhere between $30,000 and $50,000 per year in fully loaded labor cost, just to move and reconcile data that should flow automatically.

But the bigger cost is not the labor. It is what does not happen while the team is doing that work.

No time for variance analysis. No forward-looking cash flow model. No contract-level profitability review. No scenario planning for the leadership team. The finance function is technically producing numbers. It is just producing them too slowly, with too much manual intervention, to be genuinely useful. That is the hidden cost of fragmented architecture. And it compounds every quarter.

Why This Is the AI Readiness Barrier

I wrote about AI readiness in Issue #4. The gap between the 63% of finance teams exploring AI and the 16% actually using it is not a tools problem. It is an infrastructure problem.

Systems architecture is the specific infrastructure layer where most companies hit their AI ceiling.

AI tools in finance rely on clean, structured, centralized data. If your financial data lives across six disconnected systems, assembled manually each month by a tired team, AI cannot function reliably on top of that. You can buy the most sophisticated AI platform on the market and still get unreliable outputs if the underlying architecture is fragmented.

You cannot automate fragmentation. You can only make it faster and more expensive.

The sequence that works is simple: integrate first, then automate, then layer AI. Companies that skip the integration step and go straight to AI typically find themselves in expensive implementation projects with limited ROI and the same reconciliation problems they had before, now with an AI dashboard on top of them.

The GovCon Architecture Problem

For government contractors, systems architecture is not just an efficiency issue. It is a compliance infrastructure issue. GovCon finance requires precision that fragmented systems cannot deliver consistently.

Indirect rate management demands that costs flow accurately into the correct pools, fringe, overhead, and G&A, in real time, not after a manual reconciliation that may introduce errors. When systems are not integrated, indirect rates are estimates built on imprecise data. That creates risk in proposals, in billings, and in audits.

Project cost segregation requires that direct and indirect costs are captured at the contract level, automatically, with a clear audit trail. When the project management tool and the accounting system do not talk to each other, that segregation depends on manual data entry, which means it depends on the consistency and accuracy of whoever is doing the entry.

DCAA audit trails require that every transaction can be traced from source document to financial statement without gaps. Fragmented systems create gaps. Those gaps require explanations during audits, explanations that should not be necessary if the architecture is designed correctly.

The GovCon contractors who walk into DCAA audits with confidence are almost always the ones with integrated systems architecture. The ones who struggle are almost always the ones reconciling data manually, hoping the numbers hold up under scrutiny.

What Strong Systems Architecture Enables

There is a tendency to frame systems architecture as a problem to solve. It is more useful to frame it as a capability to build.

When architecture is integrated and well-configured, several things happen that do not happen otherwise.

The close gets faster. Not because the team is working harder, but because data flows automatically and reconciliations run on rules rather than effort.

Reporting becomes more reliable. Because the numbers come from a single connected source rather than from multiple systems that have to be manually aligned.

The CFO gets time back. Time that currently goes to data management and can be redirected to analysis, forecasting, and leadership advisory.

AI becomes possible. Because the underlying data is clean enough, structured enough, and centralized enough to support automated workflows and intelligent decision support.

Scaling stops being disruptive. Because the architecture is built to absorb new contracts, new entities, and new complexity without requiring manual workarounds every time something changes. Strong systems architecture does not just fix today's inefficiency. It determines what is possible tomorrow.

What We See When We Assess It

When we run the Financial System Readiness Assessment across the Systems Architecture pillar, the most common findings are predictable, and almost universal in companies under $50M.

The ERP is underutilized. Most companies are using 40 to 60 percent of what their accounting platform is capable of. They are paying for a system configured for basic bookkeeping when they need it configured for their actual business model.

Integration gaps are everywhere. Payroll, billing, and expense platforms are the most common disconnects, each requiring manual reconciliation rather than automatic data flow.

The AI readiness score is low. Clean, centralized, structured data is the exception rather than the rule. Most companies are two or three infrastructure steps away from being genuinely ready to benefit from AI tools.

What this looks like in practice: A professional services firm came to us with what they described as a reporting problem. Reports were inconsistent, the close was taking too long, and the CEO did not fully trust the numbers. When we conducted the FSRR, we found the real issue was not reporting. It was architecture. Their project management system, time-tracking platform, and billing tool were all operating independently, each feeding the ERP through manual export and import processes managed by one team member. The ERP was receiving accurate data perhaps 60 percent of the time. The rest was corrected by hand after the fact. We redesigned the integration layer, automated the data flow between systems, and within one quarter eliminated more than 40 hours per month of manual reconciliation work. We cut the close time in half. More importantly, the CEO stopped questioning the numbers, because they were coming from a connected system with a clear audit trail, not from a manual process that depended on one person getting everything right.

Where to Start

The starting point for systems architecture work is an honest assessment of what is connected, what is not, and what the cost of that fragmentation actually is. Most companies underestimate it. Not because they are careless, but because the cost hides in labor time, slow closes, and decisions that get made on imprecise data.

The FSRA will surface your Systems Architecture gaps in about fifteen minutes. It will not give you the full implementation roadmap, that is what the FSRR is designed to do, but it will tell you clearly where you stand and what the risk of staying there is.

Ted Rose

ROSE Insights: A New Tech Alliance is Reshaping Federal Procurement

Thu, 02 Apr 2026 16:51:31 GMT

Issue 117 - ROSE Insights: A New Tech Alliance is Reshaping Federal Procurement

The Part of Finance Nobody Talks About, Until Something Goes Wrong

Most finance conversations orbit the same topics: reporting speed, technology stack, headcount, AI readiness. These are real issues. But almost no one talks about what sits underneath all of them, the structural foundation that determines whether any of it holds when the pressure gets high. That silence is expensive...

The Oracle-NVIDIA-Dell Trifecta: What Trump's Tech Council Means for Federal Procurement

President Trump just unveiled the first 13 members of his tech advisory council, and every government contractor should be paying attention. This isn't just another Washington advisory group, it's a blueprint for where federal technology spending is headed...
read more

Your Subcontractors Just Became Your Biggest Liability: What Trump's DEI Executive Order Really Means for Executives

Wed, 01 Apr 2026 19:14:15 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

Trump's DEI Executive Order isn't just an HR policy change. It creates new supply chain liability that affects every invoice you submit to the government. President Trump's recent executive order targeting "discriminatory DEI activities" by federal contractors creates new compliance requirements: prime contractors must now monitor and certify subcontractor compliance across their supply chains.

That tier-3 vendor your plumbing contractor uses? Their DEI violations can now create False Claims Act liability for your prime contract.

The False Claims Act Connection

Here's the key provision in the new mandatory contract language: contractors must certify that compliance is "material to the Government's payment decisions for purposes of the False Claims Act."

Translation: Every invoice you submit now includes certification of supply chain compliance. Violations can result in:

Treble damages: 3x the contract value
Civil penalties: $13,508 to $27,018 per violation
Whistleblower bounties: 15-30% recovery incentives for tipsters
Legal costs: Often exceed the underlying damages

The risk: False Claims Act liability can result in treble damages plus civil penalties; turning compliance failures into significant financial exposure.

Your New Supply Chain Nightmare

The order makes prime contractors responsible for monitoring and certifying compliance at all tiers. You're not just managing your own policies, you're the compliance police for potentially hundreds of business relationships.

What This Actually Means

That small electrical subcontractor who's never dealt with government work? They need compliant systems and policies.
Your tier-3 suppliers who provide office supplies? Subject to DEI audits.
Every consultant and vendor touching government work? Potential False Claims Act liability.

Key consideration: Many subcontractors lack experience with government compliance requirements, creating potential oversight challenges for prime contractors.

Supply Chain Compliance Requirements

Financial System Requirements

Your finance team must now:

Validate compliance before every subcontractor payment
Maintain audit trails for all supply chain DEI decisions
Monitor ongoing compliance across dozens of business relationships
Document flow-down requirements in every vendor agreement

Legal Liability Management

Every subcontractor agreement needs:

Compliance certifications with ongoing monitoring
Audit rights extending through all business relationships
Indemnification language (most small subs can't support)
Termination rights for compliance failures

The Cost Reality

Depending on contract complexity, prime contractors may work with multiple tiers of subcontractors , from major subs to small suppliers. Each relationship now requires compliance oversight:

Enhanced vendor qualification processes
Ongoing compliance auditing and reporting
Legal review of all subcontractor agreements
Training programs for non-GovCon suppliers
Documentation systems for audit defense

Bottom line: Supply chain compliance monitoring will add meaningful costs to contract execution and administration.

Implementation Deadlines

30 Days: Contract Clause Mandate (April 25, 2026)

All new federal contracts must include the compliance clause. Immediate action required:

Audit current subcontractor base for compliance gaps
Review professional liability insurance coverage for compliance-related claims
Review all vendor agreements for flow-down language
As a subcontractor, review any flow-down language from prime contractors

60 Days: Full Regulatory Guidance (May 26, 2026)

Subcontractor certification programs
Supply chain monitoring systems
Audit-ready documentation standards

Impact on Small and Mid-Size Contractors

Large defense primes may have more resources to manage compliance requirements. Small and mid-size contractors face additional considerations:

Managing compliance costs across supply chains
Working with subcontractors to meet new requirements
Pricing competitively while covering compliance overhead
Assessing and managing potential False Claims Act exposure

Strategic Response Options

Option 1: Supply Chain Consolidation

Work only with larger, sophisticated subcontractors who can handle compliance burden. Risk: Reduced competition, higher costs, loss of small business subcontracting goals.

Option 2: Compliance Investment

Build comprehensive supply chain monitoring and training programs. Risk : Significant upfront costs, ongoing operational burden.

Option 3: Risk Management Strategy

Strengthen professional liability coverage and establish legal defense reserves. Risk : Insurance may not cover all False Claims Act scenarios, significant reserve requirements.

The Bottom Line

This executive order expands government contracting compliance from internal policies to supply chain oversight . Vendor relationships now require additional compliance management.

While competitors struggle to understand the implications, sophisticated contractors can turn supply chain compliance into competitive advantage through:

Faster contract awards via demonstrated compliance readiness
Strategic partnerships with compliance-ready vendors
Risk mitigation through superior documentation and controls

Implementation timeline: New contracts include the compliance clause within 30 days. Contractors should prepare their supply chain oversight procedures accordingly.

Your subcontractors just became your biggest liability. How ready is your compliance system?

Wallace Angel

Wallace “Wally” Angel is a strategic CPA with more than 20 years of experience in the government contracting and consulting environments with companies ranging from start-ups to $800M. His government contracting expertise includes FAR and DCAA compliance, indirect rate calculation, forward pricing, proposal writing, pricing, and cradle to grave contracts management and system design and implementation. In his position as Partner, Financial Operations, Wally serves as a trusted advisor to the C-suite in controllership and cash management, revenue recognition, system design and implementation, and full financial planning and analysis.

Is Your Financial Infrastructure Ready for What Comes Next?

Wed, 01 Apr 2026 19:06:57 GMT

Most growing organizations don't discover gaps in their financial systems until something forces the issue; an audit, a capital raise, a key person leaving, or a contract they're not equipped to manage. The Financial System Readiness Review exists to surface those gaps before they become expensive.

In this video, Ted Rose walks through what the FSRR actually evaluates, why looking at your accounting software alone isn't enough, and how the three-step process produces a roadmap that tells you exactly what to fix, in what order, and why it matters for where your organization is headed.

The Part of Finance Nobody Talks About, Until Something Goes Wrong

Wed, 01 Apr 2026 13:41:40 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

That silence is expensive

Growth Covers the Cracks, Until It Doesn't

When companies are growing, weak infrastructure tends to stay invisible. Revenue is up. The team is moving fast. Controls that were adequate at $3M feel fine because nothing has broken yet.

But "nothing has broken yet" is not the same as "structurally sound."

The paradox of growth-stage companies is that they scale operations faster than they scale financial discipline. New contracts. New headcount. New complexity. The underlying governance framework, the policies, the controls, the oversight structure, often doesn't keep pace.

You don't find out your foundation is weak when things are going well. You find out during an audit, a due diligence review, or a contract protest.

By then, the cost of fixing it is much higher than it would have been to build it correctly.

What Structural Foundation Actually Means

Structural foundation is not a compliance checkbox. It is the load-bearing wall of the entire finance function.

It includes:

Governance and accountability — who owns what decisions, how financial authority is structured, and whether roles are clearly defined
Segregation of duties — ensuring that no single person can initiate, approve, and record a transaction without oversight
Internal controls — the policies and procedures that prevent errors, fraud, and misreporting before they happen
Compliance frameworks — the documentation, processes, and audit trails required to meet regulatory, contractual, and reporting obligations

These are not bureaucratic formalities. They are the mechanisms that make everything else trustworthy. When they are weak, even strong reporting tools and capable people produce results that cannot be fully relied upon.

Four Signs Your Foundation Is Already Showing Cracks

Most companies do not discover structural weakness through self-assessment. They discover it through consequences. Here are four signs the foundation is already under strain:

1. Month-end close takes longer than it should and errors surface after the fact. When closing is slow and corrections are common, it usually reflects process gaps and control failures, not just staffing issues.

2. Financial responsibilities are concentrated in one or two people. When the same person approves, processes, and reconciles, there is no structural check on accuracy or integrity. This is among the most common and most risky patterns in growing organizations.

3. Your finance function operates largely on tribal knowledge. If the processes live in someone's head rather than in documented policy, the organization is one departure or audit away from a significant problem.

4. Compliance obligations are being managed reactively. If your team is scrambling to produce documentation when a request arrives, rather than maintaining it as a standard operating practice, the foundation is not structured for the environment you are operating in.

Any one of these is a warning sign. More than one is a structural problem that will surface under pressure.

Why This Is an Existential Issue in GovCon

In commercial environments, weak structural foundation creates internal risk: errors, inefficiency, and surprises at audit time. That is painful enough. In government contracting, weak structure creates existential contract risk.

DCAA audits do not evaluate intent. They evaluate documentation, controls, and compliance with FAR and DFARS requirements. If your indirect rate structure is not properly supported, if your timekeeping controls are inadequate, or if your cost accounting practices cannot be defended with documentation, the consequences extend well beyond a finding on a report. They can affect contract awards, cost recovery, and your ability to compete.

Controls that worked at $3M don't scale to $15M on their own. The volume, the complexity, and the audit scrutiny all increase. The foundation has to be built to carry the weight.

For GovCon companies especially, structural foundation is not a back-office concern. It is a competitive and compliance-critical requirement.

What Strong Foundation Actually Enables

There is a tendency to think about structural foundation only in terms of what it prevents. That framing is too narrow. A well-built structural foundation does not just protect companies from risk. It accelerates everything else.

Audits move faster — because the documentation exists, the processes are consistent, and the controls are demonstrable
Capital events go more smoothly — because investors and acquirers do not find structural surprises during due diligence
Decisions are more confident — because the data coming out of the system rests on a foundation of controls and process discipline
Scaling is less disruptive — because the governance model is built to absorb growth, not just the current size of the organization

Structural weakness doesn't show up on a P&L. It shows up when the pressure is highest, at exactly the moment when you can least afford it.

FSRA Pillar 1: Structural Foundation

The Financial System Readiness Assessment is a diagnostic tool built around five pillars. Structural Foundation is the first, and for good reason.

It assesses:

The governance structure and clarity of financial authority
The strength and completeness of internal controls
Segregation of duties and oversight design
Policy documentation and operational consistency
Compliance readiness across regulatory and contractual obligations

The FSRA does not produce a score for its own sake. It produces a clear picture of where the foundation is solid and where it is not, and a roadmap for what to address first.

If you are growing, planning to raise capital, pursuing government contracts, preparing for M&A, or simply trying to build a finance function that can support the decisions ahead, this is where the work starts.

The Starting Point Is a Diagnostic

Most companies do not know exactly where their structural foundation is weak until they look closely. The problems tend to be quiet, right up until they are not.

The FSRA takes about ten minutes. It surfaces the gaps before they surface themselves at the worst possible time.

Ted Rose

The Oracle-NVIDIA-Dell Trifecta: What Trump's Tech Council Means for Federal Procurement

Wed, 01 Apr 2026 13:35:28 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

The Power Players

The lineup reads like a who's who of federal IT dominance:

Oracle CEO Safra Catz and Co-Founder Larry Ellison
NVIDIA CEO Jensen Huang
Dell CEO Michael Dell
AMD CEO Lisa Su
Meta CEO Mark Zuckerberg
Google Co-Founder Sergey Brin

Notice what's missing? Traditional defense contractors. This council is heavy on commercial tech titans who've been aggressively pursuing federal business.

The Silicon Valley Power Bloc

Here's what most analysts will miss: This council represents unprecedented Silicon Valley coordination. David Sacks (chairing) and David Friedberg are two of the four All-In podcast hosts, while Marc Andreessen (A16Z) plus the Coinbase co-founder create a powerful crypto bloc.

This isn't coincidence, it's strategic alignment. The All-In podcast has become the unofficial voice of Silicon Valley's political awakening, and their presence alongside crypto pioneers signals coordinated tech industry engagement with federal policy.

This matters for procurement because this group consistently advocates for streamlined regulation, merit-based contracting, digital asset integration, and Silicon Valley innovation over traditional defense industrial complex approaches.

The Next-Generation Technology Signal

Beyond the obvious players, the council includes:

Two fusion energy CEOs (Oklo & Commonwealth Fusion)
UC Physics Professor John Martinis (2025 Nobel Laureate in quantum computing)

This signals federal investment priorities shifting toward breakthrough technologies: quantum computing for cybersecurity, fusion energy for defense installations, and next-generation power systems for critical infrastructure.

The Five Pillars of Federal Tech Strategy

The initial appointments reveal a clear strategic framework across five critical domains:

1️⃣ AI Dominance - NVIDIA and AMD controlling the semiconductor roadmap

2️⃣ Energy Revolution - Dual fusion energy leadership positioning for defense installations

3️⃣ Quantum Computing - Nobel Laureate ensuring cybersecurity leadership

4️⃣ Crypto Integration - Andreessen/Coinbase bloc driving digital asset adoption

5️⃣ Technology On-shoring - Dell and Oracle anchoring domestic supply chains

What This Means for GovCon Executives

Budget Allocation Shifts: Expect RFPs favoring commercial cloud solutions over traditional on-premise systems across all five technology pillars.
Partnership Strategies: Winners will have strong relationships with these tech giants while ensuring domestic supply chain compliance. Pure-play system integrators without cloud partnerships will struggle.
Compliance Evolution: The crypto influence runs deeper than most realize. Expect federal blockchain adoption, digital identity infrastructure, and potentially government crypto payment systems. CFOs should prepare for new compliance frameworks around digital assets and crypto-based federal transactions.
Supply Chain Security: Stricter "Buy American" compliance tracking, particularly for AI infrastructure, quantum systems, and energy technology.
Next-Gen Investment: Federal R&D spending will accelerate in breakthrough technologies. Position for quantum-safe cybersecurity and advanced energy system contracts.

The Missing Players

Notably absent: Elon Musk, traditional defense contractors like Lockheed, Raytheon, or Boeing, and major technology consulting firms like Accenture, IBM Global Services, or Deloitte. This signals a shift toward commercial tech adoption and direct vendor relationships rather than defense-industrial complex or traditional consulting intermediaries.

The Silicon Valley unity (All-In podcast influence) suggests coordinated tech industry engagement with federal procurement, potentially creating new competitive dynamics.

The Bottom Line

This council composition represents coordinated federal investment across breakthrough technologies while maintaining American technological sovereignty. Oracle, NVIDIA, Dell, and AMD have been positioning for federal dominance while building domestic capabilities. Now they have direct policy influence, backed by Silicon Valley's most influential voices.

Smart GovCon Executives will start modeling scenarios where these five technology pillars become federal priorities. The procurement landscape is shifting toward commercial solutions with proven American supply chains and next-generation capabilities.

What do you think? Are we seeing the end of traditional defense contractor and technology consulting firm dominance in federal IT?

Wallace Angel

ROSE Insights: Compete Smarter in a Changing Market

Thu, 26 Mar 2026 19:53:49 GMT

Issue 116 - ROSE Insights: Compete Smarter in a Changing Market

Why Most CEOs Don’t Trust Their Numbers (And What It’s Costing Them)

Most CEOs won’t say it, but it shows up in how they operate. They double-check reports. They ask for “one more version” of the forecast...

The Small Business GovCon Earthquake

A year ago, the small business government contracting world was thrown into crisis mode by the USAID elimination. Firms scrambled to scrub the word "consulting" from their company names as USAID contracts were terminated overnight...
read more

Why Most CEOs Don’t Trust Their Numbers (And What It’s Costing Them)

Wed, 25 Mar 2026 18:35:09 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Most CEOs won’t say it, but it shows up in how they operate.

They double-check reports. They ask for “one more version” of the forecast. They rely on instinct instead of financial data when making big decisions.

It’s not that they don’t value finance. It’s that they don’t fully trust it.

And that lack of trust is more than a frustration, it’s a hidden cost that slows growth, weakens execution, and creates decision paralysis.

The Real Problem: It’s Not Just a System Failure, It’s Become a Confidence Failure

Most companies assume the issue is their accounting system.

“We need a new ERP.” “We need better dashboards.” “We need more reports.”

But here’s the reality:

Your reporting problem has become a confidence problem.

Even with modern tools, CEOs still ask:

Are these numbers complete?
Are they accurate?
Are they current enough to act on?

If the answer to any of those is “not sure,” the data becomes unusable for decision-making. And when data isn’t trusted, it gets ignored.

The Hidden Cost of “Almost Right” Numbers

“Almost right” sounds acceptable until you look at what it actually does to a business. When numbers are slightly off, slightly delayed, or slightly inconsistent, leaders:

Hesitate on investments
Delay hiring decisions
Miss pricing adjustments
Underestimate or overestimate cash risks
Overreact to incomplete information

Over time, this creates a dangerous pattern: Decisions become slower, more reactive, and less confident. The cost isn’t just operational inefficiency, it’s missed opportunity. In growth-stage companies especially, the biggest risk isn’t making the wrong decision. It’s waiting too long to make the right one.

Why Delayed Reporting Kills Decision-Making

Many organizations still operate on a backward-looking model:

Close the books weeks after month-end
Reconcile data across multiple systems
Build reports manually in spreadsheets
Deliver insights long after the moment has passed

By the time leadership sees the numbers, they’re already outdated. This creates a critical disconnect: The business is moving in real time. Finance is reporting in hindsight. When that gap exists:

Cash issues are discovered too late
Margin erosion goes unnoticed
Operational inefficiencies compound
Strategic opportunities are missed

Speed matters, but relevance matters more . If finance can’t keep pace with the business, it can’t guide it.

The “Trust Gap” in Finance

At the core of all of this is what we call the trust gap . It’s the space between:

What the numbers say
And what leadership believes

When that gap exists, CEOs don’t rely on financial data, they work around it. They:

Ask multiple people for the same answer
Build shadow reports
Depend on gut feel instead of metrics
Delay decisions until they feel “comfortable”

This creates friction across the organization. Finance becomes a reporting function, not a strategic one. And leadership operates without a single source of truth.

How Decision-Ready Leaders Operate Differently

In companies where finance is working the way it should, the dynamic is completely different.

Leaders don’t question the numbers. They use them.

These organizations have built decision-ready financial infrastructure , where:

Data Is Connected: Financial data flows automatically from across systems: ERP, CRM, payroll, operations without manual intervention.
Data Is Standardized: Chart of accounts, reporting logic, and definitions are consistent across the organization.
Workflows Are Structured: Approvals, reconciliations, and processes follow clear, rule-based workflows, not email threads and spreadsheets.
Reporting Is Timely: Leaders have access to current, reliable data, not reports that are weeks old.
Finance Is Forward-Looking: Instead of explaining the past, finance helps model scenarios and guide decisions.

The result: Confidence replaces hesitation. Decisions happen faster. Risks are identified earlier. Opportunities are acted on sooner.

The Bottom Line

Most CEOs don’t trust their numbers, not because of their team, and not because they lack tools. They don’t trust them because the financial infrastructure wasn’t designed for decision-making. And until that changes, the business will continue to operate with:

Slower decisions
Higher risk
Missed opportunities

The goal isn’t just better reports. It’s trusted, decision-ready data that leaders can act on with confidence.

Where to Start

If you’re questioning your numbers or finding yourself hesitating on key decisions, it’s worth understanding where the gaps actually are.

�� Take the Financial Systems Readiness Assessment (FSRA)

It will help you identify:

Where your trust gaps exist
What’s slowing your financial visibility
And what’s required to become truly decision-ready

Because the companies that win aren’t the ones with the most data. They’re the ones that trust it enough to act.

Ted Rose

The Small Business GovCon Earthquake

Wed, 25 Mar 2026 18:16:02 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

Part 1: When Survival Meets Revolution

A year ago, the small business government contracting world was thrown into crisis mode by the USAID elimination.

Firms scrambled to scrub the word "consulting" from their company names as USAID contracts were terminated overnight. Corporate Websites and LinkedIn profiles got emergency rewrites removing "advisory" from job titles. Marketing teams worked weekends purging DEI language from capability statements and websites.

But USAID was just the beginning. The DOGE efficiency initiatives that followed brought widespread contract terminations and descoping across federal agencies. Small businesses found themselves fighting to preserve existing revenue streams while navigating sudden contract modifications and cancellations.

Firms were focused on survival, preserving business and navigating contract terminations.

Meanwhile, the federal government was quietly rewriting the entire rule book. While everyone was consumed with immediate crisis management, protecting existing contracts from DOGE cuts, scrubbing problematic language, and pivoting away from terminated work, the federal government simultaneously implemented the most comprehensive overhaul of small business contracting since the FAR was created in 1984.

The firms that missed the bigger picture are still playing by 2023 rules in a 2026 market.

Two Crises, One Market: Immediate vs. Structural

The DOGE-driven contract terminations and descoping created immediate revenue disruption for hundreds of small businesses across multiple agencies. The impact was real, significant, and demanded urgent attention. But while firms were managing the crisis in front of them, structural changes were reshaping the entire market behind them.

The Immediate Crisis (DOGE Impact):

USAID contractor elimination
Widespread contract terminations across agencies
Descoping of existing contracts
Emergency pivoting away from affected work streams
Revenue protection and business preservation focus

The Structural Revolution (Regulatory Overhaul):

1,245 firms suspended or eliminated from the 8(a) program (29% of all participants)
$7.5M → $35M: CAS coverage threshold increased by 367%
$2.5M → $10M: TINA threshold increased by 300%
42+ class deviations issued across DoD alone
$16+ billion in OTA obligations bypassing traditional FAR entirely
DEI contract language eliminated across federal agencies

The Strategic Miss: Firms that spent 2025 focused entirely on surviving DOGE cuts missed the opportunity to position for the new contracting environment that was simultaneously being built.

The 8(a) Program: From Socioeconomic Preferences to Capabilities Competition

While small businesses were dealing with contract cancellations and modifications, the SBA was conducting the most aggressive audit in 8(a) program history.

The SBA terminated or suspended 1,245 firms from the 8(a) program.

But this isn't just about reducing numbers, it's about fundamentally changing how the program works.

The Timeline:

December 5, 2025: SBA ordered all 4,300 active firms to produce three years of financial records
January 22, 2026: SBA eliminated automatic racial presumption of social disadvantage
January 28, 2026: 1,091 firms suspended for failing to comply with documentation requirements
February 11, 2026: 154 Washington D.C. area firms terminated for exceeding economic disadvantage thresholds
March 4, 2026: 628 additional firms moved to termination for refusing document submission

The Math: The 8(a) program went from 4,300 active participants to under 3,500, a 25-30% reduction. With only 65 new firms accepted in FY2025 (compared to 550/year under the prior administration), the effective program population is heading toward 3,000 or lower.

The Strategic Shift: The 8(a) program is transitioning from socioeconomic preference-based awards to capabilities-driven competition within the set-aside framework. Surviving firms must compete on technical merit, past performance, and cost effectiveness, not just certification status.

The Dual Impact: While DOGE cuts eliminated existing revenue, 8(a) program restructuring eliminated future competition. Firms dealing with both simultaneously faced the challenge of preserving current business while positioning for a fundamentally different competitive landscape.

What This Means: Less Competition, More Capability Focus

If you're still in the 8(a) program: Congratulations. You survived both DOGE cuts and the most aggressive audit in program history. Your competition decreased by nearly 30% overnight.

But the game has changed. The compliance scrutiny that eliminated your competitors is now permanent, and competitions are increasingly won on technical capability and performance delivery rather than just meeting set-aside requirements.

If you're in other set-asides (WOSB, SDVOSB, HUBZone): Get ready. Agencies still need to hit their small business contracting goals. With 1,200+ fewer 8(a) firms to award contracts to, that work is getting redirected. WOSB and SDVOSB set-asides are about to get more competitive, but also more valuable.

Prepare now for the same audit standards that just hit the 8(a) program, and expect capability-based evaluation criteria similar to what's happening in the restructured 8(a) competition.

If you compete against 8(a) firms for small business set-aside opportunities: The landscape just shifted dramatically in your favor. Firms that built their strategy around 8(a) sole-source work now need to compete in a competitive market, often for the first time in years.

If you survived DOGE cuts: You demonstrated resilience and adaptability during crisis. That operational experience becomes valuable as evaluation criteria shift toward performance delivery and capability demonstration.

Action Required: Every socioeconomic set-aside program could get the same treatment. The SBA's message is clear: prove your eligibility or lose your certification. Get your financial documentation audit-ready now, before the review cycle hits your program.

The New Math: Reduced Administrative Burden

While firms were navigating contract terminations and descoping, the government implemented the most significant reduction in compliance administrative burden for small and mid-size contractors in 40 years.

Critical Threshold Changes (Effective for contracts awarded after June 30, 2026)

Let's translate this into real operational impact:

Scenario: $15M annual contractor

Old rules: CAS Coverage triggered at $7.5M threshold for a single contract
New rules: Not subject to CAS coverage
Impact: Reduced administrative costs
Benefit: Resources redirected from compliance administration to business development

Scenario: $8M single contract

Old rules: TINA and detailed cost/pricing data submission requirements
New rules: TINA exemption, simplified pricing documentation
Impact: Reduced proposal preparation burden
Benefit: Faster proposal turnaround, reduced bid costs

The Recovery Opportunity: For firms that survived DOGE cuts with reduced revenue, these threshold changes offer a path to rebuild margins. Lower administrative burden means higher profitability on new contracts, helping offset revenue losses from terminated work.

The Strategic Window: You have 102 days until June 30, 2026 to restructure your compliance administration processes to take advantage of these thresholds. Firms that optimize early will have lower G&A rates from reduced administrative burden while maintaining full compliance readiness.

Critical Note: These threshold increases reduce administrative burden and reporting requirements, they don't eliminate compliance obligations. Contracts above the new thresholds still require full compliance, and the standards for those larger contracts remain unchanged. The relief comes from reduced administrative requirements for smaller work that historically triggered extensive reporting obligations.

Beyond Crisis Management: The Real Changes

A year ago, contractors focused on crisis management, preserving revenue streams threatened by DOGE cuts while removing problematic language from marketing materials. Now the changes go to the core of how business gets done:

Evaluation Criteria Transformation:

Technical capability and past performance weighted higher in source selections
Cost competitiveness becomes more important as social factors are de-emphasized
Capability-based competition emphasized even within set-aside programs

Positioning Strategy Shift:

Update capability statements to emphasize technical expertise and performance delivery
Revise past performance narratives to focus on delivery results and technical achievements
Restructure teaming strategies based on technical complementarity and capability gaps
Reframe set-aside positioning around competitive advantage within capability-focused competitions

Crisis Experience as Competitive Advantage: Firms that successfully navigated DOGE cuts demonstrated operational resilience, crisis management capability, and adaptability, exactly the qualities that matter in capability-based evaluation criteria.

Strategic Repositioning: Firms that spent 2025 in crisis mode now need to rebuild their value propositions around technical capability, cost competitiveness, and performance delivery. The evaluation criteria that matter have fundamentally shifted toward merit-based competition.

The Survival Test: Documentation Audit

Here's what the DOGE cuts taught us: when the government gets serious about efficiency and program changes, they act decisively across multiple areas simultaneously.

The 8(a) purge followed a similar pattern:

New requirement announced (three years of financial records)
Short compliance window (60 days)
Mass elimination (1,091 firms suspended immediately)

Every other set-aside program is watching this playbook. Companies who survived DOGE cuts should audit their set-aside documentation now, before their program gets the 8(a) treatment. The firms that pass future audits will be the ones that prepare like an audit is coming, not the ones that wait for the notice.

The Documentation Checklist:

☐ Financial records: Three years of tax returns, audited financials, bank statements
☐ Ownership documentation: Current cap table, ownership percentages, control structures
☐ Size certification: NAICS codes, average annual receipts, affiliate relationships
☐ Performance history: Contract deliverables, CPARS ratings, reference letters

Timeline: Update and organize this documentation in Q2 2026. Don't wait for the audit notice. Remember: reduced administrative burden doesn't mean reduced compliance standards. The requirements that remain are being more strictly enforced and audited.

The Competitive Advantage Window

A year ago, firms that moved fastest to adapt after DOGE cuts, finding new revenue streams, repositioning capabilities, strengthening operations, captured opportunities while their competitors were still in crisis mode. The same dynamic is happening now with regulatory changes, but bigger.

Your competitors are still operating under the old rules. They're submitting proposals not reflecting the new environment. They're maintaining unnecessarily burdensome administrative processes for contracts with reduced requirements. They're competing for 8(a) set-asides using socioeconomic positioning rather than capability-focused approaches that now drive evaluation scores.

The early-mover advantage window is open right now. What early movers are doing:

Streamlining compliance administration to reduce burden while maintaining full audit readiness
Updating proposal templates with new clause references and threshold requirements
Repositioning capability statements around technical expertise and performance delivery
Preparing documentation for inevitable set-aside audits using 8(a) standards as the baseline
Using crisis management experience as demonstration of operational capability

Window timeline: By Q4 2026, these new rules will be standard knowledge. The competitive advantage disappears when everyone else catches up.

What's Coming in Part 2

The small business changes we just covered are dramatic, but they're only half the story.

Next week: How the federal government is bypassing the traditional FAR entirely through Other Transaction Authorities (OTAs) and Commercial Solutions Openings (CSOs). Plus: the holy grail of government contracting, moving from prototype directly into production without further competition.

The question: Are you ready to compete in a market where commercial speed beats compliance rigor?

Three Types of Contractors

In my experience, I'm seeing three distinct responses to these dual challenges:

Type 1: Strategic Adapters. Successfully navigated DOGE cuts while simultaneously positioning for regulatory changes. Streamlining administrative processes, updating templates, repositioning capabilities for merit-based competition. These firms are capturing market share.

Type 2: Crisis Managers. Focused entirely on surviving DOGE cuts and immediate revenue preservation. Aware regulatory changes are happening but haven't had bandwidth to adapt. These firms are now playing catch-up.

Type 3: Overwhelmed Operators. Struggled with both DOGE impact and regulatory adaptation. Still operating like it's 2023. These firms face existential risk.

The gap between Type 1 and Type 3 is now permanent. By the time the Overwhelmed Operators recover from crisis mode, the Strategic Adapters will have locked up opportunities in the new market structure.

Wallace Angel

ROSE Report: The Dangerous Gap Between AI Hype and Reality

Fri, 20 Mar 2026 13:10:45 GMT

Issue 115 - ROSE Report: The Dangerous Gap Between AI Hype and Reality

The AI Inventory Problem You're Not Solving (But Your Competitors Are)

Here's the uncomfortable truth most GovCon CFOs won't say out loud: your employees are already using AI tools. The question isn't whether AI is part of your operations. It already is. The question is whether you know which tools, where, and under what governance. That gap is a competitive liability...

Is Your Finance Organization Ready for AI?

The latest 2026 State of AI in Accounting industry survey reveals a sobering reality. While 63% of finance professionals say they are actively exploring AI, only 16% are actually using it today. The gap between interest and readiness is enormous. And the reason is simple: Most companies are not structurally prepared for AI-driven finance...
read more

The AI Inventory Problem You're Not Solving (But Your Competitors Are)

Thu, 19 Mar 2026 12:45:41 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

Here's the uncomfortable truth most GovCon CFOs won't say out loud: your employees are already using AI tools. The question isn't whether AI is part of your operations: it is. The question is whether you know which tools, where, and under what governance. That gap is a competitive liability.

The Competitive Reality

Let me be direct. If you're running a government contracting firm without using AI tools, you're losing bids to competitors who are. Full stop. The math is brutal. A proposal team using AI for compliance matrix generation cuts turnaround from 40 hours to 8. A finance shop using AI for indirect rate modeling runs scenarios in minutes instead of days. Your competitors aren't waiting for perfect policy, they're deploying tools and winning contracts while you debate.

But here's where it gets complicated for GovCon specifically: the same tools giving you competitive advantage create exposure you may not see coming.

The Two-Layer Problem

Most executives think of AI adoption as a single issue, employees using ChatGPT or similar tools. That's layer one, and yes, it's happening across your organization whether you've approved it or not. A 2024 Salesforce survey found 55% of employees have used AI tools at work without explicit approval. In my experience with GovCon clients, that number is higher. But there's a second layer most firms miss entirely: vendor dependencies.

Your ERP system? Likely has AI capabilities embedded or planned. Your cybersecurity tools? AI-driven threat detection is standard now. Your cloud provider, your project management platform, your timekeeping system, many now incorporate AI models from third-party providers.

Here's a real scenario: Palantir's government platforms use Anthropic's Claude. If you're a subcontractor using Palantir-based analytics for a DoD program, you have downstream exposure to Anthropic's AI models. Do you know that? Does your security officer? Does your contracting officer?

When DoD issues guidance restricting specific AI vendors or requiring disclosure of AI dependencies, you'll need to answer fast. The firms that have this inventory ready will respond in hours. The firms that don't will scramble for weeks.

The CMMC Angle You're Missing

CMMC 2.0 codifies what good security practices already demanded: know your assets. The Asset Management (AM) controls in NIST 800-171 require organizations to inventory and control assets throughout their lifecycle.

Here's the gap: those controls were written assuming you know what your "assets" are.

When your Marketing Director signs up for an AI writing tool using a corporate card, that's an asset touching your data. When your subcontractor deploys AI-based analytics on shared project data, that's a dependency affecting your authorization boundary. When your accounting system vendor adds AI features in a quarterly update, that's a change to your technical architecture.

Most GovCon firms treat CMMC as a static compliance exercise. Smart firms recognize it as a living system that must account for AI proliferation. The firms that figure this out now will have cleaner audits and faster ATO cycles. The firms that don't will face remediation timelines that cost contracts.

What "Inventory" Actually Means

Let me be specific about what a functional AI inventory looks like for GovCon operations:

Direct Tools: Every AI-enabled application employees access, including sanctioned tools (Copilot, approved AI assistants), shadow IT (personal ChatGPT accounts used for work), and embedded features (AI in your existing software stack).
Vendor Dependencies: AI models and providers used by your technology vendors, contractual rights to change AI providers, and data handling practices for AI training.
Data Flows: What organizational data touches AI systems, classification levels and CUI exposure, and consent and authorization documentation.
Governance: Who approves new AI tools, how you evaluate vendor AI changes, and incident response for AI-related issues.

Most firms have pieces of this. Almost none have it systematized. That's the gap.

The Growth Positioning

Here's where this becomes a strategic advantage rather than just risk mitigation. Firms with clean AI inventories can scale AI adoption faster. When a new AI capability emerges, and they're emerging monthly now, you can evaluate and deploy because you understand your current state. You're not starting from scratch every time.

Firms with clean AI inventories negotiate better with vendors. When you know exactly what AI dependencies exist across your tech stack, you negotiate from knowledge, not assumptions. You ask the right questions in vendor reviews.

Firms with clean AI inventories win on trust. Prime contractors increasingly require AI transparency from subs. Agencies ask about AI in proposals. Being able to answer definitively, "Yes, we use these specific tools under this governance framework", differentiates you from competitors who hedge.

The Action Step

This isn't about stopping AI adoption. It's about knowing what you have, governing it properly, and positioning your firm to scale faster because you've built the foundation. Start with a basic inventory: catalog every AI tool your teams currently use, document your vendor's AI dependencies, and establish approval processes for new AI capabilities. Most importantly, assign ownership. Someone needs to own AI governance at your firm, and that ownership needs clear authority and accountability.

The GovCon firms that dominate the next decade will be the ones that figured out AI governance in 2026, not the ones that waited until DoD mandated it.

Wallace Angel

Is Your Finance Organization Ready for AI?

Thu, 19 Mar 2026 12:38:27 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Why Most Companies Must Fix Their Financial Infrastructure Before Automation. Artificial intelligence is quickly becoming the most talked-about transformation in finance.

CFOs are being asked difficult questions:

What is our AI strategy?

How much of finance will be automated?

When will we implement it?

Yet the latest 2026 State of AI in Accounting industry survey reveals a sobering reality. While 63% of finance professionals say they are actively exploring AI, only 16% are actually using it today.

The gap between interest and readiness is enormous. And the reason is simple: Most companies are not structurally prepared for AI-driven finance.

The Real Barrier to AI in Finance

AI does not solve broken financial systems. In fact, it amplifies them. AI tools rely on structured, accurate, and integrated financial data. If the underlying systems are inconsistent, siloed, or manually maintained, automation will only accelerate bad information and flawed decisions. The survey highlights several systemic challenges that are holding organizations back:

1. Fragmented Financial Systems

Many companies still operate with disconnected tools for:

Accounting
Payroll
CRM
Expense management
Billing
Forecasting

Without integration, finance teams spend enormous time reconciling data rather than analyzing it.

AI cannot function effectively when the underlying data architecture is fragmented.

2. Manual Processes Still Dominate

Despite years of digital transformation conversations, many organizations still rely on:

Spreadsheet-based reconciliations
Manual journal entries
Email-based approvals
Offline financial models

Finance teams want AI to eliminate repetitive work, but the processes themselves have not yet been automated.

3. Lack of Data Trust

Perhaps the most concerning insight from the survey is that many finance leaders do not fully trust their financial data. When reporting depends on manual adjustments, inconsistent coding, or late reconciliations, decision makers lose confidence. AI requires clean, reliable financial data. Without it, the outputs become unreliable.

4. Resource and Talent Constraints

CFOs today face a difficult challenge: They must simultaneously manage:

Compliance and reporting
Hiring and retention
Technology upgrades
Strategic planning
Increasing demand for real-time insights

Most finance organizations simply do not have the time, systems, or expertise to redesign their financial infrastructure alone.

The Shift Toward Decision-Ready Finance

The organizations that successfully adopt AI will not start with technology. They will start with financial infrastructure. Before automation, finance leaders must ensure their systems can deliver:

Clean financial data
Integrated financial workflows
Scalable processes
Reliable reporting
Decision-ready insights

This is the foundation of what we call Decision-Ready Finance.

A finance organization becomes decision-ready when leadership can trust the numbers and access them fast enough to guide strategic decisions. Only then can automation and AI deliver meaningful value.

The First Step: Diagnose Your Financial Readiness

Most companies assume they are further along than they actually are. That is why ROSE Financial developed the Financial System Readiness Assessment (FSRA). The FSRA is a structured diagnostic that evaluates the strength of your financial infrastructure across key areas such as:

Governance and internal controls
Financial systems architecture
Data flow and integrations
Operational discipline and process rigor
Reporting and decision support
Compliance and audit readiness
Automation, AI and growth readiness

In just a few minutes, the assessment identifies:

Where your financial infrastructure is strong
Where hidden risks exist
What must be fixed before AI and automation can succeed

For many companies, the results reveal the exact gaps preventing them from scaling efficiently.

Filling the Gaps with Finance as a Service

Once organizations understand their readiness level, the next challenge becomes execution.

Most companies cannot build a modern finance infrastructure internally fast enough to keep pace with growth and change.

This is where Finance as a Service (FaaS) becomes transformative.

Rather than hiring large internal teams or attempting complex system implementations alone, companies can leverage an external finance infrastructure that provides:

CFO-level and financial systems strategic guidance
Scalable accounting and financial operations
Integrated financial technology
Compliance and audit readiness
Data-driven financial insights

This approach allows organizations to modernize finance incrementally while maintaining operational continuity. This approach reduces the risk of a failed ERP implementation significantly. Over time, the finance function evolves from manual reporting to automated intelligence.

The Path to Automated Finance

The journey toward AI-enabled finance is not a single technology implementation. It is an evolution. The typical progression looks like this:

Stabilize the financial foundation
Integrate financial systems
Automate repeatable processes
Deliver real-time reporting and insights
Layer AI-driven decision support

Companies that skip the first stages often struggle with failed implementations or limited ROI. Companies that build the foundation first create a finance organization that scales with growth.

Take the First Step

If AI and automation are on your roadmap, the most important question is not: “What AI tools should we buy?”

The real question is: “Is our financial infrastructure ready for AI?”

You can find out in just a few minutes by taking the ROSE Financial System Readiness Assessment .

The assessment will help you understand where your finance organization stands today—and what it will take to build a scalable, decision-ready financial infrastructure for the future.

Take the assessment on our website .

Ted Rose

Preparing Your Systems for What’s Next: Decisions, Tax, Compliance, and AI Readiness

Tue, 17 Mar 2026 18:56:25 GMT

If your financial systems are not ready, how do you make decisions? Are you sure you are not leaving money on the table? Join Ted Rose , Timothy Fargo and Wallace Angel on April 3rd at 2:00 PM ET for a practical session addressing decision, tax, compliance, and AI readiness.

Our upcoming Mastermind will help you determine:

Does your organization qualify for the OBBBA’s significantly improved R&D tax credits?
Are your financial systems set up to track, allocate, and document the credits properly?
Are your projects meeting your gross margin goals? Where are you missing the mark?
Are you pricing properly? How quickly can you update your pricing based on changes in the market?
How are you tracking against your plan? What adjustments do you need to make to hit your critical numbers in 2026?
Are you complying with federal, state, and local tax compliance? Are you at risk of audit?
Do your financials properly reflect your company’s performance?

This workshop will highlight how organizations can align their systems, data, and processes to support decision making while meeting increasing reporting and regulatory demands. This session will dive into an overview of the evolving tax landscape, including OBBBA updates, expanded R&D credits, and state and local tax (SALT) considerations affecting all organizations.

As organizations scale innovation and expand across jurisdictions, new opportunities emerge, but so do new compliance and reporting expectations. The larger question is not just what opportunities exist, but whether your financial systems are prepared to support them.

The session will introduce the Financial System Readiness Assessment (FSRA) , a five-pillar framework covering your organization’s Structural Foundation, Systems Architecture, Financial Intelligence, Operational Discipline, and Strategic Enablement. This assessment is designed to evaluate whether your finance operations are equipped to support financial and tax strategy, compliance requirements, and executive decision-making. Our FSRA discussion will help you determine:

Are your financial systems properly integrated, or is your team manually bridging the gaps between your accounting software, CRM, payroll, and banking?
Can you produce audit-ready documentation on demand, or does every request become a fire drill?
Are your cost tracking methods precise enough to substantiate departmental budgets, project profitability and R&D claims under scrutiny?
Are your financials guiding your strategy, or just checking compliance boxes?
How many hours is your team spending on processes that should be automated? What is that actually costing you?
Here is the irony: many organizations are investing in AI and technology innovation while their own finance operations still run on spreadsheets, workarounds, and tribal knowledge.

What you will take away:

A framework to evaluate your financial readiness in 10 minutes.
Where R&D credit opportunities are expanding and what it takes to capture them.
Concrete steps to eliminate manual bottlenecks and strengthen your financial foundation.

This interactive webinar is built for CEOs, owners, and senior finance leaders who know their financial operations should be working smarter, not harder and want to know exactly where to start.

ROSE Report: A New Era for Finance and Defense Contracting

Thu, 12 Mar 2026 13:25:31 GMT

Issue 114 - ROSE Report: A New Era for Finance and Defense Contracting

Why Most Financial Systems Fail Leaders

As organizations grow, leaders assume their financial systems will naturally evolve with them. In reality, most companies outgrow their financial infrastructure long before they realize it. The result is a frustrating paradox: the company may be growing, but the financial systems designed to support that growth are actually slowing it down...

The Pentagon's CTO Just Told You Exactly What DoW Wants. Are You Listening?

Emil Michael, Under Secretary of War for Research & Engineering, effectively the Pentagon's CTO, sat down with Chamath, Friedberg, and J-Cal and laid out, in plain language, exactly where the Department of War is headed on procurement, contracting, technology, and the defense industrial base. This wasn't a sanitized press briefing. This was a senior Pentagon official telling the investment and tech world: here's what we need, here's how we're buying it, and here's who we want to buy it from...
read more

Why Most Financial Systems Fail Leaders

Thu, 12 Mar 2026 13:16:51 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

As organizations grow, leaders assume their financial systems will naturally evolve with them. In reality, most companies outgrow their financial infrastructure long before they realize it.

The result is a frustrating paradox: the company may be growing, but the financial systems designed to support that growth are actually slowing it down. CEOs and CFOs often find themselves asking the same questions:

Why don’t we fully trust the numbers?
Why does it take weeks to close the books?
Why are we constantly surprised by cash flow?
Why does every major decision feel like an educated guess?

These challenges rarely stem from poor leadership or weak accounting teams. Instead, they are symptoms of a deeper issue: financial systems that were never designed to support strategic decision-making. Understanding why financial systems fail is the first step toward building one that actually supports growth.

The Hidden Role of Financial Infrastructure

Every organization runs on infrastructure. There is sales infrastructure, technology infrastructure, and operational infrastructure. But one of the most critical, and most overlooked, is financial infrastructure . Financial infrastructure includes the people, processes, systems, and data responsible for:

Recording transactions
Ensuring compliance
Producing financial reports
Monitoring profitability
Forecasting performance
Supporting leadership decisions

When this infrastructure is weak, leaders operate with limited visibility. When it is strong, finance becomes a strategic advantage. Unfortunately, many organizations unknowingly build fragile financial systems that break under pressure.

The Five Reasons Financial Systems Fail

1. Finance Was Built for Compliance, Not Decisions

Historically, accounting systems were designed primarily for compliance and recordkeeping . Their job was to ensure accurate books for auditors, tax authorities, and regulators. While this responsibility remains essential, modern organizations require far more from finance. Today’s leaders need finance to answer questions like:

Which contracts or services generate the highest margins?
How will hiring affect cash flow?
Can we scale without increasing financial risk?
Are we pricing our work correctly?

A compliance-focused system produces reports, but not insight. When finance focuses only on historical reporting, leadership decisions are made without financial clarity.

2. Reporting Is Too Slow

Many organizations still rely on financial reporting cycles designed decades ago. Month-end close processes often take two to four weeks , meaning leaders may be making decisions based on outdated information. By the time financial reports are finalized:

Opportunities have passed
Risks have escalated
Decisions have already been made

In today’s fast-moving environment, delayed financial insight is almost as damaging as having no insight at all. Leaders need timely financial visibility , not just accurate reports.

3. Systems Are Fragmented

In many companies, financial data lives in multiple disconnected systems:

Accounting platforms
Payroll systems
CRM systems
Billing platforms
Expense tools
Project management software

When these systems are not integrated, finance teams spend enormous time manually reconciling data. This fragmentation leads to:

Inconsistent numbers
Manual data entry errors
Delayed reporting
Limited analytical capability

Instead of producing insight, finance teams become data translators . The financial system becomes reactive instead of strategic.

4. Financial Leadership Is Missing or Overwhelmed

Another common reason financial systems fail is the absence of strategic financial leadership. Many growing organizations rely heavily on bookkeepers or controllers who excel at managing transactions but may not have the mandate, or time, to drive strategic insight.

Meanwhile, CEOs are left interpreting financial reports themselves. Without CFO-level leadership guiding the financial system, companies struggle with:

Forecasting
Scenario planning
Cost structure optimization
Strategic capital allocation

Finance becomes reactive instead of proactive.

5. Technology Has Not Kept Up With Growth

Many companies launch with simple accounting systems designed for early-stage operations.

These systems often work well until complexity increases. As organizations scale, new challenges emerge:

Multi-entity reporting
Government contract compliance
Project profitability tracking
Complex revenue recognition
Advanced forecasting

When outdated systems attempt to manage this complexity, organizations often rely on workarounds:

Spreadsheets everywhere
Manual data reconciliation
Fragile reporting processes

Eventually the financial system becomes brittle and every change introduces risk.

The Real Cost of a Weak Financial System

Weak financial infrastructure does not just create accounting headaches.

It directly impacts leadership effectiveness.

When financial systems fail, leaders experience:

Reduced confidence in financial reports
Delayed strategic decisions
Unexpected cash flow issues
Compliance risks
Lower profitability

Perhaps most importantly, leadership teams lose the ability to clearly understand the financial performance of their organization. Without that clarity, scaling becomes far more difficult.

The Shift to Decision-Ready Finance

Organizations that solve these problems do not simply upgrade accounting software.

They rethink the role of finance entirely.

Instead of focusing only on reporting the past, they build systems designed for Decision-Ready Finance . This goes beyond just upgrading your accounting software or ERP. Decision-Ready Finance means:

Financial information is timely and accessible
Systems are integrated across the organization
Reporting connects operational activity to financial outcomes
Leaders can see forward-looking financial insights, not just historical results

Finance evolves from a recordkeeping function into a strategic decision engine .

How to Know if Your Financial System Is Holding You Back

Many leaders suspect their financial infrastructure may be fragile, but they struggle to objectively evaluate it. To help solve this problem, we developed the Financial System Readiness Assessment (FSRA) . The FSRA diagnostic evaluates the strength of your organization’s financial infrastructure across key areas including:

Structural Foundation: Governance, internal controls, and compliance
Financial Systems Architecture: Systems of record, integrations, and automation
Financial Intelligence: Close, reporting, and decision support
Operational Discipline: Execution rhythm and process rigor
Strategic Enablement: Growth, enterprise and AI readiness

In just a few minutes, leaders can identify hidden gaps that may be limiting their ability to scale confidently. Many of these gaps must be filled before investing in a new ERP.

�� Take the Financial System Readiness Assessment .

It takes about 10 minutes and will give you a clearer view of whether your financial infrastructure is ready to support your next phase of growth.

The Future of Finance

The finance function is undergoing a fundamental transformation. Automation, AI, and integrated financial platforms are poised to dramatically reduce the manual work associated with accounting. As these tools mature, finance is shifting from processing transactions to powering decisions .

Organizations that embrace this transformation are building financial systems that scale with their ambitions. Those that do not will continue struggling with delayed reporting, fragmented data, and uncertain decision-making.

A Final Thought

Leaders should not have to guess their way through financial decisions.

Every organization deserves a financial system that provides clarity, confidence, and control .

Because when finance is built correctly, it becomes more than a reporting function. It becomes financial infrastructure that powers growth.

If you suspect your financial infrastructure may be limiting your ability to scale, start by taking the Financial System Readiness Assessment (FSRA) .

�� Take the 10-minute diagnostic. It will help you identify gaps in your financial infrastructure and determine whether your organization is truly Decision-Ready .

Ted Rose

The Pentagon's CTO Just Told You Exactly What DoW Wants. Are You Listening?

Thu, 12 Mar 2026 13:16:09 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

If you haven't listened to Episode 263 of the All-In Podcast, stop what you're doing and go watch it. The full episode. Not the clips. Not someone's summary thread on X. The whole thing.

And if you're running a small or mid-size government contracting firm, the signal could not be louder.

I've been writing about this shift for months, FAR 2.0 reforms, the expansion of OTAs and CSOs, CAS threshold changes, the commercial pivot. Everything I covered in my recent webinar and in pieces like "From FAR Grind to Commercial Speed", Emil Michael just confirmed all of it, on camera, to an audience of millions. This isn't theory anymore. This is the Under Secretary telling you the playbook.

Let me break down what matters most for your business.

1. Requirements Reform: They Want Your Solutions, Not Your Compliance

This is the single biggest mental shift traditional GovCon firms need to make.

Here's Emil Michael, in his own words:

"I tell you my common operational problem. I need a bunch of missiles that go 500 miles or more... Come to me with solutions, as little requirements as possible."

Read that again. The Pentagon CTO is saying he does not want detailed requirements documents. He's saying the old model, where DoW writes a 200-page spec that creates, in his words, "unbuildable things" that contractors then fulfill on cost-plus, is dying.

The new model: Here's the problem. Bring me a solution.

For years, the GovCon industry has been built on the ability to respond to complex requirements. Entire businesses exist to decode RFPs, parse specifications, and build exactly what was asked for, no more, no less. That was the game. Compliance was the competitive advantage.

That game is changing. The competitive advantage is shifting to firms that can think , not just respond. Firms that understand an operational problem and can walk in the door with a working solution, or a credible path to one.

If your entire business model is "tell us what to build and we'll build it on cost-plus," you need to evolve. Fast.

2. Commercial Contracts Are the New Default

This connects directly to what I've been covering with FAR 2.0 and OTA expansion, but hearing it from Emil Michael makes it concrete:

"Trying to get to as close to commercial contracts as possible."

And then he went further:

"This is where the startups are so good, they'll do fixed cost pricing. They'll do, you know, you don't pay me as much if I deliver late. You pay me more if I deliver early."

"Super disruptive. But that's what I'm waking up every day trying to do."

Let that sink in. The Pentagon CTO is waking up every morning trying to move DoW contracting toward fixed-price, milestone-based, performance-incentivized contracts. He's explicitly praising the startup model of pricing, and explicitly saying that's what he wants from the defense industrial base.

What this means for you:

Fixed-price contracting requires a fundamentally different financial infrastructure than cost-plus. Your estimating, your indirect rate structures, your cash flow management, all of it changes.
Milestone-based payments mean you need strong project accounting and the ability to track deliverables against payment triggers.
Performance incentives (bonuses for early delivery, penalties for late) mean your proposal pricing has to account for execution risk in ways most traditional GovCon firms have never modeled.

This isn't a future possibility. This is the stated priority of the person running R&E at the Pentagon. If your financial systems are built exclusively for cost-reimbursable work, you are not ready for where this is going.

A Word of Caution: OTAs and CSOs Are Not a Compliance Shortcut

Here's the trap I see firms walking into: they hear "OTAs" and "commercial-style contracts" and think that means they can skip the compliance infrastructure. Less paperwork. Fewer audits. No DCAA headaches. And yes, in the short term, that's partially true. Other Transaction Agreements and Commercial Solutions Openings do come with fewer administrative burdens than traditional FAR-based contracts.

But here's what nobody tells you until it's too late: success on OTA and CSO work often leads directly to traditional follow-on contracts . That prototype OTA turns into a production contract. That CSO award scales into a full program of record. And when it does, the government will expect your accounting system, your indirect rate structure, your cost accounting practices, and your timekeeping to meet the full weight of FAR, DCAA, and CAS requirements.

If you waited until that moment to build compliant systems, you're already behind. You're scrambling to stand up infrastructure while simultaneously executing on a contract, and the government is watching.

The smart play : Build your financial systems to be compliant now, even if your current contract vehicles don't require it. Treat it as an investment in scalability. When that OTA prototype turns into a $50M production contract, and they ask for an adequate accounting system determination, you want to hand them a package, not a promise.

The firms that will dominate the next decade of defense contracting are the ones that move at commercial speed and have government-grade financial controls. That combination is rare. Make it your competitive advantage.

3. The Shift from Old Primes to New Primes

The hosts asked Emil directly whether we're seeing a transition from legacy prime contractors to new entrants. He confirmed it.

The shift is away from what he described as "ships that cost $20 billion and a decade and a half to build" and toward "mass producible, low-cost things."

And he was explicit about why new entrants matter:

"That's what these new entrants can do. We need those to succeed so that the flywheel goes with venture capital money, entrepreneurs, capabilities."

This is not anti-incumbent rhetoric. This is industrial strategy. DoW recognizes that the current prime contractor base cannot deliver the volume, speed, and cost targets that modern defense requires. They need new players in the ecosystem, and they're actively building the economic incentives to bring them in.

For small and mid-size firms, this is an unprecedented opening. But "unprecedented opening" doesn't mean "show up and get money." It means the door is open for firms that can demonstrate:

Speed to capability
Commercial-style pricing discipline
Manufacturing or technical solutions at scale
The financial controls to handle fixed-price and milestone-based work

The flywheel Emil described, venture capital funding entrepreneurs who build capabilities DoW needs, only works if those companies can actually execute government work. That's where your financial readiness becomes a competitive weapon, not just a compliance checkbox.

4. LUCAS: The Drone Opportunity Is Massive

Emil detailed the LUCAS program, Low-Cost Unmanned Combat Attack Systems, and the numbers should make every small manufacturer pay attention:

Small drones at a fraction of the current $35K benchmark
One-way attack drones with 500-700 mile range, at airplane speeds: $50-80K per unit
A "drone dominance program" focused on building an arsenal at scale

He compared it to the DARPA self-driving challenge, the kind of catalytic program that spawns entire industries. Except this one is for defense, and the Department is building the demand signal right now .

More drones were deployed in the last week, he noted, than in the entire prior history of US military drone activity. That's not a trend line. That's a step function.

For small manufacturers, especially those with expertise in composites, propulsion, electronics, or autonomous systems, this is the market being created in real time. DoW doesn't want one vendor building all of these. They want an ecosystem. They want competition. They want dozens of companies producing at volume.

If you make things, physical things, at scale, at competitive prices, the defense market is actively looking for you.

5. Office of Strategic Capital: $200 Billion in Lending Authority

This one doesn't get enough attention, and it should.

"$200 billion in lending authority... Treasuries plus 100 BPS loan to companies."

The Office of Strategic Capital isn't a grant program. It's a lending facility designed to help companies build the domestic manufacturing capacity that DoW needs. The mission: domesticate the critical supply chain components currently outsourced to China .

Emil identified roughly 20 critical categories, solid rocket motors, batteries, fiberglass, lithium, critical minerals, where the US is dependent on foreign (often adversarial) supply chains. The Office of Strategic Capital exists to fix that by showing companies the demand signal and giving them the capital to build capacity.

"I hope whatever administration comes next continues it."

That's a bipartisan signal. This isn't a one-cycle initiative. The supply chain vulnerability is real, the national security imperative is clear, and the money is on the table.

If you're a small manufacturer in any of these critical supply chain areas, or if you could be, this is a $200 billion reason to take a hard look at the defense market. The Department isn't just buying products. They're financing the production capacity to make those products domestically.

6. The Defense Tech Boom Is Not a Bubble

There's been a lot of Silicon Valley chatter about whether defense tech is a bubble. Emil addressed this directly, and his answer was clear: DoW is actively creating the demand signal. This isn't speculative investment chasing a trend. The Department is building programs (LUCAS, autonomous systems, supply chain domestication) that create real, funded requirements.

Venture capital + entrepreneurs + DoW capabilities = what Emil called "the flywheel."

DARPA, which he called the "best of the best," is working on next-generation capabilities, bio-synthesizing critical minerals, advanced cyber defense, autonomous systems. These aren't PowerPoint programs. They're funded R&D pipelines that will generate procurement requirements for years.

For GovCon firms, this means the opportunity window isn't closing next quarter. It's opening wider. But only for firms that can actually deliver.

7. AI, Autonomy, and the Vendor Trust Question

Emil discussed the rapid deployment of AI and autonomous systems, drone swarms with heterogeneous autonomy, autonomous target recognition, AI-controlled systems operating in contested environments. The trajectory is clear even if the tactical doctrine is still developing.

He also addressed the Anthropic situation, DoW's cancellation of a $200M contract and the unprecedented designation of an American AI company as a "supply chain risk." The core issue: Anthropic's restrictions on military use of their models.

"I don't want Lockheed Martin using their model to design weapons for me [if they can refuse]."

The signal for all defense contractors and technology vendors is unambiguous: DoW will not tolerate vendors who place policy restrictions on lawful military use. If you're bringing technology to the defense market, your terms of service and your corporate policies need to be compatible with the mission. Full stop.

This is relevant beyond AI companies. Any technology vendor selling to DoW should understand that restricting lawful use is now a supply chain risk factor. Structure your offerings accordingly.

What This Means for Your Firm, Right Now

Let me bring this back to the practical. Here's what I'd be doing if I were running a small or mid-size GovCon firm today:

Get your financial house in order for fixed-price work. If your entire accounting infrastructure is built for cost-reimbursable contracts, start building the capability for fixed-price and T&M work now. That means strong estimating, project-level profitability tracking, and cash flow modeling that accounts for milestone-based payments.
Understand the commercial contracting landscape. OTAs, CSOs, commercial item determinations, these aren't alternative pathways anymore. They're becoming the primary pathways. If your contracts team only knows FAR Part 15 source selections, you have a gap.
Think solutions, not responses. The requirements reform Emil described means the winners will be firms that can identify DoW problems and propose solutions, not firms that wait for a detailed RFP and respond to every line item. That requires technical expertise, market awareness, and the confidence to lead with capability.
Look at the supply chain domestication push. If you manufacture anything in the ~20 critical categories Emil identified, or if you could pivot into those areas, the Office of Strategic Capital exists to help you do it. $200 billion in lending authority is serious money.
If you're in defense tech, commit to the mission. The Anthropic situation made it clear: DoW is drawing a line on vendor restrictions. If you want to sell technology to the Department, your corporate policies need to support the full scope of lawful defense use.
Position yourself as a new entrant, even if you're not new. The flywheel Emil described favors firms that act like startups: fast, lean, commercially minded, willing to put skin in the game with fixed-price bids and performance guarantees. You don't have to be a Silicon Valley startup. You have to operate like one.

Pivoting to DoW? Align Your Capabilities First.

Here's the part most firms get wrong: they hear "the Department of War is spending" and they show up with the same capability statement they've been using for civilian agencies. That doesn't work. The DoW isn't buying the same things, the same way, from the same kinds of companies.

If you're a services firm, a technology company, or a manufacturer considering a pivot to DoW work, or trying to expand your defense footprint, you need to do the alignment work before you chase a single opportunity.

Step 1: Map your capabilities to DoW priority areas.

Emil laid them out explicitly. Ask yourself, honestly, where your company fits:

Autonomous systems & drones: Do you build, integrate, or maintain UAS platforms? Do you have expertise in composites, propulsion, sensors, or autonomous navigation?
AI & software : Can you deploy AI models that support targeting, logistics, maintenance prediction, or operational planning? Are your terms of service compatible with defense use?
Critical supply chain manufacturing: Do you produce or could you produce any of the ~20 critical materials categories (solid rocket motors, batteries, critical minerals, fiberglass, lithium)?
Cybersecurity & electronic warfare: Can you defend networks, harden systems, or operate in contested electromagnetic environments?
Sustainment & logistics : Can you maintain systems at scale, in austere environments, with speed that matches operational tempo?

If your capabilities don't map to at least one of these areas, the DoW pivot may not be your play, and that's okay. Better to know that now than after you've spent six months and $100K on a BD effort chasing contracts you'll never win.

Step 2: Restructure your pitch around problems, not past performance.

Traditional GovCon business development leads with past performance: "We did X on contract Y for agency Z." That matters, but Emil made clear that DoW is shifting toward "tell me what you can solve."

For firms pivoting in, your pitch needs to answer three questions:

What operational problem do you solve? Not "we provide IT services", what specific warfighter pain point does your solution address?
How fast can you deliver? DoW is explicitly favoring speed. If your answer involves 18 months of requirements gathering, you've already lost.
What's your pricing model? If you can only price cost-plus, you're speaking the wrong language. Fixed-price, milestone-based, and performance-incentivized pricing is what the Department wants to see.

Step 3: Get your financial infrastructure ready for defense work.

This is where I see the most firms stumble. You can have the perfect technical solution, but if your financial systems can't handle the unique demands of DoW contracting, you're dead on arrival:

DCAA compliance isn't optional, even for commercial-item contracts, the Department increasingly requires adequate accounting systems
Indirect rate structures need to support both cost-type and fixed-price work simultaneously
Cash flow modeling must account for the realities of government payment cycles, milestone payments, progress payments, and the occasional CR-induced funding gap
Cost accounting needs the granularity to track at the contract, task order, and CLIN level, because DoW auditors will ask

Step 4: Build relationships before you need them.

The DoW ecosystem runs on relationships, but not the golf-course kind. The relationships that matter now are:

Program office engagement: attend industry days, respond to RFIs (even if you can't bid the full contract), get your name in front of program managers
Prime contractor teaming: if you're too small to prime, identify which large primes are winning in your capability area and approach them as a subcontractor with a differentiated skill set
Defense innovation units: DIU, AFWERX, NavalX, Army Applications Lab, these organizations exist specifically to connect non-traditional companies with defense requirements. Use them.

The firms that will win the DoW pivot aren't the ones with the best technology or the lowest price. They're the ones that did the hard work of aligning their solutions to what the Department actually needs, structuring their finances to support how the Department actually buys, and building the relationships that turn capability into contracts.

Don't show up with a hammer looking for nails. Study the blueprint first.

The Bottom Line

Emil Michael didn't speak in abstractions. He gave specific programs (LUCAS), specific dollar figures ($200B in lending authority, $50-80K attack drones), specific contracting preferences (fixed-price, milestone-based, commercial-style), and specific strategic priorities (supply chain domestication, drone dominance, autonomous systems).

This is the Pentagon CTO telling you, on a podcast with millions of viewers, exactly what the Department wants to buy and how they want to buy it. The question isn't whether the shift is happening. The question is whether your firm is positioned to compete in the new landscape.

Everything I've been covering, FAR 2.0, OTA expansion, CAS threshold changes, the commercial pivot, it's all converging. The Department is moving. The money is real. The opportunity is historic.

But opportunity without preparation is just a spectator sport. Get ready.

Watch the full episode: Emil Michael on the All-In Podcast ( Episode 263 )

This is part of my ongoing coverage of the structural changes reshaping government contracting. If you found this useful, follow along, there's more coming.

Wallace Angel

ROSE Report: Stronger Oversight is Changing the Competitive Landscape

Thu, 05 Mar 2026 19:13:02 GMT

Issue 113 - ROSE Report: Stronger Oversight is Changing the Competitive Landscape

620 More 8(a) Firms Just Got Cut. The Program Is Down 29%.

The SBA just initiated termination proceedings against 628 more firms in the 8(a) program. These are firms that refused to turn over three years of financial documents after the agency's December 2025 data call to all 4,300 participants...

The Modern CFO Is Overloaded, and It’s Costing Companies More Than They Realize

The role of the CFO has fundamentally changed. Today’s CFO isn’t just managing the numbers. They are...
read more

The Modern CFO Is Overloaded, and It’s Costing Companies More Than They Realize

Thu, 05 Mar 2026 15:11:47 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

The role of the CFO has fundamentally changed.

Today’s CFO isn’t just managing the numbers. They are:

Recruiting and retaining scarce finance talent
Navigating compliance and audit pressure
Closing books faster with fewer resources
Guiding the leadership team with forward-looking insight
Managing ERP upgrades and technology integrations
Responding to increasing board expectations

In theory, the CFO is the architect of financial strategy. In reality, many are buried in operational drag.

The Hidden Cost of an Overloaded CFO

When finance leaders are overwhelmed by execution, companies pay the price, often without realizing it. The symptoms show up as:

Slower decisions because data isn’t available in real time
Reactive reporting instead of proactive insight
Leadership burnout at the CFO and controller level
Hidden inefficiencies buried inside legacy workflows
Overinvestment in headcount to compensate for broken processes

None of these issues show up cleanly on a P&L. But they quietly erode valuation, agility, and confidence at the board level. And in today’s market, speed and clarity are competitive advantages.

The Problem Isn’t the CFO

It’s the infrastructure. For decades, companies built finance teams around manual processes supported by ERP systems. When complexity increased, the default response was predictable:

Hire more staff
Upgrade the ERP
Add consultants
Layer on new tools

But here’s the reality:

Tools don’t fix workflow friction.
ERP systems are systems of record, not systems of intelligence.
Consultants leave.

What remains is a finance organization that still depends on human effort to move data, reconcile systems, and produce insight. That model does not scale.

Finance Should Operate as a Decision Engine

Modern organizations need finance to function as a real-time decision engine, not a historical reporting department. That requires:

Automated reconciliations
Continuous close processes
AI-enabled exception detection
Standardized reporting logic
Clean, structured, decision-ready data

When infrastructure is designed correctly:

Humans focus on judgment and strategy
Reporting becomes near real-time
Controls strengthen
Costs stabilize
Growth becomes easier to support

This is not about replacing people. It’s about elevating them.

A Better Starting Point

Before hiring, upgrading, or restructuring, leadership should ask a more fundamental question: Is our financial system actually ready for the next stage of growth?

Most companies don’t have a clear answer. That’s why we built the ROSE Financial System Readiness Assessment . In 10 minutes, CEOs and CFOs can quickly identify:

Process bottlenecks
Technology gaps
Control weaknesses
Reporting inefficiencies
Scalability risks

From there, a structured Financial System Readiness Review creates a roadmap without requiring you to build everything internally.

Because the solution isn’t “do more.” It’s build the right infrastructure.

The Bigger Strategic Shift

Finance leaders should not be spending their highest-value time managing workflow friction. They should be:

Anticipating risk
Advising the CEO
Modeling growth scenarios
Allocating capital
Building long-term enterprise value

The companies that win over the next decade will not simply hire better CFOs. They will build better financial systems. And when infrastructure improves, everything else accelerates. If you’re leading a growing organization, the question isn’t whether your CFO is capable.

The question is whether your system is. Find out your financial system readiness index through a 10 minute assessment located on our website .

Ted Rose

620 More 8(a) Firms Just Got Cut. The Program Is Down 29%.

Thu, 05 Mar 2026 15:06:42 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

This isn't a new action. It's the next phase of one that started months ago. And when you add up the numbers, the picture is stark.

The Timeline

December 5, 2025. SBA orders all 4,300 active 8(a) firms to produce three years of financial records: general ledgers, bank statements, payroll registers, and contract documentation. Deadline: January 5, 2026.
January 28, 2026. SBA suspends 1,091 firms for failing to comply with the document request. Those firms collectively held approximately $850 million in 8(a) contracts during FY2021 through FY2024.
February 11, 2026. SBA initiates termination proceedings against 154 8(a) firms that submitted their financials but exceeded statutory limits for economic disadvantage. Those 154 firms held nearly $1.3 billion in 8(a) contracts, including $1 billion in sole-source awards. I covered this in detail in my previous article.
March 4, 2026. SBA moves to terminate 628 of the 1,091 originally suspended firms. These are participants who still have not complied with the document request after being suspended. According to the SBA, they received $637 million in 8(a) set-aside contracts during the Biden administration.

Add It Up

The SBA has now initiated termination proceedings against approximately 782 firms (154 plus 628). That's roughly 18% of the entire 8(a) program population.

But the real number is worse. The remaining original 1,091 suspensions are still in effect. That means approximately 1,245 firms are either suspended, facing termination, or both.

628 firms moving to termination for refusing to submit documents
154 firms moving to termination for exceeding economic disadvantage thresholds
~463 firms still suspended (the remainder of the 1,091 who submitted late or partial responses)
Total affected: ~1,245 firms

Out of approximately 4,300 participants, that's nearly 29% of the program either suspended or in termination proceedings.

The Intake Problem

Here's the number that should concern every 8(a) firm and every contracting officer who relies on the program.

In fiscal year 2025, the SBA accepted 65 new firms into the 8(a) program. Sixty-five. Compare that to more than 2,200 accepted during the four years of the prior administration, or roughly 550 per year.

So while approximately 800 firms are being removed, the pipeline of new entrants has slowed to a trickle. The net effect is that the 8(a) program is shrinking in real terms, and it's shrinking fast.

If you started 2025 with roughly 4,300 firms and you subtract the 782 in termination proceedings, then add back only 65 new entrants, the effective program population is heading toward 3,500 or lower. Factor in firms that naturally graduate or exit, and we could be looking at a program that's 25 to 30 percent smaller than it was 18 months ago.

What the SBA is Saying

Administrator Kelly Loeffler framed this as a fraud enforcement action: "If you have something to hide, you cannot do business with the federal government."

The SBA's position is that the 8(a) program expanded under the prior administration without adequate oversight, creating opportunities for pass-through schemes and shell companies. The agency launched its first-ever comprehensive audit of the program in June 2025, covering all high-dollar and limited-competition contracts going back 15 years.

Other enforcement actions in this audit cycle include:

Rescinding USAID's independent 8(a) contracting authority after a DOJ investigation uncovered a $550 million bribery scheme
Suspending contractors following pass-through fraud allegations involving $253 million in contract awards
Issuing warnings to contracting officers about penalties for failing to report suspected fraud

What this Means for Current 8(a) Firms

If you're still in the program and in good standing, three things are true:

1. The competitive field just got smaller. Fewer participants means less competition for set-aside and sole-source awards. If you're compliant, documented, and ready to perform, this is an advantage.

2. Compliance scrutiny is not going away. The SBA is clearly willing to enforce thresholds and deadlines. Your annual review under 13 CFR 124.112 is no longer a formality. Treat it like a DCAA audit: complete, timely, documented.

3. Agencies still need to hit small business goals. The federal government's small disadvantaged business contracting goal is 5% (reduced from 15% on Day One of the current administration). Fewer qualified 8(a) firms means agencies will concentrate awards among the remaining pool. If you're positioned correctly, you will see more opportunities.

The Opportunity Shift: Other Set-Asides Stand to Gain

As the 8(a) program contracts, agencies still have small business dollars to spend. That money has to go somewhere.

Watch for growth in other socioeconomic set-aside programs:

Women-Owned Small Business (WOSB/EDWOSB). Agencies that can't fill their 8(a) pipeline will look to WOSB set-asides to meet broader small disadvantaged business goals. If you hold WOSB certification, now is the time to update your capability statements and get in front of contracting officers who just lost their go-to 8(a) vendors.

Service-Disabled Veteran-Owned Small Business (SDVOSB). The VA's Vets First program already has its own verification process. SDVOSBs with clean certifications are well-positioned to absorb work that would have gone to 8(a) firms, particularly in IT, professional services, and facilities management.

HUBZone. Firms in designated HUBZone areas offer agencies another path to meet small business contracting targets without relying on a shrinking 8(a) pool.

The math is simple. Fewer 8(a) firms plus the same agency spending targets equals more opportunity flowing to other set-aside categories. Firms holding multiple certifications have the most flexibility to capture redirected work.

What this Means for Agencies and Primes

Contracting officers who relied on now-terminated firms for set-aside and sole-source work need replacement vendors. That creates recompete opportunities across every set-aside category.

Prime contractors with 8(a) subcontracting commitments need to evaluate their small business participation plans. If your SB subs are among the suspended or terminated, your compliance is at risk. Start identifying replacement firms now.

The Bigger Question: Who's Next

The 628 firms that refused to submit documents already made their choice. They're gone. But the more important question isn't whether 8(a) firms can survive this scrutiny. It's whether the other set-aside programs could.

The SBA asked for basic financial documentation. General ledgers. Bank statements. Payroll registers. Contract files. Three years' worth. That's not an unusual request. That's what any competent accounting department should be able to produce on short notice.

So here's what every WOSB, SDVOSB, and HUBZone firm should be asking right now: if the SBA turned this same lens on your program tomorrow, could you respond in 30 days?

Because the precedent has been set. The SBA just proved it's willing to audit an entire program, suspend a quarter of participants, and move to terminate hundreds of firms in a matter of months. There is no reason to assume 8(a) is the last program to get this treatment.

If you're in any socioeconomic set-aside program, treat this as your early warning. Get your books in order. Make sure your eligibility documentation is current and defensible. The firms that got caught flat-footed in the 8(a) audit didn't fail because the bar was too high. They failed because they weren't keeping up with basic financial hygiene.

The bar isn't going back down. It's going to spread.

Bottom Line

The 8(a) program entered 2025 with approximately 4,300 firms. Between terminations, suspensions, natural attrition, and a near-total slowdown in new admissions, the effective population is heading well below 3,500. We haven't seen numbers like this since the program's early years.

For compliant firms, this is an inflection point. Less competition, more agency need, and a premium on clean books. For firms that can't produce basic financial documentation, the message from the SBA is clear: the free ride is over.

Wallace Angel

ROSE Report: Operational Intelligence Is the New Competitive Edge

Thu, 26 Feb 2026 19:01:24 GMT

Issue 112 - ROSE Report: Operational Intelligence Is the New Competitive Edge

What Is an Agentic Finance Organization?

An agentic finance organization is not just automated. It is coordinated. Finance becomes a real-time decision engine, not a historical reporting function. Your ERP remains the system of record. An AI-enabled operating layer sits above it, orchestrating work across systems. This is how finance moves from reactive to proactive...

GSA Just Named 43 Alliant 3 Winners. Here's What It Means for the Rest of Us.

Friday, GSA dropped the first round of Alliant 3 awards. 43 companies. Out of 133 proposals. With 33 more slots to fill in future phases. If you're in GovCon IT services, this matters whether you won or not...
read more

GSA Just Named 43 Alliant 3 Winners. Here's What It Means for the Rest of Us.

Wed, 25 Feb 2026 21:59:17 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

��

Alliant 3 is GSA's flagship GWAC for IT services — cybersecurity, cloud, data solutions, systems engineering, the works. No dollar ceiling. The predecessor, Alliant 2, moved over $46 billion through 825 task orders and had its ceiling raised twice — from $50B to $75B in 2022, then again to $82.5B in December 2024 — because agencies couldn't stop buying through it.

GSA evaluated 133 proposals and picked the top 43 scorers for Phase 1. Among the confirmed winners: Booz Allen Hamilton, GDIT, IBM, Leidos, Maximus, Northrop Grumman, and SAIC. But the real story isn't the names on the list.

��

Alliant 3 is unrestricted. Full and open. No small business set-aside component. Under the previous generation, GSA ran Alliant SB alongside Alliant 2 — a $15B ceiling GWAC set aside for small businesses. That path has moved. GSA replaced it with Polaris, a new small business GWAC with SDVOSB, HUBZone, and WOSB pools. GSA just named 55 apparently successful WOSB offerors earlier this month.

The landscape now:

Alliant 3 — unrestricted, large business (43 of 76 awarded)
Polaris — small business set-aside (SDVOSB, HUBZone, WOSB)
8(a) STARS III — 8(a) set-aside

The key play for small businesses under Alliant 3 is finding large business partners.

��

In March 2025, President Trump signed EO 14240 — "Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement." It designates GSA as the executive agent for all governmentwide IT contracts and pushes agencies to consolidate through vehicles like Alliant 3. More dollars flowing through fewer vehicles. If you're not on an Alliant 3 team, you're watching the money flow past you.

�� & ��-��

1️⃣ Subcontracting opportunities just opened up. Every Alliant 3 prime has SB subcontracting requirements. 43 primes now, 76 when complete. Position yourself BEFORE task orders flow.

2️⃣ Emerging tech focus changes the game. AI, ML, advanced cyber capabilities make you more valuable as a teammate than under Alliant 2. Primes need niche expertise.

3️⃣ Your indirect rates matter more than ever. Task orders can be FFP, T&M, labor-hour, or cost-reimbursable. Primes need subs who can compete across all of them. A competitive wrap rate is your ticket to the table.

4️⃣ Phase 2 is still coming. 33 more spots. Sharpen your approach or study the winners for teaming.

��

Alliant 3 is the IT services marketplace for the next decade. Your strategy has two lanes: compete for prime task orders through Polaris or 8(a) STARS III, and position yourself as an indispensable sub on Alliant 3 teams.

The firms that win have the tightest financial operations, the most competitive rates, and the systems to prove it.

Need help getting your rates competitive or your accounting system DCAA-ready? That's what we do. Let's talk.

Wallace Angel

What Is an Agentic Finance Organization?

Tue, 24 Feb 2026 20:44:00 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

An agentic finance organization is not just automated. It is coordinated.

AI agents do not simply execute tasks. They:

Monitor financial systems in real time
Trigger workflows across ERP and adjacent systems
Reconcile data across sources
Flag anomalies and exceptions
Draft insights and explanations
Escalate only what requires human judgment

Finance becomes a real-time decision engine, not a historical reporting function. Your ERP remains the system of record. An AI-enabled operating layer sits above it, orchestrating work across systems. This is how finance moves from reactive to proactive.

What This Looks Like in Practice

1. AI Agents Coordinate Work Across Systems

Instead of humans stitching together data from ERP, CRM, payroll, billing, and FP&A tools:

Agents reconcile revenue automatically
AP exceptions are resolved end-to-end
Intercompany mismatches are flagged instantly
Variances are explained before the meeting

Agents monitor continuously. They act automatically. They escalate intelligently. The result: fewer bottlenecks and fewer surprises.

2. Humans Focus on Judgment, Strategy, and Exceptions

In an agentic model, finance professionals stop being task managers. They become strategic advisors, risk evaluators, capital allocators, scenario planners, and decision architects.

Humans review exceptions, not transactions. They design systems, not spreadsheets. This elevates finance roles into high-leverage positions aligned with growth and strategy.

3. Continuous Learning and Optimization

Traditional automation is static. Agentic finance is adaptive. AI agents improve through feedback loops:

Exception patterns are learned
Forecast models refine automatically
Risk indicators evolve
Controls strengthen over time

The system becomes smarter every month. Finance is no longer a monthly event. It becomes a continuously optimized function.

The Four Pillars of Agentic Finance

People: Strategic, high-leverage finance professionals focused on insight, not manual processing.
Process: Adaptive workflows that improve automatically and eliminate friction.
Technology: ERP as the trusted system of record with an AI-enabled operating layer coordinating activity across the enterprise.
Data: Structured, reconciled, and positioned for intelligence, not just reporting.

When these four pillars align, scale becomes possible without linear headcount growth.

Why ~85% Automation Is the Right Target

100% automation is unrealistic and risky. Finance requires:

Judgment
Governance
Ethical oversight
Risk management
Accountability

But 85% automation? That is transformational. It removes:

Manual reconciliations
Status chasing
Routine variance explanations
Basic compliance workflows
Transaction-level review

While preserving human oversight and control. The result is a system that is faster, safer, more transparent, more scalable and most importantly, trusted.

Finance as a Real-Time Decision Engine

In an agentic organization:

Cash position updates continuously
Forecasts adjust dynamically
Margin shifts are flagged instantly
Risks surface before they escalate

Executives no longer wait for month-end packets. They operate with living financial intelligence. Finance shifts from reporting history to shaping the future.

What This Means for CFOs

The CFO pipeline is changing because the role is changing. The future CFO must understand:

Systems architecture
Data infrastructure
AI governance
Process orchestration

Not just accounting rules. Building an agentic finance organization is not about replacing people. It is about designing a finance function that scales without burnout. One that drives clarity instead of producing noise. One that turns data into advantage.

The Key Outcome

An Agentic Finance Organization delivers:

~85% automation
Real-time financial visibility
Lower risk through intelligent monitoring
Scalable operations without linear headcount growth
Strategic finance talent focused on value creation

This is not theoretical. The AI-enabled operating layer is emerging now. 2026 will accelerate adoption across digital finance platforms. The organizations that architect for it early will compound advantages quickly.

The Bottom Line

The future of finance is not more dashboards. It is orchestrated intelligence. When AI agents coordinate the system and humans focus on judgment, strategy, and growth, finance becomes what it was always meant to be: A proactive force that empowers leadership.

That is the path to ~85% automation with safety, scale, and trust.

Ted Rose

ROSE Report: Smarter Systems. Higher Standards.

Thu, 19 Feb 2026 14:43:27 GMT

Issue 111 - ROSE Report: Smarter Systems. Higher Standards.

154 Firms Just Lost Their 8(a) Status. Here's What That Means for Your Business

The SBA just sent termination letters to 154 firms in the 8(a) program after an eligibility review found they exceeded statutory limits for economic disadvantage. One firm had $35 million in total assets — five times the cap. Another reported a net worth north of $24 million...

The AI Stack: From Rules-Based Automation to Intelligent Finance Agents

How Workflow, Machine Learning, and Generative AI Are Eliminating Busy Work — Without Losing Control. For years, finance automation meant one thing: workflow. Tasks moved from one person to another. Rules were applied. Approvals were logged. Reports were generated. It helped — but it didn’t fundamentally change how finance teams work...
read more

The AI Stack: From Rules-Based Automation to Intelligent Finance Agents

Tue, 17 Feb 2026 18:51:06 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

How Workflow, Machine Learning, and Generative AI Are Eliminating Busy Work — Without Losing Control

For years, finance automation meant one thing: workflow. Tasks moved from one person to another. Rules were applied. Approvals were logged. Reports were generated.

It helped — but it didn’t fundamentally change how finance teams work.

Now it’s different. Task-specific AI agents are emerging as the next layer of digital finance infrastructure. And they are not just automating tasks. They are executing them intelligently.

What Are Task-Specific AI Agents?

Task-specific AI agents are purpose-built digital workers that manage repeatable finance processes end-to-end. Examples include:

Month-end close agents
AP exception resolution agents
Revenue reconciliation agents
Forecast reconciliation agents

These agents don’t replace finance professionals. They remove the manual burden around them.

Think of them as autonomous operators inside your finance system — continuously monitoring, reconciling, validating, escalating, and learning.

How AI Agents Actually Work

Modern AI agents are not just chatbots. They are built on four integrated layers:

1. Electronic Workflow: Structured process orchestration Task routing, approvals, escalations, audit trails

2. Machine Learning (ML): Pattern recognition and anomaly detection Trend identification across transactions and accounts

3. Generative AI (GenAI): Natural-language reasoning Drafted explanations Policy interpretation Intelligent summarization Context-aware recommendations

4. Automation Infrastructure: API integrations System-to-system execution Data synchronization across platforms

When combined, these layers transform static, rules-based automation into adaptive, intelligent action.

From Rules-Based to Learning-Based Execution

Traditional workflow automation follows fixed rules:

If A happens → do B If variance > X → send alert
That works — until something unexpected occurs.
Generative AI changes the model.

Instead of simply applying predefined logic, AI agents can:

Interpret context
Compare current activity to historical patterns
Detect anomalies across multiple systems
Draft explanations automatically
Escalate only when judgment is required
Learn from human feedback

This turns rule-based execution into learning-based execution. An agent monitoring revenue doesn’t just flag a mismatch. It can:

Trace the issue across systems of record
Identify likely root causes
Suggest resolution steps
Notify the appropriate stakeholder
Update its logic based on the final human decision

That’s not automation. That’s intelligent finance infrastructure.

What This Means for Finance Teams

People Humans oversee, review, and decide. Agents execute. Finance professionals spend less time reconciling and more time analyzing. Process Repeatable tasks are handled end-to-end by agents. Exceptions are escalated with context and recommendations.

Close cycles accelerate. Errors decline. Surprises decrease. Technology AI agents sit on top of existing systems of record. They do not replace ERP, accounting, or billing platforms.

They monitor, interpret, and act across them. Data Every action creates feedback. Every correction improves the model. The system becomes more intelligent over time.

The Real Outcome: Productivity Without Risk

The biggest fear around AI in finance is loss of control. Task-specific agents are built to do the opposite.

Every action is logged.
Every decision is traceable.
Escalations are structured.
Humans retain final authority.

The result is major productivity gains without sacrificing governance, compliance, or auditability. Finance doesn’t become less controlled. It becomes more controlled — with fewer manual touchpoints.

2026: The Inflection Point

We are entering the phase where AI agents move from experimentation to infrastructure. In 2026, these capabilities will be deployed at scale inside platforms like Easby and across the broader digital enterprise.

Month-end close will compress. Reconciliations will self-heal. Forecast alignment will be continuous. AP exceptions will resolve themselves before humans even see them.

And the most important shift? Finance teams will stop managing process — and start managing outcomes.

The Power Is Just Getting Started

The combination of workflow, machine learning, generative AI, and automation is not incremental improvement. It is architectural change.

Finance is moving from:

Manual execution → Structured workflow → Intelligent agents

The next generation of finance leaders will not manage tasks. They will manage AI-powered systems that execute tasks continuously.

And the organizations that adopt this early will operate faster, cleaner, and with greater clarity than those who wait. The power is not theoretical anymore.

It’s being built. And 2026 is when it gets unleashed.

Ted Rose

154 Firms Just Lost Their 8(a) Status. Here's What That Means for Your Business

Fri, 13 Feb 2026 19:01:31 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

These 154 firms collected nearly $1.3 billion in 8(a) contracts between FY2021 and FY2024. Nearly $1 billion of that was sole-source.

Why They Were Terminated

The 8(a) program has hard eligibility limits under 13 CFR § 124.104:

Net worth: $850,000
Adjusted gross income: $400,000 (three-year average)
Total assets: $6.5 million

Exceed any one, and you’re out. The SBA’s first-ever full audit of the program — covering all 4,300 active firms — is what surfaced these violations. The enforcement has been swift: 1,091 firms suspended in January for not submitting financials, and now 154 more facing termination for exceeding the thresholds.

What 8(a) Firms Should Do Now

Know your numbers. Calculate your net worth, AGI average, and total assets against the caps. If you’re close, get a plan together.
Respond to SBA requests fast. The 1,091 January suspensions happened because firms didn’t respond. If the SBA asks for anything, treat it as urgent. Reply quickly, reply completely, keep records.
Treat your annual review like an audit. Under 13 CFR § 124.112, you demonstrate eligibility every year. Incomplete or sloppy submissions will draw scrutiny.
Watch your personal financials. Inherited assets, real estate appreciation, spouse’s income — anything that pushes you over the line puts your certification at risk.
Line up professional support. A government contracts attorney and a CPA who knows 8(a) compliance cost far less than losing your certification.

The Opportunity

Those 154 firms held $1.3 billion in contracts. That work doesn’t disappear — it gets recompeted. The 8(a) program moved $25.7 billion in FY2024. Removing ineligible firms redistributes the pie.

Less competition. 1,091 suspended plus 154 terminated means a meaningfully smaller field.
Sole-source openings. Agencies directing nearly $1 billion in sole-source work to these firms now need new vendors.
Recompetes are coming. Watch SAM.gov for solicitations from the agencies that funded terminated firms.
Compliance is your edge. Clean documentation makes you a safer bet for contracting officers.

Position now: Update your capability statements, identify where terminated firms were active (FPDS data helps), and get in front of those contracting officers.

Bottom Line

The 8(a) program is under the most intense scrutiny in its 50-year history. If your house is in order, this is one of the best positioning opportunities in years. If it’s not, fix it before the SBA fixes it for you.

Wallace Angel

ROSE Report: AI Acceleration is Real. Compliance Still Matters.

Thu, 12 Feb 2026 20:26:23 GMT

Issue 110 - ROSE Report: AI Acceleration is Real. Compliance Still Matters.

The Pentagon Just Awarded $9 Million for AI-Written Code. Is This the Future of Defense Contracting?

Last week, a small software company called Picogrid won a $9.3 million Air Force contract for counter-drone integration software. That's not the story. The story is how that software was built: by artificial intelligence. Not AI-assisted. Not AI-reviewed. The integration code itself was written by AI—and it's performing at a level that would have been impossible 12 months ago...

Generative AI as the Finance Interface Layer Finance Teams Are Missing

Most finance organizations don’t have a data problem. They have a clarity problem. Reports are accurate. Dashboards are full. Models are sophisticated. Yet leadership still asks the same questions...
read more

Generative AI as the Finance Interface Layer Finance Teams Are Missing

Wed, 11 Feb 2026 20:31:09 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Most finance organizations don’t have a data problem. They have a clarity problem.

Reports are accurate. Dashboards are full. Models are sophisticated. Yet leadership still asks the same questions:

What actually changed?
Why does it matter?
What should we do next?

That gap between data and understanding is where Generative AI delivers its real value. Not as a system of record. Not as a replacement for ERP, accounting, or compliance platforms. But as a finance interface layer — translating structured financial data into insight, narrative, and alignment.

When workflows are standardized and data is flowing cleanly, finance teams unlock the next level of AI value: systems that learn. This is where machine learning quietly begins to transform finance, not by replacing people, but by reducing surprises.

Level 1 AI: Rules-Based Electronic Workflow (Where Real Value Starts)

The foundation of modern finance automation is rules-based electronic workflow. This is where the majority of measurable progress is happening right now. Common examples include:

Automated invoice routing and approval workflows
Standardized month-end close checklists and task orchestration
Role-based controls for compliance and segregation of duties
Exception-based reviews instead of full manual processing

This level of AI doesn’t replace financial judgment. It removes friction.

Work moves across teams and systems without constant emails, spreadsheets, follow-ups, or heroics. Finance teams spend less time chasing status and more time managing outcomes.

Why Most Companies Stall at This Level

Many organizations never fully realize the value of workflow automation—not because the technology doesn’t work, but because their infrastructure isn’t designed for it. Finance workflows rarely live in one system. They span:

ERP
Billing platforms
Payroll systems
Banking tools
CRM and revenue systems

When these systems don’t communicate cleanly, automation breaks down. That’s why AI in finance is fundamentally an infrastructure problem, not a tools problem. Adding more AI tools on top of disconnected systems only creates complexity—not intelligence.

What High-Performing Finance Teams Do Differently

Companies that successfully scale AI in finance take a different approach. They focus first on fundamentals:

Connecting systems instead of replacing them
Standardizing workflows before adding intelligence
Building an operating layer that sits above the ERP

In this model:

ERP remains the system of record
Automation becomes the system of execution
Intelligence is layered on once clean, consistent data exists

This approach reduces risk, accelerates adoption, and creates a foundation that advanced AI can actually build on.

The Bottom Line

If you want AI to work in finance, don’t start with prediction or copilots. Start by eliminating manual handoffs. Start by orchestrating work across systems. Start by making finance flow. Intelligence comes later—but only if the foundation is right.

Learn more about how ROSE and Easby can help you connect your systems today: www.rosefinancial.com

Ted Rose

DHS Shutdown Threat: What Government Contractors Need to Do Right Now

Wed, 11 Feb 2026 18:57:01 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

When Congress passed the continuing resolution on February 3 to end the broader government shutdown, most of Washington exhaled. What got buried in the headlines: DHS was only funded for two weeks. While the rest of the federal government received funding through September, the Department of Homeland Security's appropriations expire at midnight on February 14. That's two days from now, and negotiators are nowhere close to a deal.

If you hold DHS contracts, your countdown started the day that CR passed. You just may not have noticed.

What's Actually Happening

Congress deliberately separated DHS funding from the broader CR, creating a two-week window to resolve a standoff over immigration enforcement policy. That window is closing fast. On Monday night, Democrats rejected the White House's counterproposal on ICE reforms as "incomplete and insufficient." Senate Majority Leader John Thune acknowledged: "We aren't anywhere close to having any sort of an agreement."

The lapse would affect DHS and its component agencies: ICE, CBP, TSA, FEMA, the Coast Guard, CISA, and the Secret Service. DHS's annual budget is approximately $62 billion, with a significant portion flowing through contracts. One complication: ICE received $75 billion in supplemental funding through the reconciliation bill, so many immigration enforcement functions would continue during a lapse. But contractors supporting TSA, FEMA, Coast Guard, CISA, or other civilian DHS operations don't benefit from that - those programs go dark.

A DHS-only shutdown also creates unique complexity: your non-DHS work continues normally while your DHS portfolio stops. That split causes financial and operational problems a full shutdown doesn't.

The Financial Hit

Revenue stops. Costs don't. Your billable hours drop to zero on affected contracts while lease payments, insurance, and salaries continue. If DHS represents 30% of your revenue with a 15% net margin, you're underwater within weeks.
Indirect rate distortion. When DHS direct labor drops out, your overhead and G&A rates spike on remaining contracts. If you're on cost-reimbursable work with other agencies, they're now absorbing a disproportionate share of your indirect costs. That's a conversation you don't want to have with a DCAA auditor six months from now.
Employee retention risk. Cleared, credentialed employees on DHS programs can't sit idle - but laying them off means expensive recruiting, clearance processing, and retraining when work resumes. And you may not get them back.
Cost recovery - if allowable under your contract. Not every contract entitles you to an equitable adjustment, but if yours includes FAR 52.242-15 (Stop-Work Order) and you intend to pursue recovery, start building your case now. Document every incremental cost during the stoppage - idle labor, standby charges, restart expenses. You can't file the claim until work resumes, but what you capture today determines what you recover later.

Your Action Checklist

Contract Review (Now)

Pull every DHS contract and subcontract. Identify which contain FAR 52.242-15 (Stop-Work Order), FAR 52.249-2 (Termination for Convenience), and FAR 52.232-22 (Limitation of Funds).
Map your funding. Fully funded vs. incrementally funded task orders? Unfunded CLINs go first. If you've been performing ahead of funding, stop now.
Identify your Contracting Officers and get contact info while they're still answering emails.

Financial Triage (This Week)

Run a 30/60/90-day cash flow projection with DHS revenue at zero.
Accelerate invoicing, if possible. Submit every billable invoice for work performed through the funding expiration. DHS component agencies have their own submission systems - get everything queued before operations wind down.
Review your credit facility. Know what's available on your line of credit. Talk to your banker now - not after they've read the same headlines and started asking about your portfolio concentration.
Model your indirect rate impact. Recalculate provisional billing rates excluding DHS direct labor. Determine if you need to notify other agency COs.

Workforce Planning

Do NOT issue blanket layoffs. Explore redeployment to non-DHS contracts, overhead bench time, accrued PTO, or temporary reduced schedules first.
Communicate with your team. If they don't hear from you, they'll hear from recruiters.

Documentation (Start Now)

Start a shutdown cost ledger. Idle labor, facility costs, subcontractor standby charges, stop/restart admin costs. This is the foundation for your equitable adjustment claim once work resumes.
Document government communications. Every email, call, and non-response. If work stops without a formal stop-work order because your COR is furloughed, document the constructive stop-work.
Preserve incurred cost records. Actual indirect rates will diverge from provisional rates. Clean documentation prevents audit findings later.

Subcontractor Management

Flow down the stop-work to subs immediately upon receipt.
Check sub agreements for stop-work and termination provisions - you're liable for subs' reasonable shutdown costs if your prime entitles you to recover them.

The Bottom Line

A DHS shutdown is an operational event with immediate P&L impact. The political dynamics are working against a quick resolution, and none of them help you make payroll.

If Friday comes and goes without a deal, you want to be the contractor who already invoiced, already modeled the rate impact, already talked to your bank, and already started your cost ledger. Not the one scrambling on Monday the 17th.

Two days. Use them.

Wallace Angel

Competing in GovCon 2026: Entry Paths, Compliance Foundations, and CMMC Readiness

Thu, 05 Feb 2026 19:27:07 GMT

Government contracting is shifting fast. New compliance requirements, evolving procurement pathways, and CMMC mandates are reshaping who wins and who gets left behind. Whether you're evaluating federal contracting for the first time or repositioning from civilian agencies toward defense opportunities, the rules of engagement have changed.

Join Ted Rose and Wallace Angel on February 27th at 2:00 PM ET for a practical session covering the compliance, financial, and procurement fundamentals that matter most in 2026 — from FAR requirements and allowable cost structures to alternative entry paths that lower barriers and accelerate access.

What we'll cover:

2026 GovCon landscape : Key policy shifts, budget priorities, and where the money is flowing (including the defense pivot)
Entry and expansion pathways : OTAs (Other Transaction Authorities), CSOs (Commercial Solutions Openings), and procurement avenues that reduce FAR complexity for new and repositioning contractors
Compliance and cost structure essentials : Allowable costs, indirect rates, and the financial foundations agencies and auditors expect
CMMC readiness : What compliance structures you need in place now, whether you're entering or already in the market
Common pitfalls : The mistakes that sink new entrants and trip up experienced firms pivoting to new agencies

Speakers:

Ted Rose , President, CEO, and Founder, ROSE
Wallace Angel , VP, Finance and Accounting, Client CFO, and GovCon Expert

This session is for companies entering government contracting, technology firms evaluating federal opportunities, and existing contractors looking to expand into defense or new agency markets with confidence.

ROSE Report: Big Changes in 8(a) & the Future of Financial Decision-Making

Thu, 05 Feb 2026 17:57:11 GMT

Issue 109 - Big Changes in 8(a) & the Future of Financial Decision-Making

From 6,500 to 3,300: The 8(a) Program Is Being Rebuilt From the Ground Up

In 2023, roughly 6,500 firms held active 8(a) certifications. In FY2024, the federal government awarded $71.9 billion in small business set-asides - 11.27% of total spending. The 8(a) program's share: $25.7 billion, or about a third of all small business set-aside dollars. As of this week, that number may be below 3,300. Let that sink in...

From Automation to Prediction: How Machine Learning Quietly Transforms Finance

For most finance leaders, the AI conversation starts with automation. Digitized workflows. Fewer manual handoffs. Faster closes. But once those foundations are in place, something more powerful becomes possible...
read more

The Pentagon Just Awarded $9 Million for AI-Written Code. Is This the Future of Defense Contracting?

Wed, 04 Feb 2026 21:39:28 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

Last week, a small software company called Picogrid won a $9.3 million Air Force contract for counter-drone integration software.

That's not the story. The story is how that software was built: by artificial intelligence.

Not AI-assisted. Not AI-reviewed. The integration code itself was written by AI—and it's performing at a level that would have been impossible 12 months ago.

"When we first started integrating platforms, we were looking at about a month, month and a half," Picogrid cofounder Martin Slosarik told Breaking Defense. "Now we're looking at less than a day for most platforms."

At a recent company hackathon, they integrated seven different military systems in 70 minutes. If you're a commercial technology firm watching the defense market, or a government contractor who bills for software integration work, that should get your attention.

The Acceleration Curve

Last summer, Slosarik described his company's AI coding tools as equivalent to "an entry-level software engineer that needed heavy supervision." The AI could do about 60% of the work; humans finished the rest. Six months later? "We're really at 95 percent, 98 percent." That's a 35-point capability jump in under a year. And the curve isn't flattening—it's steepening.

Picogrid's Legion software is a "universal translator" that connects incompatible military systems. The AI writes the integration modules that let different sensors, jammers, and weapons talk to each other. They've now completed nearly 100 integrations, partnering with Palantir, Northrop Grumman, and a 50-company ecosystem.

The catalyst? Ukraine. When Operation Spiderweb's drone strikes destroyed a third of Russia's strategic bomber fleet last June, the Pentagon realized it had a counter-drone problem—and no time for traditional timelines.

The Pentagon's AI Gold Rush

Picogrid isn't an outlier. They're the leading edge of a deliberate Pentagon strategy. In January, Secretary Pete Hegseth rolled out major AI reforms , consolidating innovation offices under CTO Emil Michael. "The old era ends today," Hegseth declared. "We're done running a peacetime science fair while our adversaries are running a wartime arms race." The reforms launched seven new AI initiatives—from Swarm Forge (drone swarm combat) to Agent Network (AI battle management) to Ender's Foundry (AI-powered simulations).

The Defense Innovation Unit followed with a $100 million prize competition for AI software that lets any soldier control drone swarms using plain English voice commands. The message is clear: The Pentagon is buying commercial. They want Silicon Valley speed, not Beltway bureaucracy. OTAs bypass FAR compliance. Prize competitions have 10-day-to-prototype timelines. A single front door for technology companies is emerging.

If you're a commercial tech firm that's been hesitant about defense, the barriers to entry just got lower.

What Commercial Firms Should Do Now

The window to establish yourself in AI-enabled defense contracting is narrowing. Here's the playbook:

Enter through the side doors. OTAs, CSOs, and SBIR/STTR programs let you compete without full FAR compliance infrastructure. DIU, AFWERX, NavalX, and the Army Applications Lab are actively seeking commercial solutions.
Build compliance—but right-size it. You don't need a $500K ERP to win your first defense contract. QuickBooks with proper configuration can pass a pre-award survey. The goal is auditability, not complexity.
Partner before you prime. Picogrid integrated with Palantir and Northrop before pursuing their own contracts. Subcontracting to established primes builds past performance with lower risk.
Document your AI processes now. When auditors eventually ask how your AI-generated code was produced, you'll need answers. What training data? What validation? What human oversight? Build the habit early.
Get your cost structure right from day one. Indirect rates matter. The difference between a successful defense expansion and a compliance nightmare often comes down to setup. Get expert guidance before you need it.

The Bottom Line

The Picogrid contract is a signal, not an anomaly. The Pentagon has made AI acceleration a strategic priority. Seven major initiatives are launching. $100 million in prizes is on the table. A small company just proved AI can write production-grade defense code faster than anyone thought possible. The defense tech boom is real. The commercial-to-defense pipeline is open. The future of defense contracting is being written right now. Some of it is being written by AI.

Are you ready? Next week: AI is writing defense code—but is your cost accounting ready? I'll break down the compliance questions no one is asking, from CAS 418 to DCAA audits of non-human work.

Wallace Angel

From Automation to Prediction: How Machine Learning Quietly Transforms Finance

Tue, 03 Feb 2026 17:41:22 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

For most finance leaders, the AI conversation starts with automation.

Digitized workflows. Fewer manual handoffs. Faster closes.

But once those foundations are in place, something more powerful becomes possible.

Level 1 AI: Rules-Based Electronic Workflow (Where Real Value Starts)

The foundation of modern finance automation is rules-based electronic workflow. This is where the majority of measurable progress is happening right now. Common examples include:

Automated invoice routing and approval workflows
Standardized month-end close checklists and task orchestration
Role-based controls for compliance and segregation of duties
Exception-based reviews instead of full manual processing

This level of AI doesn’t replace financial judgment. It removes friction.

Work moves across teams and systems without constant emails, spreadsheets, follow-ups, or heroics. Finance teams spend less time chasing status and more time managing outcomes.

Why Most Companies Stall at This Level

ERP
Billing platforms
Payroll systems
Banking tools
CRM and revenue systems

What High-Performing Finance Teams Do Differently

Companies that successfully scale AI in finance take a different approach. They focus first on fundamentals:

Connecting systems instead of replacing them
Standardizing workflows before adding intelligence
Building an operating layer that sits above the ERP

In this model:

ERP remains the system of record
Automation becomes the system of execution
Intelligence is layered on once clean, consistent data exists

This approach reduces risk, accelerates adoption, and creates a foundation that advanced AI can actually build on.

The Bottom Line

Learn more about how ROSE and Easby can help you connect your systems today: www.rosefinancial.com

Ted Rose

From 6,500 to 3,300: The 8(a) Program Is Being Rebuilt From the Ground Up

Tue, 03 Feb 2026 17:29:24 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

In 2023, roughly 6,500 firms held active 8(a) certifications. In FY2024, the federal government awarded $71.9 billion in small business set-asides - 11.27% of total spending. The 8(a) program's share: $25.7 billion , or about a third of all small business set-aside dollars.

As of this week, that number may be below 3,300 . Let that sink in.

The 8(a) Business Development Program is undergoing its most dramatic transformation since its creation in 1968. Over the past 30 months, a cascade of court rulings, regulatory changes, and executive actions has cut the program's participant base nearly in half - and the reshaping isn't over yet.

I've been writing about this shift since December. In " Don't Relinquish Your 8(a) Certification: Why Persistence Pays " (December 26, 2025), I urged firms not to panic and abandon the program. Two weeks later, in " DoW's 8(a) Sole-Source Review: Implications and Action Steps " (January 18, 2026), I laid out what the Department of War's contract review meant operationally. Everything I cautioned about has materialized - and then some.

If you're an 8(a) firm owner, a small business competing for set-asides, or a prime contractor managing your subcontracting plan, this affects you directly. Here's what happened, what it means, and what you should be doing right now.

The Timeline: How We Got Here

June 29, 2023 - The Supreme Court issues Students for Fair Admissions v. Harvard, 600 U.S. 181. The ruling strikes down race-conscious admissions in higher education. Within days, legal analysts flag the obvious downstream question: what does this mean for federal programs that use racial presumptions?
July 19, 2023 - We get the answer fast. In Ultima Services Corp v. USDA (E.D. Tenn.), a federal court enjoins the SBA's use of the racial presumption in 8(a) eligibility. The court rules that the rebuttable presumption of social disadvantage for certain racial and ethnic groups -the backbone of 8(a) certification for decades - likely violates the equal protection component of the Fifth Amendment.
August 2023 - The SBA responds by implementing a narrative requirement under 13 CFR 124.103(b). Instead of checking a box based on race, all applicants must now provide individualized evidence of social disadvantage. Same standard, applied to everyone. On paper, it's race-neutral. In practice, it adds significant documentation burden. This framework would survive less than two and a half years.
2024 - New certifications drop to approximately 550 for the year . That's a noticeable decline from the 600+ pace in 2023, but the real collapse hasn't started yet.
2025 - Only 66 new firms are certified into the 8(a) program. That's an 88% drop from 2024. The narrative requirement, combined with processing backlogs and political uncertainty, effectively chokes the pipeline.
December 2025 - The SBA issues a Data Call to all ~4,300 active 8(a) participants, requiring firms to resubmit or confirm their social disadvantage narratives and financial records under the new individualized standard. The deadline: January 19, 2026.
January 16, 2026 - Secretary of War Hegseth orders a review of all sole-source contracts exceeding $20 million - the largest targeted review of 8(a) sole-source awards I've seen in my career.
January 22, 2026 - The SBA formally eliminates the racial presumption from 8(a) eligibility and goes further: the agency announces it will not accept or utilize the Biden-era social disadvantage narratives that had been required since August 2023. The entire framework is being replaced. Going forward, SBA will administer the program on a race-neutral basis, and when evaluating social disadvantage, will consider new factors -including whether an applicant has been the victim of "illegal or radical DEI policies or affirmative action policies" or "discriminatory practices such as race-based quotas, set-asides, or hiring targets." The SBA also announced it is hiring new officers to address "fraud, illegality, and Constitutional concerns" within the program.
January 26, 2026 -Mass suspensions begin. 1,091 firms - roughly 25% of the entire program - are suspended for failing to respond to the Data Call. These are suspensions, not terminations - a critical distinction. Suspended firms have a 45-day appeal window and retain existing contracts, but cannot receive new 8(a) awards during the suspension period.

And it's not just the SBA. The DoW, Treasury, and GSA are each running independent 8(a) audits. This isn't one agency asking questions - it's a coordinated, government-wide posture shift toward accountability in small business contracting.

Meanwhile, the FAR Overhaul - while not eliminating set-aside contracts outright - has removed many of the regulatory provisions that facilitated set-aside procurements across the board, including small business set-asides generally. The infrastructure that made set-aside contracting frictionless for agencies is being dismantled alongside the program changes.

In less than three years, the 8(a) program went from 6,500 participants to potentially fewer than 3,300.

What This Means for Current 8(a) Firms

If you're still certified and in good standing, read this carefully: The math has changed in your favor.

In FY2024, the federal government put $71.9 billion into small business set-asides (source: SBA). The 8(a) program alone accounted for $25.7 billion of that - roughly 36% of all small business set-aside dollars flowing through a single program. The government's 5% small disadvantaged business goal hasn't been reduced. Agencies still need to hit their numbers. But the pool of eligible firms to receive those dollars just got cut roughly in half.

Now peel back another layer: $16.1 billion of that $25.7 billion - roughly 63% - went to 8(a) entity set-asides (Alaska Native Corporations, Indian tribes, and Native Hawaiian Organizations). That means the remaining individual 8(a) firms were competing for approximately $9.6 billion . With roughly 3,300 firms left in the program, the math per firm just got dramatically better. Fewer firms. Same dollars. More opportunity per survivor.

That's not spin - it's arithmetic. If you maintained your certification through the narrative requirement and the Data Call, you are now in a significantly stronger competitive position than you were 18 months ago.

Those 1,091 suspended firms cannot compete for new 8(a) awards. Some will resolve their suspensions within the 45-day window. Many won't. And the firms that were already struggling with compliance aren't likely to suddenly get their houses in order under pressure.

But don't get comfortable. The scrutiny isn't going away. The era of loose oversight is over, and the firms that treat this moment as a wake-up call - not a death sentence - will be the ones still standing when the dust settles.

Seven Things Every 8(a) Firm Should Be Doing Right Now

Stop worrying about headlines. Start executing:

1. Audit Your Own Financial Records - Today.

If the SBA asked for your financials tomorrow, could you produce them within 48 hours? Complete, accurate, and reconciled? If the answer is anything other than an immediate yes, that's your first priority. Annual financial statements, tax returns, balance sheets, and profit-and-loss statements should be current, clean, and accessible. This is non-negotiable.

2. Understand the New Social Disadvantage Standard - and Prepare for It.

The Biden-era narrative requirement is gone. The SBA has explicitly stated it will not accept or utilize those narratives. In their place, the agency is evaluating social disadvantage under new criteria that include whether an individual has been the victim of illegal DEI policies, affirmative action programs, race-based quotas, or discriminatory practices by government or private actors. If you submitted a narrative under the old framework, do not assume it still supports your eligibility. Monitor your program status for official correspondence, and be prepared to reaffirm your eligibility under criteria that may look nothing like what you originally submitted.

3. Scrub Your Sole-Source Contract Files.

If you hold any sole-source 8(a) contracts- especially those approaching or exceeding the $20 million threshold - conduct a thorough internal review. Verify that every deliverable is documented, every modification is justified, and every invoice is supportable. The DoW review will be granular. Prepare accordingly.

4. Verify Your SAM.gov and SBA Profile Accuracy.

Outdated NAICS codes, stale capability statements, incorrect revenue figures - these are the kinds of discrepancies that trigger deeper scrutiny during audits. Ensure every data point in your SAM.gov registration and SBA dynamic small business profile is current and consistent with your actual operations.

5. Strengthen Your Accounting Infrastructure.

I've seen too many 8(a) firms operating with bookkeeping systems that can't withstand an audit. If you're still running your government contracting finances on QuickBooks with no cost accounting structure, no incurred cost submission preparation, and no DCAA-ready timekeeping - you're bringing a knife to a gunfight. Invest in the infrastructure now, before the auditors arrive.

6. Stop Relying on the Designation - Start Competing on Capability.

This is the uncomfortable truth: too many 8(a) firms have treated the certification as a business strategy instead of a business development tool. The designation gets you in the door. It doesn't keep you there. If your win rate depends entirely on 8(a) set-aside preferences rather than demonstrable past performance, technical capability, and delivery excellence - you are one policy change away from irrelevance. Build a company that wins work because it's the best option, not just the most convenient socioeconomic check-box. That's the only sustainable position.

7. Engage Expert Support Before You Need It.

Don't wait until you receive a suspension notice or audit request to bring in professionals. Proactive compliance review is orders of magnitude cheaper and less disruptive than reactive crisis management. Whether it's your CPA firm, your compliance counsel, or a specialized GovCon financial services partner - get them engaged now.

What This Means for Non-8(a) Small Businesses

If you've been competing in the open small business set-aside space, the 8(a) contraction creates a ripple effect you should be watching. Consider the full FY2024 set-aside landscape: $71.9 billion in total small business set-asides, with $25.7B in 8(a), $14.5B in SDVOSB, $2.8B in HUBZone, and $2.2B in WOSB. The 8(a) program commands the largest single slice of socioeconomic set-aside dollars. When a third of the firms in a $25.7 billion program get sidelined, those contract dollars don't just vanish - they have to go somewhere.

Some contracts that were set aside for 8(a) may shift to small business set-asides or full-and-open competition if agencies can't find enough qualified 8(a) firms. Contracting officers still have requirements to fill. If the 8(a) pool is too thin in your NAICS code, those dollars have to go somewhere.

Additionally, firms that lost their 8(a) status don't disappear - they become your competitors in the general small business pool. Expect more crowding at the small business set-aside level, particularly from experienced firms that had been operating in the 8(a) lane.

And watch the FAR Overhaul closely. The removal of provisions that facilitated set-aside contracting doesn't just affect 8(a) - it affects every socioeconomic category. The entire set-aside ecosystem is being restructured, not just one program.

Start tracking 8(a) set-asides in your NAICS codes. If you see awards getting canceled or reissued as unrestricted, that's your signal.

What This Means for Primes

If you're a large prime relying on 8(a) subcontractors to meet your subcontracting plan goals, you have a problem. Your pool of eligible 8(a) subs just shrank dramatically. The firms you've been teaming with may have been suspended. Your subcontracting plan percentages for SDB participation don't change just because the market did.

Audit your subcontractor roster now. Verify current 8(a) status for every firm on your team. If a key sub lost their certification, you need a replacement - and so does every other prime in your position. The compliant 8(a) firms that remain are about to get very popular and very busy.

Primes who build and maintain strong relationships with certified 8(a) firms now will have a significant advantage on upcoming recompetes and new pursuits. Consider mentor-protege arrangements that create structural partnerships, and diversify your socioeconomic subcontracting across multiple categories so you're not over-indexed on a single shrinking pool.

The Bottom Line

The 8(a) program isn't dying. It's being rebuilt from the ground up - on individual merit rather than group presumption. That's a seismic shift in policy, and the transition has been painful. Over a thousand firms have been sidelined. The certification pipeline has slowed to a trickle. Multi-agency audits are underway. The uncertainty is real.

But for the firms that remain - the ones with solid narratives, clean books, and real past performance - this is arguably the best competitive position the program has offered in decades. Fewer seats at the table. Same amount of food. The survivors win.

At Rose Financial Solutions , this is exactly the work we do - helping government contractors build the financial infrastructure, compliance readiness, and accounting systems that withstand scrutiny at every level. If you're an 8(a) firm that wants to be among the survivors, not the statistics.

Wallace Angel

ROSE Report: Chasing the GovCon Gold Rush

Thu, 29 Jan 2026 21:31:31 GMT

Issue 108 - Chasing the GovCon Gold Rush

Are We Entering a GovCon Gold Rush?

After one of the most challenging years the Government Contracting (GovCon) market has experienced in decades, a quiet but powerful shift is underway. What felt like contraction, scrutiny, and uncertainty in 2025 may actually have been the reset...
read more

AI in Finance Today: What’s Real, What Works, and What Actually Creates Value

AI in finance isn’t a future concept. It’s already here—but not in the way most headlines suggest. When executives hear “AI in finance,” they often imagine copilots, chatbots, or fully autonomous decision-making systems. In practice, the AI creating real value today is far less visible—and far more practical...
read more

Are We Entering a GovCon Gold Rush?

Mon, 26 Jan 2026 22:04:00 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

After one of the most challenging years the Government Contracting (GovCon) market has experienced in decades, a quiet but powerful shift is underway.

What felt like contraction, scrutiny, and uncertainty in 2025 may actually have been the reset.

As we move into 2026, the conditions are aligning for what could become a GovCon gold rush—particularly for commercial and technology-first companies willing to adapt their products, operating models, and expectations to the needs of the Department of War (DoW).

This isn’t hype. It’s structural.

Why the Environment Is Changing So Quickly

Three forces are converging at once.

1. Historic Defense Spending — With More Coming Defense spending is already at peak levels, and current proposals point to increases of up to 50% , pushing total investment toward a generational scale. This is not incremental budget growth—it’s a long-term commitment to modernization, readiness, and production capacity.

2. Regulation Is Moving in the Opposite Direction For decades, GovCon rewarded compliance over capability and paperwork over performance. The 2026 National Defense Authorization Act (NDAA) changes that. Key reforms favor:

Commercial-first solutions
Faster procurement pathways
“Best value” over lowest cost
Speed, delivery, and real outcomes

Barriers that historically kept innovative commercial firms on the sidelines are being lowered—by design.

3. A Willingness to Change How Government Does Business Executive Orders and new leadership priorities signal something rare: an explicit push to change behavior, not just policy. The message is clear:

Production matters more than financial engineering
Capability matters more than status
Delivery matters more than promises

This marks a shift from a peacetime acquisition mindset to a wartime operating posture.

The Signal Is Already Visible

When large technology leaders move early, it’s usually worth paying attention. Mark Zuckerberg is now investing heavily in building a presence in Washington, DC. Jeff Bezos saw this shift years ago with Amazon HQ2—and with AWS becoming deeply embedded in federal infrastructure. These are not symbolic moves. They are strategic ones. Silicon Valley is recognizing what GovCons already know: defense is becoming one of the most important long-term technology markets in the world.

What This Means for Companies Today

This moment creates opportunity—but only for companies that prepare. Winning in the next phase of GovCon will not come from:

Check-the-box compliance
Pass-through contracting
Financial optimization without operational capability

It will come from:

Real products solving real mission problems
Operational readiness, not just certifications
Speed to value
Clear alignment with outcomes that matter

Commercial firms that can adapt without breaking their operating model may find this to be the most attractive federal market in a generation.

Learn How to Prepare

In our latest ROSE Mastermind presentation , available in the ROSE Community , we break down:

What the 2026 NDAA actually changes—and why it matters
Where real GovCon opportunities are emerging
How commercial and PE-backed companies can enter GovCon intelligently
What “readiness” really looks like in a world moving from compliance to capability

If you’re asking whether your company should be paying attention to GovCon right now, the answer is simple: Yes. And preparation starts now.

The stage is set. The rules are changing. The gold rush won’t reward everyone—but it will reward those who move early and move deliberately.

View our ROSE Mastermind: Unlock DoW/DoD Opportunities in 2026: National Defense Authorization Act (NDAA) & Executive Order (EO) Insights for Market Entry or Pivots in the ROSE Community - https://rose-community.mn.co/posts/forum-and-events-video-unlock-dowdod-opportunities-in-2026-january-2026

ROSE Report: What Business Leaders Should Watch Right Now

Thu, 22 Jan 2026 17:16:38 GMT

Issue 107 - What Business Leaders Should Watch Right Now

AI in Finance Today: What’s Real, What Works, and What Actually Creates Value

DoW's 8(a) Sole-Source Review: Implications and Action Steps for 8(a) Owners and Small Business Executives

As we head deeper into 2026, 8(a) firm owners and small business executives focused on government contracting—especially with the Department of War (DoW, formerly DoD)—are navigating significant changes...

AI in Finance Today: What’s Real, What Works, and What Actually Creates Value

Tue, 20 Jan 2026 04:20:59 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

AI in finance isn’t a future concept. It’s already here—but not in the way most headlines suggest.

When executives hear “AI in finance,” they often imagine copilots, chatbots, or fully autonomous decision-making systems. In practice, the AI creating real value today is far less visible—and far more practical. The most impactful AI in finance isn’t flashy. It’s foundational.

Level 1 AI: Rules-Based Electronic Workflow (Where Real Value Starts)

The foundation of modern finance automation is rules-based electronic workflow. This is where the majority of measurable progress is happening right now. Common examples include:

Automated invoice routing and approval workflows
Standardized month-end close checklists and task orchestration
Role-based controls for compliance and segregation of duties
Exception-based reviews instead of full manual processing

This level of AI doesn’t replace financial judgment. It removes friction.

Work moves across teams and systems without constant emails, spreadsheets, follow-ups, or heroics. Finance teams spend less time chasing status and more time managing outcomes.

Why Most Companies Stall at This Level

ERP
Billing platforms
Payroll systems
Banking tools
CRM and revenue systems

What High-Performing Finance Teams Do Differently

Companies that successfully scale AI in finance take a different approach. They focus first on fundamentals:

Connecting systems instead of replacing them
Standardizing workflows before adding intelligence
Building an operating layer that sits above the ERP

In this model:

ERP remains the system of record
Automation becomes the system of execution
Intelligence is layered on once clean, consistent data exists

This approach reduces risk, accelerates adoption, and creates a foundation that advanced AI can actually build on.

The Bottom Line

Learn more about how ROSE and Easby can help you connect your systems today: www.rosefinancial.com

Ted Rose

DoW's 8(a) Sole-Source Review: Implications and Action Steps for 8(a) Owners and Small Business Executives

Mon, 19 Jan 2026 20:51:26 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

On January 16, 2026, Secretary of War Pete Hegseth announced an immediate line-by-line review of every sole-source 8(a) contract exceeding $20 million in the DoW. He described the 8(a) program as the federal government's oldest DEI initiative, citing concerns over fraud, pass-through schemes, and contracts that fail to enhance military lethality. This builds on President Trump's Executive Order 14151 (issued January 20, 2025), which terminated many DEI-related programs, preferences, and activities across federal agencies, and reset small disadvantaged business goals to the statutory 5%.

While the 8(a) program—rooted in the Small Business Act—remains statutorily protected and open for business per the SBA, the DoW's targeted scrutiny could affect billions in awards. In FY 2025, the DoW directed $15.5 billion through 8(a), often in sole-source deals up to $100 million for areas like IT, engineering, and logistics. Hegseth emphasized that reviews will prioritize whether contracts support warfighting priorities, with potential for terminations, renegotiations, or enforcement against non-compliant arrangements (e.g., violating FAR 52.219-14 subcontracting limits of typically 15-50%).

I've supported 8(a) firms for over 20 years, helping executives build compliant, resilient operations amid FAR complexities and policy shifts. This article combines key insights to provide clarity on the implications and practical steps forward.

The Current Landscape

The 8(a) Business Development Program helps socially and economically disadvantaged small businesses access federal contracts, including sole-source awards without competition. Hegseth's announcement highlights longstanding issues: some firms allegedly act as intermediaries, subcontracting most work to larger entities (often "Beltway Bandits") while retaining fees, leading to waste and limited actual small business performance.

This DoW-specific review aligns with broader efforts, including SBA audits requiring financial records from all participants (with deadlines in early 2026) and agency-wide scrutiny. No blanket halt exists, but heightened oversight means DoW contracts face the most immediate pressure.

Key Implications for Your Firm

Audit and Compliance Risks : Large sole-source contracts will undergo detailed examination for fraud indicators, subcontracting compliance, and value alignment. Non-compliance could trigger contract terminations, False Claims Act exposure, or debarment.
Opportunity Shifts : Reduced emphasis on DEI-linked goals may push agencies toward competitive bids or other set-asides (e.g., SDVOSB, HUBZone), potentially contracting sole-source pipelines in defense sectors.
Financial and Operational Impacts : Pauses or cancellations could disrupt cash flow, especially if primes scale back 8(a) subcontracting. Legitimate firms proving in-house capability and merit may gain advantages in a lethality-focused environment.
Policy Stability : The program endures, with the SBA encouraging use for mission-critical needs. However, evolving guidelines and potential NDAA changes could refine focus on economic disadvantage.

These developments aim to restore efficiency and accountability, but they demand swift adaptation.

Actionable Steps to Protect and Position Your Business

Focus on these priorities to strengthen your standing:

Strengthen Compliance Foundations : Conduct an internal review of subcontracting ratios, Cost Accounting Standards (CAS), and indirect rates (overhead, fringe, G&A per FAR Part 31). Document social/economic disadvantage thoroughly via SBA's Certify platform. Engage an independent auditor to simulate a DoW-style review and remediate issues proactively.
Diversify Revenue Streams : Pursue competitive opportunities within DoW and across agencies via SAM.gov . Explore alignments with veteran priorities (e.g., SDVOSB certification) or non-defense sectors where 8(a) remains strong.
Enhance Financial Resilience : Optimize indirect rates for competitive pricing in open bids. Model scenarios for 20-50% revenue risk from DoW contracts—build reserves, secure credit, and refine wrap rates to maintain margins.
Stay Informed and Engaged : Monitor SBA updates, Federal Register notices, and industry associations. Network for warfighting-aligned opportunities and advocate through channels like the National 8(a) Association.
Long-Term Strategy : Invest in in-house capabilities to reduce subcontracting reliance. Prepare for post-8(a) graduation by building a track record in merit-based competitions.

By addressing these now, you can turn scrutiny into a catalyst for stronger, more sustainable growth. We've walked many executives through similar transitions—compliance challenges often become the foundation for lasting success.

Wallace Angel

ROSE Report: Inside Today’s Finance-as-a-Service Model

Thu, 15 Jan 2026 15:15:14 GMT

Issue 106 - Inside Today’s Finance-as-a-Service Model

How Finance-as-a-Service (FaaS) Changes the ERP and Accounting Software Decision Entirely

For years, growth-stage companies have treated ERP selection as a defining moment: “What system should we buy next?”

But that question is no longer the right place to start. Finance-as-a-Service (FaaS) fundamentally reframes the ERP decision—shifting the focus from software to sustainable operating capability...
read more

Podcast: The Real Role of AI in Financial Operations with Ted Rose

Ted Rose, CEO of Rose Financial Solutions, joins Shelley McGuire, Chief Strategy Officer at OrangeSlices AI, to unpack how AI is transforming finance from audit readiness to forecasting and what leaders should prioritize to scale with confidence in 2026...

Podcast: The Real Role of AI in Financial Operations with Ted Rose

Wed, 14 Jan 2026 16:18:50 GMT

Listen to a new episode of the Peel where Shelley McGuire speaks with Ted Rose, CEO of Rose Financial Solutions to discuss how AI fits within financial systems, how it impacts audit readiness and forecasting, and what financial leaders should prioritize in the year ahead.

��️ Listen here: https://lnkd.in/gU6h5eRA

Unlock DoW/DoD Opportunities in 2026: National Defense Authorization Act (NDAA) & Executive Order (EO) Insights for Market Entry or Pivots

Tue, 13 Jan 2026 13:48:28 GMT

As federal spending priorities evolve and the 2026 NDAA takes shape, government contractors and defense tech companies face both new opportunities and new complexities. This Mastermind provides a practical, CFO-led primer on what’s changed, where the money is going, and what companies—especially those new to GovCon or looking to pivot—need to know to compete confidently and stay compliant.

Join Ted Rose and Wallace Angel on January 23rd at 2:00 PM ET for a clear breakdown of the 2026 federal budget and defense spending landscape, with a focus on helping businesses understand how policy changes translate into real contracting opportunities and what to watch out for along the way.

What we’ll cover:

A federal budget and 2026 NDAA overview , and its impact on GovCon and defense tech opportunities
An analysis of the $1.5 trillion DoD/DoW budget increase on defense spending , including priority areas such as AI, energy and supply chains, hypersonics, and unified domains—and what this means for new and existing contractors
A briefing on key DoW internal compliance standards —such as CMMC—and their implications for contractors.
A primer on 2026 NDAA changes affecting defense procurement , including SPEED and FoRGED reforms designed to accelerate technology delivery and expand access for non-traditional contractors
2026 Executive Orders and Policy changes GovCons need to know

 Speakers:

Ted Rose , President, CEO, and Founder, ROSE
Wallace Angel , VP, Finance and Accounting, Client CFO, and GovCon Expert

This session is ideal for government contractors, defense tech companies, and organizations evaluating entry into the federal market who want a clear, practical understanding of how 2026 budget and policy changes affect their growth strategy.

How Finance-as-a-Service (FaaS) Changes the ERP and Accounting Software Decision Entirely

Mon, 12 Jan 2026 17:03:54 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

For years, growth-stage companies have treated ERP selection as a defining moment:

“What system should we buy next?”

But that question is no longer the right place to start. Finance-as-a-Service (FaaS) fundamentally reframes the ERP decision—shifting the focus from software to sustainable operating capability .

The Old ERP/Accounting Software Question (and Why It Fails)

Traditional ERP decisions assume:

The right software will fix process gaps
Internal teams will stabilize operations after go-live
Consultants can design a future-state finance organization in a few months
Better reporting will naturally follow implementation

In reality, many organizations experience the opposite:

More complexity instead of clarity
Over-customized systems that are hard to maintain
Increased strain on finance talent
Limited agility as the business evolves

ERP becomes a major investment—but not a scalable solution.

The New Question FaaS Introduces

Finance-as-a-Service changes the conversation entirely. Instead of asking:

“What system should we buy?”

Leading companies now ask:

“What financial capabilities do we need to scale—and how do we sustain them over time?”

This shift is subtle, but it changes everything.

What FaaS Actually Solves

FaaS addresses the five areas ERP was never designed to own.

People: Access to full financial skill sets—not just transactional accounting. This includes operational finance, AI and automation, analytics, tax, and strategic insight.
Process: Proven, scalable workflows that evolve with the business instead of freezing at go-live. This now includes Agentic AI processes.
Technology: ERP remains the system of record, enhanced by automation and an agility layer that adapts as requirements change.
Organization: Clear ownership and SLA monitoring of finance operations beyond the capability of accounting software, ensuring capability compounds overtime instead of degrading. This includes access to all capabilities require to scale finance to an enterprise level.
Data: Reliable, structured data designed for Agentic AI processes, intelligence and decision-making—not just compliance reporting.

FaaS as the Operating Layer

In a modern finance model:

ERP = System of Record
FaaS = System of Agility = Execution + Intelligence + Change Management

FaaS becomes the operating layer that:

Supports any ERP
Reduces dependency on constant internal hiring
Enables continuous optimization rather than periodic transformation
Turns data into actionable insight that feed Agentic AI processes

ERP no longer carries responsibilities it was never built to handle.

Why This Model Matters Now

Until recently, this model was difficult to implement in practice. Today, Finance-as-a-Service has matured into a repeatable way to:

De-risk growth
Prepare organizations for ERP upgrades before they are forced
Extend the useful life of existing systems
Align finance operations with how modern businesses actually scale

FaaS is not an alternative to ERP—it is what makes ERP effective.

What This Means for Leadership Teams

If you are thinking about changing your ERP, that is usually a sign of growth—but also a warning. The real risk is not choosing the wrong software. The real risk is modernizing systems without modernizing how finance operates.

Before you change your ERP, modernize your financial operating model. When finance has the right people, processes, operating layer, ownership, and data foundation in place, ERP becomes an asset—not a constraint. That is the promise of Finance-as-a-Service. Discover more at: www.rosefinancial.com .

Ted Rose

Save the Date: 2026 ROSE FaaS Conference

Fri, 09 Jan 2026 17:03:44 GMT

June 9, 2026 | North Bethesda, MD

The 2026 ROSE FaaS Conference is built for leaders who are responsible for growth, compliance, and financial decision-making—and who know that financial clarity is no longer optional.

Want First Access? Join the priority list to receive:

Early access to the 2026 agenda
Early-bird pricing
Invitations to limited, executive-level sessions

Who Should Attend

✔ CEOs & Founders
of government contractors and growth-focused organizations who want confidence in their numbers, stronger control over cash flow, and a scalable financial foundation to support growth, M&A, or market shifts.

✔ CFOs, Controllers & Finance Leaders
who are navigating DCAA, FAR, evolving policy, audit readiness, and increasing pressure to deliver real-time insight—not just historical reports.

✔ COOs & Operations Leaders
who depend on accurate cost structures, labor data, and project-level visibility to protect margins and execute confidently.

✔ Trusted Advisors
including Fractional CFOs and consultants who support GovCons and growth-stage businesses and want to stay ahead of what’s changing in finance, accounting, and AI-enabled infrastructure.

Why Attend?

Following a packed 2025 ROSE FaaS Conference, the 2026 event goes deeper—focusing on what leaders must get right as complexity increases:

✔ Build a scalable financial infrastructure that supports growth without adding unnecessary headcount
✔ Strengthen compliance and audit readiness while staying competitive on pricing and margins
✔ Use better data—faster to make decisions in uncertain policy and contracting environments
✔ Understand how AI actually fits into finance and accounting today (and where it doesn’t)
✔ Learn from peers who are successfully navigating GovCon growth, disruption, and change

This is not a product pitch. It’s a working session for leaders who want to scale with confidence instead of guessing .

What You’ll Walk Away With

A clearer roadmap for modern Finance as a Service (People + Process + Technology + Organization + Data)
Practical insight into compliance, cost structure, and financial decision-making
A stronger understanding of what “financial readiness” really means heading into 2026
Connections with leaders facing the same challenges you are

ROSE Report: The Operational Decisions That Will Shape 2026

Thu, 08 Jan 2026 17:07:33 GMT

Issue 105 - The Operational Decisions That Will Shape 2026

SBA Orders All 8(a) Participants to Provide Financial Records — A Turning Point for the Program

On December 5, 2025, U.S. Small Business Administration (SBA) issued letters to all ~4,300 firms in the 8(a) Business Development Program, directing them to submit three years of detailed financial records; including bank statements, general ledgers, payroll registers, subcontract agreements, and more...
read more

When Is the Right Time to Change Your Accounting Software?

As companies grow, leaders eventually ask a familiar question: “Do we need a new ERP?”

It’s a reasonable question. Growth creates complexity. Complexity exposes limits. And modern systems promise control, insight, and scale...
read more

Why Redesigning Process Before an ERP or Accounting Software Change Creates 10× Better Outcomes

Wed, 31 Dec 2025 18:42:56 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Most ERP or Accounting Software implementation projects begin with a familiar assumption:

“We’ll redesign our processes during implementation.”

That approach feels efficient—but it’s backward. And it’s one of the primary reasons ERP investments fail to deliver expected value.

The Problem with ERP-Led Process Redesign

When process redesign happens inside an ERP implementation, organizations face predictable challenges:

Decisions are rushed to meet go-live deadlines
Workflows are shaped by system constraints—not business needs
Inefficiencies get hard-coded into the platform
Teams experience change fatigue before value is realized
Adoption suffers because people never truly own the process

ERP ends up defining how people work—rather than enabling how the business should work.

A Better Model: Fix Process First

High-performing companies take a different path. They separate process transformation from system implementation . Before touching the ERP, they:

Redesign finance processes outside the system
Standardize workflows across teams
Automate repeatable activities
Clarify roles, ownership, and decision rights
Prepare people for the future-state operating model

This is where an agility layer becomes critical.

Rather than forcing change through the ERP, leading organizations use an execution and intelligence layer—such as Easby by ROSE —to design, test, and run modern finance workflows alongside their existing ERP.

Why This Approach Works

This layered strategy delivers materially better outcomes:

Faster adaptation as the business evolves
Lower ERP implementation risk
Higher user adoption
Cleaner, more reliable data
Continuous improvement without constant system changes

Because people learn the process before the ERP changes, adoption accelerates and resistance drops.

ERP Becomes What It Should Be

When process leads and systems follow, ERP is no longer expected to:

Fix broken workflows
Train your team
Enforce discipline
Provide real-time intelligence

Instead, it does what it does best:

Record transactions
Maintain data integrity
Support compliance
Act as a stable backbone

ROSE supports this model by providing Finance as a Service , combining people, process, and technology—while Easby functions as the agility layer that enhances ERP value without requiring a rip-and-replace.

The Bottom Line? Modern finance isn’t built as a monolith. It’s built in layers. Process first. People prepared. ERP as infrastructure—not strategy.

Ted Rose

Don't Relinquish Your 8(a) Certification: Why Persistence Pays in Government Contracting

Fri, 26 Dec 2025 19:47:07 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

Recent audits and SBA directives have many 8(a) firms questioning if the program is still worth the hassle. As Wally Angel, Partner at Rose Financial Solutions—with over 20 years advising GovCons through SBA compliance and FAR execution—I've seen this knee-jerk reaction before. But exiting now is often a strategic mistake that overlooks the program's enduring value. Here's why sticking with your 8(a) status is a smart play for growth-minded operators.

A One-Shot Opportunity The 8(a) certification is a unique, non-renewable edge for small business set-aside contracts. Eligible firms get up to nine years of sole-source awards, set-asides, and tailored resources for socially and economically disadvantaged owners. Once you exit, re-entry isn't an option—locking you out of future leverage in a cutthroat market. Critically, exiting won't relieve you from compliance obligations tied to prior years; non-compliance could still trigger audits or penalties, impacting your full core business operations far beyond the program.

Scrutiny Doesn't Mean Contraction Federal acquisition priorities shift fast—with policy tweaks, economic swings, and agency demands. Yes, the Department of Treasury's November 2025 announcement ramps up audits on preference-based contracts (those leveraging small business advantages like 8(a)). And the SBA's December 5, 2025, directive mandates financial records by January 19, 2026, to combat fraud. But this isn't a permanent pullback. Agencies still chase small business goals, and the SBA pushes 8(a) utilization for mission needs. In my experience, this scrutiny weeds out bad actors, consolidating market share for compliant players and reducing competition over time.

Regulatory Tailwinds Are Emerging Far from escalating, recent SBA updates ease burdens. Effective 2025, non-disadvantaged ownership thresholds rose from 20% to 30% without prior approval in key stages—giving more equity flexibility to attract talent or investors. A policy update championed by Senator Dan Sullivan scraps the need for staffed offices in every bidding state for construction contracts, cutting setup costs. Plus, December 2024 Federal Register changes hiked revenue thresholds for accounting reviews: audits only above $20 million in gross receipts, reviews between $7.5–$20 million, and basic statements below that. This slashes compliance costs for smaller 8(a) firms. Topping it off, the SBA's December 15, 2025, Deregulation Strike Force targets red tape across agencies—potentially saving hundreds of hours per firm, freeing you for strategic growth.

What to Do Instead of Exiting Rather than bail, double down: Audit-proof your books with FAR-aligned systems, build differentiated capabilities, and pursue agile bids. This positions you not just to survive scrutiny but to thrive post-8(a), with stronger ops and less crowded fields.

In summary, while SBA 8(a) audits bring heat, the program's core 8(a) certification benefits—paired with these burden-reducing changes—make voluntary exit shortsighted. Lead through persistence: My clients who nail compliance, execution, and growth emerge dominant as non-compliants fade. The real risk isn't scrutiny—it's surrendering a non-renewable advantage.

Wallace Angel

Accounting Software Is Only 20% of the Problem

Tue, 23 Dec 2025 19:56:15 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Why ERP and Accounting Systems Fail After Go-Live

When companies invest in a new ERP or accounting system, they expect clarity, speed, and better decision-making.

What they often get instead is frustration.

Missed deadlines. Inconsistent reports. Manual workarounds. And a lingering question from leadership:

“Why aren’t we seeing the value we were promised?”

The uncomfortable truth: ERP and accounting software is only about 20% of the equation.

The remaining 80% comes down to people, process, organization, data—and how well they adapt as the business scales.

The Assumption That Breaks Most ERP Implementations

ERP and accounting software implementations are built on an assumption that is rarely true:

That your internal team has the skills, capacity, and structure to operate, maintain, and continuously evolve the system.

During implementation:

Consultants design workflows
Data is migrated
Dashboards are configured
Go-live is declared a success

Then the consultants leave. And your people inherit the system.

The Hidden Costs No One Budgets For

Most companies significantly underestimate what happens after go-live .

Not licensing costs—but operating costs.

Including:

Ongoing process ownership
Data governance and controls
Automation monitoring and tuning
Reporting and analytics design
The skill depth required to run the system well

These are not temporary needs. They are capabilities —and most organizations were never designed to sustain them on their own.

Why ERP Value Breaks Down Over Time

This is where most implementations quietly fail.

Common realities include:

Strong accountants ≠ strong system operators
ERP requires operational rigor, not just accounting knowledge
Process discipline erodes without reinforcement
Enhancements stall as the business evolves
Reporting remains backward-looking instead of decision-ready

The ERP doesn’t fail. The financial operating model around it does.

The Role of an Agility Layer

Leading organizations are changing how they think about ERP. Instead of forcing ERP to do everything—or replacing it entirely—they let ERP do what it does best: Remain the system of record. Then they introduce an Agility Layer around it.

An Agility Layer:

Supports transaction execution and related workflows
Orchestrates automation across systems
Enables flexible business intelligence and reporting
Provides the data warehousing required for insight—not just compliance
Allows processes to evolve without destabilizing core ERP

This preserves ERP stability while adding the adaptability growing companies need.

ROSE: Finance as a Service Built for Scale

This is where ROSE comes in. ROSE is a leading provider of Finance as a Service (FaaS) —designed to help companies scale their financial infrastructure without breaking what already works. At the center of ROSE’s model is Easby —an Agility Layer that enhances the value of a company’s existing ERP.

Easby:

Sits above your current ERP
Improves execution, automation, and insight
Strengthens data structure and governance
Supports change management across people and processes
Allows progress without forcing a rip-and-replace ERP decision

Your ERP stays the backbone. Easby makes it smarter.

Preparing for Growth—With or Without an ERP Upgrade

Many companies rush into ERP upgrades before they’re ready. ROSE takes a different approach. By combining experienced financial operators with Easby’s Agility Layer, ROSE helps organizations:

Build process discipline before adding complexity
Upskill teams while improving outcomes
Create clean, decision-ready data
Establish clear ownership and accountability
Prepare the organization for an ERP upgrade—if and when it’s truly needed

This ensures the company has access to the people, process, technology, organization, and data required to grow—regardless of ERP timing.

What Actually Creates ERP Value

ERP delivers value when it is supported by a modern financial operating model—not just software.

High-performing companies combine:

ERP as the system of record
An Agility Layer for execution, intelligence, and evolution
Finance as a Service to provide scale and expertise
Continuous improvement—not one-time implementations
A data strategy aligned to decision-making

This is how finance becomes a growth enabler—not a bottleneck.

The Real Timing of ERP ROI

Most companies believe ERP value is realized at go-live.

In reality:

ERP value is unlocked after go-live—not at it.

And it accelerates when agility, capability, and expertise surround the system.

Final Thought (and a Question)

If your ERP isn’t delivering what you expected, the problem may not be the software.

It may be that your organization needs an Agility Layer—and the operating capability to support it.

Question for leaders: What would change if your ERP stayed the same—but your financial infrastructure finally caught up to your growth?

That’s the transformation ROSE was built to deliver. Discover how at https://www.rosefinancial.com/

Ted Rose

ROSE Report: Increased SBA Oversight Is Changing the Rules—Here’s How to Prepare

Thu, 18 Dec 2025 13:52:20 GMT

Issue 104 - Increased SBA Oversight Is Changing the Rules—Here’s How to Prepare

SBA Orders All 8(a) Participants to Provide Financial Records — A Turning Point for the Program

When Is the Right Time to Change Your Accounting Software?

As companies grow, leaders eventually ask a familiar question: “Do we need a new ERP?”

It’s a reasonable question. Growth creates complexity. Complexity exposes limits. And modern systems promise control, insight, and scale...
read more

When Is the Right Time to Change Your Accounting Software?

Mon, 15 Dec 2025 19:45:16 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

(Hint: It’s Not About the Software)

As companies grow, leaders eventually ask a familiar question:

“Do we need a new ERP?”

It’s a reasonable question. Growth creates complexity. Complexity exposes limits. And modern systems promise control, insight, and scale.

But here’s the hard truth: Most ERP and accounting software projects fail to deliver expected value—not because the software is bad, but because the organization isn’t ready.

Why Companies Consider Changing Accounting Software (Good Reasons)

Let’s be clear—there are valid reasons to consider a change:

Project-based businesses need integrated project costing
Manufacturers need real-time product and job costing
Distributors need inventory costing and margin visibility
Service firms need revenue and direct cost tracking by client
Growing companies need better operational visibility and controls

Many of these platforms are not just accounting tools—they are management systems designed to help run core operations at scale. And that’s where the challenge begins.

The Common Trap

New ERP or accounting system installed
Consultants redesign workflows
Go-live achieved
Consultants leave
Internal team struggles
Processes degrade
Reporting still lags
Leadership is disappointed

Why does this happen? Because software doesn’t fix people, process maturity, or operating discipline.

The Real Question CEOs Should Ask

Instead of asking: “Do we need new accounting software?”

Ask this: “Do we have the financial operating capability to support scale—regardless of ERP?”

ERP and accounting systems are primarily:

Systems of record
Structured data repositories
Compliance backbones

They do not :

Train people
Enforce discipline
Fix broken processes
Provide intelligence on their own
Adapt continuously as the business evolves

Management Systems vs. Accounting Systems: The Real Tension

Here’s the critical insight most ERP projects miss:

Management systems are designed for daily or weekly visibility

Revenue tracking
Direct cost tracking
Project, job, or inventory performance

Accounting systems are best suited for:

Confirmation and control
Monthly close
Indirect expense control
Compliance and reporting

These two systems often compete with each other—or integrate poorly. Yet both are essential. Daily understanding of revenue and direct costs is critical. Monthly understanding of indirect expenses is sufficient for most businesses. The goal is not to force one system to do everything. The goal is to design an operating model where they work together.

The Smarter Path: Build the Agility Layer

Leading companies don’t start with software. They start with financial infrastructure .

They utilize an Agility Layer around finance before—or alongside—any ERP change:

Standardized, scalable processes
Skilled financial operators
Automation where it actually matters
Data positioned for insight, not just reporting
Flexibility as the business continues to evolve

This approach allows companies to:

Get the benefits of strong management systems
Maintain accounting integrity and control
Avoid creating new problems while fixing old ones

The Key Takeaway

The objective is not to replace software. The objective is to fix the real problem—without creating new or different ones. Before you change your accounting software or ERP, assess whether your financial infrastructure is truly ready to scale . When the operating model is right, the software decision becomes clearer—and far more successful.

Assess whether your finance organization is truly “ERP-ready” and discover how you can build around your current system while preparing your company for growth

Contact ROSE at https://www.rosefinancial.com/contact-us

Ted Rose

SBA Orders All 8(a) Participants to Provide Financial Records — A Turning Point for the Program

Mon, 15 Dec 2025 18:34:24 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

This demand comes on the heels of a broad, full-scale audit launched earlier in 2025. The audit was triggered by a major enforcement action from U.S. Department of Justice (DOJ), which uncovered a multi-year fraud and bribery scheme involving a former federal contracting officer at the U.S. Agency for International Development (USAID) and multiple 8(a) contractors. That investigation revealed more than $550 million in contracts had been improperly steered via bribery and misuse of the program. sba.gov+2GlobeNewswire

According to the SBA, the audit will review high-dollar and limited-competition contracts going back 15 years, across all federal agencies that awarded 8(a) contracts. Findings will be forwarded to the SBA Office of Inspector General and DOJ for enforcement with possible recoveries, suspensions, debarments, and other sanctions. Holland & Knight+2GCO Consulting

The December 5 request marks more than a routine compliance check. It signals a structural reboot. For years, critics have flagged concerns that the 8(a) program had become ripe for abuse — with firms exploiting pass-through arrangements or nominal disadvantaged-status ownership to win contracts, while actual performance and control rested with non-eligible entities. The new financial-disclosure requirement suggests the SBA is shifting toward full transparency, rigorous accountability, and a merit-based reset of how small disadvantaged firms are selected and evaluated. Clark Hill+2ryanandwetmore.com

What this means for 8(a) firms and contracting partners:

Firms should treat this as a compliance imperative.Begin collecting and reconciling three years of financial records now.
Subcontracting and pass-through arrangements will face greater scrutiny; firms should be prepared to show that work was genuinely performed by the 8(a) entity, not just paper-shuffled.
Contracting partners, primes, and agencies should re-evaluate teaming decisions and due diligence practices.
For compliant, properly managed 8(a) firms with accurate financial records, this represents a strategic opportunity: Successful navigation of the audit can bolster credibility, reduce competition from non-compliant entities, and promote a level playing field for legitimate participants.

In summary, the 8(a) program is undergoing a transformative reset to prioritize integrity and fairness. Firms involved in or considering the program should prioritize organizing their financial documentation and prepare for an era of increased transparency. Responding promptly not only ensures compliance but positions ethical participants for sustained success by eliminating unfair advantages held by those misusing the program.

Have you received an SBA 8A program letter or need expert guidance on your financial data submission? Contact us for professional SBA compliance support and a comprehensive review to identify potential risk factors under the current administration.

Wallace Angel

Video: How CFOs Orchestrate Finance, Accounting & Compliance

Mon, 08 Dec 2025 20:10:09 GMT

In today’s increasingly complex business landscape, the Chief Financial Officer plays a more strategic role than ever before. While many organizations view the CFO strictly through the lens of financial reporting, the modern CFO is better described as the conductor of the organization’s financial orchestra —bringing together finance, accounting, tax, compliance, and technology into a cohesive performance that drives growth.

In this video, Ted Rose breaks down how CFOs orchestrate each function and why many growing companies now leverage Finance as a Service models to support this work.

CFOs Shouldn’t Be Running Your Back Office: Why Strategic CFO Leadership Requires Modern Financial Operations

Mon, 08 Dec 2025 19:57:41 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Why CEOs must separate financial operations from financial leadership

Last week, we introduced a core decision facing every CEO today:

Do you want a CFO who operates… or a CFO who leads?

In a market defined by rapid policy shifts, rising audit scrutiny, talent shortages, and accelerating automation, this distinction is no longer philosophical, it’s structural. Your ability to grow depends on it.

This week, we go deeper. Because the truth is simple:

CFOs were never meant to run your back office. They were hired to run your strategy .

The CEO Blind Spot: Why CFOs Are Still Running the Back Office

If a CEO asked the CTO to manage IT helpdesk tickets, people would raise an eyebrow.

Yet most CEOs still expect CFOs to manage:

Billing and invoicing
Close cycles
Reconciliations
Compliance
Payroll
Reporting workflows
Systems and integrations

This isn’t a leadership function, it’s an operational function.

For decades, companies accepted this because the old model left them no alternative. The only way to get clean books was to ask the CFO to oversee every detail of the machine.

But the world has changed.

Modern financial operations are now a technical discipline that should be run like a production function, not an executive function.

The Two Competing Roles: Financial Operations vs. Strategic CFO Leadership

1. Financial Operations (Back Office)

Requires:

Daily SLAs
Standardized workflows
Automation systems
Quality controls
Transaction discipline
Specialized process expertise

This is an engine room that is detailed, procedural, and repeatable.

2. Financial Leadership (CFO Office)

Requires:

Forward-looking insight
Cash, margin, and pricing strategy
Forecasting and scenario planning
Performance and risk management
Capital allocation modeling
Support for strategic decision-making

This is a navigation role that is analytical, strategic, and future-oriented.

They are completely different muscles.

And yet, most CFOs are still forced to do both.

Why the Old Model Breaks CFOs and Slows Growth

CFOs are hired for high-impact work, but most are stuck:

Reviewing journal entries
Chasing down data
Fixing broken processes
Managing system gaps
Babysitting the close
Reconciling reports in Excel

This is not a CFO problem. It’s an architectural problem .

Your financial architecture determines whether your CFO is free to lead or trapped in operations.

The Modern Fix: Finance-as-a-Service (FaaS) as the New Financial Operations Architecture

Today, CEOs finally have a choice the old model didn’t offer.

A FaaS partner , like ROSE + Easby, provides:

Enterprise-grade financial operations: A fully managed engine room built on automation, controls, and repeatable processes.
Predictable close cycles: No more "it’s going to be late."
Clean, trusted data: Reduced manual reconciliations and version conflicts.
Real-time reporting and insight: CFOs get visibility without digging for it. Yes, AI can help with this now.
Strategic bandwidth for the CFO: This is the real win: Your CFO finally gets to be who you hired them to be.

They can focus on:

Pricing strategy
Market and margin expansion
Investment prioritization
Risk modeling
Capital planning
CEO decision support

This is the work that actually moves valuation.

What CEOs Gain from Separating Financial Ops and Financial Leadership

When financial operations run independently, companies consistently see:

Faster, more accurate decisions
Stronger cash and margin outcomes
Higher accountability across the business
Reduced risk and compliance exposure
Greater confidence with boards, investors, and auditors
A CFO who drives growth instead of managing tasks

This is not outsourcing. It’s operational architecture for modern companies .

The Strategic Decision Point for CEOs

Every CEO now faces a pivotal question: Do you want your CFO buried in transactions or leading your strategy?

You cannot have both without upgrading the infrastructure beneath them.

Give Your CFO Back Their Strategic Superpower: Upgrade Your Financial Infrastructure

Your CFO should be your most powerful strategic partner, not the person fixing broken workflows.

ROSE + Easby removes the operational burden so your CFO can lead the business, not the back office.

Let’s redesign your financial architecture around what actually drives growth.

Schedule a discovery conversation with our team: https://www.rosefinancial.com/contact-us

Ted Rose

ROSE Report: Free Your CFO to Focus on Growth, Not Spreadsheets

Tue, 25 Nov 2025 13:34:10 GMT

Issue 103 - Free Your CFO to Focus on Growth, Not Spreadsheets

The CEO’s Fork in the Road: Do You Want a CFO Who Operates… or a CFO Who Leads?

For decades, companies have placed an impossible expectation on their CFOs: run every financial operation and drive strategic leadership. Accounting. Month‑end close. Billing. Compliance. Reporting. Audit prep. System integrations. And on top of that—forecasting, cash strategy, pricing, margins, growth planning. But the world has changed.
read more

How a ‘Your Baby Is Ugly’ Wake-Up Call Transformed ROSE’s Innovation—and Created Easby

The CEO’s Fork in the Road: Do You Want a CFO Who Operates… or a CFO Who Leads?

Mon, 24 Nov 2025 15:31:11 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Financial Clarity = Confidence

We’re in the middle of the largest accounting talent shortage in decades, with increasing technology complexity and rising expectations from CEOs, boards, and investors. The result?

CFOs are stuck running the machine instead of improving it. It's no wonder that most CFO's don't have a comprehensive AI strategy for financial operations.

Today’s CEO faces a defining question:

Do you want your CFO focused on transactions—or focused on strategic growth?

You cannot have both without modern financial infrastructure.

Where Companies Break

Most organizations don’t fail because of bad CFOs. They fail because the CFO is buried in operational work they shouldn’t be doing.

CFOs drowning in operational tasks: Close cycles, reconciliations, billing issues, compliance questions—it never ends.
Delayed reporting → delayed decisions: When data is late or questionable, leadership hesitates. Momentum stalls.
No bandwidth for forecasting, pricing, and margin strategy: The work that drives value creation gets pushed aside.
Systems that can’t scale with the business: A new ERP implementation alone can’t solve workflow gaps or staffing shortages.
Advisory turns into firefighting: The CFO becomes reactive, not strategic.

This isn’t a financial leadership issue. It’s a financial infrastructure issue.

The New Model: CFOs Lead, FaaS Operates

Modern CFOs are shifting to a hybrid model:

Finance‑as‑a‑Service (FaaS) runs the back office. The CFO focuses on strategy, performance, pricing, and value creation.

A CEO would never ask a CTO to run the help desk. So why ask the CFO to run bookkeeping, reconciliations, and transactional workflows?

FaaS is becoming the operating backbone for modern finance teams—especially in GovCon and regulated industries where accuracy and compliance are non‑negotiable.

Enter Easby: The System of Engagement for Modern Finance

Most CEOs believe their ERP runs the business. But here’s the truth: Your ERP wasn’t designed to run your workflows. It was designed to store data—not manage day‑to‑day financial execution.

This is where Easby changes the game. Easby is a system of engagement—an agility layer that:

Sits on top of your existing ERP (no migration needed)
Will automate 85% of finance workflows by 2030 (using Agentic AI)
Improves accuracy, consistency, and compliance
Reduces operational workload for CFOs and their teams
Creates real‑time visibility and actionable insights
Integrates seamlessly with FaaS delivery

In short:

Easby modernizes your back office without replacing your ERP.

The cost savings are significant. The information and value creation is even greater.

Why CEOs Should Care

Companies that modernize finance operations through FaaS + Easby gain:

Real‑time financial visibility - guaranteed
Higher margins through a smarter cost structure - guaranteed
Better pricing, bid strategy, and forecasting
Lower operational and compliance risk - audit certainty - guaranteed
A CFO who spends their energy on growth—not spreadsheets

This is the shift that separates stagnant companies from market leaders.

The Question Every CEO Must Answer

If your CFO had an additional 20–40 hours per week, what would they focus on?

Margins? Cash? Pricing? Growth strategy? Preparing for a sale or raise? AI readiness for the rest of your business?

Whatever the answer—that is what drives enterprise value. Not reconciliations.

Unlock What Your CFO Could Do If They Weren’t Trapped in Operations

If you're ready to give your CFO the financial infrastructure they need to lead—not just operate—now is the time. The AI roadmap for financial operations is already operational and proceeding towards 85% automation by 2030.

Easby + FaaS provides the operational backbone. Your CFO provides the strategic lift. Your business gains clarity, control, and confidence.

To Discover How, DM me at ( Ted Rose ) or contact ROSE at https://www.rosefinancial.com/contact-us

Ted Rose

Video: How a ‘Your Baby Is Ugly’ Wake-Up Call Transformed ROSE’s Innovation—and Created Easby

Fri, 21 Nov 2025 20:23:11 GMT

In this candid conversation, Ted Rose shares the pivotal moments that shaped ROSE’s evolution—from the “ your baby’s ugly ” wake-up call that inspired a complete redesign of RFSWorkflow, to the bold decision to replatform and build Easby on Appian’s world-class , AI-Enabled platform. Ted reflects on the leadership lessons behind innovation, how ROSE prepared for the remote-work shift before the pandemic, and why a clear North Star—85% automation by 2030—guides the firm’s strategic investments today. Watch the full video to hear how decades of workflow expertise, AI-driven financial management, and a commitment to user experience are transforming accounting and finance for ROSE clients.

ROSE’s Easby platform gives CFOs and their teams real-time financials, advanced KPIs, and automated workflows; closing the gap between strategy and execution so finance teams can focus on analysis and value creation.

�� Contact ROSE to find out how Easby can work to strengthen your finance and accounting operations.

Build vs. Partner: The Defining Decision for Accounting Firms and Fractional CFOs

Sun, 16 Nov 2025 17:18:44 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

For the past 15 years, CPA.com has told accounting firms they needed to build a financial operations practice—what became known as Client Accounting Services (CAS) . Over time, the model evolved into CAAS (Client Accounting and Advisory Services) , signaling a shift from transactional bookkeeping to higher-value advisory.

But that evolution has collided with a hard reality: we’re experiencing the largest shortage of accountants in decades.

Firms across the country are struggling to recruit, train, and retain the talent needed to manage daily financial operations. Many have turned to offshoring as a stopgap. Meanwhile, CPA.com has worked to connect firms with technology providers—but technology alone doesn’t close the gap.

Upgrading and running financial operations requires fundamentally different skills and capabilities from being a trusted advisor.

The Fork in the Road

Every accounting and fractional CFO firm now faces the same strategic question:

Do we want to become experts in financial operations—or do we want to remain trusted advisors guiding clients through transformation?

Both paths are valuable—but they require different investments, skills, and business models.

This moment is similar to what happened with payroll 30 years ago. Many accounting firms once offered outsourced payroll services. Today, payroll is a standalone industry (and now includes HR outsourcing), and accounting firms advise on vendor selection, compliance, and integration rather than running the payroll or HR processes themselves.

Financial operations are heading in the same direction.

The Rise of Finance-as-a-Service (FaaS)

Until recently, firms didn’t have a viable alternative to building their own financial operations infrastructure. They had to piece together technology, people, and processes on their own.

That’s no longer the case.

Today, a new option exists: Finance-as-a-Service (FaaS) partnerships —led by firms like Rose Financial Solutions powered by Easby , our AI-enabled platform that automates and manages the financial back office.

FaaS allows CPA firms and fractional CFOs to buy , not build, their financial operations capability—instantly accessing scalable infrastructure, expert talent, and automation without compromising their core advisory focus.

The Decision

The question for firm leaders is no longer “if” financial operations will evolve—but how you’ll participate in that evolution.

You can:

Build it – Invest years and significant capital to develop operational expertise, infrastructure, and automation capabilities in-house.
Partner – Collaborate with a FaaS firm like ROSE to deliver operational excellence while you stay focused on client strategy, guidance, and transformation.

Both paths can succeed. But only one keeps your firm aligned with what clients truly value— trusted advice grounded in financial clarity.

Why ROSE

At ROSE , we’ve spent decades perfecting financial operations across hundreds of companies. Now, with Easby , we make that capability available as a partnership model for CPA firms and fractional CFOs.

Our infrastructure becomes your advantage—helping you deliver modern, automated finance and accounting operations without the cost, complexity, or distraction of building them yourself.

�� FaaS partnerships didn’t exist last year. They do today. The firms that make the decision now—to partner, not build—will lead the next decade of transformation in accounting and finance.

Discover the partnership model at ROSE. Financial Clarity at Scale starts here. Discover how at Rosefinancial.com and Easby.ai

Ted Rose

→ Book your review with Rose Financial Solutions

Compete Leaner: Reinventing the Back Office to Fund Innovation

Mon, 10 Nov 2025 15:23:16 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Every business leader today faces the same dual pressure: cut costs while accelerating innovation. But here’s the reality—most organizations are still carrying back-office inefficiencies that quietly drain the very capital needed to modernize.

In 2026’s competitive environment, your ability to compete leaner—to do more with less—will define your advantage. The firms winning today aren’t just improving operations; they’re transforming how finance, accounting, and compliance work together to fund innovation instead of constraining it.

The New Competitive Mandate

A recent McKinsey & Company report describes this as the AI-centric imperative:

"Organizations must now drive efficiency in every part of their business, not just operations."

This means transformation has moved beyond automation for automation’s sake. The best-performing businesses are integrating technology and value-added services directly into their delivery model —creating cost-efficient, defensible value that scales.

In this new environment, your back office is no longer a support function—it’s a strategic engine . Finance and accounting are becoming platforms for insight, agility, and reinvestment.

The Shift: From Manual to Modern

Ten years ago, a small GovCon client manually delivering supply-chain reports to the federal government. When they automated their T&M service offering, it turned into a data-driven subscription platform and they scaled from $2M to industry leader with a unicorn status.

The lesson is simple: modernization unlocks value and growth .

At ROSE, we’ve seen this playbook repeat across dozens and dozens of companies. We've help guide these companies through the business model changes that must occur to do this successfully.

And we know how to do this as we've done it ourselves. Our platform, Easby , helps businesses reinvent their financial infrastructure—combining people, process, technology and data into a scalable model. It's a system focused on delivering our clients positive outcomes, from start-up to exit.

With ROSE and Easby , growing firms get enterprise-grade financial capabilities at a fraction of the cost —freeing up cash and talent to focus on innovation, not administration. Giving them better information and proven guidance.

Tactical Roadmap: Compete Leaner in 2026

Audit Your Cost Structure Benchmark your spend on accounting, finance, HR, and BD. Many firms are finding 20–40% savings potential without cutting headcount.
Adopt Finance-as-a-Service (FaaS) Blend outsourced expertise, automation, and AI-driven workflows for scalable finance and accounting.
Redirect Savings to Innovation Fund core focused AI pilots, PMO modernization, or product R&D without raising additional capital.
Leverage R&D Tax Credits The 2025 OBBBA changes make reinvention more affordable—particularly for businesses investing in automation or AI.
Build for Scalability Create systems that flex up or down with contract wins, funding shifts, or M&A—without reorganizing your team.

Proof & Payoff

Businesses using Easby typically realize 20–50% cost savings , gain real-time visibility , and build the capacity to scale faster.

Those savings don’t sit idle—they’re redirected to innovation, AI integration, and talent development.

In a market where budgets are tightening and performance-based contracts are becoming the norm , a lean, intelligent back office is no longer optional. It’s your competitive edge .

The Bottom Line

Transformation isn’t about adding tools—it’s about reengineering how value flows through your organization .

Finance-as-a-Service is the bridge between today’s constraints and tomorrow’s innovation. By automating and optimizing your financial operations, you’re not just saving money—you’re unlocking growth capital.

Ready to See What You Could Reinvest?

Schedule a Financial Infrastructure Review to uncover how much reinvention your back office can fund.

About ROSE: For over 30 years, Rose Financial Solutions has helped government contractors and growth-focused businesses scale smarter. Our platform, Easby , delivers enterprise-grade financial infrastructure—with a goal of automating up to 85% of accounting and finance activities by 2030—so you can focus on strategy, execution, and market impact.

Ted Rose

ROSE Report: Modernize Finance. Empower People. Lead with AI.

Thu, 06 Nov 2025 18:40:17 GMT

Issue 102 - Modernize Finance. Empower People. Lead with AI.

CFO AI Action Plan: Modernizing Finance for 2026 and Beyond

Artificial Intelligence and automation aren’t optional anymore—they’re essential for every company’s business model. Financial Operations need to keep up with business model changes. The challenge is knowing where to start and how to scale without distracting from your company's core operations. I've outlined a practical, phased plan to help CFOs and finance leaders move from exploration to execution...
read more

Join the Mastermind: Winning Contracts and Delivering Results: Building a Scalable Project Management Office and Project Controls Framework

Join finance, accounting, and project management experts Ted Rose (ROSE), Wally Angel (ROSE), and John Connolly (Scaling Strategies) on November 13th at 12:00 PM ET for an in-depth session on building the right project foundation for long-term success...

Video: Brain Fade in Finance and How to Solve the $1.4 Trillion Problem

Thu, 06 Nov 2025 14:41:31 GMT

CFOs are investing in AI, automation, and analytics to drive agility, but on the front lines, finance teams are still stuck in manual, repetitive work that drains focus and costs businesses an estimated $1.4 trillion globally.

�� 40% of finance professionals’ time is spent on repetitive tasks
�� After just 41 minutes of repetition, errors and disengagement rise
�� 74% have considered quitting because of it

This “brain fade” isn’t just a productivity issue. It’s a threat to focus, accuracy, and creativity.
The solution? Automation that protects brainpower.

ROSE’s Easby platform gives CFOs and their teams real-time financials, advanced KPIs, and automated workflows; closing the gap between strategy and execution so finance teams can focus on analysis and value creation.

�� Watch Ted Rose explain how to eliminate brain fade and future-proof your finance function.

CFO AI Action Plan: Modernizing Finance for 2026 and Beyond

Sat, 01 Nov 2025 17:09:44 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

1. Focus on Core Competencies

Before deploying AI and automation, define what makes your company different. AI and automation should strengthen, not distract from, your core business model . Start by asking:

What repetitive, manual financial workflows are slowing us down our core business?
What would we gain if those processes were automated and real-time?
How can data from across the business better inform strategic decisions?

The goal isn’t more AI—it’s better clarity . Use automation to free up time for leadership to focus on growth, innovation, and client experience.

2. Streamline Financial Operations

AI and automation create value only when data readiness and controls are in place. CFOs should prioritize these projects:

Clean, reconciled data from ERP, payroll, and CRM systems
Automated reporting tied directly to data sources (no manual re-keying)
Documented approval flows and access controls for all finance automations
Regular back-testing and error logs to verify data accuracy

Key Point: There are many different types of AI. Make sure you are using the correct AI for the specific task in the process (i.e. do the math upstream and let Generative AI explain, not calculate).

3. Build a Secure, Compliant AI Foundation

Adopt AI safely with guardrails that make experimentation repeatable and auditable.

Use only paid/enterprise AI platforms with data encryption and audit logs
Keep all training off and prevent sensitive data (PII/PHI/PCI) from being exposed
Require human oversight for all external communications, reports, and filings
Keep human's in the loop to review transaction coding and processing - machine learning will help to reduce this over time, but LLM's alone won't get you to 99% accuracy.

AI success isn’t just technical—it’s cultural. Trust in the data starts with transparency. Make sure people understand and can audit the output.

4. Empower People, Not Just Systems

Automation changes job descriptions, not just workflows. The finance function must evolve from data-pullers to data translators —professionals who connect analytics to strategy.

Upskill teams in data interpretation, not just analysis
Create cross-functional rotations for business understanding
Reward curiosity and continuous learning, not just output

Finance is becoming the bridge between data, decisions, and direction .

5. Partner for Scale with FaaS

CFOs don’t have to go it alone. That’s where Finance-as-a-Service (FaaS) comes in.

FaaS allows CFOs to stay focused on their core business while leveraging scalable expertise in:

Finance system modernization and automation setup and maintenance
Data warehouse and dashboard integration and management
Transaction readiness and audit-ready reporting
Continuous improvement and operational efficiency

At ROSE , we partner with CFOs to modernize their back office—bringing together automation, analytics, and accounting under one unified financial infrastructure.

Our mission: to eliminate financial roadblocks so leadership can execute strategy with confidence.

6. Partner for Scale with FaaS

AI isn’t a one-time project—it’s a performance discipline.

Run routine roadmap sessions to evaluate automation ROI
Update data governance and access rules periodically
Publish lessons learned internally to drive adoption
Celebrate wins that free people from low-value work

The finance organization that learns fastest will lead the future.

Groups like the CFO Alliance are sharing real feedback from CFO's implementing AI and automation, but its clear that we are still in the early trial and error phase.

Bottom Line

CFOs are now the architects of automation and interpreters of intelligence. With the right partners and platforms, they can transform finance from a reporting function into an integrated real-time decision engine .

Rose Financial Solutions and FaaS stands ready to help CFOs modernize financial operations—securely, strategically, and continuously—so they can focus on what truly matters: building the future for their stakeholders. Connect with us to discover how: www.rosefinancial.com

Ted Rose

Podcast: Empowering Growth Through Financial Understanding

Fri, 24 Oct 2025 19:53:37 GMT

Ted Rose was interviewed on the Jet Setting Wealth Advisory podcast by David T. Yu. Ted shared his journey from Pricewaterhouse to founding a pioneering finance-as-a-service firm, transforming traditional accounting into a strategic growth engine. Learn how his AI-enabled platform, Easby, helps CEOs and CFOs make faster, more informed decisions while maintaining compliance and operational efficiency. Watch the episode above, or listen to the podcast episode everywhere podcasts are found.

Join the Mastermind: Winning Contracts and Delivering Results: Building a Scalable Project Management Office and Project Controls Framework

Fri, 24 Oct 2025 18:44:39 GMT

Join finance, accounting, and project management experts Ted Rose (ROSE), Wally Angel (ROSE), and John Connolly (Scaling Strategies) on November 13th at 12:00 PM ET for an in-depth session on building the right project foundation for long-term success.

Whether your organization is preparing to bid, recently awarded a contract, or scaling operations, this discussion will help you:

Understand when and why to establish a Project Management Office (PMO) and a Project Controls function.
Learn how standardized operations, workflow transparency, and milestone reporting improves project performance and contract compliance.
Assess your readiness by using proven frameworks from both financial and operational perspectives.

Walk away with actionable insights to strengthen project oversight, improve decision-making, and set your GovCon up for success from bid to close-out.

ROSE Report: Fund Growth Smarter with R&D Credits + FaaS

Thu, 23 Oct 2025 15:21:29 GMT

Issue 101 - Fund Growth Smarter with R&D Credits + FaaS

Beyond CAS and CAAS: Why Finance-as-a-Service Is the Complete Solution

In 1994, I founded ROSE to provide small to midsized companies with accrual-based accounting and financial operations support—a concept that was virtually unheard of at the time....
read more

Join the Mastermind: Join the Mastermind: R&D Tax Credits: How to Qualify, Claim & Maximize Your R&D Tax Credits

R&D Tax Credits are one of the most powerful but underutilized tools for boosting cash flow and funding growth. In this strategic webinar, we break down exactly how government contractors and growth-stage businesses can identify, claim, and manage R&D tax credits...

Beyond CAS and CAAS: Why Finance-as-a-Service Is the Complete Solution

Mon, 20 Oct 2025 19:13:56 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

In 1994, I founded ROSE to provide small to midsized companies with accrual-based accounting and financial operations support—a concept that was virtually unheard of at the time.

In 1995, I even coined the term “accounting outsourcing” in the Washington Business Journal. But as our clients grew, we quickly realized that providing historical financial information alone wasn’t enough. Growing companies didn’t just need to know what happened—they needed help understanding what’s next.

That’s why I had named the company Rose Financial, not Rose Accounting. From the beginning, I knew finance—not accounting—was the end goal.

By 2009, we signed what I consider to be our first Finance-as-a-Service (FaaS) agreement with Blackboard, embedding technology directly into our solution. By 2020, every ROSE client engagement included technology as a core component, and we had fully shifted to the FaaS model.

Meanwhile, the accounting profession was evolving too. The first DCPA conference in 2012 marked a turning point for the industry, accelerating the growth of Client Accounting Services (CAS) and Client Accounting and Advisory Services (CAAS). These have become the fastest-growing service lines for CPA firms over the past few years—and for good reason. They represent the profession’s recognition that clients want more than compliance—they want guidance and support.

But not all solutions are equal.

Many CAS and CAAS models rely on labor arbitrage—offshoring tasks to cut costs. ROSE took a different approach. Our version of FaaS focuses on automation and integration, not cheap labor. We invest in upskilling and developing professionals who can serve as trusted guides for our clients—leaders who help entrepreneurs and business leaders through their entire lifecycle, from startup to exit.

We’ve helped build unicorns and guided hundreds of founders through the complex journey of growth, scale, and success.

And now, with technology finally catching u p to our vision, we’re seeing the profession embrace what we’ve known all along—finance is the future.

The Limits of CAS and CAAS

CAS focuses on delivering the fundamentals—bookkeeping, reconciliations, payroll, and reporting. CAAS adds a layer of insight—helping clients interpret the data and offering strategic advice.

But as Hitendra R. Patil describes in his CAAS-Chasm framework, many firms get stuck in the gap between providing advice and helping clients execute.

The challenge isn’t the intent—it’s integration. Advisory has limited impact if it isn’t connected to the systems, people, and processes that bring it to life.

FaaS: Starting With the End in Mind

Finance-as-a-Service (FaaS) closes that gap. Instead of dividing work between accounting and advisory, FaaS starts with the business outcome and builds the complete financial infrastructure to deliver it.

FaaS unites the best of CAS and CAAS into one integrated, scalable model that combines:

People – Skilled finance professionals who guide, not just record.

Process – Streamlined workflows built on automation and best practices.

Technology – Enterprise-grade, AI-enabled systems that deliver real-time insights.

Organization – Integrated teams aligned with client goals.

Data – A single source of truth for clarity, accuracy, and strategic decision-making.

This approach ensures that insights become actions and that financial operations drive measurable results.

The Next Evolution of Finance

The accounting profession has made tremendous progress in moving from compliance to advisory—but FaaS goes further. It provides the full financial solution modern companies need to bridge strategy and execution.

Whether it’s supporting startups or scaling established enterprises, FaaS delivers end-to-end visibility, accountability, and agility.

This is a third option —beyond tax and audit—that the profession has been waiting for. And now that technology, automation, and AI are maturing, the opportunity has never been greater.

At ROSE, we’ve been doing this longer than anyone—and we’re just getting started.

�� The takeaway: CAS and CAAS are important steps in the profession’s evolution. But FaaS starts with the end in mind—bringing together people, process, technology, organization, and data to deliver complete, scalable financial clarity.

Ted Rose

Your Baby Is Ugly

Mon, 13 Oct 2025 17:52:36 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

In 2020, I proudly rolled out a new user interface for RFSWorkflow.

It allowed clients to get instant, easy access to their financial data through a clean, modern interface. Before that, RFSWorkflow was an accounting tool built by accountants, for accountants — powerful, but complex. To run a report, you had to navigate a maze of menus that made sense only to an accountant.

We thought we had solved the problem.

And then, a client looked me in the eye and said,

“Ted, your baby is ugly.”

It stung. But it was also the truth.

The Beginning: A Tailgate, a Spark, and an Idea

In 2005, I was at a University of Maryland football tailgate when a fraternity friend told me about a new technology being marketed by Xerox called "electronic workflow".

He said, “Ted, in the future, people will have two monitors — they’ll look at documents on one screen and enter data into another.”

As hard as that might be to believe today, that seemed revolutionary at the time.

That night, I Googled “electronic workflow.” Within a month, we had identified a partner. My goal was simple: introduce electronic workflows to our clients to make accounting faster, cleaner, and more accurate.

The Breakthrough: Blackboard and the Birth of Finance-as-a-Service

In 2009, we received an RFP from Blackboard , a public company in Washington, D.C., looking to outsource its accounts payable.

We responded — and won — against 11 international outsourcing firms , some of the biggest in the industry. That engagement became what we now call the first Finance-as-a-Service (FaaS) contract .

We brought together people, process, and technology , building a custom application that integrated directly into PeopleSoft. Within 90 days, we exceeded every SLA, and Blackboard’s payables were running better than ever.

A year later, we earned the #1 spot on the Black Book of Outsourcing , ranking as the top accounting outsourcing firm, worldwide, based on client satisfaction.

Evolution: From RFSWorkflow to Easby

Over the next decade, we transformed that custom application into a SaaS accounting workflow engine supporting our small to midsized clients across all accounting functions.

Then, in 2020, came that proud moment — and the humbling feedback: “Your baby is ugly.”

On top of that, we had completed an acquisition of a smaller accounting outsourcing firm that supported over 20 client companies. We struggled over the next year integrating those 20 clients into RFSWorkflow.

We realized we were living on aging technology. It worked, but it couldn’t carry us — or our clients — into the future. So, we started looking for our next-generation platform partner.

This time, we didn’t choose a niche vendor. We chose a world-class organization: Appian , another D.C.-based public company known for its enterprise-grade process automation solution.

The team spent over six months designing the future version of Easby — not as a replacement, but as the full realization of what we had always envisioned.

By December 2024, we had migrated every user off RFSWorkflow. Since January of 2025, we have operated exclusively on Easby.

The Next Frontier: Intelligent, Agentic Workflows

Appian has turned on 15 AI skills, and we’re thoughtfully activating them within Easby to benefit our clients.

We’re evolving RFSWorkflow from an accounting workflow tool into a business intelligence and analytics platform for small to midsized companies. In 2025 we began activating full financial dataset for our clients. The combination of these financial datasets and our new financial management module will give our clients access to advanced KPI capabilities that are integrated into generative AI. Appian is bringing the data security required while our Easby platform already has the data governance built in.

Easby now supports the entire financial lifecycle of a company — from startup to exit.

But the technology is only the glue . It connects our workflows with our clients’ workflows and their accounting systems — which remain the system of record . Our U.S. based workforce manages all the space in between as we march towards our goal of 85% automation by 2030.

We bring 20+ years of experience in electronic workflow and years of machine learning development . Now, we’re implementing Agentic AI — intelligent workflows that use LLMs to reduce human intervention.

Our people are becoming more effective and most importantly, our clients are more satisfied than ever. Our Net Promoter Score (NPS) jumped from 24 in September 2024 to 73 in September 2025.

The Takeaway: Embrace the Ugly Truth

Fifteen years after that first FaaS contract with Blackboard, we’re still building, improving, and evolving.

Sometimes, growth starts with a hard truth. Sometimes, you have to accept that your baby isn't perfect, that it needs support and nurturing. But if you put in the effort and maintain the discipline, your baby will grow and become something much more beautiful than you could ever image.

At ROSE, we’ve made the big investments to transform how finance operates. We’re here to share those benefits with business leaders who want to stay focused on their mission while we support them with infrastructure required to scale.

Because the future of finance isn’t about patching what’s broken — it’s about reinventing what’s possible.

Ted Rose

ROSE Report: Staying Competitive Through Disruptions

Thu, 09 Oct 2025 17:25:55 GMT

Issue 100 - Staying Competitive Through Disruptions

The Inflection Point for Global Labor

This week’s conversations underscored a clear shift: the rules of global labor are changing fast. The writing is on the wall: the economics of global labor are shifting. This week brought two seismic signals...

read more

Empowering Businesses to Scale with Financial Clarity and Confidence

Welcome to the very first edition of ROSE Insights—a weekly newsletter where I share perspectives on the trends, tools, and strategies reshaping finance and accounting. My goal is simple: to equip CFOs and business leaders with the clarity and confidence they need to scale...

Join the Mastermind: R&D Tax Credits: How to Qualify, Claim & Maximize Your R&D Tax Credits

Wed, 08 Oct 2025 13:24:32 GMT

R&D Tax Credits are one of the most powerful but underutilized tools for boosting cash flow and funding growth. In this strategic webinar, we break down exactly how government contractors and growth-stage businesses can identify, claim, and manage R&D tax credits. Whether you’re retroactively claiming past credits or optimizing current projects for eligibility, you’ll leave with a clear, compliant, and actionable game plan.

Join us on October 24th at 12:00 PM for an exclusive ROSE Mastermind led by Ted Rose , President, CEO, and Founder, and Tim Fargo , Client CFO, Tax Partner, ROSE CFO .

Quickly determine eligibility using the IRS 4-Part Test
Leverage recent legislation to expand your claim
Best practices for time and project costing
Understand how to calculate your claim value with confidence

Whether you’re a growth-stage GovCon, tech firm, or product innovator, this session will equip you with the clarity, tools, and roadmap to turn your R&D efforts into a strategic tax advantage.

How Businesses Should Respond to the Federal Government Shutdown

Fri, 03 Oct 2025 13:21:58 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

At 12:01 AM on October 1, 2025, the U.S. federal government shut down—marking the 22nd in modern history and the first under this administration. For GovCons, it's a direct hit: stalled contracts, furloughs, and cash crunches. For commercial firms, ripples hit supply chains, markets, and funding. At ROSE, we've weathered these storms with clients; clarity now builds resilience. Here's your playbook.

Guidance for Federal Contractors (GovCons)

Quick Confirm: Does This Shutdown Hit Your Contracts?

Before anything, ping your Contracting Officer (CO) today. Not all deals freeze—exemptions cover "essential" work like active defense or public safety (per FAR 52.242-15). Pull your mods: Is yours funded through FY25? Stop-work orders? CO confirmation is your North Star—avoids unauthorized work and clawbacks. (Pro tip: Document everything; audits love paper trails.)

1. Employee Status and Pay

Exempt employees must receive their full weekly pay if they worked at any point during the week.
Non-exempt employees may be placed on Leave Without Pay (LWOP) if no work is available, but companies must decide whether PTO must be used first.

2. Communication Protocols

Update out-of-office messages for furloughed staff.
Collect personal emails so updates continue during the shutdown.
Remind employees: no government-related work is permitted during LWOP—not even emails or calls.

3. Benefits and Financial Support

Health insurance typically continues for 30–90 days; after that, COBRA applies.
401(k) contributions and matches stop if pay does. Consider hardship withdrawal policies.
Share unemployment benefit eligibility details with staff (note waiting periods vary by state).

4. Contract Management and Cash Flow

Maintain close contact with your Contracting Officer. Even after the shutdown ends, staff cannot return until official notice is issued.
Expect delays in new awards and payments. Include funding contingency clauses in offers and subcontracts.
Model cash flow under different shutdown durations and secure credit lines early.
Redeploy idle staff to training, internal projects, or proposal development when possible.

5. Compliance Requirements

Restrict system access for employees on unpaid leave.
Update payroll and timekeeping instructions.
Review state-specific leave payout obligations.

Guidance for Commercial & Private Sector Companies

Even if your workforce won’t be furloughed, the shutdown poses risks:

1. Market and Credit Disruptions

This shutdown is being used as leverage for structural reductions in federal operations, which may reduce long-term federal spending.
Expect volatility in capital markets, delayed government-backed loans, and slower SBA activity.
Review cash reserves and liquidity to withstand tightening conditions.

2. Customer and Supply Chain Impacts

If your customers rely on federal funding, you may see project delays or reduced demand.
Regulated industries—such as defense-adjacent, healthcare, and transportation—should anticipate slower approvals, licensing, or inspections.

3. Labor Market Effects

Federal employees without pay may reduce consumer spending, impacting local businesses.
Reduction in Force (RIF) notices across agencies mean fewer federal jobs, freeing up skilled labor for private companies but potentially reducing federal demand in the long run.

Leadership Checklist for All Companies

Communicate clearly and often —both internally and externally.
Secure financial flexibility by confirming credit lines and modeling cash flow.
Re-deploy talent into constructive uses during downtime.
Stay informed on policy changes. Unlike past shutdowns, this one may permanently reset how agencies operate.
Lead with empathy. Acknowledge the stress and uncertainty. Your employees will remember how you managed this moment.

ROSE’s Perspective

Whether you’re a GovCon or a private business, this shutdown should be treated as a stress test of your financial infrastructure. The organizations that emerge stronger will be those that:

Keep employees informed,
Manage cash with discipline, and
Adapt operations quickly.

At ROSE, we guide our clients through uncertainty with a focus on clarity, discipline, and resilience. This shutdown is a challenge, but it’s also an opportunity to strengthen the systems that protect your people and your business.

Take Action Today

The shutdown’s impacts may deepen with every passing day. Now is the time to safeguard your workforce, secure your financial stability, and adapt your operations.

Contact ROSE today to discuss how we can help your organization navigate the shutdown with confidence and come out stronger on the other side.

Ted Rose

Join the Mastermind: Winning More Contracts in a Shifting Landscape - What FAR 2.0 and SBA Changes Mean for You

Tue, 30 Sep 2025 18:21:54 GMT

The federal contracting landscape is entering a period of rapid change. With the rollout of FAR 2.0 and sweeping SBA rule updates, small and growing businesses face both new risks and unprecedented opportunities. To stay competitive, contractors must understand how these shifts will impact eligibility, compliance, and growth strategies.

Join us on October 16th at 1:00 PM for an exclusive ROSE Mastermind led by Ted Rose , President, CEO, and Founder, and Wally Angel , VP of Finance and Accounting and Client CFO. In this interactive session, you’ll learn how to navigate the most pressing challenges facing GovCons today, including :

Strategic Positioning for 2026+: What steps should I take now to maximize contract wins in the changing landscape?
Competitive Edge Under FAR 2.0: What changes will level the playing field—or give larger firms the advantage—in federal bids?
Set-Aside Opportunities: Will updated size standards create more openings for small businesses or intensify competition?
Compliance Efficiency: How can I streamline documentation and stay audit-ready without slowing operations?
Scaling Without Barriers: How do I expand without hitting subcontracting limits or losing eligibility?
SBA Recertification Risk: Will new rules disqualify my company mid-contract and jeopardize existing revenue?
M&A Readiness & Valuation: How can I protect valuation and contract eligibility during acquisition, sale, or rapid growth?
Up date on Government Shutdown: What the latest developments mean for future funding and awards

Whether you’re planning for growth, considering M&A, or simply aiming to protect your competitive edge, this webinar will give you the insights and strategies to position your business for success.

Next in the Mastermind Series: How to Maximize Your R&D Tax Credits (Oct. 24)

If you’re attending our session on navigating FAR 2.0, you’ll also want to join our follow-up on R&D Tax Credits. Discover how to fund innovation and growth for your business and click here to register today.

Video: How ROSE Empowers GovCons, Nonprofits and Growth Stage Businesses with Financial Clarity

Thu, 25 Sep 2025 18:45:27 GMT

In this video, Ted Rose shares how ROSE delivers industry-specific support to government contractors, nonprofits, and growth-stage businesses—helping leaders gain confidence and clarity in their financial future.

From addressing the unique compliance needs of GovCons , to supporting nonprofits with grant reporting and audits, to uncovering hidden blind spots in growth companies, ROSE meets organizations where they are and provides the financial insight they need to move forward.

Ted also speaks directly to business leaders who feel stuck, uncertain about scaling, or overwhelmed by financial complexity—offering a clear path to getting started with ROSE. Viewers will discover what to expect in the first call, why proactive financial clarity matters, and the one thing every business owner should know about taking control of their financial future.

Whether you’re a GovCon, nonprofit, or growing business, ROSE is here to empower you with clarity, confidence, and a partner committed to your success.

ROSE Report: Labor Challenges, Financial Clarity, and the Path to Scale

Thu, 25 Sep 2025 15:33:07 GMT

Issue 99 - Labor Challenges, Financial Clarity, and the Path to Scale

The Inflection Point for Global Labor

Empowering Businesses to Scale with Financial Clarity and Confidence

The Inflection Point for Global Labor

Wed, 24 Sep 2025 14:14:36 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

This week’s conversations underscored a clear shift: the rules of global labor are changing fast...

The writing is on the wall: the economics of global labor are shifting.

This week brought two seismic signals:

A new $100,000 H-1B visa fee on new petitions, reshaping talent strategies.
Proposed legislation to remove tax deductions for offshored labor and add a 25% excise tax on outsourcing payments.

For decades, U.S. companies chased efficiency abroad, sending high-volume, low-cost work offshore. That playbook is closing.

The Inflection Point

Manufacturing is already showing us the pattern: when it returns onshore, it doesn’t bring back the old factory floors. It comes back automated—fewer workers, higher skills, higher pay.

Finance, accounting, and tax will follow the same path. The offshored back office isn’t coming back as armies of clerks. It’s coming back as automated processes, guided by a smaller number of skilled professionals .

This is the inflection point and leaders must decide now:

Will you invest in the financial infrastructure that automates work ?
Or wait until rising costs force your hand?

The Role of AI in the Shift

AI isn’t optional—it’s the accelerator. The move away from foreign labor toward automation will happen faster than most realize, and AI is the catalyst.

At ROSE, we’ve been preparing for this future. Our Easby platform already brings together 15 AI skills designed to eliminate bottlenecks, increase accuracy, and accelerate automation across finance and accounting.

Our mission is clear: by 2030, Easby will enable 85% automation of finance and accounting tasks —freeing leaders to focus on strategy, growth, and impact.

Built in the U.S., for U.S. Companies

While others depend on offshore labor, ROSE does not. We hire in the U.S., we build in the U.S., and we’re committed to supporting American companies (and foreign companies that want access to the US market) through this transition.

Automation is not about eliminating people—it’s about eliminating inefficiency . The companies that invest now will be the ones who thrive as this shift accelerates.

The Takeaway

The global labor equation has changed. The future belongs to leaders who embrace automation today , not tomorrow.

At ROSE, we’re ready. The question is—are you?

If you found this valuable, hit Subscribe to ROSE Insights and share it with your network. I’d also love to hear from you— what topics would you like me to cover in future editions?

Ted Rose

Video: Empowering CFOs to Lead Strategically

Fri, 19 Sep 2025 16:37:50 GMT

Are you planning an accounting system implementation? Don’t let costly mistakes derail your project. In this video, Wallace Angel breaks down the biggest accounting implementation mistakes companies make—and shares proven strategies to avoid them.

From poor planning and lack of stakeholder buy-in to data migration challenges and underestimating training needs, you’ll learn exactly what to watch out for. Plus, Wally provides actionable tips to ensure your implementation is smooth, efficient, and sets your organization up for long-term success.

What you’ll learn in this video:

The most common pitfalls in accounting system implementations
How to avoid disruptions during the transition
Best practices for planning, communication, and execution
Strategies that drive adoption and measurable results

Whether you’re a growing company, nonprofit, or government contractor, this video will help you approach your next implementation with confidence.

Empowering Businesses to Scale with Financial Clarity and Confidence

Fri, 19 Sep 2025 14:12:52 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

At ROSE, we know that scaling a company requires more than numbers—it takes a team with expertise across finance, accounting, tax, GovCon, and technology . Our approach is holistic: it starts with people, grows through process, is enabled by technology, and is connected through an enterprise-grade organization. Together, these elements generate the data leaders need to make informed decisions and remain compliant. We call this solution FaaS—Finance as a Service .

Our client base collectively generates $1–2 billion in annual revenue , and through this newsletter, I’ll be covering the challenges and opportunities that arise at every stage of growth—from start-up through exit. Expect practical insights on common issues finance teams face, along with proven strategies to overcome them.

One ongoing theme is automation and the future of finance . Offshoring once filled the gap in routine accounting work, but costs are shifting and technology is advancing. The real opportunity now is to build resilient, scalable financial infrastructure that delivers accuracy and insight—without relying solely on headcount.

In my video, Empowering CFOs to Scale Strategically , I share how CFOs can elevate their role as strategic advisors. By aligning People, Process, Technology, Organization, and Data , leaders can focus on growth, profitability, and execution—while ensuring the financial back office runs seamlessly.

As highlighted in our recent press release , ROSE is expanding our network of fractional CFOs and CPA firms , enabling leaders to gain both clarity about the past and confidence in the future. This is about more than numbers—it’s about building financial infrastructure that empowers companies to scale with precision.

This newsletter marks the beginning of an ongoing conversation. Each week, I’ll bring you actionable insights you can apply immediately to strengthen your role as a financial leader.

If you found this valuable, hit Subscribe to ROSE Insights and share it with your network. I’d also love to hear from you— what topics would you like me to cover in future editions?

Ted Rose

Video: The Biggest Accounting Implementation Mistakes & Proven Strategies to Avoid Them

Wed, 17 Sep 2025 20:13:38 GMT

What you’ll learn in this video:

The most common pitfalls in accounting system implementations
How to avoid disruptions during the transition
Best practices for planning, communication, and execution
Strategies that drive adoption and measurable results

Whether you’re a growing company, nonprofit, or government contractor, this video will help you approach your next implementation with confidence.

Rose Financial Solutions Empowers Fractional CFOs and CPA Firms to Support Clients with Scalable, AI-Enabled Financial Infrastructure

Thu, 04 Sep 2025 16:19:31 GMT

Rose Financial Solutions (“ROSE®”), a pioneer in Finance as a Service ( FaaS ), today announced new strategic partnerships designed to empower fractional CFOs and CPA firms to support clients with scalable financial infrastructure. Through alliances with Apex Finance Solutions, CFO Advisory DC, CTM Partners, and Rubino & Company , ROSE is expanding access to scalable, AI -enabled solutions that simplify financial operations and amplify the value advisors deliver to growing businesses.

“Fractional CFOs and CPA firms are critical growth partners for businesses, but they shouldn’t have to build financial infrastructure on their own,” said Ted Rose, President, CEO, and Founder of ROSE . “With these partnerships, we’re giving them access to enterprise-grade tools that drive efficiency, scalability, and insight—so they can remain focused on their most important role: trusted advisors.”

At the center of these partnerships is ROSE’s Finance as a Service ( FaaS ) model, which integrates People, Process, Technology, Organization, and Data . This framework simplifies back-office operations while empowering financial leaders with real-time insights, audit-readiness, and proactive decision-making . All four partners now gain access to Easby ® , ROSE’s AI-powered, enterprise-grade automation platform that seamlessly integrates with accounting systems to transform financial data into actionable intelligence.

Meet the Partners

Apex Finance Solutions : Guides high-performing entrepreneurs with executive-level financial leadership. With Easby®, Apex enhances its strategic advisory capabilities through real-time data insights.
CFO Advisory DC : Brings a global perspective from private equity, impact investing, and strategy consulting. Easby strengthens its ability to deliver operational excellence and scalable growth strategies.
CTM Partners : Specializes in driving scalable growth and operational efficiency through financial leadership. By leveraging ROSE’s FaaS model, CTM expands client visibility and decision-making agility.
Rubino : A Maryland-based CPA firm delivering audit, tax, and CFO consulting expertise (through their CAS – Client Accounting Services). By integrating Easby, Rubino enhances compliance readiness while delivering deeper client insights.

“This is just the beginning of our CFO and CPA partner network buildout,” added Rose. “Our goal is to ensure every growth focused organization in the nation has access to the same level of sophistication and scalability as enterprise finance teams—without the cost or complexity. Our nationwide network will reshape the way financial leaders deliver trusted, data-driven advisory services.”

About Rose Financial Solutions

ROSE is a leading provider of Finance as a Service (FaaS – next generation of finance and accounting outsourcing) , helping businesses simplify financial operations by aligning People, Process, Technology, Organization, and Data . Its enterprise-grade AI-enabled automation platform, Easby® , transforms financial data into actionable insights, enabling companies to scale with confidence and agility. With ROSE and Easby, organizations achieve audit readiness, operational efficiency, and data-driven decision-making—redefining the future of finance and accounting.

To learn more about how ROSE and Easby® can transform your financial operations, visit www.rosefinancial.com and www.easby.ai .

Ready to empower your firm with enterprise-grade financial infrastructure? Contact us today to explore partnership opportunities.

ROSE Report: Transforming Accounting into a Growth Engine

Fri, 29 Aug 2025 19:56:28 GMT

Issue 98 - Transforming Accounting into a Growth Engine

7 Red Flags It’s Time to Upgrade Your GovCon Accounting Software

For growing government contractors, an outdated accounting system isn’t just inefficient—it can be a threat to your business. Whether you're using QuickBooks or a legacy ERP, failing to adapt your systems as you scale can lead to compliance failures, cash flow issues, and missed growth opportunities...

read more

Video: How Financial Clarity Fuels Smarter Decisions and Drives Business Growth

Discover how financial clarity helps business leaders make smarter decisions and achieve sustainable business growth. In this discussion, executives from diverse industries share practical insights on using financial data to guide strategy, improve performance, and drive better outcomes...

7 Red Flags It’s Time to Upgrade Your GovCon Accounting Software

Fri, 29 Aug 2025 19:20:44 GMT

For growing government contractors, an outdated accounting system isn’t just inefficient—it can be a threat to your business. Whether you're using QuickBooks or a legacy ERP, failing to adapt your systems as you scale can lead to compliance failures, cash flow issues, and missed growth opportunities.

At Rose Financial Solutions (ROSE), we frequently encounter companies that wait too long to address accounting system limitations. By the time they approach us, many are already dealing with invoicing backlogs, DCAA compliance issues, and inefficient manual processes. Recognizing the signs early can save your organization time, money, and risk.

In a recent ROSE Mastermind session, Ted Rose and Wally Angel broke down the key moments when GovCons need to consider a system upgrade. Here are seven warning signs it might be time to upgrade your government contractor accounting system:

1. Cost-Reimbursable Contracts Require DCAA-Compliant Accounting

"An organization may have been issued their first cost reimbursable type agreement," said Wally Angel, VP of Finance & Accounting at ROSE. "That’s a key point at which an organization may need to evaluate its system."

Cost-reimbursable contracts require detailed tracking and reporting of actual costs, and failure to comply with FAR standards and DCAA guidelines could result in disallowed costs, delayed payments, or contract termination. While Quickbooks can be part of a DCAA approved accounting system, entry-level software like QuickBooks often lacks the controls, automated processes and audit trails needed to meet these rigorous requirements. If you're pursuing more complex federal contracts, upgrading to an ERP system designed around working with the federal government system such as Procas Unanet, Jamis, or Costpoint is essential for being able to scale and enhance compliance.

2. Reporting Outside the System Signals Risk

"When organizations find themselves doing more and more reporting outside of the system… building spreadsheets and manual processes, that's another key point," said Wally.

If your team is constantly exporting data to Excel, that’s a sign your current GovCon accounting system isn’t keeping up. Manual reporting slows decision-making and introduces risk. A cloud-based ERP system for government contractors should centralize and automate financial reporting, delivering real-time data to leadership and ensuring audit-readiness. Spreadsheets can serve a purpose, but they should never be the foundation of your compliance and decision-making infrastructure.

3. Lack of Visibility Across Contracts and Divisions

If you can’t easily track project performance, indirect rates, or labor distribution by contract, task order, or division, your accounting software is limiting your growth. As Ted Rose noted, "Business leaders who implement a new accounting system really want faster and better information."

Modern ERP solutions for government contractors empower CFOs and COOs to make strategic decisions with confidence. Full visibility into contract profitability and compliance metrics is essential for growth-focused GovCons. Without it, you're managing blindfolded and unable to optimize operations, forecast cash flow, or course-correct before issues arise.

4. Duplicate Data Entry and System Silos

"Not always identifying opportunities for integration between systems or the opportunity to eliminate redundancies is a mistake we see," Wally warned.

If your timekeeping, payroll, billing, and project systems don’t talk to each other, your team is wasting hours re-keying data and exposing the business to errors. An integrated, DCAA-compliant ERP system eliminates silos, improves accuracy, and provides a single source of truth for your financial data. Integration also allows for automation across approval workflows, timesheet validation, and expense tracking all critical for streamlining audit readiness.

5. Cash Flow Disruptions Due to Invoicing Delays

"As our clients get more complex contracts, their invoicing becomes more intricate oftentimes including subcontractor costs and indirect rates which leads to delays in invoicing and ultimately cash collection," said Wally.

Federal government contracts require accurate and timely invoicing through systems like WAWF or IPP. If your accounting platform can’t generate compliant invoices or automate the billing workflow, your cash flow can suffer. Invoicing delays lead to delayed payments and strain your working capital. A purpose-built ERP for government contractors allows you to invoice promptly, accelerate collections, ensure vendors are paid timely and manage cash flow proactively.

6. Your Accounting Software Is Outdated

Ted shared a compelling stat: "About 75% of companies have an ERP or accounting software that's been in place for over 5 years… and over 80% of CFOs are considering a change."

If your software hasn’t kept up with federal compliance requirements, cloud integration, or automation features, it’s no longer serving your needs. Software that doesn’t evolve can introduce risk and inefficiency. Many older systems also lack robust user access controls, audit logs, and built-in compliance checks that modern ERPs provide. Migrating to a modern system reduces the overhead of workarounds and can future-proof your finance operations.

7. You’re Planning for Growth, M&A, or an Exit

"Having clean data and scalable systems was the reason one of our clients was able to go from startup to 250 employees and successfully sell," Wally explained.

Whether you're pursuing an M&A transaction, private equity investment, or preparing for an IPO, your accounting infrastructure must withstand due diligence. DCAA-compliant systems support transparency, performance reporting, and audit readiness, which are key factors in maximizing valuation. Sophisticated buyers expect detailed financial information and profitability at the contract level, the ability to accurately forecast future performance, and automated controls. Having the right system in place signals operational maturity.

What to Ask Before Upgrading Your ERP

Before making a change, ask:

Is my current system scalable for 2x or 5x growth?
Can it handle cost pools, indirect rates, and DCAA-compliant accounting and timekeeping?
Does it provide real-time reporting to project managers?
Is it integrated with payroll, HR, and billing platforms?

If the answer is "no" to two or more of these questions, it’s time to evaluate alternatives.

Final Word: Don’t Wait for a Compliance Crisis

"You should really be focusing on what the end point is as opposed to where an organization is currently," Wally emphasized.

The decision to upgrade your GovCon accounting system is more than a technical change, it is a strategic investment in financial clarity, contract performance, and long-term growth. Early action leads to smoother implementations, fewer disruptions, and more accurate financials.

At ROSE, we don’t just recommend software. We partner with you to build the right Finance as a Service (FaaS) solution based on your stage of growth, contract type, and compliance needs. Our phased implementation approach ensures you don’t disrupt payroll, billing, or audit prep during the transition. ROSE is also equipped to manage your accounting system after implementation to ensure your financial back office operates seamlessly.

Schedule a call with ROSE to explore how we can build a DCAA-compliant Finance as a Service solution for your needs.

Explore more:

Video: How Financial Clarity Fuels Smarter Decisions and Drives Business Growth for Our Clients

Thu, 28 Aug 2025 17:58:30 GMT

Featured Speakers:

Jeffrey F. Brown , President, Founder, XCAL Shooting Sports and Fitness

Mark Foraker, President and CEO, Mercy Health Clinic

Will Astore, Founder and Executive Partner, G3

Wilson Geong , Vice President, Finance and Administration, Prison Fellowship International

Video: Individual Tax Changes for Entrepreneurs and Business Leaders | The One Big Beautiful Bill Act

Fri, 22 Aug 2025 20:16:51 GMT

Wondering how the One Big Beautiful Bill Act will affect your taxes as a business owner? In this video, we break down the key changes to individual taxes —and what they mean for entrepreneurs and business owners.

Speaker:
Timothy J. Fargo, CPA
Client CFO, Tax Partner, ROSE CFO
Rose Financial Solutions

Empowering CFOs to Lead Strategically: From Back Office to Boardroom

Fri, 15 Aug 2025 18:19:24 GMT

Please Note: This is a private, invite only event. All attendees are subject to approval.

Whether you are a part time or full time CFO, building a scalable financial infrastructure is challenging. It can feel like a grind when you're buried in vendor issues, payroll, customer follow-ups, and monthly closing tasks.

On September 18th at 4:00 PM ET , we are hosting an in-person Happy Hour for CFOs. At this event, you'll learn how to increase the amount of time you spend on strategic initiatives while the back-office is being handled.

Whether you're new to your existing role or looking to expand your capabilities, this in person event is geared towards you:

Unlocking recurring revenue by partnering with ROSE’s Finance as a Service model
Reducing time spent on bookkeeping, accounting, reporting, and tax
Delivering strategic value with audit-ready, real-time financial systems'
Understanding how a coordinated tech stack can help your company scale
Avoiding burnout from staffing, compliance, and manual process headaches
Building a scalable, client-first CFO office that grows your influence

You’ll leave with a clear roadmap to:

Build a resilient, scalable financial infrastructure
Increase the amount of time you spend improving growth and profitability
Focus on strategic advisory work

Who Should Attend?
CFOs, Controllers, finance consultants, and strategic advisors looking to ensure the availability of timely and accurate financial data. Whether you work with startups, nonprofits, or government contractors, this session is designed to help you scale smarter—not harder.

Why Attend?
✔ Meet ROSE CFOs and growth-focused leaders
✔ Learn how to scale without the operational drag
✔ Build strategic relationships that will help grow your business
✔ Network with high-performing peers in a relaxed, collaborative environment

This event is hosted by the RFS Gives Back Foundation . The goal of the RFS Gives Back Foundation is to support local causes in the Baltimore‐Washington, DC Metro area and to continue to make a difference every year. With the help of our donors, we will continue to see improvements in the community.

Please Note: This is a private, invite only event. All attendees are subject to approval.

Join the Mastermind: Building an Accounting System that Scales with Your Project Based Organization

Wed, 13 Aug 2025 20:23:09 GMT

Is your accounting system built for success or headed for trouble? Implementing new accounting software is one of the most important and risky financial decisions a business can make. Done right, it can unlock efficiency, compliance, and strategic insight. Done wrong, it can lead to reporting errors, compliance failures, and costly operational disruptions.

Join us on August 26th at 12:00 PM for an exclusive ROSE Mastermind led by Ted Rose , President, CEO, and Founder, and Wally Angel , VP of Finance and Accounting and Client CFO. Whether you’re a government contractor , scaling business , or nonprofit navigating complex financial requirements , this 1-hour mastermind will walk you through:

Risk of Compliance Failures

Worry that a poorly implemented system will fail to meet DCAA, FAR, GAAP, or other regulatory requirements, leading to audit issues, penalties, or contract loss.

Disruption to Operations & Cash Flow

Fear that a system transition will cause billing delays, reporting gaps, or payment issues that hurt cash flow and profitability during the changeover.

Inaccurate or Unusable Financial Data

Concern that incorrect setup, poor integration, or lack of user training will produce unreliable reports, making it impossible to make informed strategic decisions.

Meeting Internal and External Reporting Needs

Small business owners fear that their new system won’t deliver the reports needed for internal decision-making (e.g., project-level financials) or external obligations (e.g., DCAA audits, board reporting), limiting strategic visibility.

Integrating Disparate Systems for Efficiency

Participants worry about disconnected systems (e.g., payroll, timekeeping, billing) causing manual data entry, duplicate work, and mismatched reports, which hinder operational efficiency.

Designing a System for Tomorrow That Scales with Growth

Executives are concerned that their new system won’t support future growth, such as handling increased contract volumes, complex cost-reimbursable contracts, or M&A activities, leading to the need for costly modifications later.

You’ll leave with a clear action plan to reduce risk, increase financial clarity, and build a system that supports confident decision-making and scalable growth.

Top 2025 Tax Changes for Businesses Under the One Big Beautiful Bill Act

Fri, 08 Aug 2025 18:23:25 GMT

Wondering how the One Big Beautiful Bill Act will affect your taxes and bottom line? In this video, we break down the key changes to business taxes —and what they mean for small and mid-sized businesses, especially government contractors.

Speaker:
Timothy J. Fargo, CPA
Client CFO, Tax Partner, ROSE CFO
Rose Financial Solutions

ROSE Report: Building Systems that Scale

Wed, 06 Aug 2025 20:13:04 GMT

Issue 97 - Building Systems that Scale

Implementing Accounting Software? Here's How to Avoid Common Pitfalls and Build a System That Work

Implementing or upgrading accounting software should bring greater accuracy, visibility, and control to your organization. But for many government contractors, nonprofits, and growing businesses, the process becomes unexpectedly difficult. The issue is rarely the software itself. It is what happens around the software; unclean data, poor planning, disconnected systems, and unclear responsibilities that derail progress...

read more

The ROSE Financial Clarity Guarantee: Your Path to Compliance, Confidence, and Scalable Growth

If your organization is grappling with financial complexity, delayed reports, or mounting compliance pressures, you're not alone. Whether you’re a government contractor preparing for a DCAA audit, a nonprofit managing grants and restricted funds, or a rapidly scaling business struggling to track profitability and cash flow, one thing is clear...

Implementing Accounting Software? Here's How to Avoid Common Pitfalls and Build a System That Works

Wed, 06 Aug 2025 18:09:06 GMT

Implementing or upgrading accounting software should bring greater accuracy, visibility, and control to your organization. But for many government contractors, nonprofits, and growing businesses, the process becomes unexpectedly difficult. The issue is rarely the software itself. It is what happens around the software; unclean data, poor planning, disconnected systems, and unclear responsibilities that derail progress.

Successful implementation requires more than technical configuration. It requires strategic thinking, operational understanding, and a partner who is deeply familiar with the financial realities of your organization. Below are common obstacles organizations face during implementation, along with practical ways to resolve them.

Clean Your Data and Clarify Responsibilities from Day One

One of the most frequent challenges is migrating incomplete or inconsistent data from legacy systems or former providers. If the data isn’t cleaned and validated beforehand, errors and confusion will persist long after the system goes live.

At the same time, many projects stall because internal teams don’t have timely access to systems or clear ownership of roles. Whether you’re using QuickBooks, Costpoint, Procas, or Unanet, you need admin-level access and a primary contact in place early.

At ROSE, we start every implementation with a thorough cleanup of financial data and immediate coordination with internal teams to prevent bottlenecks and ensure a smooth transition.

Strengthen Accounting System Expertise and Address Operational Inefficiencies

Another common delay arises from lack of access to essential systems. Whether it is QuickBooks, Costpoint, Procas, or Unanet, waiting on credentials or clarifying who is responsible for what slows down implementation and introduces unnecessary risk.

It is important to assign a primary internal contact and verify administrator-level access for all relevant systems as early as possible. At ROSE, this coordination is started immediately to prevent bottlenecks during onboarding.

Separate Accounting System Issues from Billing and Contract Complexities

While billing issues and contract structure challenges (e.g., CPFF, T&M, fixed price, or hybrid models) are often top of mind, they are distinct from broader system-level issues like navigation problems, excessive manual entry, or poor reporting functionality.

At ROSE, we break these apart intentionally, ensuring your system is configured to handle complex billing rules and contract types. Additionally, the ROSE Team reviews the overall system setup for inefficiencies that may be holding your team back.

Don’t Just Set Up the System; Map Your Integrations

Today’s finance teams rely on more than just one platform. Payroll, timekeeping, billing, payment, and expense management systems all need to work together. When these platforms remain disconnected, you end up with manual data entry, duplicate work, and mismatched reports.

Before going live, map out which systems need to connect, what data flows between them, and how to automate that process. ROSE works with clients to align all systems into one integrated environment tailored to their tech stack.

Configure for Compliance from the Start

Government contractors and nonprofits have unique compliance requirements. Whether you are working toward DCAA readiness, preparing for a board audit, or maintaining grant and fund restrictions, the system must be built with those standards in mind.

ROSE ensures that our implementations reflect these requirements in the chart of accounts, indirect cost pool setup, and timekeeping configurations. We believe that compliance should be part of the initial design, not an afterthought.

Align Your System with Strategic Goals

The best systems are not just well configured. They are aligned with how your leadership makes decisions. Whether you are tracking project profitability, preparing for an acquisition, or managing grant funding, the reports you receive should help you act with confidence.

We encourage every client to think beyond day one. What will the CFO, board, or investors need to see in three, six, or twelve months? A fresh software implementation is an opportunity to re-envision a structural framework to support the reporting, KPI’s, profit and loss tracking and other operational requirements of a growing firm. ROSE builds those requirements into the initial reporting framework to support smarter long-term planning.

Select the Right Implementation Partner

Choosing the right implementation partner is paramount for a growing government contractor adopting new accounting software, as it ensures a system tailored to the company’s unique structure and reporting needs. A knowledgeable partner deeply understands your organizational framework, internal reporting requirements (e.g., project-level financials), and external obligations (e.g., FAR, DFARS, and DCAA compliance for incurred cost submissions or SF-1408 surveys).

Selecting the wrong partner often leads to a poorly designed system that fails to meet reporting and other business needs, resulting in costly modifications, compliance risks, and operational inefficiencies that hinder your ability to scale and succeed. ROSE takes time up front to help guide its clients through a thorough understanding of the current and future reporting needs to ensure the system can scale as a company scales.

Make Implementation Work for You

A successful accounting system is not measured by software features. On the contrary, it is measured by how well it supports your financial clarity and operational confidence. Implementation is your opportunity to clean up the past, build a scalable infrastructure, and enable better decisions going forward.

If you are thinking about an upgrade or evaluating whether your current system is aligned with your needs, it helps to have experienced support.

Fill out our pricing form to receive a tailored estimate and learn how Rose Financial Solutions can help you implement a system that does more than just run; it helps you grow with confidence.

ROSE Report: Financial Clarity and Compliance, Guaranteed

Thu, 31 Jul 2025 20:07:53 GMT

Issue 96 - Financial Clarity and Compliance, Guaranteed

The ROSE Financial Clarity Guarantee: Your Path to Compliance, Confidence, and Scalable Growth

Video: R&D Tax Credits and Bonus Depreciation: What The One Big Beautiful Bill Act Means for Your Business

Wondering how the One Big Beautiful Bill Act will affect your taxes and bottom line? In this video, we break down the key changes to R&D tax credits and bonus depreciation—and what they mean for small and mid-sized businesses, especially government contractors.

watch now

The ROSE Financial Clarity Guarantee: Your Path to Compliance, Confidence, and Scalable Growth

Thu, 31 Jul 2025 18:34:27 GMT

You cannot grow with confidence unless your financials are clear and dependable.

That is why Rose Financial Solutions created the ROSE Financial Clarity Guarantee, a commitment to delivering financial systems, insights, and support that equip you to lead with control and clarity.

What Is the ROSE Financial Clarity Guarantee?

It is a promise that your business will receive:

On-Time Monthly Financial and KPI Reporting
Guaranteed Pass on Your Audits and Reviews
Improvement in Your Financial Results

Our Finance as a Service (FaaS) model brings together experienced professionals, proven processes, and advanced technology to reduce complexity, provide you with the data you need to make better decisions, and unlock your full potential.

Government Contractors

For government contractors, financial clarity is not optional. A misstep in cost allocation or rate calculation can delay payments or trigger an audit failure. With shifting regulations and heightened oversight, the margin for error is reducing.

ROSE helps government contractors:
• Build and maintain DCAA-compliant accounting systems
• Track indirect rates and cost pools with precision
• Prepare audit documentation with confidence

The result is reduced compliance risk, improved cash flow, and stronger competitive positioning on future contracts.

Nonprofits

Nonprofit organizations operate under intense scrutiny. Donors, board members, and grant-makers expect timely, transparent financial reporting, and internal teams are often stretched too thin to keep up.

ROSE supports nonprofits by:
• Delivering accurate, board-ready financials
• Automating fund tracking and reporting
• Ensuring audit readiness and compliance for grant and restricted funds

With ROSE, nonprofits regain the operational clarity needed to grow impact, steward resources, and build donor trust.

Growth-Focused Businesses

For high-growth companies, finance is often a bottleneck. Rapid expansion brings increasing financial complexity, and internal teams frequently lack the bandwidth or expertise to keep up.

ROSE empowers growing businesses by:
• Providing near real-time financial dashboards and forecasts
• Managing back-office operations with scalable systems
• Offering financial insights without the overhead of a full-time hire

The outcome is clear financial visibility, improved strategic decision-making, and readiness for investment, acquisition, exit, or expansion.

Get a Cost Estimate for Your Business

The ROSE Financial Clarity Guarantee is a results-driven approach grounded in decades of experience helping organizations scale with confidence. We’ve helped our clients grow from start-up/early stage to $100+ million in revenue with countless successful exits.

If you are struggling with compliance, delayed reporting, inconsistent cash flow, or limited financial visibility, the first step to solving these challenges is understanding what a modern finance solution looks like for your unique needs.

Fill out our pricing form to get a personalized cost estimate and discover how ROSE can help you gain financial clarity and scale with confidence.

R&D Tax Credits and Bonus Depreciation: What The One Big Beautiful Bill Act Means for Your Business

Wed, 30 Jul 2025 18:13:13 GMT

Speaker:
Timothy J. Fargo, CPA
Client CFO, Tax Partner, ROSE CFO
Rose Financial Solutions

ROSE Report: Priorities Are Changing—Are Your Plans at Risk?

Thu, 10 Jul 2025 19:58:18 GMT

Issue 95 - Priorities Are Changing—Are Your Plans at Risk?

Watch Now: Scaling Finance & Accounting Infrastructure for Business Growth | Expert Panel Discussion

How do successful businesses scale their finance and accounting operations as they grow? In this insightful panel hosted by Rose Financial Solutions, leading executives share real-world experiences and proven strategies for evolving finance infrastructure.

read more

Supreme Court Decision Could Spur Prosecutions of Government Contractors

On May 22, 2025, the U.S. Supreme Court dropped a bombshell for government contractors in Kousisis v. United States. The ruling? You could face criminal fraud charges for misrepresenting your eligibility to win a contract—even if you deliver flawless work and the government loses nothing. For small to mid-size GovCons in the $700+ billion federal procurement market, this decision raises the stakes, especially as the Department of Justice (DOJ) ramps up its fight against procurement fraud in 2025.

How Government Contractors Can Successfully Pivot to DoD Contracts

Thu, 10 Jul 2025 18:03:02 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

Government contractors are increasingly looking to pivot from serving civilian agencies—such as the Department of Health and Human Services (HHS) or Department of Energy (DOE)—to securing contracts with the Department of Defense (DoD).

This shift is driven by several converging forces:

Federal budget reallocations favoring defense programs
National security priorities under renewed focus
Defense modernization efforts requiring new vendors, technologies, and services

As more contractors recognize the revenue potential within the DoD, the importance of transforming internal operations—especially in finance and accounting—cannot be overstated.

At ROSE , we specialize in helping government contractors scale smartly with Finance as a Service (FaaS) , building the financial infrastructure they need to succeed in the highly regulated DoD landscape.

Understanding the DoD Landscape

While the federal acquisition process is complex across all agencies, the Department of Defense introduces new layers of intensity, especially in compliance, cost accounting, and audit requirements.

Civilian vs. DoD: What’s Different?

DFARS Compliance : DoD contracts adhere to the Defense Federal Acquisition Regulation Supplement (DFARS) , which supplements the Federal Acquisition Regulation (FAR) with stringent rules on cybersecurity (e.g., CMMC Level 2 for protecting Controlled Unclassified Information and CMMC Level 1 for protecting contractor financial systems), national security, and defense-specific requirements, unlike civilian contracts that primarily follow FAR and agency-specific supplements.
Heightened Oversight : DoD contracts face rigorous Defense Contract Audit Agency (DCAA) scrutiny, demanding robust systems for cost tracking, timekeeping, and rate structures, compared to what could be considered lighter oversight from civilian agencies.
Audit Intensity : Due to DOD’s higher use of cost reimbursable contract types, contractors may be required to submit incurred cost proposals , establish provisional billing rates , and demonstrate an adequate accounting system (e.g., via SF 1408 pre-award surveys), often before contract award—a level of rigor less often seen in civilian contracts.
Complex Indirect Rates : DoD requires contractors to develop and justify detailed indirect cost pools (e.g., overhead, G&A), which undergo thorough pre- and post-award audits, unlike the simpler rate structures often accepted by many civilian agencies.

According to the June 2024 Government Accountability Office (GAO) report , the DoD continues to roll out the Defense Agencies Initiative (DAI) —a standardized financial management platform aimed at improving audit outcomes and accountability. Contractors must be prepared to mirror this standardization in their own operations.

Financial Implications of the Pivot

Moving from a civilian-focused accounting model to one ready for DoD contracts requires a fundamental shift in how your financial systems operate.

Why Traditional Systems Fall Short

Legacy systems—especially those reliant on manual entry, spreadsheets, or generic accounting software—can’t keep up with DCAA requirements. Common pain points include:

Delayed or incomplete indirect rate calculations
Inadequate segregation of allowable and unallowable costs
Limited visibility into contract-level profitability

The Need for Real-Time and Audit-Ready Systems

To thrive in the DoD space, contractors need:

Integrated financial dashboards tied to contract deliverables
Automated compliance checks and timekeeping tools
Documentation systems aligned with DCAA audit procedures

At ROSE, we’ve built the Easby platform to address exactly these challenges. Easby provides near real-time financial reporting, audit trail functionality, and a scalable structure designed for contractors of all sizes entering or growing in the DoD space. With Easby, you can confidently support everything from small SBIRs to large cost-plus-award-fee contracts.

Lessons from the Field

Many of our clients have successfully navigated the pivot to DoD—and we’ve seen what works.

Ted Rose , our founder and CEO, and Wallace Angel , a Client CFO advisor at ROSE, regularly advise clients on:

Building compliant indirect rate structures from the ground up
Streamlining project controls to support timely billing
Preparing for DCAA pre-award, post award and incurred cost audits

One common takeaway? Start early. Many contractors wait until they’re under contract to update their systems. By then, it’s often too late to avoid costly retroactive changes or failed audits. Additionally, many cost reimbursable contracts require a “pre-award survey” conducted by DCAA that must be completed before an award can be made. In many cases, the use of a letter of adequacy from a third-party accounting firm is acceptable as part of a proposal's submission, but a full DCAA review may be required later.

Policy Shifts and Strategic Opportunities

The current policy environment under the second Trump administration favors increased defense spending, simplified procurement channels, and incentives for innovation in national security.

Key Trends:

Expansion of Other Transaction Authority (OTA) contracts
Renewed focus on Made in America and domestic manufacturing
Funding boosts to AI, cybersecurity, and unmanned systems

These trends create an ideal opportunity for innovative, agile contractors—but only those prepared to meet DoD expectations.

ROSE’s Mastermind sessions help clients translate these shifts into growth. We break down policy changes and help clients understand how to:

Adjust indirect cost recovery strategies
Position their financial systems for scaling
Anticipate DCAA audit triggers

Actionable Steps for Contractors Entering the DoD Market

Thinking about making the shift? Here’s what you can do now:

Prepare Your Accounting System for DCAA Approval:

Implement job cost accounting
Separate direct, indirect, and unallowable costs
Track time daily with detailed labor distribution
Establish written policies and procedures
Ensure you accounting system meets CMMC Level 1 standards

Know When to Bring in a Fractional CFO

You don’t have to go it alone. A Fractional CFO can help you:

Design indirect cost pools and provisional rates
Oversee audit preparation and incurred cost submissions
Align project budgets with corporate forecasting

ROSE’s FaaS model gives you access to senior financial leadership without the burden of full-time overhead.

Align Finance and Project Controls

Long-term success in the DoD market means tightly integrating your financial team with program managers and operations. That means:

Forecasting burn rates by project
Tracking contract milestones tied to billing
Using relevant cost data to support change orders and re-negotiations... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Wallace Angel, CPA

Join the Mastermind: Navigating the One Big Beautiful Bill Act (OBBBA)

Wed, 09 Jul 2025 17:51:29 GMT

Major tax reform is here—are you ready to leverage it to your advantage? The One Big Beautiful Bill Act (OBBBA), signed in July 2025, has some provisions taking effect on January 1, 2025, with sweeping changes that impact how you plan, invest, and report. Whether you're a government contractor, scaling business, or a nonprofit with taxable income, this 45-minute session will give you the insights to move forward with clarity and confidence.

In this session, we’ll cover:

1. Busine ss Tax Reform and Strategic Planning

Understand the new 18% flat corporate tax rate and its impact on C-corp structures
Explore the expanded 23% QBI deduction for pass-throughs and what phaseouts mean for growth-stage firms
Learn how these updates affect entity selection, tax positioning, and long-term planning

2. R&D Expensing, Innovation Incentives and How to Optimize Cash-Tax Savings

Analyze requirements to achieve and maintain compliance
See how full R&D expensing is restored—unlocking immediate write-offs for eligible investments
Navigate enhanced credits and deductions for domestic innovation and manufacturing
Learn timing strategies for maximizing 2025 investments before the law takes effect

3. Depreciation and CapEx Strategy

Align bonus depreciation and Section 179 expensing with project and asset planning
Understand how new rules affect project timelines, capital investment, and Revitalization Zone bonuses
Learn to structure cost pools and reporting to support future audits and competitiveness

4. Compliance Simplification and Reporting Changes

Get ahead of mandatory e-filing rules for 10+ returns and understand IRS enforcement timelines
Learn about the increased 1099 threshold—from $600 to $2,000—and how it reduces reporting friction
Discover small business simplifications in accounting method and inventory rules

ROSE Report: Smarter Growth with a Scalable Financial Infrastructure

Fri, 27 Jun 2025 17:59:36 GMT

Issue 94 - Smarter Growth with a Scalable Financial Infrastructure

Watch Now: Scaling Finance & Accounting Infrastructure for Business Growth | Expert Panel Discussion

Supreme Court Decision Could Spur Prosecutions of Government Contractors

Scaling Finance & Accounting Infrastructure for Business Growth | Expert Panel Discussion

Thu, 26 Jun 2025 13:33:45 GMT

How do successful businesses scale their finance and accounting operations as they grow? In this insightful panel hosted by Rose Financial Solutions , leading executives share real-world experiences and proven strategies for evolving finance infrastructure.

Moderator:
Timothy J. Fargo, CPA
Client CFO, Tax Partner, ROSE CFO
Rose Financial Solutions

Featured Panelists:

Jeffrey F. Brown – President & Founder, XCAL Shooting Sports and Fitness
Wilson Geong – Vice President, Finance and Administration, Prison Fellowship International

Topics Covered:

How the use of data and KPIs evolves with business growth
Changing tech stacks, systems, and technical expertise in scaling companies
How industry dynamics impact financial system design
The evolving role of the CFO in modern organizations

Whether you're navigating rapid growth, modernizing your tech stack, or rethinking the CFO’s role, this discussion offers practical takeaways from leaders who’ve done it. Hear how they built finance and accounting systems that scale — and what they’d do differently knowing what they know now.

Topics Covered:

How the use of data and KPIs evolves with business growth
Changing tech stacks, systems, and technical expertise in scaling companies
How industry dynamics impact financial system design
The evolving role of the CFO in modern organizations

The Strategic CFO Playbook: Scaling Financial Leadership from Start-up to $100M+

Thu, 19 Jun 2025 15:36:39 GMT

Ted Rose , CEO of Rose Financial Solutions, shares how today’s CFOs can overcome financial bottlenecks and lead with confidence at every growth stage. Learn how Easby and Finance as a Service (FaaS) help automate up to 85% of finance tasks—unlocking real-time insights, compliance, and scalable operations from start-up to $100M+.

ROSE Report: Navigating the Supreme Court’s New Fraud Standard

Thu, 12 Jun 2025 20:42:16 GMT

Issue 93 - Navigating the Supreme Court’s New Fraud Standard

Supreme Court Decision Could Spur Prosecutions of Government Contractors

Government Contracting in a Tariff Era: How AI, Automation, and Operational Data Give US-Based Firms the Edge

Markets responded dramatically after President Trump partially reversed course and paused many of the newly imposed tariffs for 90 days. The S&P 500 surged 9.5% on the 9th —one of its biggest single-day gains since World War II—after the administration confirmed that most tariffs outside of China would be temporarily suspended. Treasury Secretary Scott Bessent clarified that while the 10% baseline tariff on global goods would remain, elevated rates on countries like the EU and Japan were being paused. However, tariffs on Chinese imports increased to 145%, signaling continued volatility.

read more

Supreme Court Decision Could Spur Prosecutions of Government Contractors

Thu, 12 Jun 2025 19:44:05 GMT

By WALLY ANGEL , ROSE FINANCIAL SOLUTIONS

A Landmark Ruling on Fraudulent Inducement

At the center of Kousisis was a common scenario in federal contracting: the use of disadvantaged business enterprises (DBEs) to meet diversity goals. In this case, Pennsylvania contractor Alpha Painting & Construction and its principal, Stamatios Kousisis, falsely claimed they would source paint from a certified DBE. Instead, a pass-through entity was used—one that added no commercial value and merely facilitated a markup scheme.

Although Alpha completed the bridge repairs to PennDOT’s satisfaction, the Supreme Court ruled that the misrepresentation itself—used to win the contract—constituted wire fraud under 18 U.S.C. § 1343. The key takeaway? It’s not the end result that defines fraud, but the intent and misrepresentation at the time of award.

How this Ruling Changes the Game for Contractors

Traditionally, fraud cases hinged on the government showing a financial loss or poor contract performance. The Kousisis decision shifts that standard:

No need for economic harm : Prosecutors don’t have to prove that the government lost money.
Focus on intent and materiality : The misstatement must be material—meaning it influenced the government’s decision—and must aim to obtain money or property.

This expands the prosecutorial toolkit for DOJ and raises the compliance stakes for contractors.

Compliance Blind Spots Now Under Scrutiny

This ruling is likely to energize enforcement under existing laws like the False Claims Act and criminal wire fraud statutes. Specifically, contractors should be aware of increased risk around:

DBE and minority subcontracting certifications
DEI (Diversity, Equity & Inclusion) statements and metrics
Cybersecurity compliance and data handling protocols
Certifications in grant applications and cooperative agreements

DOJ’s Civil Rights Fraud Initiative, launched recently, encourages whistleblowers to report fraudulent use of federal funds tied to social programs or policies—creating a new front in procurement fraud enforcement.

The Materiality Standard: A Guardrail with Limits

The Court emphasized that misrepresentations must be “material”—central to the contract’s purpose—to count as fraud. This protects contractors from overzealous prosecutions over minor issues, like procedural errors, but leaves room for DOJ to target significant misstatements, such as false DBE certifications.

Sentencing Still Tied to Economic Impact

Even if economic loss isn’t necessary for conviction, it still affects sentencing. Courts may reduce penalties based on the actual value of services rendered —not the total contract amount. This nuance could discourage overly aggressive prosecution where the government ultimately received fair value.

What Contractors Should Do Now

With DOJ putting fresh energy into procurement fraud enforcement, contractors—especially small and midsize firms—must shore up their compliance systems. Here’s a quick checklist:

Review your certifications and representations on all current and past contracts.
Audit subcontracting relationships , particularly those tied to DBE or DEI goals.
Strengthen internal controls and reporting processes for bids and performance tracking.
Document Everything: Keep detailed records of subcontractor agreements and performance to counter potential allegations.
Train business development teams on the legal risk of inaccurate eligibility claims... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Wallace Angel, CPA

Client CFO, Tax Partner, ROSE CFO

Join the Mastermind: Winning GovCon Bids with Smart Pricing

Tue, 10 Jun 2025 17:18:32 GMT

Join Ted Rose , Timothy Fargo , and Wally Angel for a high-impact mastermind session designed for government contractors and nonprofit leaders ready to level up their proposal strategy and pricing practices. This session will equip you with the latest insights and practical tools needed to build compliant, competitive, and compelling cost volumes in 2025’s evolving government procurement environment.

In this session, we’ll cover:

1. Update on the Government Contracting Marketplace

Get briefed on the current federal contracting climate, including funding trends, shifts in agency priorities, and what’s new in procurement policies that could affect your bidding strategy.

2. Proposal Strategy & Procurement Landscape

Understand the modern landscape of government solicitations. We’ll discuss how to position your business or nonprofit for success with strategies tailored to today’s RFP formats, evaluation criteria, and award processes.

3. Building a Compliant and Competitive Cost Volume

Learn how to construct pricing and cost volumes that meet federal requirements while staying aligned with your internal goals and operational costs. We’ll walk through compliance fundamentals and offer examples of structures that win.

4. Best Practices and Tools for Pricing Proposals

Discover the latest tools, best practices, and methodologies for proposal pricing—whether you’re handling it in-house or working with external support. We’ll highlight how to avoid common pitfalls and elevate your pricing narratives to make them proposal-winning assets.

Walk away with actionable steps to fine-tune your pricing approach and confidently respond to upcoming RFPs with proposals that stand out.

Tax Planning for Growing Businesses | Expert CFO Tips Entrepreneurs Need to Know to Stay Compliant

Ted.Rose@RoseFinancial.com (Ted Rose) — Fri, 30 May 2025 18:39:36 GMT

Are you a growing business or entrepreneur trying to stay ahead of tax deadlines and avoid costly mistakes? In this video, Ted Rose , CEO and Founder of Rose Financial Solutions, hosts an engaging conversation with Tim Fargo, CPA —a tax expert and Client CFO with over 30 years of experience helping businesses stay compliant and plan ahead.

Tim Fargo shares practical, easy-to-follow tax planning tips to help your business:

Avoid common tax pitfalls
Stay compliant with IRS rules
Prepare for audits with confidence
Plan ahead for growth and tax efficiency

With decades of experience in finance, nonprofits, and the construction industry, Tim breaks down what business owners need to know to make smarter financial decisions and reduce tax season stress.

Whether you’re scaling fast or just starting out, this video gives you the expert CFO advice you need to manage your taxes the right way.

Timothy J. Fargo, CPA

Tim Fargo is a CPA with over 30 years of accounting and business management experience. He has 9 years of direct non-profit experience in the design and construction industry. Tim’s expertise includes the management of staff, strategic planning, budget preparation, financial statement presentation, and audit and tax preparation work.

Conference Recap: Key Insights from the ROSE FaaS Conference

Wed, 28 May 2025 19:20:32 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Last week, industry leaders, CFOs, and GovCon experts gathered for an impactful afternoon of financial strategy, innovation, and executive networking. This high-impact event was designed to help government contractors, nonprofits, and growth-focused businesses navigate financial strategy, industry trends, and AI-driven solutions.

-------

The Strategic CFO Playbook: Scaling Financial Leadership from Start-up to $100M+

Ted Rose , President and CEO of Rose Financial Solutions, opened with a powerful session on the future of financial leadership. From the Five Pillars of Modern Finance to the shift from labor to automation arbitrage, his message was clear: growth requires both structure and innovation.

Harnessing the Power of LinkedIn for Contractors…and others!

Mark Amtower , Consultant, GovCon Influencer, Strategist and Founder of Amtower & Company showed us how to refine our digital presence to build thought leadership, especially in the GovCon space. His insights on leveraging LinkedIn and adapting marketing strategies in an evolving political landscape resonated across the board.

Navigating M&A Trends in Government Contracting

Wallace Angel , VP, Finance and Accounting and Client CFO of Rose Financial Solutions, moderated a dynamic panel with Cedric Powell and Matthew Brom. They covered everything from emerging M&A trends and SBA rule changes to positioning companies for successful exits in the coming years.

Featured panelists included:

Cedric A. Powell , Partner, Private Equity, M&A, Sheppard Mullin Richter & Hampton LLP
Matthew Brom , Investment Banker, G Squared Capital Partners

AI and Automation Technologies Available Today

Kimberly Kuchman, MBA, MST VP, Transformations and Product at Rose Financial Solutions, spotlighted real AI and automation use cases in finance—offering a clear view into how automation can streamline processes without compromising control.

Impact of the Trump Administration on Growing Businesses

Eric Coffie, The GovCon Giant , Founder & Chief Executive Officer of GovCon Giants energized the audience with actionable strategies for small and mid-sized businesses navigating federal opportunities during the Trump administration.

Scaling Finance & Accounting Infrastructure

Tim Fargo led a thoughtful discussion with panelists Jeff Brown and Wilson Geong on how data, KPIs, and system evolution are driving smarter financial decisions.

Featured panelists included:

Jeffrey F. Brown , President, Founder, XCAL Shooting Sports and Fitness
Wilson Geong , Vice President, Finance and Administration, Prison Fellowship International

The Pillars of Financial Management Are the Pillars of Corporate Growth

Ted Rose returned to wrap the day with a challenge: assess your organization’s maturity across people, process, technology, organization, and data—because they’re the backbone of scalable growth.

�� Join ROSE Business Forum & Events to gain more exclusive access to conference resources, industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

ROSE Report: Smarter Finance, Sharper Strategy: Easby and AI for Growth

Tue, 06 May 2025 13:19:46 GMT

Issue 92 - Smarter Finance, Sharper Strategy: Easby and AI for Growth

Easby: Your CFO Copilot for a More Agile, Proactive Finance Function

As finance leaders face mounting complexity and shifting expectations, a critical question arises: How can we stay proactive and agile in a fast-moving environment?

At ROSE, client feedback has made it clear—finance teams don’t just need accounting software (the "System of Record"). They need a partner. That’s why Easby has evolved into a true "System of Engagement": a CFO Copilot that streamlines financial operations, enhances visibility, and empowers faster, smarter decision-making.

Government Contracting in a Tariff Era: How AI, Automation, and Operational Data Give US-Based Firms the Edge

Easby: Your CFO Copilot for a More Agile, Proactive Finance Function

Tue, 06 May 2025 12:07:29 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

As finance leaders face mounting complexity and shifting expectations, a critical question arises: How can we stay proactive and agile in a fast-moving environment?

At ROSE, client feedback has made it clear—finance teams don’t just need accounting software (the "System of Record"). They need a partner. That’s why Easby has evolved into a true "System of Engagement" : a CFO Copilot that streamlines financial operations, enhances visibility, and empowers faster, smarter decision-making.

While Easby was designed with CFOs in mind, it goes beyond finance. CEOs, COOs, and other senior leaders rely on Easby to:

Consolidate financial data
Stay informed and accelerate approvals
Reduce administrative burdens
Enable more responsive leadership across the organization

Today’s executives—from government contractors to high-growth startups and nonprofits—are turning to Easby to manage finance, accounting, and tax functions with greater clarity, speed, and control . And it keeps getting better!

What’s New in Easby 25.1 – May 2025 Release

The latest release focuses on three client priorities: accessibility, transparency, and operational efficiency. Here’s what’s included:

�� Mobile Access: Stay Connected Anytime, Anywhere

Easby’s mobile app keeps executive and finance teams plugged in on the go. Approve transactions, review reports, and track key activities whether you’re traveling or managing offsite. With Easby mobile, leaders can stay informed and responsive—no matter where business takes them.

�� Real-Time Dashboards: Instant Insights at Your Fingertips

Easby introduces expanded visual dashboards that provide real-time visibility into key performance indicators across financials, payables, billings, payroll, and compliance. Evaluate trends, monitor metrics, and spot risks without waiting for static reports.

�� On-Screen Financial Statements: Dynamic, Integrated Reporting

Access current and historical financial statements directly inside Easby—eliminating the lag and limitations of static PDFs. This feature supports faster, more integrated financial reviews across teams.

�� ERP Integrations: Real-Time Data You Can Trust

Easby connects with Procas, QuickBooks, Unanet, Intacct and Deltek Costpoint (with more ERP platforms coming soon), delivering a centralized, real-time view of financial operations. By syncing with your existing systems, Easby improves data reliability and simplifies analysis.

�� Process Insights: End-to-End Financial Transparency

Gain visibility across the entire finance cycle—accounts payable, accounts receivable, payroll, and monthly close processes. Easby tracks task progress, outstanding items, and bottlenecks, helping leaders oversee financial operations with confidence.

�� Intelligent Document Processing: Smarter AP Automation

Easby replaces traditional OCR tools with IDP (Intelligent Document Processing) to automate invoice extraction, reduce manual entry, and improve accuracy in accounts payable workflows.

⚙️ AI Smart Tools: Simplify Reviews and Reporting

New automation features help you:

Summarize financial data and comments faster
Consolidate documentation
Answer your financial questions instantly

These AI-powered tools reduce friction from reporting cycles and internal reviews, putting the power of your financial data at your fingertips.

�� Integration and Interface Upgrades

Bill.com Integration : Expanded visibility into payables, now with multi bank account support.
DocuSign Integration: Secure electronic signatures for approvals, sign-offs, and filings.
New Home Page Design: Faster access to dashboards, financial data, and essential functions.
Stronger Security: Expanded multi-factor authentication.
Enhanced Help Center: More tutorials and in-app guides in the ROSE Community.

��️ Compliance Reporting: Always Ready, Always Compliant

Access real-time tax and compliance reporting to meet audit requirements and regulatory deadlines with greater ease.

What’s Coming in Easby 25.2 – Winter 2025

Looking ahead, Easby will continue evolving with features designed for deeper insights, greater customization, and interactive data experiences:

✅ Customizable Dashboards: Tailor dashboards and KPIs to match your organization’s reporting needs.

✅ Live Drill-Downs: Click straight into transaction-level details from dashboards and reports.

✅ AI Chat Assistant: Query more financial data and documents conversationally for instant answers.

✅ Expanded ERP Syncing: Deeper integrations with Unanet, Deltek Costpoint, Sage Intacct, and more.

✅ Document Viewing Enhancements: Faster access to key documents through tabs and quick links.

✅ Audit Trail Reporting: Consolidate transaction history, approvals, and documentation into one exportable file.

✅ Refreshed Banking Interface: Monitor all account connections and activities from a single... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Ted Rose

What M&A Reveals About Business Risk: What Every Business Leader Needs to Know

Fri, 02 May 2025 18:52:31 GMT

Wally Angel (Rose Financial Solutions) and Cedric A. Powell (Sheppard Mullin), moderated by Ted Rose , discuss how mergers and acquisitions expose critical business risks—especially in finance and legal operations.

Whether you're planning for an M&A transaction or simply want to strengthen your business operations, this conversation explores key challenges business owners face, including:

Corporate hygiene practices companies often overlook

Common employment law pitfalls

Regulatory regimes frequently misunderstood or ignored

Crucial pre-transaction reviews for financial and legal health

These missteps can result in lost revenue, missed opportunities, and serious compliance failures—particularly in government contracting, where the stakes are high and regulations are ever-changing.

Learn how successful companies are bridging gaps between legal and finance to build stronger, more resilient organizations that can scale confidently and stay compliant.

Automating 85% of Your Finance and Accounting Functions by 2030 | The ROSE Story

Fri, 25 Apr 2025 18:57:06 GMT

In this video, Ted Rose discusses the future of finance and accounting automation, highlighting how 85% of Finance and Accounting tasks can be automated by 2030. He addresses common challenges faced by government contractors and growing businesses, such as delayed monthly closings, compliance worries, and financial inefficiencies. Ted introduces Rose Financial Solutions' AI-powered platform, Easby, and their Finance as a Service (FaaS) solution, which promises real-time financial clarity, improved compliance, and scalable financial operations. Learn how Rose Financial Solutions can enhance your team's capabilities, integrate seamlessly with existing systems, and help you achieve financial confidence and growth.

ROSE Report: Stay Competitive: Navigating Tariffs and GSA Changes

Tue, 15 Apr 2025 13:32:11 GMT

Issue 91 - Stay Competitive: Navigating Tariffs and GSA Changes

Government Contracting in a Tariff Era: How AI, Automation, and Operational Data Give US-Based Firms the Edge

GSA Contract Consolidation and Best-in-Class Contracts: What Small Businesses Need to Know

Small businesses in the federal contracting space are facing a pivotal moment. In March 2025, the Trump administration issued an Executive Order—“Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement”—directing the General Services Administration (GSA) to centralize purchasing across the federal government.
read more

Government Contracting in a Tariff Era: How AI, Automation, and Operational Data Give US-Based Firms the Edge

Mon, 14 Apr 2025 20:50:58 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Update as of April 11, 2025:

Markets responded dramatically after President Trump partially reversed course and paused many of the newly imposed tariffs for 90 days. The S&P 500 surged 9.5% on the 9th —one of its biggest single-day gains since World War II—after the administration confirmed that most tariffs outside of China would be temporarily suspended. Treasury Secretary Scott Bessent clarified that while the 10% baseline tariff on global goods would remain, elevated rates on countries like the EU and Japan were being paused. However, tariffs on Chinese imports increased to 145%, signaling continued volatility.

This partial rollback does not change the overall trajectory: the administration remains committed to an “America First” trade policy. For U.S.-based government contractors, this underscores both the opportunity and the urgency to leverage technology and talent domestically.

The Trump administration’s April 2, 2025 update to its tariff policy marked a major shift in U.S. economic strategy. With sweeping new import tariffs— 25% on non-USMCA goods from Canada and Mexico (which includes goods that don't meet North American content or production standards under the U.S.-Mexico-Canada Agreement), 125% on Chinese imports , and 10% on most global goods ( source )—the message is clear: domestic production is now a competitive imperative.

For small and mid-size government contractors with a U.S.-based workforce, this creates a unique window of opportunity. But the real advantage comes when you combine your domestic position with AI, Automation, and Data enabling you to scale operations, cut costs, and outperform competitors in a market reshaped by protectionist policies.

As Warren Buffett wisely noted:

“Only when the tide goes out do you discover who’s been swimming naked.”

Here’s how you can ensure you’re not only fully clothed—but thriving through the disruption.

Tariffs and the US Labor Workforce: What’s Changing?

These tariffs go beyond goods—they reflect a broader “America First” strategy that is likely to influence services and labor as well. Experts forecast a 40–50% chance of foreign labor restrictions over the next 12–18 months, potentially in the form of visa fee hikes or outsourcing taxes . For government contractors, this shift presents both risks and rewards .

1. Rising Demand for Domestic Talent

Federal buyers are under pressure to prioritize U.S.-made goods—and that mindset increasingly extends to services. If your team is already based in the U.S., you’re aligned with procurement trends and insulated from the instability of foreign labor pipelines.

2. Tightening Labor Markets

With U.S. unemployment at 4.2% as of March 2025 (up from 3.8% last year), specialized fields like cybersecurity , engineering , and AI are experiencing wage pressure . Contractors must protect margins while staying competitive.

3. Foreign Labor: A Growing Liability

If tariffs or restrictions target services or foreign workers, firms dependent on offshore teams could see costs rise 10–20% . Between tariffs, automation, and AI, it is clear that global labor arbitrage is at risk. Rapid transitions to onshore models are complex—and often disruptive. Waiting until the last minute comes with its own risks.

4. Strategic Advantage for US-Based Firms

A domestic workforce offers regulatory alignment, cost predictability, and less exposure to geopolitical volatility . But rising wages and labor shortages mean staying competitive will require more than just a zip code. A trained team, comprehensive datasets, and the right technological solution is critical.

How AI, Automation and Data Reinforce Your Competitive Advantage

This is where technology and data become the force multiplier . Leveraging AI, automation, and comprehensive datasets to help you scale efficiently, adapt quickly, and deliver more with fewer people. The shift from labor arbitrage, as a cost reduction strategy, to automation is underway.

✅ Boost Efficiency

Automate routine tasks like data entry, compliance tracking, and invoice processing. This frees your team to focus on higher-value activities.

✅ Make Smarter Data-Driven Decisions

Use AI-driven analytics with comprehensive datasets to forecast labor needs, assess project risks, and refine your bidding strategy—giving you an edge in tight competitions.

✅ Scale Without Hiring

Automation allows you to expand output without expanding your headcount—a critical advantage as labor costs rise and hiring slows.

✅ Elevate Service Quality

AI-enhanced processes produce more accurate reports, faster responses, and stronger compliance—differentiating you from less tech-savvy competitors.

If Labor Tariffs Hit: The Game Changes Again

Should foreign labor tariffs or visa restrictions take effect, your domestic positioning becomes even more valuable.

Cost Stability : Competitors relying on overseas talent will face rising costs—while you remain steady.
Market Disruption : As others scramble to restructure global teams, your operations remain focused, compliant, and contract-ready.
Future-Proofing : AI and Automation insulate your operations from wage hikes and labor shortages, ensuring long-term resilience.

What You Can Do Now: Building a Moat Around Your Business

To turn today’s disruption into long-term strength:

1. Audit Your Workflow

Identify repetitive, manual tasks that can be automated—especially in finance, compliance, and project management.

2. Invest in Smart Tech

Focus on proven automation tools tailored to the federal contracting space, such as invoice automation, timekeeping systems, and AI proposal writers.

3. Upskill Your Team

Train your staff to work alongside AI. Empowering your workforce boosts retention and productivity.

4. Highlight Your Advantage

In your proposals, emphasize your domestic team, AI-driven efficiency, and capacity to scale without risk—positioning yourself as a reliable, cost-effective partner.

5. Partner with a Technology Partner

In your proposals, emphasize your domestic team, AI-driven efficiency, and capacity to scale without risk—positioning yourself as a reliable, cost-effective partner... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Ted Rose

GSA Contract Consolidation and Best-in-Class Contracts: What Small Businesses Need to Know

Fri, 11 Apr 2025 18:02:52 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Small businesses in the federal contracting space are facing a pivotal moment. In March 2025, the Trump administration issued an Executive Order—“ Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement ”—directing the General Services Administration (GSA) to centralize purchasing across the federal government. By August 2025, the GSA will oversee approximately $400 billion in procurement, quadrupling its current portfolio. This includes a push toward Best-in-Class (BIC) contracts, which emphasize pre-vetted vendors delivering high performance and value.

For small businesses, especially those holding set-aside Government-Wide Acquisition Contracts (GWACs) like 8(a) STARS III or VETS 2 , this shift presents both major opportunities and serious threats . As Benjamin Franklin said, “By failing to prepare, you are preparing to fail.”

Here’s how to position your company for what’s next.

What’s Changing?

The Executive Order mandates GSA-led purchasing for 10 major government-wide categories—such as IT, professional services, and facilities. This move is meant to eliminate duplicative contracts, increase efficiency, and reduce costs by emphasizing Best-in-Class vehicles already vetted for performance.

Key Impacts:

Agency-specific procurements are being centralized.
BIC contracts are becoming the default acquisition method .
Set-aside GWACs may be phased out or absorbed under this new system.

Opportunities for Small Businesses

1. Access to Larger, Multi-Agency Contracts

If you’re already on a BIC-designated vehicle like 8(a) STARS III, you’re positioned to chase larger, higher-value opportunities across multiple agencies. These contracts will likely consolidate smaller, siloed deals into larger, more impactful task orders.

2. Simplified Procurement Process

BIC contracts reduce red tape. Vendors pre-approved through vehicles like GSA Advantage! can expect a smoother, faster buying process, lowering barriers to entry and increasing deal velocity.

3. Reputation-Driven Growth

This consolidation rewards performance and scalability. High-performing small businesses delivering consistent, efficient results can rise to preferred vendor status and become indispensable to agencies.

Threats to Watch

1. Loss of Competitive Advantage

Set-aside GWACs gave small businesses a protected space. Under a consolidated GSA structure, larger firms may flood the field, competing on price, scale, and capability—especially if GWACs like NASA SEWP or CIO-SP4 are discontinued.

2. Devaluation of Set-Aside Investments

Businesses that spent heavily on legal, compliance, and bidding efforts to secure GWACs may find their ROI diminished. The EO’s call to “rationalize” overlapping contracts suggests fewer set-asides and a shift to open, performance-based competition.

3. Execution Risks from Within the GSA

The GSA’s massive expansion comes amid internal staffing cuts. Delays or administrative missteps could stall procurement activity, disrupting cash flow for small firms reliant on timely contract awards.

Strategic Considerations for Set-Aside GWAC Holders

If you’ve relied on your set-aside GWAC to limit competition, this is your moment of truth. Yes, 8(a) STARS III and VETS 2 are currently BIC-designated—but the field is about to get crowded. And if the GSA standardizes procurement under a single vehicle, non-GSA contracts may become obsolete.

How to Respond

✅ Stay Informed and Agile

Monitor GSA updates and Office of Management and Budget (OMB) guidance expected by mid-2025. If your GWAC is in jeopardy, prepare to pivot—partner with larger primes, and explore GSA vehicles where you’re already positioned.

✅ Double Down on Differentiation

BIC contracts are all about performance, innovation, and value. Make your business case rock-solid—highlight cost savings, customer success stories, and technical superiority.

✅ Expand Your Federal Footprint

Don’t wait for the dust to settle. Register or refresh your profile on SAM.gov, pursue subcontracting roles on BIC contracts, and target high-growth spending areas like... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Ted Rose

ROSE Report: Staying in Control During Uncertain Times

Tue, 25 Mar 2025 18:42:36 GMT

Issue 90 - Staying in Control During Uncertain Times

How to Manage Costs Amid Uncertainty and Change

Government contractors are operating in a new era of unpredictability. Federal agencies are tightening purse strings, reassessing priorities, and executing aggressive cost-containment strategies. Contracts once considered stable revenue anchors are now vulnerable to abrupt cancellations or indefinite delays, leaving many firms scrambling to stay financially afloat.

read more

GovCon M&A Under DOGE: Navigating Uncertainty for Small Business Success

Change breeds uncertainty. And for small business owners in the government contracting (GovCon) space, the Trump administration’s first 100 days have delivered plenty of both. The introduction of the Department of Government Efficiency (DOGE)—tasked with slashing $2 trillion in federal spending by July 2026—signals a seismic shift in federal priorities. Add in high interest rates, proposed tariffs, and economic volatility, and you've got a chaotic environment where M&A decisions feel riskier than ever.
read more

GovCon M&A Under DOGE: Navigating Uncertainty for Small Business Success

Tue, 25 Mar 2025 15:39:12 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

For small GovCon owners eyeing a sale, this uncertainty can spark hesitation—or worse, a hasty exit at a discount. Yet history offers a counterintuitive lesson. As Warren Buffett, echoing Baron Rothschild’s 19th-century wisdom, advises: “Be fearful when others are greedy, and greedy when others are fearful.” Selling amid DOGE-driven turmoil might mean leaving money on the table, while strategic patience could unlock higher valuations once stability returns.

DOGE’s Short-Term Shock vs. Your Long-Term Goals

DOGE’s aggressive mandate—evidenced by its billions in cuts so far—is reshaping the GovCon M&A landscape. Many larger businesses are in DOGE's crosshairs, with announced reductions targeting the top 10 GSA consulting firms, which could create strategic openings for small businesses. Budget reductions, regulatory reviews (see the February 19, 2025, EO), and workforce cuts (thanks to the February 11 EO’s 1:4 hiring ratio) are squeezing contract pipelines and driving buyer caution. Valuations dip. Competition for deals thins. And buyers increasingly favor conservative deal structures—think earn-outs over cash-heavy offers.

For small businesses, often lacking the balance sheets of larger firms, selling now could mean accepting a fraction of your company’s potential worth.

But short-term turbulence doesn’t dictate long-term value. The GovCon market prizes stability, strong past performance, and adaptability—qualities small businesses can cultivate even under DOGE’s shadow. Instead of rushing for the exit, this is a prime time to sharpen your business, align with shifting priorities (e.g., defense over sustainability initiatives), and position for a premium sale when the dust settles.

Six Steps to Thrive Amid Uncertainty

Small GovCon owners can turn DOGE’s disruption into opportunity with these actionable moves:

1. Scrub Your Financials

High overhead erodes valuation. Trim non-essential General & Administrative (G&A) costs—think redundant subscriptions, idle tools, and underutilized roles. Cleaner financials don't just impress buyers; they build resilience against funding delays.

2. Bolster Your Competitive Edge

Winning even modest contracts signals reliability. Strengthen past performance, and forge partnerships with primes or complementary peers. One strategic win can offset DOGE-related losses and elevate your M&A profile.

3. Align with Market Priorities

DOGE’s focus on efficiency may tilt funding toward defense, IT, and infrastructure. Are your services aligned? Upskill your team in high-demand areas like cybersecurity or systems integration to stay relevant and boost win rates.

4. Know Your Buyer Landscape

Random buyer emails? Often, they’re bargain hunters exploiting uncertainty. Instead, work with M&A advisors who can assess the market and build a competitive sale process. Structured deals protect value—panic sales do not.

5. Plan for 12–24 Months Ahead

Optimize now. Cut waste, win work, and fine-tune operations so you're ready for a premium exit when confidence returns. Buyers pay top dollar for turnkey businesses, not distressed assets... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Ted Rose

How to Manage Costs Amid Uncertainty and Change

Tue, 25 Mar 2025 15:31:12 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Government contractors are operating in a new era of unpredictability. Federal agencies are tightening purse strings, reassessing priorities, and executing aggressive cost-containment strategies. Contracts once considered stable revenue anchors are now vulnerable to abrupt cancellations or indefinite delays, leaving many firms scrambling to stay financially afloat.

The downturn in Defense and Government Expenditure (DOGE) has disproportionately impacted the sector, triggering revenue contractions, workforce reductions, and operational strain. In short: what was once predictable is now precarious.

To survive—and thrive—in this environment, contractors must rethink their financial infrastructure. One of the most effective and scalable strategies? Outsourcing accounting and CFO functions to a GovCon focused Finance as a Service (FaaS) firm. FaaS firms ensure that you have the right People, Process, Technology, Organization, and Data. This shift delivers sharper financial oversight, improved compliance, and leaner operations—without the heavy overhead of an in-house team.

The New Financial Landscape for Government Contractors

Government contractors, long accustomed to multi-year agreements and consistent funding, now face a more turbulent terrain:

1. Escalating Overhead Costs

Maintaining full-time CFOs and in-house accounting teams is increasingly difficult to justify in a world of revenue volatility. Fixed costs can quickly become liabilities.

2. Complex Regulatory Compliance

The regulatory environment—DCAA, FAR, CAS—demands a level of precision and expertise that many internal teams lack. Compliance isn’t optional; it’s critical.

3. Cash Flow Disruptions

Contract delays and cancellations are more common, placing immense pressure on liquidity and requiring more agile financial management.

4. Increased Audit Scrutiny

As federal agencies scrutinize spending, contractors must ensure airtight financial reporting and documentation. Sloppy books can lead to serious consequences.

Why Outsourcing Is a Strategic Advantage

Outsourcing financial operations goes beyond cost-cutting. It’s about unlocking agility, gaining specialized insights, and building long-term resilience:

✅ Cost Efficiency

Outsourcing transforms fixed labor costs into flexible, scalable services. Contractors can align financial support with contract volume, optimizing every dollar.

✅ Specialized Expertise

Outsourced CFOs and accounting professionals bring deep knowledge of government contracting—from indirect rate strategies, pricing, to audit readiness.

✅ Regulatory Confidence

With compliance baked into every process, outsourced teams ensure your firm is always prepared for DCAA, FAR, and CAS requirements.

✅ Scalable Support

Whether ramping up for a new IDIQ or navigating a contract termination, outsourcing delivers right-sized support exactly when needed.

✅ Executive Focus

By offloading day-to-day financial operations, leadership can zero in on growth: pursuing contracts, improving delivery, and shaping strategic direction.

Making the Transition Smooth

To make outsourcing successful, approach it with intention:

Assess your current financial operations. Identify inefficiencies, compliance gaps, and areas where internal capacity falls short.
Choose a partner with GovCon experience. Look beyond generalists. You need a team fluent in federal contracting and its financial nuances... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Ted Rose

Register Now - ROSE FaaS 2025 Conference

Wed, 19 Mar 2025 20:56:05 GMT

Join us on May 19, 2025, in North Bethesda for a high-impact event designed to help government contractors, nonprofits, and growth-focused businesses navigate financial strategy, industry trends, and AI-driven solutions.

Why Attend?

✔ Policy, Regulation and Compliance Updates Under the Trump Administration – Stay ahead of key policy shifts, including DOGE’s expanding role in regulatory reform, GovCons updates, and the latest on compliance and executive orders.

✔ Unleashing the Power of AI to Win More Business While Maintaining a Scalable Financial Infrastructure – Discover how AI-powered opportunity identification, marketing, proposal writing, and financial management are reshaping operations across industries.
✔ Networking with Successful Entrepreneurs – Connect with GovCon executives, nonprofit leaders, and financial professionals from growing businesses.

✔ Entrepreneur Success Stories – Learn how organizations across GovCon, nonprofit, and growth sectors are leveraging FaaS for financial clarity and scalability.

Agenda Highlights:

�� Keynote Presentation: Identifying and Winning Opportunities While Maintaining Compliance in Today’s Shifting Environment and Leveraging AI to Maintain Cost-Effectiveness
�� GovCon Expert Panel: Maximizing Enterprise Value During Mergers & Acquisitions, Proposal Strategies, and Funding Priorities
�� Maintaining DCAA and Tax Compliance Cost-Effectively with AI-Driven Financial Solutions: How the Latest AI Advancements Simplify Compliance, Streamline Reporting, and Enhance Audit Readiness for GovCons, Nonprofits, and Growing Businesses
�� Entrepreneur Success Panel: Hear from Industry Leaders in the GovCon, Nonprofit, and Growth Sectors on Overcoming Challenges and Driving Growth in Today’s Financial Landscape

�� Location: Canopy by Hilton Hotel in Pike and Rose, North Bethesda, MD, 20852
�� Date: May 19, 2025
�� Time: 1:00 PM – 6:30 PM

Register today and save $100! For a limited time, enjoy an exclusive discount on your registration. Spots are limited—secure yours now.

Meet the ROSE CFOs in Person | Exclusive Business Leadership Networking

Fri, 14 Mar 2025 20:49:18 GMT

Join us on the rooftop of our offices at 909 Rose Avenue for an exclusive networking event designed for government contractors, nonprofit executives, and business leaders looking to optimize financial performance and strategic growth. Connect with experienced ROSE CFOs and industry peers to gain actionable insights into financial management, compliance, and scaling with confidence.

Why Attend?

✔ Meet ROSE CFOs – Get expert guidance on financial strategies tailored to GovCon, nonprofit, and growing businesses .
✔ Strategic Networking – Engage with industry professionals, decision-makers, and financial experts.
✔ Actionable Insights – Discuss best practices for naviating shifting policy changes, staying compliant and growing your business.

Featured Insight: What M&A Reveals About Business Risk

During this event, we will have a brief presentation by Wally Angel (Rose Financial Solutions) and Cedric A. Powell (Sheppard Mullin) on what M&A reveals about business risk, focusing on common finance and legal issues business encounter such as:

What are the key corporate hygiene practices that companies often fail to implement?
What employment law related issues are common mistakes for business owners?
What are the regulatory regimes of which you often see business owners run afoul or fail to consider ?
What other items do business owners need to review and understand prior to an M&A transaction ?

These shortfalls can lead to lost revenue, missed claims, and compliance failures—especially in federal contracting, where regulations are strict and constantly evolving. Aligning legal and finance teams is key to building a strong, resilient organization. At this event, learn how successful companies are bridging these gaps to stay compliant, protect profits, and scale with confidence.

Strengthen your financial strategy—reserve your spot today!

ROSE Report - Protecting Your Business in an Unstable Market – What You Need to Know

Thu, 13 Mar 2025 13:48:21 GMT

Issue 89 - Protecting Your Business in an Unstable Market – What You Need to Know

Federal Contract Pauses and Cancellations: Protect Your Finances with Expert Insight

For small to mid-sized government contractors and nonprofits reliant on federal funding, contract down-scopes or terminations can disrupt financial stability. Whether caused by shifting agency priorities, budget reductions, or efficiency initiatives like those from the Department of Government Efficiency (DOGE), these changes present significant financial challenges. The silver lining? The Federal Acquisition Regulation (FAR) provides structured avenues for cost recovery—if navigated with precision. Here’s how expert insight can help you turn a potential financial setback into a recoverable event.

read more

The Real CPA Shortage: Is Offshoring Undermining America’s Financial Backbone?

It’s no secret the accounting profession is having a bit of a “numbers problem.” Headlines warn of a dire CPA shortage, with more than 340,000 accountants exiting the field over the past five years and fewer students taking the CPA exam than we've seen in decades. But amid the finger-pointing — whether it's aimed at long hours, uninspiring pay, or the dreaded fifth year of education — there’s a glaring trend many seem to overlook.

read more

Federal Contract Pauses and Cancellations: Protect Your Finances with Expert Insight

Wed, 12 Mar 2025 18:28:04 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Key Factors to Navigate the Shift

Understand the Trigger

Down-scope: If the government reduces the scope of your contract—whether due to DOGE-mandated cuts or agency redirection—you are entitled to an equitable adjustment to cover ongoing work and a settlement for what’s lost (FAR 52.249-2).
Termination : A complete contract termination, often stemming from efficiency reviews or funding shifts, means you must focus on recovering incurred costs.
Why It Matters : Pinpointing the cause sharpens your claim strategy and ensures compliance with applicable FAR clauses.

Time Is Money

Deadlines Matter: You have 90 days to file a downscope claim and one year for termination settlements (FAR 52.249-2).
Act Fast: Any delay—internal or external—reduces your chance of full recovery.

Maximize Your Cost Recovery

Beyond direct costs like labor and materials, consider:

Post-termination expenses , such as inventory wind-down.
Claim preparation costs , including accounting and legal efforts.
Downscope efficiency losses , capturing the financial impact of reduced work scope.
Pro Insight: Many contractors overlook these additional costs, leading to under-recovery.

Profit and Balance Considerations

Completed work qualifies for profit recovery (FAR 49.202).
If the contract was unprofitable, adjustments are required (FAR 49.203).
Precision Counts: Errors in these calculations can significantly shrink your payout.

Subcontractor Ripple Effect

Subcontractor costs must be included in your settlement (FAR 49.108).
Challenge: Managing subcontractor claims requires expertise and meticulous documentation.

Building a Strong Claim

Craft a solid settlement proposal (FAR 49.206) that withstands scrutiny.
Leverage FAR 31 to identify and justify all allowable costs.
Prepare for audits —detailed records are key to approval.

Your Path to Recovery

Federal contract changes—whether driven by efficiency mandates like DOGE or broader budget shifts—test your resilience, but they don’t dictate your outcome. Acting swiftly, maximizing cost recovery, and building a strong claim can make... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Ted Rose

The Real CPA Shortage: Is Offshoring Undermining America’s Financial Backbone?

Wed, 12 Mar 2025 18:22:17 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

It’s no secret the accounting profession is having a bit of a “numbers problem.” Headlines warn of a dire CPA shortage, with more than 340,000 accountants exiting the field over the past five years and fewer students taking the CPA exam than we've seen in decades. But amid the finger-pointing — whether it's aimed at long hours, uninspiring pay, or the dreaded fifth year of education — there’s a glaring trend many seem to overlook:

For the past two decades, America’s top accounting firms have quietly been offshoring their way out of the problem.

The Offshoring Era Goes Mainstream

What began as a cost-saving strategy among the Big Four has trickled down. Now, even mid-sized and smaller accounting firms are leaning into offshore labor, sending critical accounting support roles to countries like India and the Philippines.

And what happens when the entry-level accounting roles — the same ones that build the pipeline of future CPAs and business leaders — are shipped overseas? Salaries stagnate. Opportunities shrink. The profession's value proposition weakens.

In other words, if you’re wondering why starting salaries for accountants haven’t kept up with inflation (or even basic expectations), look no further than the offshore spreadsheet. Why pay more domestically when you can send the work elsewhere?

But this goes beyond paychecks and job postings. There’s something deeper at stake.

America's Financial Infrastructure is Critical Infrastructure

The strength of the U.S. economy has always been tied to trust. Trust in our businesses. Trust in our markets. Trust in our financial reports.

And who is tasked with safeguarding that trust? Accountants. Warren Buffett famously said, “Accounting is the language of business.” However, with the decreasing number of qualified accountants in the marketplace, we are at risk of losing our fluency in this critical language.

That’s why U.S. financial infrastructure is critical infrastructure. We wouldn't offshore national security. Why are we so comfortable offshoring the very people ensuring the accuracy, compliance, and financial health of U.S. businesses?

Government contractors already understand this. Many are already prohibited from exporting confidential financial information overseas, creating a firewall between sensitive financial data and offshore risks. But the broader U.S. business ecosystem has been slower to connect the dots.

Automation is the Future — But Trusted Advisors Are the Future-Proofing

At Rose Financial Solutions, we’ve taken a different path. Instead of sending work offshore in search of cheap labor, we’re investing in our U.S based employees in combination with automation to keep accounting support cost-effective right here at home .

Because let’s face it: by 2030, most accounting processing will be automated. Bank reconciliations, AP entries, and month-end close tasks? Bots are coming for them.

But while automation handles the routine, business leaders still need trusted human advisors who understand U.S. regulations, the nuances of American business, and how to guide companies toward sustainable success.

Advisors who don’t just “do the books” but know what those books mean for long-term growth. Advisors who ensure that the financial reporting underpinning the U.S. market remains the gold standard worldwide.

It's Time to Rethink the CPA "Shortage"

Is there really a shortage of accountants? Or are we creating one by hollowing out the entry-level roles and offshoring our future talent pipeline?

If we want to protect what makes the U.S. economy the envy of the world, it’s time to reinvest in domestic accounting talent — not just through better pay, but by showing that accounting is... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Ted Rose

Join the Mastermind - Turning Policy & Tax Updates into Business Opportunities

Fri, 28 Feb 2025 20:47:35 GMT

Join Ted Rose , Timothy Fargo , and Wally Angel in a live ROSE Community Mastermind to explore how evolving policies and tax changes can create opportunities for your business.

What We’ll Cover:

DOGE’s Expanding Role in Regulatory Reform and Its Impact on Small Business
Reduction of SBA’s Administrative Burden for Disadvantaged GovCons
Major Shake-Up Proposed at GSA, Including at Top 10 Consulting Firms
GovCon M&A Under DOGE: Adapting Plans and Maximizing Exits
Protecting Your Bottom Line: Cost Recovery Strategies for Descopes and Terminations
Nexus Implications Related to Return-to-Work Policies and Best Practices for Sales and Use Tax Compliance
BOI Update: As of Today, Yes, You Must Comply, but enforcement has been paused
How to Determine Eligibility for R&D Tax Credits and Maximize Their Value
Interactive Q&A – Engage With Industry Experts and Peers for Practical Guidance and Actionable Insights

Don't miss this opportunity to prepare your organization for success in the evolving federal contracting landscape.

ROSE Report - New Compliance Risks & Faster Decision-Making—What You Must Know Now

Thu, 27 Feb 2025 21:09:43 GMT

Issue 88 - New Compliance Risks & Faster Decision-Making—What You Must Know Now

Navigating the New Regulatory Landscape: What the February 19, 2025, Executive Order Means for Small Businesses and Federal Contractors

On February 19, 2025, President Trump issued an executive order titled Ensuring Lawful Governance and Implementing the President's 'Department of Government Efficiency' Regulatory Initiative. This order signals a significant shift in federal regulatory oversight, particularly for small businesses and federal contractors. While the immediate effects remain uncertain, the order’s language suggests a strong emphasis on reducing compliance burdens, fostering private enterprise, and stimulating economic development.

read more

Imperfect Dashboards Are Better Than Waiting

In today’s fast-paced business environment, waiting for fully reconciled numbers at month-end can be a costly delay. Growing businesses need timely insights to drive decisions, and waiting for perfection can often mean missing critical opportunities to make an important decision earlier. This is where dashboards with imperfect—but actionable—data become an essential tool for business owners, finance teams, and decision-makers.

read more

Imperfect Dashboards Are Better Than Waiting

Thu, 27 Feb 2025 17:39:10 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

The Reality of Real-Time Decision Making

Business leaders don’t operate in a vacuum. They need information constantly to make informed decisions about hiring, resource allocation, customer engagement, and cash flow. If you rely solely on month-end reconciliations, you might be making decisions based on outdated data.

Instead, embracing real-time dashboards that may include estimated, yet directionally accurate, data allows businesses to adjust strategies on the fly. Even if the numbers aren’t perfect, they provide a critical pulse check on the company.

The Truth About Management Estimates

Business finance has never been solely about exact numbers—real-world financial management relies on management estimates . These estimates help businesses anticipate expenses, revenue trends, and cash flow needs before the hard numbers are in. Key examples include:

Accrual-based revenue recognition estimates
Forecasted expenses based on historical or or cost estimate
Expected customer payments and receivables
Projected tax liabilities

These estimates are not only acceptable but necessary for maintaining operational agility. A dashboard reflecting these figures—even with some margin of error—provides valuable insights that businesses can act on immediately .

Why Imperfect Data Beats No Data

Waiting for fully reconciled numbers before taking action is like driving a car while only looking in the rearview mirror. The landscape of your business is constantly shifting, and historical data alone won’t provide the foresight needed for proactive decision-making.

Benefits of Dashboards with Imperfect Data:

Faster Decision-Making – Imperfect data allows businesses to adjust pricing, staffing, and cash flow strategies in near real-time.
Early Trend Identification – Even with estimates, dashboards can reveal patterns that require attention before they escalate. It can take 6-7 repetitions of data for most people to see patterns.
Increased Value – Dashboards can be structured to provide proactive insights and data relationship rather than reactive reports.

Operational Agility – Business conditions change quickly; having real-time information allows for more accurate predictions... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Ted Rose

Navigating the New Regulatory Landscape: What the February 19, 2025, Executive Order Means for Small Businesses and Federal Contractors

Thu, 27 Feb 2025 17:33:13 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Key Takeaways from the Executive Order

1.Regulatory Review Mandate – The order requires agency heads, in coordination with DOGE (Department of Government Efficiency) Team Leads and the Office of Management and Budget (OMB), to review all existing regulations within 60 days. The goal? To ensure alignment with legal and administrative priorities.

2. Focus on Small Businesses and Private Enterprise – The order specifically directs agencies to identify and potentially rescind regulations that:

Impose undue burdens on small businesses and impede private enterprise and entrepreneurship.
Significantly and unjustifiably impede technological innovation, economic development, and energy production.
Hinder infrastructure development, research and development, inflation reduction, and other national interest priorities.

3. DOGE's Expanding Role – Originally established via executive order on January 20, 2025, DOGE Team Leads are now tasked with identifying regulatory barriers that may disproportionately affect small businesses. Their role underscores the administration’s commitment to streamlining regulations and fostering a more business-friendly environment.

Potential Impact on Federal Contractors and Small Businesses

Pros

Reduced Compliance Costs – Small business contractors often struggle with complex reporting requirements and regulatory mandates. This order could lead to a rollback of burdensome rules, translating to lower costs and fewer administrative headaches.
Increased Market Opportunities – By removing barriers to private enterprise and innovation, the regulatory landscape may become more favorable for small businesses looking to enter or expand within the federal marketplace.
Flexibility in Workforce and Operations – If the order results in the elimination of certain labor or DEI-related compliance mandates, businesses may gain greater operational flexibility.

Cons

Regulatory Uncertainty – The next 60 days will determine which regulations are identified for review and potential elimination. This uncertainty could make it difficult for businesses to plan effectively.
Potential Backlash from Advocacy Groups – Environmental and labor organizations may push back against regulatory rollbacks, leading to legal challenges or policy reversals in the future.
Industry-Specific Disruptions – While some businesses may benefit from deregulation, others could face new competitive pressures as market barriers shift.

What Comes Next?

By mid-April 2025, agencies must report their findings and proposed regulatory changes. Until then, federal contractors and small businesses should... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Ted Rose

ROSE Report – SBA Updates & Support for GovCons

Thu, 20 Feb 2025 20:55:11 GMT

Issue 87 - SBA Updates & Support for GovCons

The Statutory Authority of the SBA 8(a) and WOSB Programs

The U.S. Small Business Administration (SBA) administers several programs designed to support disadvantaged and women-owned businesses in securing federal contracts. Two of the most notable programs, the 8(a) Business Development Program and the Women-Owned Small Business (WOSB) Program, have clear statutory authority under federal law.

read more

SBA Regulatory Updates: Reducing Cost Barriers and Encouraging Investment in Early-Stage GovCons

The new final rule, effective January 16, 2025, revises key aspects of the 8(a) Business Development (BD) Program and aligns regulations across multiple small business programs, making it easier for socially and economically disadvantaged businesses to secure investment and scale effectively.

read more

SBA Regulatory Updates: Reducing Cost Barriers and Encouraging Investment in Early-Stage GovCons

Thu, 20 Feb 2025 16:26:13 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

The Small Business Administration (SBA) has introduced a series of regulatory changes aimed at increasing investment opportunities and reducing compliance burdens for early-stage government contractors (GovCons). The new final rule, effective January 16, 2025, revises key aspects of the 8(a) Business Development (BD) Program and aligns regulations across multiple small business programs, making it easier for socially and economically disadvantaged businesses to secure investment and scale effectively.

Key Changes to Financial Reporting Requirements

The SBA has increased the revenue thresholds that determine whether 8(a) participants must submit in-house, reviewed, or audited financial statements. This change acknowledges the rising compliance costs for many early stage GovCons.

Audited financial statements : Now required for companies exceeding $20 million in revenue (previously $10 million).
Reviewed financial statements : Now required for companies with revenue between $7.5 million and $20 million (previously $2 million–$10 million).
In-house financial statements : Now required for companies with revenue below $7.5 million (previously $2 million).

By easing these requirements, early-stage GovCons can redirect financial resources from compliance costs to business development and growth.

Expanded Investment Opportunities for 8(a) Participants

The SBA has also loosened restrictions on non-disadvantaged investment in 8(a) businesses, enabling greater financial backing during both the developmental and transitional stages of participation.

Non-disadvantaged investors may now hold a 20% stake during the developmental stage (previously 10%) and a 30% stake during the transitional stage (previously 20%).
Changes in ownership by non-disadvantaged parties no longer require SBA approval if their total stake remains at 30% or below , streamlining investment transactions.
Non-disadvantaged investors can now retain a right of first refusal for purchasing ownership interests in 8(a) participants, encouraging greater financial participation while maintaining program integrity... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Ted Rose

The Statutory Authority of the SBA 8(a) and WOSB Programs

Thu, 20 Feb 2025 15:48:48 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

The 8(a) Business Development Program: Statutory Authority

The 8(a) Business Development Program is explicitly authorized under Section 8(a) of the Small Business Act (15 U.S.C. § 637(a)). This statute empowers the SBA to enter into procurement contracts with federal agencies and to subcontract the performance of these contracts to small businesses owned by socially and economically disadvantaged individuals.

Key Statutory Provisions

15 U.S.C. § 637(a)(1): Authorizes the SBA to assist small businesses owned by socially and economically disadvantaged individuals by allowing them to receive federal contracts through sole-source and competitive-bid opportunities.
15 U.S.C. § 637(a)(6)(A): Defines "socially disadvantaged individuals" as those subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group.
15 U.S.C. § 637(a)(6)(B): Establishes economic disadvantage criteria, requiring evidence of diminished capital and credit opportunities compared to others in the same business field.
15 U.S.C. § 637(a)(16): Provides the SBA with the authority to establish procedures and criteria for the program's operation.

The 8(a) Program is further regulated by 13 C.F.R. Part 124, which outlines eligibility criteria, participation terms, and program benefits.

The Women-Owned Small Business (WOSB) Program: Statutory Authority

The WOSB Program is authorized under 15 U.S.C. § 637(m), which directs the SBA to establish a program to provide federal contracting preferences to small businesses owned and controlled by women. This program includes the Economically Disadvantaged Women-Owned Small Business (EDWOSB) Program, which provides additional benefits to women entrepreneurs facing financial barriers.

Key Statutory Provisions

15 U.S.C. § 637(m)(2): Authorizes federal contracting officers to restrict competition to WOSBs in industries where women are underrepresented.
15 U.S.C. § 637(m)(3): Establishes the criteria for economic disadvantage under the EDWOSB designation.
15 U.S.C. § 637(m)(5): Requires the SBA to conduct a study identifying industries where women-owned businesses are underrepresented and to update the program accordingly.
15 U.S.C. § 637(m)(7): Mandates certification procedures to ensure program integrity... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Ted Rose

ROSE Report – Policy Changes that Could Affect Your Contracts

Thu, 06 Feb 2025 19:49:51 GMT

Issue 86 - Policy Changes that Could Affect Your Contracts

The Future of Accounting Takes Shape in 2025

Accounting has evolved into a data-driven profession, with most financial leaders leveraging automation to enhance efficiency and drive business insights. Accounting has become a strategic powerhouse, driving efficiency, accuracy, and financial insights that shape business success. As we step into 2025, the profession is undergoing a seismic transformation, fueled by automation, artificial intelligence, and the demand for real-time financial transparency.

read more

Key Policy Changes Impacting Government Contractors Under the Trump Administration

The first 100 days of any new administration bring major policy shifts, and for government contractors (GovCons), these changes can mean new challenges—or opportunities. Under the Trump administration, three major shifts are already reshaping the federal contracting landscape.

The Future of Accounting Takes Shape in 2025

Thu, 06 Feb 2025 15:42:29 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

The companies leading the way are those embracing innovation, integrating technology into their workflows, and reimagining the role of accounting professionals. Efficiency is no longer optional—it’s a competitive advantage. Let’s explore the trends defining the future of accounting and how forward-thinking firms are navigating this shift.

1. Leaner Teams, Greater Impact

The accounting talent shortage continues to challenge firms of all sizes, with fewer professionals entering the field. Instead of slowing down, businesses are adapting—leveraging automation, streamlining workflows, and rethinking traditional hiring models. Many organizations are shifting toward hiring skilled professionals without traditional accounting degrees, ensuring teams are filled with problem-solvers who thrive in a technology-driven environment.

By focusing on automation and AI-driven solutions, businesses are maximizing productivity with smaller teams while maintaining high levels of accuracy and compliance.

2. The Acceleration of Automation

Repetitive tasks—such as data entry, reconciliation, and reporting—are now automated, allowing accounting teams to focus on strategic, value-driven work. As financial automation adoption continues to surge, organizations are not just keeping up; they are setting new standards for operational efficiency.

The ability to automate routine processes means faster financial closes, improved accuracy, and a workforce that can dedicate time to forecasting, strategic planning, and high-value advisory roles.

3. AI Revolutionizing Financial Processes

AI is pushing accounting beyond automation, introducing powerful tools that analyze data, identify trends, and generate insights at lightning speed. Businesses are leveraging AI-driven solutions to streamline compliance, optimize asset management, and enhance financial forecasting.

From generating real-time flux analysis to automating data processing and financial reporting, AI is enabling organizations to execute financial processes with precision and agility. The impact is clear—faster decision-making, reduced manual effort, and a new level of strategic financial management... Read more in the ROSE Community .

Want to read the full article?

�� Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

Ted Rose

Key Policy Changes Impacting Government Contractors Under the Trump Administration

Thu, 30 Jan 2025 22:48:14 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

The first 100 days of any new administration bring major policy shifts, and for government contractors (GovCons), these changes can mean new challenges—or opportunities.

Under the Trump administration, three major shifts are already reshaping the federal contracting landscape:

Foreign Aid Freeze – A 90-day review has halted multiple international aid projects, impacting contractors in health, education, and civil society sectors.
Federal DEI Rollbacks – Agencies are no longer required to prioritize Diversity, Equity, and Inclusion (DEI) in procurement, affecting businesses that relied on set-aside programs.
Energy Policy Shift – Renewables take a backseat as federal funding pivots toward domestic oil, natural gas, and infrastructure projects.

Understanding these shifts and proactively adjusting your strategy is critical for staying competitive. To help GovCons navigate these changes, we’re hosting a Mastermind session: "Surviving the First 100 Days of the Trump Administration." Join us for expert insights on funding changes, regulatory updates, and strategies to maintain financial stability.

Foreign Aid Freeze: How It Impacts GovCons

The administration's decision to freeze foreign aid funding has led to immediate uncertainty for contractors supporting international development projects. The State Department has issued "stop-work" orders, affecting initiatives in global health, education, and governance programs.

While military aid to key allies like Israel and Egypt remains intact, GovCons working in the foreign aid sector must assess their exposure and prepare contingency plans.

What You Can Do:

Clarify project status – Engage with contracting officers for guidance.
Identify alternative revenue sources – Look at domestic opportunities to offset losses.
Strengthen financial resilience – Diversify funding streams and prepare for disruptions.

Federal DEI Rollbacks: Shifts in Procurement Priorities

Diversity-focused procurement policies are being scaled back, impacting small businesses that previously benefited from DEI-driven set-aside programs. While diversity remains a priority for some agencies, funding and mandates are shifting toward cost-efficiency and technical qualifications.

How GovCons Should Pivot:

Refocus on technical expertise – Highlight past performance, innovation, and cost-effectiveness.
Strengthen industry partnerships – Build relationships with agencies still prioritizing DEI.
Monitor procurement changes – Stay informed on how individual agencies adjust policies.

Energy Policy Shift: The Decline of Green New Deal Influence

Renewable energy projects are seeing reduced federal investment as the administration prioritizes domestic energy production and infrastructure. Funding for solar, wind, and environmental compliance is tapering off, while incentives for oil, gas, and grid modernization expand.

Strategic Moves for Energy GovCons:

Identify opportunities in grid modernization, carbon capture, and domestic production.
Engage with federal energy agencies and monitor procurement shifts.
Pivot toward infrastructure projects aligned with administration priorities.

Financial Stability & Resilience for GovCons

With funding shifts and policy changes in play, GovCons must understand equitable adjustments and cost recovery strategies.

#1 Rule for Financial Stability: �� DON’T PANIC ��

Knee-jerk reactions to policy shifts can be worse than the shifts themselves. Stay informed, be strategic, and take proactive steps to adapt.

Recoverable Costs: Contract modifications, direct labor, administrative expenses.

Non-Recoverable Costs: Speculative losses, inefficiencies, unrelated expenses.
Best Practices: Keep detailed records, work closely with contracting officers, and seek expert financial guidance.

Where GovCon Dollars Are Flowing:

Defense & Border Security – Increased spending on military tech, cybersecurity, and surveillance.

AI & Automation – Expanding AI-driven government applications and automation projects.

Domestic Energy & Infrastructure – Investment in traditional energy and modernization efforts.
Small Business & Workforce Support – Funding for American businesses and workforce training.

GovCons should align their capabilities with these priorities to seize emerging opportunities.

Long-Term Strategies for GovCons

Adapting to new government priorities requires both immediate action and long-term planning.

Don’t Panic – Stay strategic, i nformed, and adaptable.
Develop Contingency Plans – Be ready for contract modifications or delays.
Diversify Revenue Streams – Reduce reliance on single funding sources.
Stay Compliant – Track regulatory updates to avoid missteps.
Invest in Technology & Strategic Partnerships – Improve efficiency and expand networks.

GovCons that remain flexible and proactive will be best positioned for sustained success.

Join Our Mastermind: Surviving the First 100 Days of the Trump Administration

To help businesses navigate these shifts, we’re hosting a Mastermind session with expert insights on funding changes, policy updates, and strategies for financial stability.

�� Date: Friday, January 31st at 12:00 PM ET
�� What You’ll Learn:

✔ How policy shifts impact government contractors
✔ Strategies for navigating funding changes
✔ Steps to secure your financial future in uncertain times

Register Now to stay ahead and keep your GovCon business thriving.

Ted Rose

ROSE Report – Navigating the First 100 Days of the Trump Presidency

Tue, 28 Jan 2025 21:38:45 GMT

Issue 85 - Navigating the First 100 Days of the Trump Presidency

Adapting to the U.S. Foreign Aid Freeze: What GovCons Need to Know and Do

On January 24, the U.S. State Department issued a sweeping "stop-work" order affecting all foreign assistance programs, pausing new aid and freezing existing projects as part of a broader 90-day review mandated by the President’s Executive Order on U.S. foreign aid. While military financing for Israel and Egypt has been exempted through selective waivers, the freeze directly impacts programs in health, education, and civil society, leaving many government contractors navigating uncertainty.
read more

Navigating New Horizons: Opportunities for Small Businesses Under the Changing Administration

As the winds of change sweep through Washington, small businesses find themselves at the forefront of new opportunities. The shift in the administration's approach to public services spending and government contracting could usher in a transformative era for entrepreneurs and innovators. Rose Financial Solutions is here to help you navigate this dynamic landscape, leveraging insights from industry dialogues and thought leadership platforms.
read more

Join the Mastermind - Policy Shifts & Opportunities for Businesses in 2025

Tue, 28 Jan 2025 18:36:12 GMT

Join us for a live webinar hosted by ROSE experts on February 11 , 2025, at 2:00 PM . This exclusive session is designed for government contractors to explore critical strategies and insights to navigate today’s evolving landscape.

What We’ll Cover:

Adapting to the U.S. Foreign Aid Freeze
Understand the implications of the administration’s freeze on USAID and other foreign aid programs. Discover what government contractors need to know about the changing landscape of international opportunities and actionable steps to adjust your business strategy.
The End of DEI: Small Businesses on the Frontlines
Explore how the termination of federal Diversity, Equity, and Inclusion (DEI) programs puts small businesses in the spotlight. Learn why adapting to this shift could shape the future of America's economy and what strategies you can implement to stay competitive.
Staying Afloat Amidst Change
Dive into key strategies to maintain financial health and operational stability during the shifting political and economic environment.
Aligning Short-Term and Long-Term Decision-Making
Learn how to balance immediate needs with strategic goals to build resilience and position your organization for future success.
Open Q&A Discussion
Engage with experts and peers to discuss your unique challenges, share insights, and prepare for the months ahead.

Don't miss this opportunity to prepare your organization for success in the evolving federal contracting landscape.

Please note : Webinar attendance is subject to approval.

The End of DEI Puts Small Businesses on the Frontlines: Getting This Right Could Define America’s Economic Future

Mon, 27 Jan 2025 22:03:32 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

After three decades of working with government contractors, I’ve learned one unshakable truth: every administration brings a new deck of cards for small businesses to play with. Some hands are better than others, but they all shape the landscape. President Trump’s recent executive order to phase out Diversity, Equity, and Inclusion (DEI) initiatives is the latest reshuffling—and the implications for small businesses are as intriguing as they are uncertain.

This decision has sparked heated debate, but it also raises a tantalizing question: Could this shift to a merit-based approach open new doors for small businesses? If executed wisely, it just might.

A Closer Look at President Trump’s Executive Order

The executive order, boldly titled “Ending Radical and Wasteful Government DEI Programs and Preferencing,” takes a clear stance:

“DEI policies have failed to achieve their stated goals and instead foster division and inefficiency in government.”

In short, the administration is swapping demographic preferences for a merit-first focus, emphasizing fairness and efficiency. This pivot marks a significant shift for federal agencies and their contracting processes.

DEI initiatives have long been celebrated for their role in promoting inclusivity, but this order suggests a growing appetite for policies that streamline operations and spotlight performance.

Why Small Businesses Might Win Big

For small businesses, this shift could be the equivalent of clearing the clutter off a desk—it’s all about focus and simplicity. If demographic criteria take a backseat, more small businesses might have a shot at winning federal contracts.

Here’s the thing: Any action that negatively impacts small businesses is like grabbing the third rail—small business is the lifeblood of this country. It’s as unthinkable as cutting Social Security. That’s why this shift has the potential to spark a Golden Age for small businesses.

Imagine a system where innovation, results, and good old-fashioned hard work reign supreme. That could mean fewer hoops to jump through and more time spent doing what small businesses do best: delivering value.

Here are a few potential benefits:

Leveling the Playing Field: Contracts awarded based on merit could allow all small businesses to compete more effectively.
Streamlined Processes: Simplified requirements could save small business owners time, money, and a lot of aspirin.
Innovation on Center Stage: Merit-based systems reward creative solutions and strong execution—a win for entrepreneurs who thrive on results.

What This Means for SBA Programs

Hallmark SBA programs like Women-Owned Small Businesses (WOSB), Tribal-Owned, Veteran-Owned Small Businesses (VOSB), and the 8(a) Business Development Program remain intact. These programs are essential tools that help level the playing field for underrepresented groups, and they continue to support small businesses in accessing federal contracting opportunities.

However, don’t rule out future adjustments. Consolidating programs with overlapping goals could reduce administrative headaches while maintaining access.

As someone who has spent decades helping small businesses navigate SBA programs, I’ve seen the beauty—and the bureaucracy—of these initiatives. Simplification isn’t necessarily bad if it makes life easier for business owners and helps agencies meet their small business contracting goals.

Possible changes to watch:

Streamlining Programs: Merging similar initiatives might cut red tape without cutting opportunities.
Merit-Based Focus: Contracts that prioritize results over preferences could foster healthy competition and drive growth.

It’s also worth noting that most federal agencies have small business contracting goals, typically around 23% of their overall contracting budgets. However, these targets have historically been challenging to meet. The shift to a merit-based system may make these goals more attainable, while keeping the focus on supporting small businesses while reducing the administrative burden that small business face.

The Big Shift: Merit-Based Contracting

A merit-based approach isn’t just a buzzword; it’s a potential game-changer. Businesses that excel at what they do—whether it’s developing groundbreaking products or delivering stellar services—stand to gain the most.

If you’re running a small business, you’re no stranger to competition and you are in a better position to provide more cost-effective solutions. You know how to add value, and if this shift prioritizes results, you might finally get the recognition you deserve.

Predictions for small business contracting:

Fairer Competition: Merit-based systems could level the playing field for all small businesses, regardless of their demographics.
New Opportunities: Smaller players could find it easier to compete against industry giants.

Interestingly, these changes may pose a bigger challenge to large businesses than small ones. Larger organizations that have built cumbersome corporate infrastructure to navigate preferential policies might find the transition to a merit-focused system disruptive. For small businesses, the impact could be far less jarring, as many are already accustomed to competing on their strengths and agility.

Bipartisanship in Small Business Support

Here’s the silver lining: Small businesses have friends on both sides of the aisle. Whether it’s through regulation or deregulation, administrations typically align on one thing: empowering entrepreneurs.

This policy shift may represent different means, but the end goal remains the same—fostering innovation, growth, and opportunity.

Challenges Ahead (Because There Are Always Challenges)

Of course, no policy change comes without growing pains. Transitioning to a new system may leave some small business owners scratching their heads (or yelling at their computer screens).

From my experience, early confusion is par for the course, but with clear guidance from the SBA and other federal agencies, these hiccups can be smoothed out.

A Call to Action for Small Businesses

If you’re a small business owner, now’s the time to roll up your sleeves:

Stay Informed: Keep tabs on federal contracting changes and SBA updates.
Leverage Resources: SBA tools and mentorships are there for a reason—use them.
Focus on Results: A merit-based system rewards performance, so make sure your offerings are top-notch.

Preparation is key to thriving in this new era.

Final Thoughts

The end of DEI initiatives marks a significant shift in federal contracting, but it’s not the end of opportunity—it’s a pivot. By reducing bureaucracy and prioritizing results, these changes could open new doors for small businesses to shine. Having witnessed countless policy overhauls, I remain cautiously optimistic. If implemented thoughtfully, these changes could position small businesses not just to compete, but to lead. With both sides of the isle united, this could be the the start of a Golden Age for Small Businesses.

So, small business owners, take note: This is your moment. Seize it.

Ted Rose

Adapting to the U.S. Foreign Aid Freeze: What GovCons Need to Know and Do

Mon, 27 Jan 2025 21:04:43 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

****Bookmark this Page and Refer Back for Frequent Updates****

Here’s what you need to know and how you can respond to this evolving situation.

Key Updates from the Foreign Aid Freeze

Stop-Work Orders Issued: Contractors supporting health, education, and civil society projects are among those most affected by the freeze. These sectors face immediate funding halts and potential delays in project implementation.
Selective Waivers: Military financing programs for Israel and Egypt were granted exceptions, underscoring the prioritization of strategic alliances over developmental aid.
Broader Implications: Critics argue that pausing foreign assistance could weaken U.S. influence in key regions, particularly where aid programs serve as critical tools for diplomacy and stability.

This development follows the President’s Executive Order to "reevaluate and realign foreign aid to ensure accountability and measurable results." Contractors must adapt quickly to this new landscape, balancing risk mitigation with strategic planning for potential opportunities post-review.

Recommendations for Contractors

1. Engage with Your Contracting Officers

• Confirm the status of your contracts and obtain explicit instructions regarding ongoing work.

• Seek guidance on whether your projects are subject to the freeze or eligible for exceptions.

2. Review Your Contracts Thoroughly

• Review current expenditures on any impacted contracts

• Pay special attention to clauses related to funding obligations, termination, and modifications.

• Identify your organization’s financial exposure to paused or delayed projects.

3. Assess Financial Risks
• Analyze obligated versus pending funding to determine the impact on cash flow.

• Develop contingency plans to address potential funding gaps.

• Determine if stop-work orders need to be provided to any subcontractors or other expenditure sources under contract.

• Review any upcoming committed costs under contract, including upcoming travel or other direct costs.

• Evaluate current staff on contract and look to assign them to other contracts or utilize them for internal projects.

4. Monitor Announcements from USAID and the State Department

• Stay updated on official communications regarding the progress of the 90-day review and subsequent guidance for contractors.

Strategic Outlook

The U.S. foreign aid freeze marks a critical juncture for government contractors, particularly those operating in impacted sectors. Proactively engaging with contracting officers, reviewing financial risks, and monitoring updates will be essential to navigating this transition.

For more insights into how these changes may affect your contracts, consider consulting with financial and contract management experts to prepare for the future.

Click here to Schedule a Call with ROSE to Discuss Your Situation and Options

Ted Rose

Join the Mastermind - Surviving the First 100 Days of the Trump Administration

Mon, 27 Jan 2025 18:26:09 GMT

Join us for a live webinar hosted by ROSE GovCon experts on January 31, 2025, at 12:00 PM . This exclusive session is designed for government contractors to explore critical strategies and insights to navigate today’s evolving landscape.

What We’ll Cover:

Adapting to the U.S. Foreign Aid Freeze

Understand the implications of the administration’s freeze on USAID and other foreign aid programs. Discover what government contractors need to know about the changing landscape of international opportunities and actionable steps to adjust your business strategy.

The End of DEI: Small Businesses on the Frontlines

Explore how the termination of federal Diversity, Equity, and Inclusion (DEI) programs puts small businesses in the spotlight. Learn why adapting to this shift could shape the future of America's economy and what strategies you can implement to stay competitive.

The Green New Deal Will Be Minimized

Explore what this change means for businesses and federal contractors.

Trump's America First Agenda

Understanding the priorities shaping economic and procurement policies.

Staying Afloat Amidst Change

Dive into key strategies to maintain financial health and operational stability during the shifting political and economic environment.

Aligning Short-Term and Long-Term Decision-Making

Learn how to balance immediate needs with strategic goals to build resilience and position your organization for future success.

Open Q&A Discussion

Engage with experts and peers to discuss your unique challenges, share insights, and prepare for the months ahead.

Save your complimentary spot today and join the discussion!

ROSE Report – Strategic Opportunities for Businesses with the New Administration

Mon, 20 Jan 2025 20:22:19 GMT

Issue 84 - Strategic Opportunities for Businesses with the New Administration

Tech Opportunities for GovCons Under the Incoming Administration

As the Trump administration enters its next term, the role of technology in government contracting is poised for significant growth. With a focus on ambitious priorities ranging from national security to infrastructure modernization, the administration’s emphasis on technological advancement offers government contractors (GovCons) unique opportunities to innovate and expand their impact.
read more

Navigating New Horizons: Opportunities for Small Businesses Under the Changing Administration

Tech Opportunities for GovCons Under the Incoming Administration

Thu, 16 Jan 2025 19:39:30 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

This evolving landscape, driven by initiatives such as bolstering domestic innovation, enhancing cybersecurity, and reducing reliance on foreign suppliers, demands agility and strategic alignment from GovCons. To remain competitive, contractors must not only understand these trends but also position themselves to deliver solutions that address the administration’s priorities.

Technology as a Cornerstone of Government Contracting Strategy

The Trump administration has made technology a central component of its government contracting strategy . This focus supports broader national objectives, including strengthening security, modernizing critical infrastructure, and fostering economic resilience through innovation.

Technologies such as artificial intelligence (AI), machine learning (ML), and advanced cybersecurity solutions are pivotal in this strategy. AI and ML are transforming data analytics and automation, while cybersecurity measures safeguard the nation’s digital infrastructure from evolving threats. Moreover, the administration’s emphasis on domestic semiconductor manufacturing addresses supply chain vulnerabilities and secures technological independence.

GovCons are essential partners in executing these initiatives. By delivering innovative solutions, contractors play a critical role in turning the administration’s vision into actionable outcomes, creating new growth opportunities within the tech-driven contracting space.

Shifting Priorities in Government Technology Contracting

The administration’s tech-related priorities focus on three key areas: national security, domestic innovation, and infrastructure modernization. Each offers distinct opportunities for GovCons.

National Security First

National security remains at the forefront of the administration’s agenda, with increased spending on defense technologies, border security measures, and counterterrorism initiatives. GovCons specializing in AI-powered surveillance, autonomous drones, and real-time data analytics are well-positioned to meet these needs.

America First in Tech

The administration’s “America First” policies aim to reduce reliance on foreign technology providers while boosting domestic innovation. By prioritizing U.S.-sourced technologies and incentivizing domestic production, these policies open doors for GovCons to lead in developing and deploying homegrown solutions.

Infrastructure Modernization

With aging federal IT systems and critical infrastructure in need of upgrades, the administration prioritizes transformative modernization efforts. GovCons with expertise in cloud computing, secure communication networks, and advanced data management can significantly contribute to these efforts, laying the groundwork for a more resilient and efficient federal infrastructure.

Federal Funding Initiatives and Budget Allocations to Watch

Substantial funding increases are backing the government’s technology initiatives. For instance, the Department of Defense (DoD) is receiving significant budget boosts to drive innovation in AI, cybersecurity, and advanced analytics—areas critical to national security and operational efficiency.

Additionally, grants and loan programs tailored for small and medium-sized contractors aim to level the playing field. These initiatives provide smaller GovCons with resources to compete and succeed in the federal contracting space. By staying informed about funding opportunities, GovCons can strategically position themselves to secure contracts and expand operations.

Expected Regulatory and Procurement Changes

The administration is implementing changes to streamline procurement processes and enforce stricter compliance standards.

Revamped Buy American Provisions

Strengthened “Buy American” provisions encourage the use of U.S.-sourced products and services, creating opportunities for domestic suppliers while aligning with the “America First” ethos.

Simplified Procurement Processes

New measures are expected to shorten timelines for adopting innovative technologies, enabling federal projects to progress more efficiently. At the same time, heightened cybersecurity compliance requirements emphasize the need for robust security protocols and certifications.

Anticipated Impact of National Security Policies on Tech Contracting

The administration’s national security policies drive demand for cutting-edge technologies, with a focus on:

Border Security and Immigration Systems : AI-driven surveillance and real-time communication tools are priorities for enhancing national security.
Critical Infrastructure Protection : Predictive analytics and data-driven solutions are essential for safeguarding vital systems.

These policy-driven priorities create opportunities for GovCons to deliver solutions that align with the nation’s security objectives.

Tech Policy Priorities Impacting GovCons

Artificial Intelligence (AI) and Machine Learning (ML)

The administration’s commitment to maintaining global leadership in AI fosters opportunities for GovCons, particularly in predictive analytics, automation, and decision-making tools.

Semiconductor and Hardware Development

Efforts to bolster domestic semiconductor manufacturing reduce dependence on foreign suppliers, offering GovCons specializing in hardware development a chance to contribute to government-led initiatives.

Cybersecurity Enhancements

Increased investments in cybersecurity prioritize advanced protections, threat detection, and data sovereignty. Contractors offering innovative cybersecurity technologies are well-positioned to meet the government’s growing demands.

Challenges GovCons May Face

While opportunities abound, GovCons must navigate challenges such as:

Stricter Sourcing Requirements : “Buy American” policies may limit supply chain flexibility, requiring operational adjustments.
Increased Competition : An influx of new firms in the tech contracting space heightens the need for differentiation through innovation and exceptional execution.
Heightened Compliance Scrutiny : Strengthened cybersecurity practices demand continuous investment in compliance and security protocols.

Adapting to these challenges is essential for long-term success in the tech-driven contracting environment.

How Rose Financial Solutions Helps GovCons

Navigating the complexities of this evolving landscape requires expertise, and Rose Financial Solutions (ROSE) is a trusted partner in helping GovCons thrive.

ROSE’s Finance as a Service (FaaS) solutions streamline financial management and simplify compliance with new regulations, enabling contractors to focus on innovation and execution. From securing funding for large-scale projects to managing high-value contracts, ROSE provides tailored support to empower GovCons to succeed.

With ROSE’s guidance, GovCons can confidently address challenges, capitalize on emerging opportunities, and drive meaningful impact in the tech-driven government contracting space.

The Trump administration’s emphasis on technology offers GovCons unparalleled opportunities for growth and innovation. By aligning strategies with government priorities and leveraging ROSE’s expertise, contractors can stay ahead of the curve and achieve sustainable success.

Contact ROSE today to learn how we can support your business in navigating the future of government technology contracting.

Ted Rose

ROSE Report – Preparing for the Change in Administration

Tue, 14 Jan 2025 14:51:21 GMT

Issue 83 - Preparing for the Change in Administration

Navigating New Horizons: Opportunities for Small Businesses Under the Changing Administration

The Fall of Bench.co is a Wake-Up Call for the Accounting Industry

The sudden closure of Bench.co has sent shockwaves through the accounting industry, serving as a stark reminder of the inherent flaws in traditional outsourced accounting models. Celebrated initially for its tech-first approach, Bench.co ultimately fell short in delivering sustainable solutions for growing businesses. This failure illuminates a critical truth: automation alone cannot replace experienced financial leadership.
read more

Navigating New Horizons: Opportunities for Small Businesses Under the Changing Administration

Thu, 09 Jan 2025 21:40:01 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

A New Direction for Public Services Spending:

The new administration has signaled a paradigm shift in public services funding, emphasizing efficiency, transparency, and tangible outcomes. Here’s how this change can benefit small businesses:

Increased Transparency and Accountability: With a heightened focus on value for money, small businesses with innovative and cost-effective solutions are well-positioned to seize new opportunities. Sectors such as healthcare, education, and infrastructure are particularly ripe for disruption as the government seeks to maximize the impact of every dollar spent.
Targeted Spending for Community Needs: Rather than broad allocations, the administration appears to prioritize targeted investments that address specific issues. This approach favors businesses that specialize in niche services or products aligned with these emerging priorities.

A Shift Toward Innovative Contracting

One of the most significant changes in federal contracting involves the move away from traditional cost-reimbursable contracts, which have long favored established defense contractors, toward innovative, results-driven agreements. Key developments include:

Fixed-Price Contracts : These contracts demand precise project management and cost control, leveling the playing field for smaller, agile businesses. Startups with a strong emphasis on efficiency can excel in this environment.
Performance-Based Agreements : Focusing on outcomes rather than processes, this model allows small businesses to showcase their capabilities by delivering tangible results. Companies leveraging cutting-edge technology, such as AI and data analytics, stand to benefit significantly.

Emerging Opportunities for Startups

The evolving landscape is particularly advantageous for tech-driven startups and innovative small businesses:

AI and Cybersecurity : Companies that employ AI for defense solutions highlight the growing role of technology in modernizing government operations. Startups specializing in AI, cybersecurity, and similar fields are well-poised to secure new contracts.
Data Analytics : The shift toward data-driven decision-making in public services opens doors for businesses offering expertise in data integration, analytics, and visualization. This trend mirrors the success of companies like Palantir.
Innovation Over Tradition : With a decreased reliance on traditional contractors, the government is prioritizing fresh ideas and unique solutions. This creates an unprecedented opportunity for small businesses to disrupt conventional industries.

Strategies for Success

To capitalize on these opportunities, small businesses should consider the following strategies:

Specialize and Align : Focus your offerings on sectors prioritized by the government—healthcare, defense, education, and infrastructure—to increase your relevance and appeal.
Embrace Technology : Develop or integrate advanced technologies such as AI, cybersecurity, and data management to align with the government’s modernization goals.
Leverage SBIR and STTR Programs : Participate in Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs to engage in federally supported R&D and unlock commercialization potential.
Stay Connected : Actively participate in industry events, webinars, and discussions to stay informed and network with policymakers and key stakeholders.

The changing administration presents a unique moment for small businesses to redefine their role in public service delivery and defense. By staying agile, focusing on innovation, and aligning with government priorities, small businesses can unlock new growth opportunities. At Rose Financial Solutions, we’re committed to helping you navigate this evolving landscape and achieve success.

Let’s prepare for these opportunities together. For further inquiries or to discuss how we can help your business thrive, contact us at Rose Financial Solutions today.

Ted Rose

ROSE Report – Insights from Bench.co’s Downfall

Tue, 31 Dec 2024 14:55:48 GMT

Issue 82 - Insights from Bench.co’s Downfall

The Fall of Bench.co is a Wake-Up Call for the Accounting Industry

What is DCAA Compliance?

The Fall of Bench.co is a Wake-Up Call for the Accounting Industry

Tue, 31 Dec 2024 14:24:40 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Bench.co’s sudden closure – echoing ScaleFactor’s demise in 2020 – highlights critical flaws in the "tech-first" and offshoring approach many accounting outsourcing firms are taking. I couldn’t agree more with the leading assessment: automation alone can’t replace experienced financial leadership, nor can offshoring. But let’s break down why this keeps happening – and why most accounting outsourcing firms are destined to fail.

The Two Fatal Flaws in Outsourced Accounting Models:

Tech First, Strategy Last – Firms like Bench tried to automate operational accounting without understanding that small businesses need more than automation – they need experienced financial partners who offer real insight, not just dashboards. Technology should amplify expertise, not replace it. Companies focused on scaling are not ready to trust a driverless taxi to help them navigate the financial complexities of growth while safely reaching their intended destination.
The Growth Ceiling – Most outsourced accounting firms excel at serving early-stage start-ups (<$2M revenue), but what happens when clients hit $5M, $10M, or even $20M? The answer: they leave. These accounting outsourcing firms are not structured to scale with their clients as they move through critical growth stages. This creates a gap that no amount of software can fix.

The harsh reality? Few outsourced accounting firms can help companies grow beyond that $5-10M revenue range, which is precisely when financial complexity spikes, strategic financial guidance is critical, and scaling requires more than bookkeeping.

The Rise of CAS (Client Accounting Services) and the Role of CPA Firms

In the post-Covid era, companies have increasingly turned to CPA firms for help managing their accounting and financial operations. The problem? CPA firms aren’t structured for operational accounting either. Their focus has traditionally been on compliance, tax, and audit – not running day-to-day financial operations for scaling companies.

For companies to scale from start-up to $10M to $100M and beyond, they need:

Scalable financial infrastructure
Experienced teams who can navigate growth challenges
Advisory services that anticipate future needs

This is why the AICPA developed the CAS 2.0 framework – to guide CPA firms in building the infrastructure and advisory capacity necessary to support growing clients. The CAS 2.0 model outlines how CPA firms can combine technology, strategy, and advisory services to drive client success beyond transactional accounting . Most CPA firms that are currently building CAS financial infrastructure have followed this guidance by either (1) building a hub and spoke model where a resource wears multiple hats or (2) offshoring to bring in lower cost labor to handle dedicate functions. Neither one of these models have been proven to scale while meeting client requirements over the long-term.

The Path Forward – Build or Partner?

Bench and ScaleFactor are cautionary tales for CPA firms attempting to build scalable financial infrastructure without the right foundation. My belief is that most CPA firms should focus on training their professionals to deliver advisory services and partner with firms that excel at operational finance. In the terms used by the AICPA, CPA firms should focus on remaining the trusted advisor for their clients, providing clients with CAS 2.0 Advisory Support.

Where ROSE Comes In

At ROSE, we’ve been providing Finance and Accounting Outsourcing services for over 30 years. We’ve evolved to offer Finance as a Service (FaaS) – combining the people, processes, technology, organization, and data clients need to scale from start-up to $500M + in revenue. Our largest client started with us as a start-up and is now approaching $500M in revenue – a journey that took less than 10 years.

Our secret? We don’t just provide financial infrastructure – we provide guidance .

Through the Easby platform – an enterprise-grade, hyper-automated, AI-enabled system of engagement – we manage everything from transactions and approvals to projects and deliverables, creating scalable, cost-effective financial operations tailored for growth.

Our PEOPLE have been there and done that
Our PROCESSES are tested and scalable
Our TECHNOLOGY is enterprise grade, built on hyper-automation for flexibility, and AI enabled to support future needs
Our ORGANIZATION covers the key finance, accounting, tax and related technology needs of a scaling company
YOUR DATA is secure and structured for business insights, machine learning, AI initiatives, and to support future efficiencies

What Entrepreneurs Really Want

Most business owners aren’t shopping for financial infrastructure – you want a trusted guide who can help turn their dreams into reality. You need a partner who knows the path forward and can steer you away from the pitfalls that derail so many growing businesses.

If you’re a CPA firm thinking about expanding your CAS offering, let’s talk about how ROSE can support your journey.
If you’re an entrepreneur planning on scaling past $10M, reach out – we know the way.

Ted Rose

ROSE Report – Master DCAA Compliance and Financial Growth

Tue, 19 Nov 2024 14:20:06 GMT

Issue 81 - Master DCAA Compliance and Financial Growth

What is DCAA Compliance?

How Fractional CFO Services Help GovCons Scale Effectively

Government contractors (GovCons) face unique financial challenges due to strict regulations, including compliance with the Federal Acquisition Regulation (FAR), contract management, project reporting under general ledger (G/L) control, and maintaining cash flow. For growing GovCon’s, financial discipline is crucial to staying competitive. They are required to adopt accrual-based accounting earlier than most companies, which offers a more accurate financial picture by recording revenues and expenses as they occur—as it is essential for managing long-term contracts and deferred revenue.
read more

What is DCAA Compliance?

Mon, 18 Nov 2024 16:06:40 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

DCAA (Defense Contract Audit Agency) compliance refers to the standards and requirements set by the U.S. government to ensure accurate accounting and financial practices for contractors working with the Department of Defense (DoD). These regulations help verify that costs charged to government contracts are allowable, allocable, and reasonable. Achieving DCAA compliance requires maintaining strict internal controls, accurate timekeeping, and comprehensive cost accounting systems. Non-compliance can lead to contract penalties, loss of funding, or disqualification from future government projects. For GovCons , adhering to DCAA standards is crucial for securing and maintaining government contracts.

Why Is Being DCAA Compliant Important for GovCons?

DCAA compliance is essential for government contractors because it requires their accounting systems to meet the strict standards set by the Department of Defense. Being compliant helps contractors avoid audits, penalties, or contract termination, while also positioning them to secure future contracts. DCAA-approved accounting systems demonstrate financial integrity, transparency, and reliability, giving the government confidence in the contractor's ability to manage funds effectively. Additionally, compliance enhances a GovCon’s reputation, making them a more competitive candidate in bidding processes. Ultimately, DCAA compliance is critical for long-term success and sustainability in the government contracting sector.

Key DCAA Compliance Requirements

Achieving DCAA compliance is vital for government contractors, ensuring accurate financial management and accountability. Key requirements that contractors must meet include:

1. DCAA Timekeeping Requirements

• Detailed Records : Accurately record employee hours worked on each contract.

• Proper Allocation : Ensure labor costs are correctly assigned to respective contracts.

• Documentation : Document and approve any manual adjustments to timekeeping records.

2. DCAA-Compliant Accounting System

• Cost Tracking : Differentiate between direct and indirect costs for clear visibility.

• Overhead Monitoring : Track overhead costs to align with DCAA guidelines.

• Accurate Reporting : Facilitate comprehensive project cost reporting.

3. Proper Billing and Invoicing

• Compliance : Ensure invoices meet DCAA standards, reflecting accurate costs and allocations.

• Discrepancy Resolution : Address any discrepancies promptly to avoid audits or payment delays.

4. Internal Controls and Policies

• Strong Controls : Develop internal controls to prevent errors and fraud.

• Segregation of Duties : Implement checks and balances for enhanced accountability.

• Regular Audits : Conduct internal audits to assess compliance and improve processes.

5. Comprehensive Project Reporting

• Periodic Reports : Submit detailed reports on project costs, progress, and forecasts.

• Transparency : Enable government oversight to ensure appropriate fund usage.

How the DCAA Audit Process Works

The DCAA conducts various audits to verify that contractors meet government standards for financial management. These audits are designed to evaluate a company’s accounting systems, cost allocations, and overall compliance with federal regulations. Understanding the audit types is vital for any GovCon aiming to maintain DCAA compliance.

Types of Audits for DCAA Compliance

Pre-Award Audits: Before a contract is awarded, the DCAA may conduct pre-award audits to ensure that the contractor’s accounting system can handle government requirements, particularly in managing costs.

Post-Award Audits: After a contract is awarded, post-award audits verify that all costs charged to the contract are allowable, allocable, and reasonable, confirming compliance with contract terms.

Incurred Cost Audits: These audits review the actual costs incurred during contract performance to confirm that the expenses align with DCAA standards. They help identify any unallowable costs.

Forward Pricing Audits: Forward pricing audits evaluate cost estimates submitted by the contractor for future work. This validates that projected costs are realistic and compliant.

Accounting System Audits: These audits assess whether a contractor’s accounting system is adequate for tracking costs and supporting government contracts.

Cost Impact Audits: DCAA may conduct cost impact audits when there are changes in cost accounting practices that could affect contract pricing.

Special Audits: Special audits are performed on specific areas such as contractor claims, contract closeouts, or other focused concerns.

Additional Audits: Floor Checks and Other DCAA Audits

DCAA also conducts several specialized audits to ensure comprehensive compliance with government contracting requirements . One of the most notable among these is the Floor Check audit, which targets timekeeping practices.

Floor Checks

During a floor check, DCAA auditors make unannounced visits to contractor worksites to review how timekeeping is managed and whether employees are correctly recording their hours. The purpose is to verify that labor charges, one of the most significant costs in government contracts, are properly tracked and allocated. Auditors may interview employees, observe timekeeping procedures, and verify that the recorded labor is consistent with the work performed.

Accurate timekeeping is a cornerstone of DCAA compliance because labor costs must be allocated to the correct contract, preventing the misuse of government funds. A failed floor check audit can result in serious penalties, including contract suspensions or disqualifications.

Other DCAA Audits

DCAA may also conduct additional specialized audits based on a contractor’s risk level or specific compliance concerns. These can include audits of indirect costs, overhead rates, and specific contract clauses. In certain cases, the DCAA might investigate subcontractor compliance or audit a company’s procurement practices to ensure that subcontracted work aligns with federal standards. These targeted audits provide further assurance that contractors are adhering to all aspects of financial and regulatory requirements , minimizing risks for the government.

Best Practices to Prepare for a DCAA Audit and Remain Compliant

Maintaining DCAA compliance is crucial for government contractors, and ROSE Financial Solutions helps clients stay audit-ready. With a 100% DCAA audit pass rate, ROSE provides robust systems, expert financial guidance, and ongoing support to meet compliance standards. Regular internal reviews help identify and address potential issues before they escalate, while clear audit preparation guarantees smooth communication with auditors. By partnering with ROSE, GovCon clients can confidently meet DCAA requirements and focus on growing their business without compliance concerns.

Review and Update Your Accounting Systems

Having a DCAA-compliant accounting system is critical for any government contractor. ROSE offers expertise in setting up and optimizing accounting systems to meet DCAA requirements. This includes accurate tracking of direct and indirect costs, proper expense allocation, and ensuring the system is capable of handling complex government contract reporting.

Meet DCAA Timekeeping Requirements

Timekeeping is a major focus during DCAA audits. ROSE helps clients implement and maintain accurate timekeeping systems that align with DCAA standards, so employees correctly record hours against the appropriate contracts, preventing discrepancies that could raise red flags during audits.

Keep Documentation Ready

Proper documentation is essential for a smooth DCAA audit. ROSE assists clients in organizing and maintaining all necessary records, from payroll and invoices to cost allocation reports.

Perform Regular Internal Audits

ROSE supports clients by performing regular internal reviews of financial systems and compliance practices. These proactive checks help identify and resolve any issues before an audit, mitigating risks and maintaining readiness.

Prepare for Entrance Conferences and Auditor Communication

When preparing for an audit, ROSE equips clients with the right tools and knowledge for engaging with auditors. By ensuring all necessary documentation is prepared and fostering clear communication strategies, ROSE helps streamline the audit process, allowing clients to approach audits confidently.

Common Challenges in Meeting DCAA Compliance

Government contractors often face several challenges in meeting DCAA compliance . One of the primary hurdles is implementing and maintaining a DCAA-compliant accounting system. Many contractors struggle to make sure their system properly tracks direct and indirect costs, allocates expenses accurately, and produces the required reports for audits.

Another challenge is timekeeping. Having employees correctly record their hours, allocate them to the appropriate contracts, and avoid errors is critical for preventing compliance issues. Inaccurate or incomplete timekeeping can trigger failed audits.

Additionally, proper documentation can be a struggle for many businesses. Contractors need to maintain detailed records of costs, invoices, payroll, and more, which can be overwhelming without the right processes in place.

Finally, staying compliant requires ongoing internal reviews and regular updates to financial controls. Many companies lack the internal resources or expertise to conduct these assessments, increasing the risk of non-compliance.

Consequences of Non-Compliance with DCAA Standards

Non-compliance with DCAA standards can lead to serious consequences for government contractors:

• Payment Delays or Denied Reimbursements: Withholding of payments until issues are resolved.

• Contract Termination or Suspension: Loss of current contracts or disqualification from future work.

• Legal Repercussions or Financial Penalties: Potential penalties for misallocated funds.

• Rebuilding trust after failing a DCAA audit can be challenging, impacting long-term business opportunities in government contracting.

How ROSE Can Help You Achieve DCAA Compliance

Navigating DCAA compliance can be complex, but Rose Financial Solutions brings decades of expertise to simplify the process for government contractors. With a 100% DCAA audit pass rate, ROSE provides comprehensive financial systems, tailored guidance, and ongoing support to keep clients audit-ready. From implementing compliant accounting and timekeeping systems to conducting internal reviews and preparing thorough documentation, ROSE ensures your business remains compliant and secures government contracts with confidence.

Ready to strengthen your compliance practices? Contact ROSE today to schedule a consultation and learn how we can help your business achieve and maintain DCAA compliance.

Meet the Author:

Ted Rose

ROSE Report – Financial Expertise Meets Mobile Efficiency

Tue, 22 Oct 2024 13:20:43 GMT

Issue 80 - Financial Expertise Meets Mobile Efficiency

How Fractional CFO Services Help GovCons Scale Effectively

Easby Goes Mobile!

We are excited to announce the launch of our Easby app, now available for download on both the Apple App Store and Google Play Store exclusively for ROSE Clients. Easby is designed to help businesses streamline their financial management with automation and AI-driven solutions, optimizing the way you see your financial data.
read more

How Fractional CFO Services Help GovCons Scale Effectively

Mon, 21 Oct 2024 20:09:21 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

To navigate these complex financial challenges, growing GovCon’s need expert guidance to ensure compliance and financial stability while scaling their operations. This is where Rose Financial Solutions (ROSE) steps in. At ROSE, we provide an innovative GovCon Finance as a Service (FaaS) solution . This offering includes fractional CFO services tailored to growing GovCon’s, helping them manage their financial operations while scaling. Fractional CFO’s offer cost-effective financial leadership, enabling GovCon’s to access top-tier expertise without the need for a full-time hire.

Key Responsibilities of a CFO in a Growing GovCon

Financial Strategy & Planning

For any growing GovCon, financial strategy and planning are critical to success. A CFO develops both short-term and long-term financial strategies that align with the company’s growth goals. This involves not only managing day-to-day finances but also forecasting future needs based on projected revenue growth, contract acquisition, and market trends.

A CFO helps the company maintain financial discipline by integrating data-driven decision-making into the strategic planning process. This means using financial metrics and historical data to inform business decisions, ensuring that resources are allocated efficiently, and that the company remains on track to meet its financial objectives.

Additionally, a well-developed financial strategy allows GovCon’s to better manage cash flow, which is often a challenge due to the fast growth associated with government contracts. A CFO ensures that the company is prepared for these cycles by implementing financial roadmaps that guide resource allocation and identify potential risks early on.

Compliance & Regulatory Expertise

Compliance is one of the most critical areas where CFO’s provide value to GovCon’s. CFOs ensure that companies navigate the complexities of FAR, DCAA (Defense Contract Audit Agency) standards, and other key regulations. By doing so, CFO’s help:

Minimize the risk of penalties, contract loss, or audit issues.
Improve the company’s chances of winning new work by ensuring compliance and improving a company’s past performance scores.
Gain government approval for the company’s accounting system, which is vital for GovCon compliance. This system includes accounting software, people, processes, and procedures.

Special attention is given to ensuring that all financial operations align with government requirements, reducing risks associated with non-compliance.

Cash Flow Management

Managing cash flow is one of the most challenging aspects of running a GovCon, especially for growing companies. Cash flow forecasting is vital, as government contracts often come with fast growth and upfront investments that can create gaps in cash availability. A CFO is responsible for creating accurate cash flow forecasts that take these payment cycles into account and ensure that the company can continue to meet its financial obligations through debt and other methods.

Additionally, cash flow management is crucial when pursuing larger contracts. Many government contracts require businesses to demonstrate financial viability as part of the bidding process. A CFO helps ensure that the company has the financing resources available to take on new contracts without jeopardizing its day-to-day operations.

Financial Reporting & Metrics

Timely and accurate financial reporting is essential for both internal decision-making and compliance with government regulations. A CFO ensures that the company’s financial reports meet the rigorous standards set by regulatory agencies and that they provide meaningful insights into the company’s financial health. This level of transparency helps company leadership make informed decisions about resource allocation, contract bidding, and long-term planning.

Key financial metrics are monitored to ensure that the company stays on track to meet its financial goals. These metrics, such as cash flow, profitability, indirect rates, and revenue growth, are critical for evaluating the company’s performance and identifying areas where improvements can be made.

Risk Management & Mitigation

CFOs are also responsible for identifying and mitigating financial and other business risks that could jeopardize a GovCon’s growth. Financial discipline plays a key role in this process, helping to stabilize the business and prepare it for unforeseen challenges. CFO’s focus on assessing financial risks tied to contracts, cybersecurity, employment, cash flow, and regulatory compliance. They also develop strategies to mitigate the impact of these risks while ensuring that the company remains financially secure through growth phases.

Navigating GSA Schedule Support, 8(a), VOSB, SBA, and WOSB Complexities

Navigating government programs like the GSA Schedule, 8(a) Program, Veteran-Owned Small Business (VOSB), Small Business Administration (SBA), and Women-Owned Small Business (WOSB) certifications can be a complex and time-consuming process. These programs provide significant advantages for small GovCon’s, but they come with strict compliance requirements.

A CFO plays a critical role in ensuring that the company meets the financial and reporting requirements for these programs. This includes maintaining compliance with program size standards, preparing for reviews and audits, and ensuring that the company is positioned for success as it transitions out of these programs.

Strategic Financial Leadership

CFO’s act as strategic partners to the leadership team, helping drive profitability and scalability by aligning financial strategies with business objectives. In addition to day-to-day financial management, CFO’s play a key role in mergers and acquisitions (M&A). For GovCons looking to expand through acquisitions, a CFO ensures that the financial risks associated with the transaction are properly assessed and mitigated. Similarly, CFO’s help companies prepare for potential exits by ensuring that the company’s financials are in order and that it is positioned to attract potential buyers or investors.

Why Fractional CFO Services Are a Great Fit for Growing GovCons

What Are Fractional CFO Services?

Fractional CFO services offer part-time or as-needed financial leadership, allowing growing GovCon’s to access expert financial guidance without the high costs associated with hiring a full-time CFO. These services are especially valuable for growing GovCon’s because they provide scalable financial leadership that adapts to the business’s evolving needs.

Key Benefits of Fractional CFO Services

Cost-Effective : Fractional CFO services offer access to top-level financial expertise without committing to a full-time salary, making it a budget-friendly solution.
Scalable : As the business grows, the level of CFO services can scale accordingly, providing the flexibility needed to meet increasing financial demands.
Tailored Expertise : Fractional CFO’s bring specialized knowledge of GovCon compliance, financial reporting, and strategic planning, ensuring that the company remains competitive in the government contracting space.

A fractional CFO supports financial discipline by improving the company’s overall financial health. They help ensure that the accounting system is government-approved and audit-ready, a critical component of successful GovCon operations. By maintaining strict financial controls, fractional CFO’s help GovCons grow sustainably and remain compliant with government regulations.

How Rose Financial Solutions Supports Growing GovCons

Rose Financial Solutions provides a comprehensive range of financial services specifically designed for the GovCon industry. Their GovCon Finance as a Service (FaaS) model delivers CFO-level expertise, compliance management, and financial reporting tailored to the unique needs of government contractors. Through their fractional CFO services, Rose offers high-level financial leadership to growing GovCon’s, ensuring they manage their finances effectively while navigating the complexities of government regulations and contracts.

With Rose Financial Solutions’ expertise, GovCon’s can:

Stay compliant with FAR, DCAA, and other critical government regulations.
Access financial leadership that scales with their business as it grows.
Gain valuable strategic insights that drive long-term profitability and sustainability.

Rose Financial Solutions empowers GovCon’s to scale confidently, ensuring financial discipline and compliance at every stage of growth. To learn how Rose can help your business thrive, contact us today to explore tailored financial solutions for your company’s needs.

Ted Rose

Easby Goes Mobile!

Fri, 18 Oct 2024 18:31:42 GMT

What is Easby ?

Easby is built on an AI-enabled platform, offering a robust set of features that integrate seamlessly with your business's finance and accounting operations. From real-time data access to automated workflows, Easby delivers a smarter, faster, and more efficient way to manage key financial processes.

Whether you're a government contractor, nonprofit, or a growing business, Easby provides customized insights and recommendations tailored to your specific financial needs. The app's intuitive interface and secure platform ensure that users can easily stay on top of their accounting, invoicing, and reporting tasks, wherever they are.

Key Features

AI-Driven Automation: Easby automates routine financial tasks, allowing you to focus on growing your business.
Integration with Existing Systems: Easby integrates with your current accounting software, making it easy to incorporate without disrupting your existing processes.
Security and Compliance: Built with data protection and compliance in mind, Easby ensures that your sensitive information remains secure.

Why Easby?

As part of Rose Financial Solutions’ ongoing mission to help businesses improve financial clarity, Easby is an important tool that enhances our suite of services. Whether you're seeking to optimize your day-to-day operations or gain deeper financial insights, Easby empowers you to make better decisions with real-time data at your fingertips.

The Easby app is exclusively available to ROSE clients. If you're not yet a client and would like to learn more about how Easby can benefit your business, contact us to explore how we can support your financial management needs.

Beneficial Ownership Information (BOI) Reporting: What Every Business Needs to Know

Mon, 30 Sep 2024 15:50:22 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Updated: The Treasury Department announced March 2 that it will no longer enforce the Corporate Transparency Act or the associated beneficial ownership information reporting requirements. While no immediate filing obligations are required, ROSE recommends businesses consider filing proactively in anticipation of future approval and deadlines. If you have any compliance questions, please contact us .

Starting January 1, 2024, a pivotal new regulation has come into effect in the United States under the Corporate Transparency Act (CTA). This legislation mandates that most businesses report their Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN), marking a significant shift in how business ownership is documented and tracked. This article will provide a detailed overview of the new BOI reporting requirements, their importance, and how businesses can stay compliant .

Overview of BOI Reporting Requirements

The BOI reporting mandate stems from the Corporate Transparency Act (CTA), which is part of the broader effort by the U.S. government to enhance corporate transparency and combat financial crimes. The Financial Crimes Enforcement Network (FinCEN) is the agency responsible for overseeing this new requirement and ensuring that businesses comply with it.

The primary goal of BOI reporting is to create a centralized registry of individuals who have substantial control or ownership stakes in businesses. This registry will help law enforcement agencies identify and combat illegal activities such as money laundering, tax evasion, and fraud. Transparency in corporate ownership is essential to prevent bad actors from using anonymous or shell companies for illicit purposes.

Why BOI Reporting Matters

BOI reporting is not just about following regulations—it's about protecting the integrity and reputation of your business. By complying with these new requirements, businesses can avoid hefty penalties and ensure they operate lawfully. Failing to comply can lead to significant fines and criminal penalties, which could severely damage a company’s financial standing and public reputation.

What is BOI Reporting?

BOI reporting requires businesses to disclose detailed information about individuals who either own or control a significant portion of the entity. Specifically, companies must report individuals who:

• Have substantial control over the business, or

• Own at least 25% of the entity, either directly or indirectly.

The central purpose of this reporting requirement is to create a database that allows law enforcement and regulatory bodies to track the real owners of businesses. This prevents individuals from hiding behind anonymous corporate structures to engage in illegal activities.

FinCEN's Role in BOI Reporting

FinCEN is responsible for collecting, maintaining, and protecting the BOI registry. The information gathered through this reporting will not be publicly accessible but will be made available to law enforcement agencies and other authorized entities. FinCEN will also play a critical role in ensuring that businesses comply with these new regulations. Non-compliance will result in enforcement actions, including both civil and criminal penalties.

Who Must Report BOI?

The BOI reporting requirement applies to a broad range of entities, including both domestic and foreign companies operating in the United States. Specifically, the following businesses are subject to BOI reporting:

• Domestic Reporting Companies : These include corporations, limited liability companies (LLCs), and other entities created by filing with a U.S. state or tribal authority.

• Foreign Reporting Companies : Entities formed under foreign laws but registered to do business in the United States must also comply with the reporting requirement.

However, there are some exemptions. Certain large operating companies and tax-exempt nonprofits are exempt from BOI reporting if they meet specific criteria. For example, large operating companies are exempt if they have more than 20 full-time employees, maintain a physical office presence in the U.S., and report over $5 million in gross receipts or sales on their prior year federal income tax return.

Information Required for BOI Reporting?

To comply with BOI reporting, businesses must submit specific information about their beneficial owners, including:

The individual's full legal name,
Date of birth,
Current residential address,
A unique identifying number (such as a passport number or driver's license number), and
An image of the identification document to verify the information.

This comprehensive data collection ensures that FinCEN has accurate and verified information about individuals who own or control U.S. businesses.

Get started with ROSE®

Looking for a simpler way to manage your finance, accounting, and tax needs?

Experience the difference that our expert professionals and leading-technology can make.

Key Deadlines for BOI Reporting

Businesses need to be aware of the following deadlines to avoid penalties:

For existing companies (incorporated before January 1, 2025): They must file their BOI information with FinCEN by January 1, 2025.
For newly formed entities (incorporated on or after January 1, 2024): They must file their BOI information within 90 days of their formation.

Due to the complexities involved in BOI reporting, it is highly recommended that businesses submit their reports well ahead of the official deadlines to avoid any last-minute complications or potential delays. To ensure a smooth process, Rose Financial Solutions suggests completing filings in October or November, providing ample time to address any issues that may arise and guaranteeing timely compliance.

Penalties for Non-Compliance

The consequences of failing to comply with BOI reporting requirements can be severe. Businesses that do not submit their BOI information on time may face:

Civil penalties of up to $500 per day for each day the violation continues, and
Criminal penalties that could include fines up to $10,000 and/or imprisonment for up to two years.

To avoid these penalties, timely and accurate filing of BOI information is crucial.

Why Opt-In with ROSE for BOI Filing?

Navigating the BOI reporting process can be complex, especially for businesses unfamiliar with these new requirements. This is where Rose Financial Solutions can assist. ROSE offers a comprehensive BOI filing service that simplifies the entire process. Their team will handle everything from collecting and verifying the required documentation to submitting accurate filings with FinCEN on your behalf.

By partnering with ROSE, businesses can ensure they stay compliant with federal regulations and avoid costly penalties. With personalized support and a focus on security, ROSE ensures that your BOI filings are accurate, timely, and confidential.

BOI reporting is a critical new requirement for businesses in the U.S., designed to enhance transparency and combat illicit activities. Compliance is not only a legal obligation but also a way to protect your business from severe penalties and legal consequences. If you need assistance with BOI filing, reach out to Rose Financial Solutions today and ensure your business remains compliant with these important federal regulations.

Ted Rose

ROSE Report – Navigating Compliance & Finance Innovation

Mon, 30 Sep 2024 13:53:07 GMT

Issue 79 - Navigating Compliance & Finance Innovation

Beneficial Ownership Information (BOI) Reporting: What Every Business Needs to Know

What is Finance as a Service (FaaS)?

In today's dynamic business environment, the complexity of financial management continues to grow. Many organizations are struggling to keep up with evolving regulations, disparate systems, recruiting and retention issues, technological advancements, and the increasing need for financial transparency, timeliness, and accuracy. The result is the growth of the Finance as a Service (FaaS) industry. FaaS provides companies with a comprehensive solution that not only meets immediate financial needs but also positions organizations to scale its back-office operations during their full lifecycle.
read more

ROSE Report – Harnessing Finance as a Service (FaaS) to Redefine Finance Roles

Tue, 27 Aug 2024 20:04:32 GMT

Issue 78 - Harnessing Finance as a Service (FaaS) to Redefine Finance Roles

What is Finance as a Service (FaaS)?

Exploring the Roles of Bookkeeper, Controller, and CFO

Effective financial management is critical for any business, and understanding the distinct roles of a bookkeeper, controller, and Chief Financial Officer (CFO) is essential. All growing business need services that are performed by these roles, Finance as a Service (FaaS) integrates them into a streamlined, comprehensive solution that gives business leaders with an adequate level of support from each role.

Exploring the Roles of Bookkeeper, Controller, and CFO

Tue, 27 Aug 2024 14:27:16 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Defining Key Financial Roles

Bookkeeper

A bookkeeper is responsible for the daily recording of financial transactions, ensuring accuracy in sales, receipts, payroll, purchases, and payments. Core responsibilities include paying bills, , processing payroll, preparing invoices, posting cash receipts, and reconciling bank accounts. Bookkeepers can play a crucial role in maintaining accurate and up-to-date financial records, which are essential for compliance and smooth business operations. Their work provides the foundation for all other financial activities, ensuring that businesses have reliable data for decision-making. As a company grows, this role is often performed by accounting staff.

Controller

The controller oversees the accounting department, focusing on the accuracy and integrity of financial and management reporting on an accrual basis. Responsibilities include managing accounting staff, ensuring proper accruals, preparing financial statements, and overseeing internal controls, budgets, audits, and tax support . Controllers provide meaningful financial information that is critical for regulatory compliance and strategic decision-making. By ensuring that financial reports are accrual based, accurate and timely, controllers help organizations stay compliant while supporting long-term business goals.

CFO (Chief Financial Officer)

The CFO is the senior financial executive responsible for managing a company’s overall financial actions, including strategic financial planning, risk management, investor relations, fundraising, forecasting, and cash management. The CFO also oversees financial and management reporting and ensures the long-term financial health of the organization by managing cash flow and the balance sheet. The CFO’s impact on a business is significant, shaping the financial strategy that drives growth and profitability while ensuring financial stability. By aligning financial strategies with the company’s goals, the CFO plays a critical role in guiding the organization toward sustained success.

The Evolution to Finance as a Service (FaaS)

Defining Finance as a Service (FaaS)

Finance as a Service (FaaS) is a comprehensive financial solution that integrates the roles of bookkeeper, controller, and CFO into a single, outsourced solution. FaaS provides these positions with the necessary technological support, allowing them to focus on finance, accounting, tax, and compliance activities. By leveraging technology and expert financial professionals, FaaS offers end-to-end financial management—from transaction recording to financial and management reporting, and strategic financial planning. This approach ensures that all financial functions are aligned with the business’s overall strategy, resulting in better business outcomes.FaaS enables organizations to modernize their back-office functions rapidly, supporting them through complex change management processes. This modernization is crucial for enhancing the stability and scalability of financial operations, allowing businesses to focus on their core activities.

Key Benefits of Finance as a Service (FaaS)

Scalability and Flexibility

FaaS can be tailored to the unique needs of any business, scaling services as the business grows. Whether a company is small or expanding rapidly, FaaS provides a company will the support it needs in all three areas, bookkeeping, controllership, and CFO support, based on its needs at a given time. These needs can adjust to meet evolving financial requirements.

Cost-Effectiveness

Hiring full-time, in-house financial professionals for each role—bookkeeper, controller, and CFO—can be costly. Especially in the early stages, a company most likely does not require a full-time Controller and CFO. Additionally, as a company grows, it can get access to accounting staff support in incremental units instead of having to hire a full-time employee to handle incremental growth. FaaS offers a cost-effective alternative by providing access to a team of seasoned experts without the overhead costs associated with full-time employees.

Access to Expertise

FaaS gives small to medium-sized businesses access to the same level of expertise typically available only to larger companies. This access ensures that all financial functions are handled by professionals who bring a wealth of knowledge and experience to the table. This expertise can include functions like banking, financing, cash management, payroll and related taxes, sales and related taxes, use tax compliance, and expertise related financial technologies.

Technology Integration

Accounting and financial software, AI, automation and data analytics tools, system integrations, data governance, and security are central to FaaS, enabling timely financial insights and automation. Data management and integration allows businesses to gain timely access to more and better information to make informed data-driven decisions.

Improved Decision-Making

With comprehensive, accurate and integrated financial data, an organization can perform more meaningful financial analysis. FaaS supports better financial decision-making by ensuring that business leaders have proper business and financial context provided by a senior financial expert or CFO. This improved decision-making as a result of financial clarity and proper context supports business growth and enhances overall financial health.

Comparing Traditional Roles with FaaS

Traditional Model vs. FaaS

In the traditional model, filling the roles of bookkeeper, controller, and CFO with an adequate level of expertise is not financially feasible over the long-term. Controllers don’t enjoy doing bookkeeping and don’t have the financial expertise of a CFO. Most small to mid-sized companies don’t have the resources to hire the necessary expertise internally. FaaS, on the other hand, integrates these roles into a unified service offering that cost effectively provides companies with the expertise needed to scale throughout their lifecycle. Bringing together the expertise of all three roles, Bookkeeper, Controller and CFO, FaaS offers businesses a powerful solution for managing and improving their financial performance.

Understanding the roles of bookkeeper, controller, and CFO is crucial for effective financial operations. Each role plays a unique part in maintaining the financial health of an organization, from daily transaction recording to strategic financial planning and guidance. However, the traditional model can be fragmented and inadequate. Finance as a Service (FaaS) offers a next-level financial service that combines the expertise of all three roles into a comprehensive, streamlined solution. This integration provides businesses with the tools they need to manage their finances effectively and improve their long-term growth financial performance.

Enhanced Compliance and Audit Readiness

Regulatory compliance is a significant concern for growing businesses. FaaS helps maintain compliance with ever-changing regulations and prepares organizations for financial audits. This proactive approach to compliance mitigates risks and protects the organization's reputation, ensuring that it can continue to grow without unnecessary regulatory, legal or financial setbacks.

Ted Rose

What is Finance as a Service (FaaS)?

Tue, 27 Aug 2024 14:09:58 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

What is Finance as a Service (FaaS)?

Finance as a Service (FaaS) provides a company with full outsourced support for their financial back-office. It integrates people, processes, technology, organization, and data to deliver a full suite of financial functions. These functions include finance, accounting, tax, compliance, and related technology. FaaS goes beyond traditional finance and accounting outsourcing (FAO) by offering a holistic approach that includes expertise in all functions required to support a company’s financial back-office.

Unlike traditional FAO, which often focuses on providing individuals to perform specific tasks or functions, FaaS provides a comprehensive framework designed to support all aspects of the financial back-office. This holistic approach ensures that financial operations are aligned and can scale as an organization grows.

Why Organizations Need Finance as a Service (FaaS)

Addressing Complex Financial Needs

As businesses grow, so do their financial management challenges. Traditional approaches often fall short, particularly when it comes to hiring specialized talent and managing disparate systems. FaaS addresses these challenges by providing access to a wide range of financial expertise and advanced technologies, which are often out of reach for smaller, rapidly growing businesses.

FaaS enables organizations to modernize their back-office functions rapidly, supporting them through complex change management processes. This modernization is crucial for enhancing the stability and scalability of financial operations, allowing businesses to focus on their core activities.

Supporting Finance Transformation

FaaS plays a pivotal role in driving finance transformation within organizations. By outsourcing financial complexities to experts, businesses can achieve a higher level of operational efficiency on a faster timetable and at a lower cost. This transformation is not just about updating systems; it's about creating a financial environment that supports long-term growth and adaptability in an ever-changing market. FaaS enables organizations to modernize their back-office functions rapidly, supporting them through complex change management processes. This modernization is crucial for enhancing the stability and scalability of financial operations, allowing businesses to focus on their core activities.

Key Benefits of Finance as a Service (FaaS)

Comprehensive Services

FaaS offers a wide range of services, from basic accounting to strategic financial planning. These services provide a more organized and efficient approach to financial management, allowing businesses to focus on their core competency rather than getting bogged down by day-to-day financial operations. Additionally, FaaS can support individual functions and provide backup for internally managed functions, ensuring continuity and reliability.

Access to Expertise

One of the most significant advantages of FaaS is the access to expert advice across a wide range of skills, which is essential for managing the change caused by growth. This expertise is particularly valuable when it comes to timely, accurate, and meaningful data—key components of any successful financial strategy. FaaS solutions ensure that businesses receive better and more timely financial information, enabling them to act quickly and confidently.

Scalability and Adaptability

FaaS solutions are designed to grow with your business, ensuring they meet evolving financial needs. Whether your business is expanding, diversifying, or facing new industry demands, FaaS offers the flexibility to adapt to these changes. This adaptability ensures that your financial operations remain robust and aligned with your business objectives, regardless of the challenges ahead.

Advanced Financial Insights

FaaS provides accurate financial analysis and strategic insights that empower businesses to make data-driven decisions. These insights go beyond just numbers; they offer a deeper understanding of the financial health of your organization, enabling you to identify opportunities for growth and areas that need improvement. With FaaS, businesses can create better and more timely financial information, instead of spending time reinventing best practices.

The Long-Term Impact of FaaS on Growing Organizations

Improved Financial Health and Stability

FaaS enhances overall financial performance and stability, which are crucial for sustained growth. By outsourcing financial management to experts, businesses can ensure that they have a financial partner that has demonstrated a successful track record. The improvement in financial health makes it easier to attract a banking partner and other funding required for future growth.

Enhanced Compliance and Audit Readiness

Operational Efficiency and Focus

FaaS supports business growth through expert financial planning and guidance. By aligning financial management with business objectives, FaaS ensures that business leaders are supported and well-positioned to achieve long-term success. The impact of FaaS on achieving business goals is clear: it enables businesses to focus on what they do best while receiving the support from financial management experts.

Finance as a Service (FaaS) is not just a solution for today's financial challenges; it's a proactive step toward achieving financial clarity, operational efficiency, and sustained growth. By adopting FaaS, organizations can unlock their full potential and improve their chances for long-term success. Consider implementing FaaS to take your business to the next level.

Our FaaS solution, Easby, combines people, process, technology, organization, and data. to simplify and automate accounting functions, ensure compliance, and deliver strategic guidance and financial analysis from a team of top finance and accounting professionals.

Learn more about how Easby can fit your needs.

Ted Rose

ROSE Report – Navigating Unique Accounting Challenges

Mon, 29 Jul 2024 21:44:44 GMT

Issue 77 - Navigating Unique Accounting Challenges

Understanding Specialized Accounting for Government Contracts

Mastering Nonprofit Accounting: A Comprehensive Guide to Achieving Your Mission

Understanding nonprofit accounting is essential for organizations aiming to achieve their mission effectively and sustainably. This guide covers the basics, challenges, and best practices in nonprofit accounting, along with the benefits of outsourcing these services.

Mastering Nonprofit Accounting: A Comprehensive Guide to Achieving Your Mission

Mon, 29 Jul 2024 21:43:10 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Nonprofit Accounting Basics: What is Nonprofit Accounting?

Nonprofit accounting focuses on tracking and managing funds to ensure they are used according to member, donor, and regulatory requirements. Unlike for-profit accounting, the goal is to maintain financial transparency and accountability rather than maximizing profits. Nonprofit organizations must adhere to specific standards and practices that ensure they use funds responsibly and report their financial activities accurately.

Importance of Accurate Nonprofit Accounting

Accurate accounting helps nonprofits:

• Report to boards and stakeholders: Regular financial reports help keep everyone informed about the organization’s financial health.

• Comply with grant requirements: Proper accounting ensures that funds are used as intended and that the organization can secure future grants.

• Make informed decisions: Financial data is crucial for strategic planning, goal setting, and hiring decisions.

• Build trust: Transparent accounting practices build confidence among stakeholders and the community.

Common Challenges in Nonprofit Accounting

Nonprofits face unique accounting challenges:

• Managing multiple funding sources and restrictions: Nonprofits must track and report how funds are used, ensuring they comply with any donor-imposed restrictions.

• Preparing for audits: Nonprofits must prepare for audits that adhere to FASB standards and in some cases with OMB A-133 or A-122.

• Ensuring compliance: Nonprofits must comply with numerous regulatory requirements, including grantor and government standards.

• Strategic budgeting: Effective budgeting is critical for aligning resources with the organization's mission.

• Accounting for unrelated business income: Nonprofits with income from activities not related to their mission must account for unrelated business income tax (UBIT).

Fund Accounting for Nonprofits: What is Fund Accounting?

Fund accounting allows nonprofits to manage various sources of income, such as donations, member dues, grants, and government funds, separately. This system ensures funds are used for their intended purposes without the need for multiple bank accounts. Nonprofits can separate different funds using accounting software and their chart of accounts, ensuring transparency and accountability.

Types & Best Practices in Fund Accounting

Fund accounting focuses on accountability rather than profitability. Key practices include:

• Using accounting software: This helps track restricted and unrestricted funds accurately.

• Preparing detailed reports: These are essential for auditors to verify fund usage.

• Ensuring compliance: Following donor restrictions and regulatory requirements is crucial.

For example, if a community foundation provides a $75,000 grant for at-risk youth counseling, the nonprofit must account for this as a restricted fund and ensure it is used solely for that purpose. Auditors will verify this during their review, ensuring compliance with donor intent and best accounting practices.

Get started with ROSE®

Looking for a simpler way to manage your finance, accounting, and tax needs?

Experience the difference that our expert professionals and leading-technology can make.

Financial Reporting for Nonprofits: Nonprofit Financial Statements

Nonprofit financial statements include:

• Statement of Activities: Similar to an income statement, showing revenue and expenses.

• Statement of Financial Position: A balance sheet that includes assets, liabilities, and net assets.

• Cash Flow Statement: Tracks cash inflows and outflows.

• Functional Expense Statement: Breaks down expenses by function (e.g., program services, management, and fundraising).

These statements provide a comprehensive view of the organization’s financial health and are crucial for internal management and external reporting.

IRS Form 990

All nonprofits must file IRS Form 990 annually . This form provides the IRS and the public with financial information about the organization and ensures compliance with tax regulations. It includes details on the nonprofit’s revenue, expenses, and activities, providing transparency and accountability.

Other Regulatory Reporting Requirements

Nonprofits receiving federal funding may need to comply with DCAA requirements for accounting systems and payroll. Larger organizations might also need to submit audited financial statements to funders and state agencies. Ensuring compliance with these requirements is essential for maintaining funding and credibility.

Benefits of Outsourcing Nonprofit Accounting

Outsourcing nonprofit accounting offers several advantages:

• Cost Savings: Reduces overhead costs compared to hiring full-time staff.

• Expertise: Access to professionals experienced in nonprofit accounting.

• Scalability: Adjust accounting resources as needed, based on the organization’s growth and changing needs.

Outsourcing can help nonprofits stretch their budgets further, allowing more resources to be directed toward their mission.

How Rose Financial Solutions Can Help

ROSE® offers comprehensive outsourced accounting services through their Finance as a Service (FaaS) model. Their cutting-edge system, Easby®, enhances financial performance by providing actionable insights. ROSE can help nonprofits with:

• CFO and Financial Management

• Accounting and Reporting

• Transaction Services

• Tax and Regulatory Compliance

ROSE’s expertise ensures that your nonprofit organization maintains accurate financial records, complies with regulations, and has the financial information to make informed financial decisions. By leveraging our services, you can focus on your mission while we handle the financial complexities.

Ted Rose

Understanding Specialized Government Contract Accounting

Mon, 29 Jul 2024 21:30:09 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Government contract accounting is a specialized field requiring adherence to strict standards and regulations. Whether you're new to government contracting or have experience, understanding the unique requirements is crucial for maintaining compliance and ensuring the success of your contracts. This guide will explore the importance of specialized accounting, the types of government contracts, and the specific considerations for accounting in this field.

Importance of Specialized Accounting for Government Contracts

Government contractors must follow specific rules and procedures to maintain their contracts and receive reimbursement. Specialized accounting systems and procedures are important because of the audit requirements, specific forms, and procedural demands imposed by the government. Outsourced accounting services can help meet these requirements and achieve success in government contracting.

Accurate and compliant accounting ensures that:

Contracts remain in good standing: Non-compliance can result in penalties, contract termination, or in egregious situations, debarment from future government contracts.
Costs are reimbursed: Proper documentation and adherence to regulatory and contractual guidelines are necessary for cost reimbursement.
Future contracts are secured: A history of compliance and good financial practices enhances a company’s rating and credibility.

Types of Government Contracts

The type of contract you have with the government depends on the goods or services you provide. Here are the most common types:

• Fixed-Price Contracts: These award a specific price for services. They may include price adjustments based on the consumer price index and incentives or award fees for desirable performance. They offer predictability but require accurate cost estimation.

• Time and Materials Contracts: These pay contractors for the time and materials used during a funded project. They provide flexibility but need rigorous tracking of hours and materials.

• Cost-Reimbursement Contracts: These reimburse businesses for allowable costs plus an additional amount for fixed fees, incentive fees, or award fees. They are beneficial for projects with uncertain costs but require meticulous record-keeping.

Accounting System Adequacy

All Federal contracts require compliance with accounting principles set forth by the Financial Accounting Standards Board (FASB).

What Sets Government Contract Accounting Apart

Businesses contracting with the federal government must adhere to specific accounting standards, including GAAP (Generally Accepted Accounting Principles) and additional standards by the FASB. These requirements often necessitate an accounting expert or CFO specializing in government contract accounting . Key requirements include:

Compliance with FAR (Federal Acquisition Regulation) Part 31: This part outlines the cost principles for contracts with the federal government.
Cost Accounting Standards (CAS): These standards govern the measurement, assignment, and allocation of costs.
DCAA-compliant accounting and timekeeping systems : Ensures that all accounting and timekeeping meet the standards of the Defense Contract Audit Agency.
Cost allocation and approved indirect cost rates: Proper allocation of direct and indirect costs is essential for compliance and cost recovery.
Billing and invoicing using SF forms (Standard Forms): Required for standardized reporting and billing.

Key Differences Between Government Contract Accounting and Commercial Accounting

Government contract accounting differs significantly from commercial accounting. Some key differences include:

• Robust Internal Controls: Necessary to comply with federal audit agency standards.

• Compliance with FAR, CAS: Often more stringent than commercial standards.

• Federal Invoice Standards: Invoices must comply with federal standards and use specific forms.

• Timekeeping: Required for all employees, ensuring accurate labor cost allocation.

• Cost Segregation: Direct and indirect costs must be clearly segregated, which is critical for accurate billing and compliance. It is also critical to segregate costs that are “unallowable”.

Get started with ROSE®

Looking for a simpler way to manage your finance, accounting, and tax needs?

Experience the difference that our expert professionals and leading-technology can make.

Specific Considerations for Government Contract Accounting

Entering the world of government contracting can be challenging due to strict compliance and documentation requirements. Here are some specific considerations:

Compliance with FAR Part 31: This specifies which costs can be charged to government contracts and which are not allowed. Some non-allowable costs include:

o Alcohol and entertainment costs

o First-class plane tickets

o Interest on debts

o Legal fees

o Personal expenses

o Travel costs exceeding federal per diem rates

o Excessive compensation

Cost-Reimbursable Contracts (CPFF)

In cost-reimbursable contracts, costs can only be reimbursed if they meet specific criteria, including:

• Reasonableness: Costs must be justifiable.

• Allocability: Costs must be directly associated with the contract.

• Compliance with CAS: Must adhere to standards set by the CAS board.

Ordinary business accounting won't suffice for documenting reimbursable costs under government contracts, making specialized accounting crucial. Accurate and contract-compliant accounting is essential for ensuring all allowable costs are reimbursed.

Unallowable Costs

Unallowable costs may be legitimate business expenses, but they are not reimbursable under government contracts. These include:

• Alcohol and entertainment expenses

• First-class air travel

• Debt collection costs and bad debts

• Legal judgments and fines

• Interest on loans or credit cards not part of the government contract

These costs may be tax-deductible but cannot be charged to government contracts.

Finance Charges

Finance charges, such as interest on loans or credit cards, are generally unallowable unless they are part of the government contract and meet specific criteria set forth in the Code of Federal Regulations (CFR). Financing costs for construction or capital asset purchases can be allowable, provided they comply with regulations.

Essential Business Systems for Government Contractors

Small government contracting businesses may use QuickBooks for record-keeping, but larger businesses need specialized systems like PROCAS, Unanet, or Deltek Costpoint. These systems help minimize compliance risks and support contract and operational requirements. PROCAS, Unanet, and Deltek Costpoint all have integrated Time and Expense systems that support compliance as well. QuickBooks as a standalone product does not include a compliant time tracking system. There are several adequate time tracking applications that can integrate into QuickBooks.

QuickBooks for Government Contractors

While QuickBooks can handle basic accounting needs, government contractors may require additional functionality to ensure compliance with federal requirements. QuickBooks can be supplemented with modules and add-ons specifically designed for government contracting.

Specialized Systems: PROCAS, Unanet, and Deltek

PROCAS: This system is tailored for government contractors, offering features like DCAA-compliant timekeeping, expense reporting, and job cost accounting.
Unanet: Provides project management, resource planning, and financials in one integrated system. It ensures compliance with DCAA and other government regulations.
Deltek Costpoint: Known for its comprehensive suite of solutions for project-based businesses, Deltek Costpoint offers robust accounting, project management, and compliance features tailored for government contractors.

How Rose Financial Solutions Can Help

ROSE® has extensive experience helping GovCon businesses establish and grow successful federal government contracting relationships. Their services include:

• Financial Management : Comprehensive management of financial operations to ensure accuracy and compliance.

• Outsourced CFO Services : Strategic financial guidance tailored to the needs of government contractors.

• Accounting and Transactions : Detailed management of accounting transactions to meet government standards.

• Tax and Regulatory Compliance : Ensuring compliance with all tax and regulatory requirements, including FAR and CAS.

• Easby : Easby is a system of engagement that integrates with the above accounting systems. It manages the workflows for payables, payments, credit card expenses, billing, cash receipts, payroll, financial reporting, and tax filings while accumulating and storing supporting documents and management approvals for audit and compliance purposes.

ROSE’s specialized services ensure that your business maintains accurate financial records, complies with regulations while providing you with the financial information you need to make informed financial decisions. By leveraging their expertise across any or all functions, you can focus on your core mission while they handle the financial complexities.

For more information on how ROSE can assist your business, visit our Government Contracting Services page.

Meet the Author:

Ted Rose

ROSE Report – Essential Metrics for Growth

Mon, 01 Jul 2024 21:09:32 GMT

Issue 76 - Essential Metrics for Growth

Assessing Your Financial Performance: Key Metrics for Government Contract Accounting

As a government contractor (GovCon), understanding your financial health is crucial for success. Tracking the right metrics can help you stay competitive and ensure compliance with regulations. This guide will help you identify and analyze essential financial metrics for effective government contract accounting.

Leveraging SBIR Opportunities: A Nonprofit and Small Business CFO's Guide to Funding Innovation

Nonprofits and small businesses must constantly innovate to stay relevant and achieve their missions. One effective way to fund this innovation is through the Small Business Innovation Research (SBIR) program. While the SBIR program is primarily designed for small businesses, nonprofits can also benefit. Here’s how your organization can use SBIR opportunities to fund projects and succeed in your mission.

Assessing Your Financial Performance: Key Metrics for Government Contract Accounting

Mon, 01 Jul 2024 21:05:42 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

As a government contractor (GovCon) , understanding your financial health is crucial for success. Tracking the right metrics can help you stay competitive and ensure compliance with regulations. This guide will help you identify and analyze essential financial metrics for effective government contract accounting.

Key Metrics for Government Contract Accounting

1. Revenue Growth

Revenue growth is a fundamental indicator of business success in government contract accounting. It shows your ability to secure new contracts and retain existing ones. Here’s how to assess it:

Year-over-Year Growth: Compare your revenue each year to spot trends. Are you growing consistently, or are there periods of stagnation or decline?
Contract Wins: Evaluate the number and value of new contracts won each year. This helps in understanding how effectively your business is expanding its market reach.
Retention Rates: Track how many contracts are renewed. High retention rates indicate customer satisfaction and long-term relationships.

2. Profitability

Profitability metrics reveal how well your company manages its costs and generates profits in the realm of government contract accounting. Key metrics include:

Gross Margin: Gross margin is calculated as revenue minus all non-labor direct costs. This measure provides a clear picture of the business's true economic top line. The primary goal is to increase gross margin dollars.
Contribution Margin: This is calculated as gross margin minus direct labor costs. It represents the profit generated by a firm's operations, which can be used to cover Sales, General, and Administrative (SG&A) expenses. Traditional finance professionals often refer to this as Gross Profit.
Labor Efficiency Ratio: This is calculated by dividing Gross Margin Dollars by Direct Labor. This ratio indicates how efficiently your direct labor is converting revenue into Contribution Margin.
Net Profit: This is revenue minus direct and SG&A expenses and reflects overall profitability after all expenses have been deducted from revenue. As a percentage, it shows how much profit you generate from each dollar of revenue.
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. This metric provides a clearer picture of operational profitability by excluding non-operational expenses. This metric is generally utilized to calculate firm valuations.

3. Cash Flow Management

Effective cash flow management ensures you have the liquidity to meet obligations, pay suppliers, and invest in growth. Key metrics include:

Operating Cash Flow: This measures the cash generated from core business operations. Positive operating cash flow indicates a healthy business.
Cash Conversion Cycle (CCC): This metric tracks the time it takes to convert inventory into cash. A shorter CCC means quicker cash flow turnaround, which is crucial for maintaining liquidity.
Days Sales Outstanding (DSO): This measures the average number of days it takes to collect payment after a sale. Lower DSO indicates efficient receivables management, ensuring you get paid faster.

4. Cost Control

Controlling costs is essential for maintaining profitability and staying competitive in government contract accounting. Key metrics include:

Indirect Cost Rates : This measures the indirect costs that are not directly attributable to a specific contract. Keeping these rate low is crucial for competitiveness and profitability. These rates include fringe benefits, overhead, and general & administrative costs.
Bid and Proposal (B&P) Costs : Track the expenses incurred in preparing and submitting bids. High B&P costs can erode profitability, so it’s important to manage these expenses carefully.
Labor Utilization Rate : This measures the percentage of billable hours compared to total hours worked. Higher utilization rates indicate better efficiency and effective use of labor resources.

Get started with ROSE®

Looking for a simpler way to manage your finance, accounting, and tax needs?

Experience the difference that our expert professionals and leading-technology can make.

Analysis Techniques for Government Contract Accounting

To effectively analyze these metrics, consider using the following techniques:

Benchmarking: Compare your performance against industry standards and competitors. This helps identify areas for improvement and set realistic goals.
Trend Analysis: Track metrics over time to identify patterns and trends. This can help predict future performance and make informed decisions.
Variance Analysis: Compare actual performance against budgeted figures to identify discrepancies and understand their causes.

Leveraging Professional Help in Government Contract Accounting

Managing these metrics and conducting thorough analysis can be challenging, especially for smaller firms. Outsourcing accounting functions and leveraging the expertise of a fractional CFO can offer significant benefits. Outsourcing can provide.

Cost Savings: Reduce overhead costs associated with in-house accounting staff.
Expertise: Gain access to seasoned professionals with extensive experience in government contract accounting.
Scalability: Easily scale your accounting resources up or down based on your needs.

A fractional CFO can offer strategic insights and guidance, helping you navigate financial challenges and optimize performance. They can assist with budgeting, forecasting, and financial planning, ensuring your business stays on track.

Leveraging ROSE® and Easby® for Government Contract Accounting

ROSE is a leading Finance as a Service (FaaS) provider, simplifying back-office operations by aligning People, Process, Technology, Organization, and Data. Their cutting-edge system, Easby , is an enterprise-grade, AI-enabled, hyper-automation system that transforms data into actionable insights to enhance financial performance. With ROSE and Easby, GovCons can unlock their potential and achieve sustainable financial success. By utilizing ROSE and their advanced system Easby, you can gain deeper insights into your financial data, enabling you to make more informed decisions. This combination of expertise and technology provides a robust framework for improving your financial management and achieving long-term success.

Evaluating your financial performance is key to success in government contract accounting. Focus on revenue growth, profitability, cash flow, and cost control. Using outsourced accounting, a fractional CFO, and leveraging ROSE® and Easby® can enhance your financial management and ensure long-term success. With the right metrics and support, you can maintain a strong financial footing and drive your business towards greater achievements.

For more information on how ROSE can assist your business, reach out to schedule an appointment .

Meet the Author:

Ted Rose

Leveraging SBIR Opportunities: A Nonprofit and Small Business CFO's Guide to Funding Innovation

Mon, 01 Jul 2024 17:53:46 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

What is the SBIR Program?

The SBIR program is a government initiative that provides funding to small businesses for research and development. Although it’s intended for for-profit entities, nonprofits can participate by partnering with these businesses or creating a for-profit subsidiary.

Why Should You Consider SBIR Funding?

Access to Funds: SBIR grants provide money without requiring you to give up ownership or take on debt.
Encourages Innovation: The program supports new and creative projects.
Boosts Credibility: Receiving SBIR funding can enhance your organization’s credibility, attracting more donors and partners.
Aligns with Missions: Many SBIR-funded projects align well with missions like improving public health, advancing education, or protecting the environment.

Steps to Leverage SBIR Opportunities

1. Find the Right SBIR Opportunities

Federal agencies release SBIR funding for specific research areas. Nonprofits and small businesses should:

Regularly check the SBIR website for new opportunities.
Sign up for newsletters from relevant agencies.
Attend SBIR-related events to stay informed.

2. Create a Strong Proposal

To secure SBIR funding, your proposal needs:

Clear Goals: Explain the problem your project will solve and its impact.
Innovative Ideas: Highlight what makes your project unique and creative.
Proof of Feasibility: Provide evidence that your project can work.
Commercial Potential: Show how your project can be commercialized or advance your mission.

3. Partner with For-Profit Entities

If your nonprofit can’t apply directly, consider:

Partnering with a small business that can apply for the grant.
Creating a for-profit subsidiary to apply.
Collaborating with universities or research institutions that qualify for SBIR.

4. Prepare for a Rigorous Review Process

SBIR proposals undergo thorough evaluation. Ensure your proposal:

Meets all requirements.
Clearly explains the importance, innovation, and feasibility of your project.
Includes a detailed work plan and budget.

Making the Most of SBIR Funding

If you receive the grant, manage your project effectively by:

Strong Project Management: Keep your project on track.
Regular Reporting: Follow the reporting requirements to demonstrate progress.
Engaging Stakeholders: Keep everyone involved and informed about the project.

The SBIR program is an excellent opportunity for organizations to fund innovative projects. By understanding the program, creating strong proposals, and managing projects well, organizations can use SBIR funding to achieve their missions and make a significant impact. Start exploring SBIR opportunities today and take your organization’s innovation to the next level.

At ROSE®, we simplify back-office operations by aligning People, Process, Technology, Organization, and Data. Our cutting-edge system, Easby®, is an enterprise-grade, AI-enabled, hyper-automation system that turns data into actionable insights, boosting financial performance. With ROSE and Easby®, our clients unlock their potential and achieve sustainable financial success, embodying the future of Finance as a Service (FaaS).

Ted Rose

See 2024 Easby FaaS Conference Details

Rose Financial Solutions Sets Goal to Automate 85% of Finance and Accounting Activities by 2030

Wed, 15 May 2024 15:35:01 GMT

2024 Easby Finance-as-a-Service Conference will cover the deployment of up to 15 native AI skills in

Easby during 2024, including generative AI.

NORTH BETHESDA, Md., May 15, 2024 /PRNewswire/ -- Rose Financial Solutions ("ROSE"), a Finance-as-a-Service (FaaS) leader, is the host sponsor of the annual Easby Finance-as-a-Service Conference on June 4, 2024. The theme of the one-day event is Data-Driven Decision Making and AI Enablement and is expected to draw 200+ business leaders, finance professionals, and experts from a wide range of industries.

"ROSE and our ten partner firms are bringing together a wide range of thought leadership, best practices, and new capabilities at the event," said Ted Rose, Founder, President, and CEO of ROSE. "Companies are all looking for ways to leverage AI, automation and data into a competitive advantage. Our expert speakers will pull together a clearer view of the future of finance, while providing practical guidance that can be implemented now."

"We are excited to demonstrate how companies can leverage up to 15 AI skills in practical, secure, and meaningful ways this year. We're on a path to automate 85% of finance and accounting activities by 2030 and the AI journey starts now," said Rose. "Easby is built on top of Appian, a market leading, enterprise-grade, AI-enabled, hyper-automation platform. We believe that Easby is positioned to help our clients benefit from the massive investment that continues to be made in Appian's platform."

ROSE recently launched the Easby website where the Easby platform is described as 'Your CFO Co-Pilot'. Easby is a System of Engagement that connects to a company's current accounting software which remains the System of Record.

Visit Easby Website

About ROSE®

ROSE is a Finance-as-a-Service (FaaS) leader, supporting a company's back office by harmonizing People, Processes, Technology, Organization, and Data to empower its clients to succeed. ROSE finance, accounting, and tax professionals provide clients with financial clarity while reducing financial complexity with Easby®.

Easby is a system of engagement built on a market-leading, enterprise-grade, AI-enabled, hyper-automation platform that manages finance, accounting, and tax activities while securely converting data into insightful information and reducing financial complexity. Easby enhances a company's success by improving financial clarity while minimizing compliance related risks, including tax, DCAA/GovCon, Grant, SALT, and other regulatory compliance requirements. Find out why the Future of FaaS is Easby at: www.rosefinancial.com .

ROSE Report – Understanding the Benefits of FaaS

Tue, 23 Apr 2024 14:03:37 GMT

Issue 74 - Understanding the Benefits of FaaS

6 Benefits of Outsourced Accounting

Whether small, mid-sized, or large, businesses benefit from outsourced accounting in several ways, starting with cost savings. Other benefits include scalability, access to expertise, improved technology, reduced risks, and reliable compliance with government regulations.

Benefits of a Fractional CFO

A fractional CFO isn't just a temporary placeholder on your executive team. They can be valuable change agents and can also lead your finance department to stronger future performance. Fractional CFOs are not the same as interim CFOs. They offer many types of expertise and a valuable outside perspective.

6 Benefits of Outsourcing Accounting Services

Tue, 16 Apr 2024 19:52:58 GMT

Rose Report: Issue 74

By TED ROSE , ROSE FINANCIAL SOLUTIONS

According to Capterra, over 70 percent of businesses outsource some or all of their accounting and finance functions. Whether small, mid-sized, or large, businesses benefit from outsourced accounting in several ways, starting with cost savings. Other benefits include scalability, access to expertise, improved technology, reduced risks, and reliable compliance with government regulations.

Another reason for outsourcing accounting? The ongoing shortage of accountants makes it more challenging than ever to hire qualified full-time staff. Businesses can benefit not only from outsourced accounting but from complete Finance as a Service (FaaS) which leverages the strength of ROSE's technology platform, Easby®, and experienced finance, accounting, and tax professionals.

What Is Encompassed in Outsourced Accounting?

Outsourced accounting encompasses the functions of a controller, which include financial reporting from income statements to cash flow statements to balance sheets along with bookkeeping and payroll administration. With ROSE's FaaS approach, your firm, organization, or business can receive the full range of financial services with a fully staffed, outsourced finance department or division.

Benefits of Outsourcing Accounting Services

More than two-thirds of businesses and organizations outsource some or all of their finance department and accounting functions because outsourcing comes with many benefits. They include:

Cost Savings

You can save between 20% and 50% of direct accounting costs by outsourcing your accounting services with Rose Financial Solutions . Accounting services can also identify other cost centers for your business or organization and help you save on other expenses.

Access to Expertise

Outsourced accounting services can bring industry and sector-level expertise to your enterprise. Rose Financial Solutions offers expertise in a variety of business sectors, including government contracting and DCAA compliance. ROSE also offers expertise for technology and SaaS companies, and many different types of professional services, from technology consultants and architects to healthcare practitioners.

Rose Financial Solution professionals are also experienced in helping startups and small businesses. They provide expertise in assisting international businesses to succeed in the U.S., including the U.S. subsidiaries of global firms. ROSE also offers expertise for not-for-profit organizations, including annual compliance filings, annual reports, grants management, and reporting to granting organizations.

Get started with ROSE®

Looking for a simpler way to manage your finance, accounting, and tax needs?

Experience the difference that our expert professionals and leading-technology can make.

Understanding The Accounting Shortage and Hiring Considerations

According to CPA Journal , the accounting industry is "facing a severe crisis," because of a shortage of accountants. About 75 percent of accountants in the U.S. are at or near retirement age, according to the AICPA. There has also been a 33% decline in the number of candidates applying to take the CPA exam since 2016.

Competing for qualified accounting professionals in this environment is challenging for businesses, and outsourcing to a strong firm with qualified CPAs, accounting, and finance professionals for outsourced accounting services is an effective solution to the problem. In particular, firms like ROSE, with industry expertise in GovCon, nonprofits, tech and software, and foreign corporations with U.S. subsidiaries, offer a solution to the accountant shortage.

Scalability

It takes a lot of time, effort, and money to hire qualified accounting staff to grow a business from a few employees to one with hundreds of employees and multiple locations. If you're a tech or SaaS business, you may be able to have many remote workers, but the specialized expertise required to scale your products and subscriptions is difficult to come by.

Fortunately, ROSE Financial Solutions and their pioneering FaaS approach allows you to scale, whether you're a GovCon business taking on many new contracts or a nonprofit adding new programs and services.

Reduced Risk and Improved Compliance

All businesses benefit from reduced risk, but some have specialized needs to comply with government regulations, including government contractors , who must comply with DCAA requirements. Nonprofit organizations must also comply with state and federal laws regarding unrelated business income and fund accounting.

Outsourcing accounting functions to expert firms like Rose Financial Solutions will enable your organization to provide financial transparency and separation of duties, thus reducing risk and improving your ability to obtain bonding and insurance coverage, required for many government-based and other contracting processes.

Technology Advantages

Some businesses still use outdated programs or solutions like Excel to perform major accounting functions, and these programs are not up to the task of providing actionable financial insights, meeting complex requirements for government compliance, or making long-term strategic decisions about the future of your business. Rose Financial Solutions is not only experienced in working with major accounting platforms as a FaaS pioneer, they offer the Easby cloud-based platform, which can interface with internal accounting platforms and provide meaningful, actionable financial reports.

Learn more about how Easby can fit your needs.

Ability to Focus on Core Business Functions

Accounting is a specialized field, providing support for financial management, tax, and government program compliance and requirements, and in the case of international businesses, providing support across borders, enabling successful operations around the globe.

Experienced financial professionals and an integrated FaaS platform, as provided by Rose Financial Solutions , will enable you and your organization to focus on your core business functions, whether they are fulfilling government contract obligations, growing and scaling your business, or achieving your nonprofit organization's mission.

Choosing Between Internal and Outsourced Accounting: Key Considerations

If your business or organization already has a highly experienced and qualified accountant as controller or CFO, you can rely on their experience to determine how ROSE's FaaS approach and outsourced accounting can support your business. If you have a bookkeeper, their work can serve as the basis for outsourced accounting services.

Key considerations for deciding whether to conduct your accounting processes internally or outsource them include cost, efficiency, compliance, and experience.

Rose Financial Solutions: Your Outsourced Accounting Specialists

As a leader and pioneer in developing Finance as a Service (FaaS) with expertise in many industries, ROSE can help your business to scale, reduce risk, and comply with government regulations. You can benefit from outsourced accounting in many ways beyond simply saving money and time. Contact Rose Financial Solutions today to learn the benefits of outsourced accounting and how FaaS can help your nonprofit organization, GovCon business, startup or expansion, tech/SaaS business, or professional services firm.

Meet the Author:

Ted Rose

What Is a Fractional CFO? Key Benefits for Your Business

Mon, 15 Apr 2024 20:02:51 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

One fractional CFO story we've learned shows how valuable fractional chief financial officers can be. A West Coast nonprofit hired an experienced fractional CFO whose review of financial records indicated that one of the organization's officials had been quietly misappropriating funds for years. The CFO tracked down the source of every misappropriated fund and helped to ensure a more stable, transparent, and above-board future for the organization.

What is a Fractional CFO?

A fractional CFO is a chief financial officer who works part of the month for a variety of companies. Fractional CFOs can bring specialized experience and have varied backgrounds that can help businesses or organizations to address specific organizational goals and objectives.

Fractional CFOs typically have experience in a variety of industries and can offer flexible solutions to a variety of different business needs. While many companies may think that a fractional CFO would only be brought in if a previous CFO has retired or moved to another role, fractional CFOs can offer services and support for a variety of different business circumstances. For example, they can serve during a period of corporate restructuring, system transition, or to oversee the process of a merger and acquisition. While fractional financial professionals could be seen as "troubleshooters" or temporary managers, they have many long-term potential benefits as well.

Benefits of a Fractional CFO

One of the primary pluses with a fractional CFO: a fresh set of eyes and outside experience. They don't just bring their own background and experience to your business, they also offer objectivity. They may be able to spot bottlenecks or other organizational issues that could be holding your business back. They can often be utilized as change agents.

Additional benefits of hiring a fractional CFO include:

On-Demand Expertise: Fractional CFOs are there when you need them and typically aren't expected to continue on a full-time basis. They can become a permanent part of your team though.
Cost Effectiveness: The fractional CFO arrangement will often be more cost-effective than permanent full-time or interim CFO. They will also provide greater expertise than a controller.
Flexibility: You can expand and retract the work of a fractional chief financial officer when needed, enabling you to adapt quickly to changing circumstances and needs.
Strategic Planning & Organizational Support: Many qualified fractional financial professionals are able to lend support in structuring and organizational planning processes.
Stability During Transition: If you are between CFOs or your current CFO is looking to retire or step down, a fractional CFO can provide valuable stability and help your business to transition to its next phase.

Expert Data and Reporting

Fractional CFOs can be particularly effective when they bring expert skills and experience in data and reporting. They can also train finance staff in best-practices in data management, analysis, and reporting. They can also offer experience in preparing visual dashboards and custom reports that can help guide your firm to success .

Advanced data analytics and business intelligence are two other areas of expertise that a fractional financial officer can bring to your business. They can also help to streamline and speed financial reporting processes. And, they'll also be able to bring expert forecasting and budgeting skills to your business. Management teams can greatly benefit from the expert skills of fractional CFOs who can identify and measure key performance indicators (KPIs) and also bring experience in various industry best practices and benchmarks that your business should be considering.

Get started with ROSE®

Looking for a simpler way to manage your finance, accounting, and tax needs?

Experience the difference that our expert professionals and leading-technology can make.

Industry Expertise

CFOs with financial management expertise in different industries can prove invaluable when they bring their background and knowledge to your business or organization. Rose Financial Solutions (ROSE) provides you with the benefits of a fractional CFO with expertise in many industries, including:

Government Contracting Fractional CFO

ROSE offers its government contracting (GovCon) FaaS platform, Easby, which supports most accounting software, to help you navigate the complexities of government contracting. Easby provides a comprehensive solution for managing your accounting needs, ensuring compliance with industry standards and regulations.

As a government contractor, you must adhere to strict auditing standards set by the Defense Contract Audit Agency (DCAA). ROSE’s team of fractional CFOs are experts in DCAA compliance and have a track record of successfully guiding client systems through audits. We help you maintain transparency and accuracy in your financial reporting, crucial for building a strong reputation with government clients.

Technology Company Fractional CFO

Tech companies have specialized needs such as growth targets, unique metrics, funder reporting, and scalability. ROSE offers the expertise to empower your tech industry business with tailored financial solutions.

Technology businesses often face challenges like securing funding, navigating rapid changes, and optimizing cash flow for sustainable growth. Our fractional CFOs can guide you through these complexities, helping you make informed financial decisions to stay competitive.

Nonprofit Organization Fractional CFO

Nonprofit organizations have specialized financial needs that require in-depth expertise. ROSE provides fractional CFOs with extensive experience in nonprofit financial management to support their mission.

Nonprofits often face challenges such as ensuring compliance with regulatory requirements, managing restricted and unrestricted funds, and optimizing funding sources. Our Easby® platform can help guide you through these complexities, helping you maintain transparency and maximize impact.

International Business CFO

Having a financial professional with experience in cross-border and international business and tax considerations can be an invaluable asset to your team. They assist your business to continue growing and thriving in a global market.

International businesses often face challenges such as navigating complex tax regulations, managing currency fluctuations, and ensuring compliance with international laws. Our experts can help you address these obstacles, providing strategic financial guidance to support your global operations.

Growth And Transition CFOs

If your business is growing rapidly, it needs the tools and expertise of a financial professional who has guided other firms through periods of rapid change and growth.

During periods of significant growth or transition, businesses often face challenges such as managing cash flow effectively, scaling operations, and securing financing. Our experienced CFOs can help you navigate these changes, offering strategic financial planning and insights to support sustainable growth.

When Should You Hire an Interim CFO?

Many people think that interim CFOs are just placeholders who will provide continuity when one CFO retires or moves on, and another full-time CFO comes on board. However, if you're looking to grow your business or nonprofit organization, a fractional financial officer can be an ideal solution. The outside perspective and expertise of an outsourced CFO can also help to guide your organization through reorganization, merger and acquisition, and many other challenges.

While no organization wants to experience financial complexity , an interim financial officer can leverage their experience to steer your organization to financial clarity. Other ways fractional financial professionals can help your business include training and elevating your finance department's staff and skills.

Fractional financial officers can also help to provide strategic planning, structuring, and re-organizational guidance and advice. They can also help your business or organization to transition to a new accounting system, and they can also improve reporting procedures.

Hire a Fractional CFO from ROSE for Expert Financial Leadership

Rose Financial Solutions offers cost-effective and scalable solutions, including highly qualified and effective fractional CFOs. Whether your business is experiencing a period of rapid growth or is between CFOs, Contact ROSE today for the expertise your firm needs to continue to grow and thrive.

Ted Rose

ROSE Report – Empower Your Financial Decisions

Wed, 28 Feb 2024 14:54:35 GMT

Issue 73 - Empower Your Financial Decisions

The Difference Between an Interim CFO, Part-Time CFO, & a Fractional CFO

A CFO can be one of the most significant contributors to a company’s success and should be considered an essential position within every business. An excellent CFO not only offers fresh perspectives and strategies but also significantly enhances a company's financial health. This ensures that business owners can confidently entrust their financial interests to adept professionals skilled in devising new strategies, managing cash flows, conducting financial planning, and unearthing new opportunities through a thorough analysis of financial strengths and weaknesses.

Scaling Tech Companies for the Future

Thriving in the dynamic tech industry extends beyond conventional financial management. As tech companies scale, sustainable growth relies on strategically optimizing back-office operations. Defining growth targets, metrics, VC and fundraising needs, cash burn, differing revenue models, and unique cost structures becomes crucial for long-term success.

The Difference Between an Interim CFO, Part-Time CFO, & a Fractional CFO

Mon, 26 Feb 2024 22:19:23 GMT

By TED ROSE , ROSE FINANCIAL SOLUTIONS

Businesses today now have access to many different types of CFOs. Even smaller firms that normally couldn’t afford a full-time CFO now have access to CFO-level expertise that can transform the ways they do business.

This evolution has introduced various CFO engagements, including interim, part-time, and fractional roles, each catering to different organizational needs and scales. To better understand the different types of CFOs, let’s look at the differences between interim, part-time, and fractional CFOs.

What Is an Interim CFO?

An interim CFO is not a part-time position but rather a full-time CFO (either employee or contractor) who steps in to fill the CFO position when empty and stays until the position is filled. If a CFO has departed the position, an interim CFO steps in for a defined period of time on a full-time basis. For example, an interim CFO could come on board for a term of three months or a half-year and not become a long-term employee of the company.

The interim CFO performs all of the duties and responsibilities of a traditional CFO for a provisional or temporary period to fill the gap left by the departure of the in-house CFO until the CFO position is filled with a long-term employee.

What Is a Part-Time CFO?

A part-time CFO is an individual that works less than full-time but enough to fulfill the duties and responsibilities of a CFO for the company. A smaller company might hire a part-time CFO to work several days a week as an employee or independent contractor.

When not dedicated to one specific company, some part-time CFO’s can extend their services to other businesses, thereby maximizing their impact across the industry by sharing insights, strategies, and best practices gleaned from a broader spectrum of operational environments. This flexibility makes the part-time CFO role an attractive and pragmatic solution for companies in growth phases or those needing strategic financial guidance without the overhead of a full-time executive commitment.

What Is a Fractional CFO?

A fractional CFO is a professional who works full-time but serves multiple companies–providing their financial expertise and services. A smaller company , which may not require the continuous services of a full-time CFO either due to limited workload or budget constraints, opts for a fractional CFO. When not dedicated to one specific company, a fractional CFO can extend their services to other businesses, thereby maximizing their impact across the industry by sharing insights, strategies, and best practices gleaned from a broader spectrum of operational environments.

Fractional CFOs have the knowledge and experience of an in-house CFO and perform all of the same services. A smaller company that only requires a CFO once a week will hire a fractional CFO to help them:

Raise new capital
Navigate financial challenges
Enhance financial strategy
Grow
Help through an audit
Implement new systems
Put in place KPIs
Handle regulatory filings
Work with investors and lenders

In some cases, a fractional CFO might be hired to perform a very specific task , such as an owner’s exit strategy, or navigate a particular financially delicate situation.

The most significant benefit of hiring a fractional CFO is cost savings. A company has access to the expertise of a seasoned CFO without the high cost of having a full-time, in-house executive. With fractional CFOs, smaller companies have access to the same level of talent as enterprise-size businesses.

What sets ROSE apart from solo practitioners is our collaborative approach. At ROSE , we boast a team of Fractional CFOs, supported by an FP&A team of controllers and finance professionals. This financial team of professionals is supported by standardized systems and methods that ensure a more comprehensive and well-rounded financial support system for your company's needs. ROSE provides a comprehensive CFO and Financial Management Solution .

Which CFO-Type Fits Your Business Best?

Understanding the unique roles and benefits of fractional, interim, and part-time CFOs is key to selecting the right financial leader for your business's specific phase and needs. Each type offers distinct advantages suited to various organizational requirements, ensuring your choice aligns with your current goals and challenges.

Engagement Structure

Engagement structure refers to the terms at which the CFO is brought into the company. For instance, if the company brings in an interim CFO, there would be a guarantee as to the number of hours and how long the CFO will work for the company.

Interim CFOs expect to know how long they will be engaged with the company, and it is common for companies to define a minimum amount of time that the interim CFO will work for them in a full-time capacity. The company might define a minimum period of three months and then a month-to-month arrangement thereafter. Typically, a set end date is anticipated.

A part-time or fractional CFO often have no such guarantee of a minimum time period and would commonly be on a month-to-month arrangement or, if an employee of the company, at the will of the business owners.

Time Commitment

Commonly, an interim CFO is brought on as a full-time employee with a specified term to be in the position.

A fractional CFO will typically work on a month-to-month basis for a negotiated number of hours, normally below 20 hours a week. During times that the company is busy or has additional needs, the fractional CFO would temporarily increase their work hours to accommodate the business’s needs.

Similar to the fractional CFO, a part-time CFO would work a negotiated number of hours or days either as an employee or contractor and have the potential to increase the time commitment as necessary to meet the needs of the company.

Scope of Responsibility

An interim CFO is brought into a company to perform the full scope of duties of a full-time, in-house CFO until a new CFO is hired.

Part-time and fractional CFOs might perform the full scope of duties of an in-house CFO or might be brought in to perform specific duties. For instance, they might be hired to manage an audit, provide advice or coaching to the VP of Finance, or develop a strategic plan.

Get started with ROSE®

Looking for a simpler way to manage your finance, accounting, and tax needs?

Experience the difference that our expert professionals and leading-technology can make.

Business Size and Type

It is common for larger middle-market-sized businesses to have an in-house CFO if there is a need for a full-time employee. In the event the CFO departs, these companies will be the ones that hire an interim CFO.

For smaller businesses, in start-up mode or early stage, there might not be a budget or need for a full-time CFO. These companies might have all of their needs met by a CFO who works for them one or two days a week, and some might only need their CFO several days a month. In such cases, the services of a fractional or part-time CFO are ideal. As a company scales, it is ideal that they are able to scale the CFO and Financial Management Solution until a full-time role is necessary.

Cost Structure

An interim CFO will typically be paid a monthly rate for the length of their service, whereas a fractional CFO is commonly paid by the hour with a minimal number of hours negotiated as a retainer. If a part-time CFO is employed by the company, that person is often paid hourly for the amount of hours they are required to work each week. CFO and Financial Management Solutions are usually priced on a fixed monthly fee based on responsibilities assumed. Unique and non-repetitive activities are generally priced on an hourly basis above the fixed monthly fee.

Rose Financial: Your Outsourced CFO Solution

For many businesses, especially startups and small to mid-market enterprises, the decision to engage a fractional CFO offers a strategic advantage. This approach provides access to the high-level financial expertise necessary for critical decision-making, strategic planning, and navigating financial complexity, without the full-time salary commitment of a traditional CFO.

Rose Financial provides fractional CFO services that help business owners gain financial clarity, make informed business decisions, and achieve more. Owners have access to trusted advisors that help them succeed in their journey through expert strategic financial management. ROSE supports their interim CFOs with a FP&A team that includes Controllers and Finance professionals, providing a comprehensive CFO and Financial Management Solution. This ensures cost-effectiveness and that clients can receive access to support when needed.

Start a conversation with Rose Financial today to see how your company will advance to the next level with a fractional CFO and Financial Management team in its corner.

Ted Rose

ROSE Report – Data Driven and AI Enablement Strategies for 2024

Wed, 10 Jan 2024 21:31:30 GMT

Issue 72 - Data Driven and AI Enablement Strategies for 2024

Empowering Business Expansion Through Data Driven Decision Making

Recent findings from Pigment’s Office of the CFO 2024 survey highlight a critical issue for business leaders – the prevalent use of inaccurate data in their decision-making processes. The survey reveals that a staggering 89% of finance leaders are basing their decisions on incomplete or faulty data. The foundation of successful business strategies depends on the quality and accuracy of the decisions made. As businesses navigate expansion and heightened competition, the reliance on data-driven insights has become critical. Harnessing the transformative power of accurate, reliable data enables informed and effective decision-making.

Optimizing Data for Effective AI Integration

Technology, Data and Automation are transforming decision-making, especially with the democratization of Artificial Intelligence (AI). This transformation is especially pronounced within finance, where AI's emergence is influencing financial system strategies, placing a premium on structured data for AI-driven initiatives. However, the ability to utilize AI effectively heavily relies on data organization and security. Organizing data includes data consolidation, categorization, and tokenization. This organization can help establish the groundwork for your company to benefit from the full potential of a wide-range of AI-driven use-cases.

Empowering Business Expansion Through Data Driven Decision Making

Wed, 10 Jan 2024 18:30:53 GMT

The foundation of successful business strategies depends on the quality and accuracy of the decisions made. As businesses navigate expansion and heightened competition, the reliance on data-driven insights has become critical. Harnessing the transformative power of accurate, reliable data enables informed and effective decision-making. Businesses with financial clarity will outpace companies that struggle with flawed data. Financial visibility will help businesses avoid common pitfalls while shaping a future oriented strategic vision.

Why Is Most Financial Data Flawed?

Financial Data often ends up flawed due to several factors. Disparate systems and fragmented processes within an organization can cause increased inaccuracies over time. The lack of standardization of data within an organization introduces complexities and leads to inconsistencies in data handling. Nomenclature and connectivity issues further compound the problem, making it challenging to establish a framework for data organization. When these issues persist, they pave the way for flawed data, hindering accurate analysis and decision-making.

Improving Financial Data with a “Single Source of Truth”

Addressing the complexity of inaccurate financial data requires a strategic approach. Streamlining systems and processes and implementing standardized, data-oriented procedures across departments can mitigate inaccuracies stemming from disparate systems and fragmented processes. Moreover, establishing a unified nomenclature and resolving connectivity issues are pivotal to ensuring data integrity. By instituting a cohesive framework for data organization and management, businesses can tackle the root causes of flawed financial data. Establishing a single source of truth consolidates data into a single data structure. This allows for the streamlining of processes, reduction of complexity, standardization of nomenclature and improved connectivity. In essence, a single source of truth reduces errors by ensuring everyone in an organization refers to the same accurate information. This unified data hub speeds up decision making and lays the groundwork for integrating AI into future financial operations.

Enter Easby , a system of engagement that standardizes financial activities and data while improving data integrity. As a CFO Co-Pilot, Easby streamlines data handling and reporting, allowing leaders to make better decision based on better information. Easby reduces administrative activity and promotes data-accuracy, improving decision-making and driving companies toward success in our competitive business environment. Easby connects with your accounting system of record to become a “single source of truth”, centralizing data and refining processes. By streamlining data collection and reporting, Easby empowers leaders to refocus their efforts on strategic growth initiatives.

To discover how Easby can become your CFO Co-Pilot while fortifying the future of your organization, we invite you to schedule an introductory call with Rose Financial Solutions (ROSE).

Optimizing Data for Effective AI Integration

Wed, 10 Jan 2024 18:25:47 GMT

Technology, Data and Automation are transforming decision-making, especially with the democratization of Artificial Intelligence (AI). This transformation is especially pronounced within finance, where AI's emergence is influencing financial system strategies, placing a premium on structured data for AI-driven initiatives . However, the ability to utilize AI effectively heavily relies on data organization and security. Organizing data includes data consolidation, categorization, and tokenization. This organization can help establish the groundwork for your company to benefit from the full potential of a wide-range of AI-driven use-cases.

Consolidating Diverse Data for Unified Insights

Data consolidation includes merging and unifying diverse data sets from multiple sources into a single source of truth. Let’s consider a corporation that operates across various states. Each division might maintain financial and operational records, such as sales figures, payroll, operational expenses, and inventory in disparate systems. Data consolidation in this scenario involves merging these diverse datasets from different divisions into a singular, centralized system. For instance, combining sales data from different regions, integrating it with payroll and inventory records, and aligning financial reports across divisions creates a comprehensive overview of the company's overall performance. This consolidated data allows for better analysis of revenue streams, cost optimization strategies, and more accurate forecasting across the entire organization, aiding in strategic decision-making for the whole company.

Enhancing AI Precision through Categorization

Categorization involves sorting data into specific items or categories based on various parameters or attributes. It's about organizing and labeling data in a structured manner. For example, in accounting, data categorization refers to sorting expenses into a variety of dimensions, such as general ledger codes, department codes, project codes, etc. These codes are normally broken down into logical categories that help users and AI understand that certain vendors are related to travel and others are related to office supplies, or utilities. In AI-driven strategies, categorization is paramount for contextualizing and organizing information effectively. By classifying data into relevant categories or items, AI systems can understand the nuances of different data sets. This categorization allows for more precise analysis, facilitating the extraction of actionable insights and comparisons that are crucial for decision-making.

Tokenization for Advanced Data Efficiency and Security

Tokenization is the segmentation of complex data into smaller, more manageable units known as tokens, each representing individual pieces of data or information. This process primarily focuses on maintaining confidentiality when inputting data into AI systems. Its core objective is safeguarding sensitive data by substituting identifying information with distinct tokens or representations. By implementing tokenization, organizations create a protective barrier around sensitive information, like personal or financial data, thwarting AI from associating the data from a specific entity.

Tokenization ensures that AI algorithms work with transformed data. For instance, tokenization involves converting sensitive data, like vendor names, into random tokens in financial transactions. This not only enhances security by safeguarding sensitive information but also streamlines data analysis by reducing the complexity of the dataset. In AI strategies, tokenization is a critical step. By segmenting data into tokens, AI algorithms can more effectively identify patterns, trends, and correlations within the information, ultimately enabling more accurate predictions and insights, all without providing the AI with sensitive information.

Leveraging Integration Opportunities with AI

Consider a company working to streamline its accounting processes. The organization creates a unified database through data consolidation and tokenization. The integration of AI technology allows for the use of machine learning to automate transaction coding, a move that significantly reduces manual workload while improving processing accuracy.

Other examples of AI integration include automating graphic analysis and categorization creation. For instance, AI-driven tools can autonomously generate visual representations of complex datasets. Moreover, within categorization, AI systems excel at continuously refining and automating the sorting of diverse data sets into specific categories or segments, ensuring accuracy and efficiency in data handling.

Finally, AI-driven tools leverage historical patterns to track and analyze financial behaviors. For instance, by examining past expenditures, these systems identify trends, anomalies, and potential cost-saving opportunities. This level of insight allows businesses to make more informed decisions regarding budget allocation, identifying areas for optimization and possible financial risks.

Scaling Efficiently Through AI-Driven Strategies

By merging AI-driven strategies with data management, businesses gain adaptability. This agility powers informed decisions, intelligent resource allocation, and proactive risk management. This approach isn't just about navigating competition; it's about efficient scaling and strategic growth, representing a shift towards growth while benefiting from financial clarity. This strategic combination empowers businesses to thrive, evolve, and seize opportunities in a constantly changing business environment.

Schedule an introductory call with us today to explore how optimizing your data strategy can enhance your adaptability, drive informed decisions, and propel your business towards scalable growth.

ROSE Report – Strategies for Growth in 2024

Wed, 29 Nov 2023 23:19:16 GMT

Issue 71 - Strategies for Growth in 2024

Strategic Planning: Nurturing Growth and Adaptability for the Year Ahead

As the year draws to a close, businesses engage in a routine yet pivotal phase: strategic planning for the coming year. This process can shape the trajectory for success and substantial growth in the year ahead. Effective strategic planning involves more than just goal setting; it involves navigating a dynamic market, recognizing challenges, and leveraging emerging trends. Therefore, strategic planning isn’t merely about imagining success but creating a resilient roadmap that is adaptable to change. With this in mind, let’s explore how effective strategic planning can drive significant organizational growth.

2023 Tax Planning Strategies for Business Growth and Efficiency

ROSE Report - Strategic Planning: Nurturing Growth and Adaptability for the Year Ahead

Wed, 29 Nov 2023 18:38:11 GMT

Setting Clear Objectives for Expansion

A robust strategic plan begins by defining clear objectives. Employing the SMART framework—ensuring goals are Specific, Measurable, Achievable, Relevant, and Time-bound—creates a focused path forward. This approach translates aspirations into specific, measurable targets aligned with the company's overarching vision. SMART goals inspire guiding principles, directing decisions, and paving the way for progress. Most importantly, such precision empowers businesses to channel their efforts, monitor progress, and reach pivotal milestones, thereby fortifying their growth initiatives while ensuring resources are spent effectively.

Reflecting on Past Performance to Inform Future Strategies

An in-depth analysis of past performance is instrumental in effective planning. Evaluating achievements unveils successful strategies while acknowledging challenges recognizes opportunities for improvement. Scrutinizing operational performance provides a quantitative lens for informed decision-making. This retrospective analysis lays the foundation for refined strategies, effective resource allocation, leveraging strengths, and addressing weaknesses, thus fostering more effective future planning.

Engaging Stakeholders for Unified Growth

Active involvement of key team members and diverse departments fosters collaborative progress and a sense of shared ownership in the planning process. Business leaders benefit from cultivating a collaborative approach by gaining employee feedback and various perspectives. This inclusive approach nurtures consensus and helps align efforts toward a collective vision. When stakeholders actively participate in planning, their engagement fuels heightened commitment to organizational success and fosters a collective determination to achieve objectives.

Employing Big Picture Thinking to Expand Operations

In today’s dynamic landscape, it is crucial for growing companies to maintain adaptability within their strategic planning. Maintaining a fluid approach during strategic planning can be done by embracing flexibility as a core principle. Employing scenario planning is a methodology many organizations use to explore various potential scenarios, encouraging proactive adjustments to different outcomes. Second, fostering a company-wide culture that encourages open communication and feedback loops enables decision-makers to promptly identify and address changing market dynamics or internal challenges as they arise. Company leaders can incorporate regular strategic reviews and reassessments to ensure company initiatives remain relevant and responsive to evolving circumstances.

Stakeholders should also consider empowering their workforce to remain agile and ready to adapt by investing in ongoing learning and development. Fostering company engagement, growth, and development in adaptability facilitates agile adjustments to market shifts, anticipation of trends, and seizing emerging opportunities. This approach ensures a sustained foothold in the market and ongoing relevance amidst evolving industries.

In conclusion, mastering year-end strategic planning is required in today’s everchanging environment. It's not solely about setting goals; it's about nurturing a culture of adaptability, innovation, and resilience—a holistic approach laying the groundwork for sustained growth and enduring success. Ready to solidify your back office for the year ahead? Schedule an introductory call with Rose Financial Solutions today and empower your strategic planning with expert financial guidance.

ROSE Report – 2023 Tax Planning Strategies for Business Growth and Efficiency

Wed, 29 Nov 2023 18:35:34 GMT

As the end of the year approaches, strategic tax planning becomes critical element for businesses aiming to minimize taxes, maximize cashflow and pave the way for growth. Leveraging smart tax strategies can reduce taxable income, enhance operational resilience, and improve cash flow. Exploring available tax credits and deductions specific to your industry provides an opportunity for substantial reductions in taxable income and tax expense. These incentives, specifically designed for various sectors, allow businesses to minimize tax liabilities while improving cash flow. In this article, we would like to present a list of tax deductions and strategies for organizations looking to navigate tax planning for 2023 and beyond.

Electric Vehicle Tax Credits

Electric vehicle tax credits can also be beneficial for businesses, providing up to $7,500 in tax credits. Requirements for this credit are contingent on the vehicle and its manufacturer. One of the requirements for this credit is vehicles must be placed in service by the end of 2023 to qualify for the credit in the same tax year. According to the IRS website, the vehicle must be “new, qualified plug-in EV or fuel cell electric vehicle (FCV)”. Moreover, the vehicle must be utilized primarily in the US and not be purchased for resale.

Employing Children in the Business

Business owners can also employ their children to work in their company and benefit from deductions up to a certain amount. The child will increase the overall deductible expenses of the business since the wages, employer portion of payroll taxes, and additional fees paid to a payroll service provider are all deductible. An increase in organizational expenses reduces the overall taxable income for the company, decreasing taxable income overall. Finally, engaging their children in their company empowers parents’ business interests and enables them to initiate an early retirement plan for their children, securing enduring familial benefits in the long run. The IRS requires that all employees have a valid business purpose.

Section 179 Deduction and Bonus Depreciation

Businesses have diverse avenues for tax benefits, such as the Section 179 Deduction or Bonus Depreciation, enabling full deduction if certain criteria are met. Section 179 allowed qualified companies to immediately deduct the full cost of tangible capital assets immediately after they are acquired rather than depreciating them over their useful life. On the other hand, bonus depreciation permits organizations to deduct additional depreciation for the cost of qualifying business property. Bonus depreciation was limited to 80 percent in deduction 2023 and is generally disallowed in most states. However, Section 179 is permitted by many states and is a hundred percent deductible if an organization meets certain criteria.

Resource Spotlight: Rose Financial Solutions' 2023 Year End Tax Planning Webinar

Business leaders seeking to align their strategies with regulatory shifts and long-term objectives can benefit immensely from the insights offered by industry experts. Rose Financial Solutions is hosting the "2023 Year-End Tax Planning: Mastering Your Strategy for Year-End Tax Planning and Beyond" webinar.

This exclusive webinar is configured for entrepreneurs and business leaders, aiming to provide valuable insights into the nuances of tax planning essential for financial efficiency. Join us to gain expert perspectives, strategic tips, and actionable strategies for optimizing tax planning in 2024.

View the webinar here .

Navigating the Complexities of Multistate Tax Compliance

Wed, 29 Nov 2023 18:13:15 GMT

Expanding business operations to multiple states introduces a complex network of tax compliance challenges that companies must confront. The nature of this challenge is attributed to the fact that each state functions as its own tax jurisdiction, equipped with distinct tax laws, regulations, and filing prerequisites. Consequently, companies looking to expand their operations beyond any state borders often encounter a variety of tax challenges.:

· Nexus Determination

The term "nexus" marks the threshold at which a business establishes a significant presence within a particular state. Once a business' operations in a state surpass a specific threshold, this initiates a tax obligation. However, the concept of nexus is not uniform; it exhibits substantial variation from one state to the next.

Nexus can emerge through various means, including physical presence, economic activities, or sales thresholds. This diversity in criteria necessitates meticulously evaluating a company's activities within each state to determine whether nexus has been established. Overlooking or misjudging this critical aspect can lead to unforeseen tax liabilities and penalties, making vigilance in nexus assessments imperative.

· Income Apportionment

Many states employ an apportionment formula to ascertain the portion of a company's income subject to their state taxes. Apportionment involves establishing the portion of a business's profits subject to a specific jurisdiction's corporate income or other business taxes, and U.S. states typically base this on a combination of the percentage of company property, payroll, and sales located within their boundaries. The precise rules governing income apportionment vary significantly from state to state. This variability mandates an in-depth understanding of the regulations enforced in each state and the ability to optimize income allocation effectively to minimize tax liability.

Navigating this complexity necessitates the expertise of tax professionals well-versed in multistate tax planning. Strategies such as cost-sharing agreements, functional and enterprise restructuring, and reconsidering sales sourcing and location of implementation may be employed to significantly reduce overall tax liability while ensuring compliance with diverse apportionment rules.

· State-Specific Tax Credits and Incentives

States frequently extend various tax credits, incentives, and deductions to attract businesses and stimulate economic activities. Staying well-informed about available incentives and optimizing their utilization is fundamental to effective tax planning. These incentives may encompass research and development credits, investment incentives, job creation credits, and incentives for promoting renewable energy sources.

Identifying and effectively leveraging these opportunities can materially impact a company's financial performance. Yet, remaining up-to-date with the ever-changing landscape of state tax credits and incentives requires a comprehensive understanding of state tax codes, often necessitating professional assistance or tax consulting for organizations looking to maximize their benefits.

· Compliance and Filing

Registering, filing tax returns, and adhering to state-specific deadlines can be a formidable challenge for organizations operating across multiple states. Each state imposes its requirements, ranging from documentation to filing frequency. The meticulous nature of compliance within each state and varying deadlines render this task time-consuming and potentially overwhelming. Non-compliance poses significant risks, leading to penalties and interest or even forfeiture of business license and filing status that may substantially erode an organization's profitability. Hence, a streamlined compliance process is essential. Investing in technology and software solutions to automate and facilitate compliance, along with well-trained teams knowledgeable about state-specific requirements, is pivotal for successfully managing multistate compliance.

Navigating state tax compliance while expanding across state lines is fraught with complexities, but it is far from insurmountable. Companies can effectively tackle these hurdles by investing in professional guidance, implementing robust compliance management systems, and gaining a thorough understanding of state-specific tax regulations. Integrating Rose Financial Solutions' Finance as a Service (FaaS) solution into their strategy can assist growing businesses in streamlining this process and eliminating complexity as they expand, ultimately optimizing their tax position while ensuring compliance.

Discover the advantages of a scalable FaaS solution by scheduling an introductory call.

Streamlining Credit Card Expense Management with Easby

Wed, 29 Nov 2023 18:01:45 GMT

As businesses expand their operations, they frequently confront an ongoing challenge of striking a balance between providing their workforce with access to resources and cost controls. Credit Card Expense Management is a critical component of this dynamic. A well-defined process will ensure employees utilize corporate credit cards for approved expenses while confirming timely and accurate documentation and support is received for valid business expenses.

As credit card usage is continuing to become a more prevalent payment method, ROSE has implemented enhanced best practices into Easby's Credit Card Expense Management module. These best practices are designed to automate the reporting and coding of credit card transactions, simplify the collection of credit card receipts, ensure the timely review and approval of credit card transactions, ensure the timely payment of credit card bills and eliminate month-end closing delays as a result of the credit card coding and approval process.

The Importance of Streamlining Your Credit Card Expense Management

Maintaining an effective Credit Card Expense Management system is critical. Companies should ensure they maintain a proper expense management system.

Fostering Financial Control : A well-structured expense management process empowers businesses to maintain proper control over their expenses. Setting spending budgets and providing proper visibility into credit card usage as incurred are critical to preventing misuse of credit cards and the creation of unbudgeted business expenses or worse, personal usage.
Maintaining Compliance : Failure to properly document credit card expenses can create tax deduction and reimbursement issues downstream. These issues can lead to potential lost reimbursements, lost tax deductions, penalties and lost credibility. Implementing a credit card compliance program can help businesses maintain their compliance by streamlining and validating the collection and storage of essential expense documentation, making it easier to access for support purposes later. Keep in mind that while the IRS requires receipts for all expenses $75 and above, each firm should set its own threshold to ensure that expenses are proper and meet the business purpose.
Efficient Record Keeping : Maintaining a reliable credit card expense system allows organizations to establish an efficient and organized method for managing expenses. These expenses need to be recorded into the accounting records and compared to budgets routinely. Improving the ease of use of an expense reporting tool, improves utilization and reduces delays in cost reimbursement and accurate financial reporting.

Easby’s Strategic Advantage

Easby's Credit Card Expense Management module offers a systematized process for managing credit card expenses. This ensures that supervisors and managers can efficiently oversee and approve expenses, enhancing overall financial control and improving recordkeeping and compliance.

1. Efficiency through AI Based Predictive Coding

Easby analyzes historical transaction coding, significantly reducing the need for manual data entry by leveraging predictive coding. This AI based skill references a cardholder’s past interactions with vendors to determine the appropriate dimensional coding. These dimensions include vendor, general ledger (GL), project, department and class coding. These dimensions are looked at individually and together to better understand and predict a cardholder’s coding overtime. Easby’s machine learning pairs its predictive coding function with a percentage confidence level, displaying the probability of an accurate prediction to the users in real-time.

2. Daily Syncing and Updates

Unlike other systems that are retrospective and administratively burdensome, Easby synchronizes seamlessly with most credit card companies, providing daily information about credit card charges. Integrated into the Easby platform, this daily data synchronization provides management and cardholders visibility into their credit card expenses each day. This visibility allows for cardholders to stay on top of their coding and receipt attachments throughout the month while keeping management informed of activity.

3. Keep Your Workflow in Motion with Easby

Engineered to uphold a continuous progression, Easby automatically steers expense transactions through the expense process. Cardholders are granted a specific window following the end of the month to submit their receipts, a timeline enforced by the system. If a cardholder fails to submit their credit card report within the stipulated timeframe, Easby will escalate the expense assignment to the respective manager. Managers will then have time to validate the predictive coding and coordinate receipt collection from cardholders. Easby ultimately makes it easier for cardholders to validate coding and supporting documentation, including the attaching receipts.

Leveraging Easby's capabilities, cardholders and management enjoy a reduction in the manual workload, resulting in fewer keystrokes and minimal data entry requirements. With the system efficiently handling data entry, all users experience a significant reduction in backlogs, benefiting from an optimized process that effectively eliminates bottlenecks and increases the efficiency of an organization’s back office.

Gain more insights on the advantages of incorporating Easby into your back-office functions by scheduling an introductory call with Rose Financial Solutions. We look forward to speaking with you.

ROSE Report – Enhancing Financial Efficiency

Tue, 07 Nov 2023 23:23:50 GMT

Issue 70 - Enhancing Financial Efficiency

Navigating the Complexities of Multistate Tax Compliance

Streamlining Credit Card Expense Management with Easby

ROSE Report – Unlocking the Future of FaaS

Wed, 27 Sep 2023 21:15:00 GMT

Discover how ROSE is leveraging Easby, an AI-enabled outsourcing solution, to reshape the Finance as a Service (FaaS) landscape. Dive into the future of finance and accounting as we explore Easby’s unique position in AI-driven finance transformation and its role in future proofing the back offices of companies in an evolving market.

ROSE Report – Growing Your Business with FaaS

Wed, 27 Sep 2023 19:39:00 GMT

This movement recognizes the growing need for businesses to have a strategic partner that can provide insights, analysis, and guidance to drive financial growth and success. By combining technology, automation, and expertise, FaaS delivers real-time financial reporting, analytics, and strategic planning support.

2024 Easby FaaS Conference

Wed, 27 Sep 2023 18:51:00 GMT

Join us at the 3rd Annual Easby FaaS Conference in 2024, sponsored by ROSE, where innovation in Finance as a Service takes center stage. Explore AI-powered solutions, back office fortification, hyper-automation, and more.

ROSE + Easby: AI-Enabled Outsourcing is the Future of FaaS

Wed, 27 Sep 2023 18:06:00 GMT

The Advantages of Finance as a Service: Unleashing Your Financial Potential

Tue, 18 Jul 2023 15:43:00 GMT

Rose Report: Issue 67

BY TED ROSE , ROSE FINANCIAL SOLUTIONS

As the CEO of Rose Financial Solutions (ROSE®), I am often asked, “What is the difference between traditional finance and accounting outsourcing and Finance as a Service (FaaS)?” Simply put, the key distinction is that Finance as a Service provides a more holistic and strategic approach to financial operations. Today’s movement from traditional finance and accounting outsourcing to FaaS represents a significant shift in how businesses manage their finances. This movement recognizes the growing need for businesses to have a strategic partner that can provide insights, analysis, and guidance to drive financial growth and success. By combining technology, automation, and expertise, Finance as a Service delivers real-time financial reporting, analytics, and strategic planning support. Companies that embrace FaaS gain access to a more agile, scalable, and adaptable financial solution that goes beyond mere transactional processing, enabling them to confidently make informed decisions, optimize financial performance, and navigate complex financial challenges.

Finance as a service (FaaS) offers numerous advantages over traditional accounting outsourcing, including:

A holistic approach that enables businesses to gain deeper insights into their financial health, make data-driven decisions, and optimize their financial performance.
A more cost-effective solution for businesses of all sizes that eliminates the expenses associated with investing in technology or hiring and training in-house finance teams.
A flexible financial solution that seamlessly scales alongside business growth, adapting to evolving needs and increasing complexities.

The Future of FaaS is Easby!

As a leading industry innovator, ROSE® has been at the forefront of the paradigm shift from traditional finance and accounting outsourcing to utilizing technology to simplify back-office functions. Beyond traditional accounting outsourcing, our FaaS solution optimizes a company’s back office by harmonizing People, Processes, Technology, Organization, and Data, providing our clients with the tools to become accomplished leaders in their industries. We do this by providing financial clarity and the elimination of complexity through our technology platform, Easby® .

Easby, is a system of engagement built on enterprise-grade, hyper-automation technology that manages finance, accounting, and tax activities, converts data into information, and is supported by a team of seasoned professionals that enhances a company’s success by improving financial performance and eliminating complexity. Additionally, with ERP-level technology, Easby helps you better manage your back-office functions by connecting them into a unified system and helps you futureproof your financial operations by setting the stage for implementing AI in the future.

Learn more about how our FaaS solution can help you unleash your financial potential and set you on the path to becoming an accomplished leader. Schedule a call with ROSE today. In the meantime, fill out our pricing form to learn more about the value we create.

View Pricing Form

This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business.

Ted Rose

President, CEO, and Founder

Transforming AP Processes for Enhanced Efficiency and Accuracy

Tue, 18 Jul 2023 15:39:00 GMT

Often, small- to mid-size business owners believe that their manual accounts payable (AP) processes are adequate, and they don’t need to invest in automating their bill payments. However, nothing could be further from the truth. Accurate and efficient AP management is the foundation for financial integrity and effective business operations for any organization, regardless of size or industry.

ROSE Report – Success through Process Transformation

Tue, 18 Jul 2023 15:36:00 GMT

Goldfish Client Spotlight

Mon, 17 Jul 2023 18:09:19 GMT

At Rose Financial Solutions (ROSE®), we are dedicated to providing an exceptional Finance as a Service (FaaS) solution for startups, helping them navigate the complex financial landscape while ensuring regulatory compliance. We value our partnership with our clients such as Goldfish, a startup focused on revolutionizing seafood trade compliance.

-------

Goldfish’s co-founder and CEO, Celeste Leroux, who previously worked in ocean policy in Federal agencies and the White House, saw the seafood industry's growing need for efficient, effective due diligence to help comply with a complex network of trade regulations designed to keep illegally harvested seafood out of the US market.

This realization led to the creation of Goldfish, with a mission to empower the industry and government regulators with actionable insights. However, Goldfish needed a trusted partner to handle their financial needs efficiently and compliantly to achieve their goals.

"When I was setting up the C-Corporation, I wanted to make sure we followed all of the rules ourselves. I needed a firm that could grow with us and focus on our specific requirements," says Celeste.

"I found ROSE to be a perfect fit—a blend of traditional accounting services with an innovative platform that made financial management easier."

Goldfish entrusted ROSE with their financial operations from the initial stages of forming the company to onboarding their first customers. With our dedicated team of experts, we ensured their books were meticulously maintained, enabling them to focus on their core mission.

"I was overwhelmed with starting bookkeeping for our new company. ROSE stepped in and took the time to understand our needs and guide us through the process," Celeste explains. "ROSE provided additional assistance by helping us classify our staff correctly and even handling state-level filing on our behalf. It felt more like a partnership than a service provider." However, the actual value of our partnership became evident when an unexpected issue arose with a vendor.

"Your team realized that our payroll provider had double billed, " Celeste recalls. "ROSE didn’t just catch an error, they were an advocate for getting it resolved.” For Goldfish, it was truly reassuring to have a partner who not only catches errors but also goes the extra mile to resolve them. Following every rule and regulation was of utmost importance, and ROSE's commitment to compliance and accuracy played a crucial role in their decision-making.

"I needed to find an outside entity that I trusted to offer the services we needed at a price we could afford," says Celeste. "ROSE provided not just the expertise but also a sense of trust and reliability, ensuring that our books were on the up-and-up." As a regulatory-focused startup, Goldfish recognized the need for a comprehensive financial solution that could adapt to their evolving needs.

"ROSE offered the perfect combination of old and new traditional accounting services with an innovative platform. It felt like they truly understood our unique requirements," Celeste affirms.

At ROSE, we take pride in supporting startups like Goldfish, empowering them to navigate the financial complexities of their industries while maintaining regulatory compliance. Our dedicated team goes beyond standard service, acting as partners and advocates for our clients' success.

If you're a startup looking for a financial partner that prioritizes compliance, accuracy, and growth, we invite you to schedule a call with ROSE. Together, we can navigate the challenges and unlock the potential of your business.

Issue 66 – Strategies for Success in Today’s Business Environment

Thu, 22 Jun 2023 14:14:00 GMT

Rose Financial Solutions redefines Finance as a Service and launches its next-generation platform, Easby®

Navigating Grants Accounting and Compliance

Creating a Mindful Hybrid Workplace That Works

Thu, 22 Jun 2023 14:14:00 GMT

The great American workplace experiment brought on by the pandemic has indeed transformed today’s office environment. As a result, numerous businesses are transitioning to a permanent hybrid work paradigm. According to research by Zippia, 74% of U.S. companies have either implemented or plan to implement a permanent hybrid work model. The study also found that 59% of workers are more likely to select a company that allows for remote work than one that doesn’t.

Navigating Nonprofit Grant Accounting and Compliance

Thu, 22 Jun 2023 14:14:00 GMT

Rose Report: Issue 66

BY TED ROSE , ROSE FINANCIAL SOLUTIONS

For many nonprofit organizations, grants are essential funding to reach their missions. However, nonprofit organizations must manage and track grants carefully to comply with funding requirements and maintain financial transparency. Understanding the conditions and requirements of each grant is crucial to determining the best grant accounting methods and avoiding common missteps and audit issues. Below are some standard grant accounting methods and tips to help ensure your organization is compliant and audit ready.

Compliance with Generally Accepted Accounting Principles (GAAP)

Nonprofits must follow GAAP, a standard set of accounting rules, requirements, and practices issued by the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). Following GAAP, grantors, donors, and other stakeholders can better understand the organization’s financial operations.

Grant Financial Tracking and Reporting

As part of their accountability, nonprofits must provide financial reports to grantors. These reports often include information on how the grant money was used, the degree to which the program’s goals were met, and any other financial data specified by the grant agreement. Nonprofits often utilize specialized grant tracking and reporting systems or accounting software with grant management features. Common grant accounting methods used by nonprofits include:

Accrual Accounting

This method provides a more accurate picture of an organization’s financial position and performance for grants that span multiple fiscal periods. It is common for nonprofits to use accrual accounting to record their income and expenses when they are earned or incurred, regardless of when the actual cash transactions take place.

Cost Allocation

Nonprofits use cost allocation methods to ensure that grant-related expenses are distributed appropriately across multiple programs or activities. A grant-specific cost is allocated directly to that grant, allowing for more accurate reporting and accountability.

Fund Accounting

This method facilitates accurate reporting and helps to ensure that grant funds are used for the intended purposes. Expenses and income related to each grant are tracked separately from other revenue sources, providing a clear view of each grant’s income and expenses.

Restricted Fund Accounting

It is common for nonprofits to establish restricted funds to separate grant funds from unrestricted funds. Grant agreements and donor restrictions specify how restricted funds may be used. With this accounting method, grant funds are used in accordance with the donor’s intent and can be tracked separately.

Get started with ROSE®

Looking for a simpler way to manage your finance, accounting, and tax needs?

Experience the difference that our expert professionals and leading-technology can make.

Internal Controls

Internal controls are the financial policies and procedures to protect an organization’s assets, ensure compliance, and deliver accurate reporting. Organizations that do not have a proper control structure in place put themselves at risk. With this in mind, nonprofits should implement finance and accounting systems that automate tasks and enforce procedures that limit access to review and approve payments to individuals with authorization.

Preparing for an Audit

When undergoing an audit, one of the most common issues nonprofits face is responding to an auditor’s request for information promptly. As such, all financial records throughout the year should be tracked in cloud-based organized systems, including accounts payable, billing, cash receipts, journal entries, and balance sheet reconciliations, and books should be closed within 30 days of the fiscal year’s conclusion. If a nonprofit has government grants, gather all award documents, supporting reports, and documentation, as auditors will likely want to see these documents.

How ROSE® Can Help

ROSE is a Finance as a Service (FaaS) leader, supporting nonprofit organizations’ back office by harmonizing People, Processes, Technology, Organization, and Data to empower our clients to become accomplished leaders and excel in their missions. We achieve this by providing financial clarity and eliminating complexity through Easby®, a system of engagement built on enterprise-grade, hyper-automation technology that manages finance, accounting, and tax activities, converts data into information, and supports a team of experienced professionals to enhance a company’s success by improving financial performance.

Learn more about our solution by scheduling an introductory call today.

This content is for information purposes only and should not be considered legal, accounting, or tax advice or a substitute for obtaining such advice specific to your business.

Ted Rose

Rose Financial Solutions redefines Finance as a Service and launches its next-generation platform, Easby®

Wed, 21 Jun 2023 14:15:00 GMT

NORTH BETHESDA, Md., June 21, 2023 – Rose Financial Solutions (ROSE), a Finance as a Service (FaaS) leader, is proud to announce the launch of its next-generation financial services and technology solution at its 2nd Annual FaaS Conference in June 2023. The cutting-edge solution marks a significant milestone in the FaaS industry by enabling organizations to future-proof their back offices throughout their lifecycles from start-up to exit.

“We are excited to demonstrate how our technology platform, Easby, can future-proof an organization’s back office. A comprehensive system of engagement built on enterprise-grade, hyper-automation technology, Easby is designed to automate the vast majority of finance and accounting-related activities over the coming years,” said Ted Rose, Founder, President, and CEO of ROSE. “By reducing complexity, Easby improves financial clarity and significantly reduces the disruptions clients experience due to their growth and the evolving technology landscape.”

In addition to unveiling Easby, ROSE redefined the FaaS industry to include five pillars of finance transformation: people, process, technology, organization, and data. Digitization disruptions often hamper growth as a business or organization hits its complexity ceiling. Managing these disruptions requires that financial systems maintain harmony between people, processes, technology, organization, and data. To preserve unity, companies need to control the vast volume of activities through a comprehensive engagement system that integrates with its system of record.

“We are excited to introduce our game-changing solution that revolutionizes FaaS,” said Rose. “We have combined our deep understanding of the industry with cutting-edge technology to develop a solution that empowers our customers to overcome challenges, achieve their goals, and be prepared for the future.”

About ROSE®

ROSE is a Finance as a Service (FaaS) leader, supporting a company’s back office by harmonizing People, Processes, Technology, Organization, and Data to empower our clients to become accomplished leaders. We achieve this by providing financial clarity and eliminating complexity through Easby®, a system of engagement built on enterprise-grade, hyper-automation technology that manages finance, accounting, and tax activities, converts data into information, and supports a team of experienced professionals to enhance a company’s success by improving financial performance. Find out why the Future of FaaS is Easby at: www.rosefinancial.com .

Rose Financial Solutions’ Launch of Its Next-generation Platform, Easby® Featured on CityBiz

Tue, 20 Jun 2023 11:07:26 GMT

Rose Financial Solutions (ROSE), a Finance as a Service (FaaS) leader, is proud to announce the launch of its next-generation financial services and technology solution at its 2nd Annual FaaS Conference in June 2023. The cutting-edge solution marks a significant milestone in the FaaS industry by enabling organizations to future-proof their back offices throughout their lifecycles from start-up to exit.

About ROSE®

View on CityBiz: https://www.citybiz.co/article/431661/rose-financial-solutions-unveils-the-third-generation-of-its-financial-services-and-technology-solution/

Future-Proofing Your Finance and Accounting Functions

Thu, 25 May 2023 14:07:00 GMT

Finance and accounting technology are advancing rapidly, significantly influencing how companies plan for the future. Today, companies require more than simple accounting software. The finance and accounting profession is already beginning to embrace new technologies such as artificial intelligence (AI) and machine learning (ML).

5 Tips for Successful Virtual Meetings

Thu, 25 May 2023 14:06:00 GMT

There is no doubt that business interactions have swiftly evolved since the onset of the pandemic. Today’s virtual and hybrid workforces have made in-person meetings fewer and farther between, replaced with Teams, Zoom, and WebEx meetings. As employees have become more accustomed to meeting with colleagues online, a RedRex survey found that 55% of respondents now have more meetings than when working in the office, and 83% spend up to one-third of their work week in video conferences.

Issue 65 – Future-Proof Your Business

Thu, 25 May 2023 14:06:00 GMT

Future-Proofing Your Finance and Accounting Functions

5 Tips for Successful Virtual Meetings

here is no doubt that business interactions have swiftly evolved since the onset of the pandemic. Today’s virtual and hybrid workforces have made in-person meetings fewer and farther between, replaced with Teams, Zoom, and WebEx meetings.

Build Your Business with Confidence

Wed, 19 Apr 2023 19:38:00 GMT

You have great ideas, did your research, and put together a business plan, and now it’s time to launch your startup. As Guy Kawasaki, Alltop co-founder and entrepreneur, said, “Ideas are easy. Implementation is hard.” Indeed. Unforeseen challenges such as financial management issues, ineffective marketing, and skill gaps can hinder achieving your business goals.

Keep Your Financial Information Secure: The Stats, Facts, and Data

Wed, 19 Apr 2023 19:37:00 GMT

From ransomware to malware and everything in between, cybersecurity is a top concern for most business leaders. If the security of your company’s data keeps you up at night, you are not alone. According to the 2022 Thales Data Threat Report , which examines the impacts on organizations as they navigate today’s complex security environment...

Issue 64 – Grow Your Business with Confidence

Wed, 19 Apr 2023 19:37:00 GMT

Build Your Business with Confidence

Keep Your Financial Information Secure: The Stats, Facts, and Data

From ransomware to malware and everything in between, cybersecurity is a top concern for most business leaders. If the security of your company’s data keeps you up at night, you are not alone.

Numbers Count in Small Business Success

Thu, 23 Mar 2023 15:10:00 GMT

Small businesses are the heart of our nation’s economy. In fact, according to the Small Business Administration’s latest  statistics , small businesses account for 99.9 percent of all U.S. companies. Not only do small businesses help to drive our economy, but they also create two-thirds of all net jobs and have an impact on their local communities.

Issue 63 – Take Your Business to the Next Level

Thu, 23 Mar 2023 15:10:00 GMT

Numbers Count in Small Business Success

Building Better Banking Relationships

In the fallout of the collapse of Silicon Valley Bank (SVB), many business owners are looking at their assets, questioning their banks, and asking themselves, ‘is my money safe?’ During times of uncertainty, having a good relationship with your banker can mean the difference between your business thriving or closing.

Building Better Banking Relationships

Thu, 23 Mar 2023 15:07:00 GMT

What is Quiet Hiring and How is it Shaping Today’s Workforce?

Thu, 16 Feb 2023 14:55:00 GMT

From the Great Resignation to quiet quitting and quiet firing, the Covid-19 crisis has undoubtedly created an unpredictable labor market that turns on a dime. Two years ago, companies faced the challenge of the Great Resignation, a term describing the larger-than-usual exodus of employees from their jobs.

Choosing the Best Accounting Software for Government Contractors

Thu, 16 Feb 2023 14:54:00 GMT

Rose Report: Issue 62

BY TED ROSE , ROSE FINANCIAL SOLUTIONS

When it comes to building efficiency, selecting accounting software is among the most important decisions business leaders make. Why? The right solution can enhance the entire organization’s operations. Given the number of options available, choosing the right software for your government contracting business can be daunting. To help you with your search, here are a few factors to consider.

DCAA Compliance

Often, government contractors are under the impression that they must use a specific accounting software package to be deemed Defense Contract Audit Agency (DCAA) compliant . For financial and accounting software to be compliant, it must follow the latest DCAA recommendation and regulations; however, it is important to note that your documented policies and procedures are just as important as the accounting software when evaluating compliance. All of ROSE’s client systems have been approved by the DCAA when audited—100 percent of the time, regardless of the accounting software used.

Cloud-based Software

Cloud-based accounting software has become increasingly popular in recent years. If you are utilizing desktop accounting software, it may be time to consider moving to the cloud. A cloud-based accounting system provides comparable functionality as your desktop system, but it also offers additional benefits such as real-time updates and access to financial and accounting information from anywhere at any time, which is especially useful in today’s remote work environment.

DCAA Compliant Accounting System

For many startup government contractors, QuickBooks can be a good option. It’s user-friendly, simple, and for smaller organizations, cost-effective. QuickBooks is excellent at handling routine accounting functions for small businesses, such as accounts payable and receivable, payroll, and preparing financial statements. Keep in mind that QuickBooks will still need to be properly configured and paired with a DCAA compliant time-tracking system. PROCAS and Unanet are good options for small- to mid-sized government contractors who require project management capabilities. As organizations grow, operations may be complex enough that they quickly end up with a half dozen disparate systems, none of which are in sync with each other. Overseeing so many different systems and having to enter data in multiple systems manually can cause considerable problems for any company. If the organization’s sales automation system isn’t connected to its accounting software, its books can get out of alignment. And most importantly, the time employees have to spend ensuring that all the systems are up to date and in sync would be better spent improving the business. Fortunately, more comprehensive software solutions are available as an organization evolves. As a contractor scales, takes on multiple cost-plus contracts, and its compliance needs increase, a system like Deltek Costpoint will be better equipped to manage project costs and administration.

How ROSE Can Help

ROSE specializes in providing government contractors with accounting, finance, and compliance solutions at a fraction of the cost of hiring in-house staff. Whether you need to fill in the gaps, replace your existing system, or start off ready to grow, we are equipped to be a powerful strategic partner in your development.

Our leading-edge platform, Easby® , supports most accounting software systems. With our Finance as a Service (FaaS) solution, not only will your DCAA compliance be enhanced, but you’ll also gain the functionality that is found in an Enterprise Resource Planning (ERP) system. Please schedule a meeting below to learn more about our cost-effective and scalable solution.

This content is for information purposes only and should not be considered legal, accounting, or tax advice or a substitute for obtaining such advice specific to your business.

Learn more about how Easby can fit your needs.

Ted Rose

Issue 62 – Overcome Today’s Business Challenges

Thu, 16 Feb 2023 14:54:00 GMT

What is Quiet Hiring and How is it Shaping Today's Workforce?

GovCons: Which Accounting Software is Right for You?

Tips to Successfully Execute Your Strategic Plan

Mon, 23 Jan 2023 23:18:00 GMT

Often, a company’s strategic plan is comparable to a New Year’s resolution, made with the best intentions but frequently abandoned by the end of January. In fact, according to studies , 60 to 90% of strategic plans never fully launch.

Issue 61 – Utilizing Technology to Simplify Operations

Mon, 23 Jan 2023 23:18:00 GMT

Tips to Successfully Execute Your Strategic Plan

Easby® Makes it Easy

Managing finance, accounting, and tax functions is complex. In fact, it is often compared to rocket science and brain surgery. It’s time to end complexity! At ROSE®, we make it easy to manage your financial activities so you can more efficiently run your business and build stakeholder value.

Easby® Makes it Easy

Mon, 23 Jan 2023 23:18:00 GMT

It’s Not Too Late to Mitigate Your 2022 Tax Bill

Thu, 15 Dec 2022 17:55:00 GMT

Tax planning is often overlooked when small businesses rush to close out year end. However, year-end tax planning gives you the opportunity to take advantage of tax-cutting strategies before December 31 and get a head start on planning for 2023. Here are some year-end actions you can take now that may help you mitigate your 2022 tax bill.

Issue 60 – Year-End Tax Planning

Thu, 15 Dec 2022 17:54:00 GMT

It's Not Too Late to Mitigate Your 2022 Tax Bill

Employee Retention Tax Credit, What You Need to Know

As a means of boosting the economy during the onset of COVID-19, the Coronavirus Aid, Relief, and Economic Security Act (CARES) was enacted into law in March 2020.

Employee Retention Tax Credit, What You Need to Know

Thu, 15 Dec 2022 17:54:00 GMT

As a means of boosting the economy during the onset of COVID-19, the Coronavirus Aid, Relief, and Economic Security Act (CARES) was enacted into law in March 2020. To incentivize companies to keep employees on the payroll, the CARES Act offered businesses an Employee Retention Tax Credit (ERTC) that allowed employers who met specific criteria to claim a credit against payroll taxes and have it partially refundable.

Issue 59 – Fresh Perspectives for 2023

Tue, 15 Nov 2022 23:38:00 GMT

Top 5 Finance and Accounting Industry Trends for 2023

As we close out 2022 and look ahead to 2023, the lingering effects of the pandemic will continue to influence the business world. The current economic downturn, unpredictable workforce trends, and supply chain challenges are driving companies to implement transformative changes to their operations, including how they manage their finance and accounting functions.

2023 Budget & Planning in Uncertain Times

It’s that time of the year when company leaders develop their annual budgets to project income, profits, and returns on investments and control expenses for the coming year.

Latest Insights in Finance and Accounting Outsourcing Trends

Tue, 15 Nov 2022 23:38:00 GMT

Rose Report: Issue 59

BY TED ROSE , PRESIDENT AND CEO, ROSE FINANCIAL SOLUTIONS

As we close out the year and look ahead, the lingering effects of the pandemic will continue to influence the business world. The current economic downturn, unpredictable workforce trends, and supply chain challenges are driving companies to implement transformative changes to their operations, including how they manage their finance and accounting functions. Technology will take center stage in the upcoming year, influencing each of the top five trends in the finance and accounting industry.

Implementing Technology

The area of technology has seen substantial advancements recently, and this trend will continue into the foreseeable future. Businesses that invest in finance and accounting technology will have an advantage over their competitors in navigating today’s unpredictable economic climate. The finance and accounting profession is already embracing new technologies such as artificial intelligence (AI) and machine learning (ML), which will significantly impact how firms operate in the future. With automated procedures in place, AI and ML will code, route, and evaluate information and provide additional insight based on potential financial outcomes based on trends in market and company data. Businesses that want to lead their respective industries must develop an infrastructure that can capitalize on the potential of these technologies.

Financial Management

While compliance and maintaining records are essential accounting functions, financial clarity and visibility into financial results have become critical. The current economic headwinds have created a paradigm shift that increases the importance of CFO services to overcome financial challenges, develop proactive strategies, and manage growth.

Outsourcing Finance and Accounting Functions

Outsourcing has become increasingly popular for organizations struggling with employee shortages and rising hiring costs. In fact, according to Deloitte, 70% of businesses outsourced a portion of their accounting functions to reduce business costs in 2020. Outsourcing offers additional benefits, including an expanded team of skilled experts, reduced onboarding requirements, and improved delivery times. The movement to the next generation of finance and accounting outsourcing, Finance as a Service (FaaS) , will continue to grow as companies seek greater insight through the combination of cutting-edge technology and a team of finance and accounting professionals .

Data Security

Financial records are the lifeblood of any organization. As such, keeping them secure is an ongoing concern for CIO’s and CFO’s. That’s why the movement towards hardening access to corporate data through security measures such as multi-factor identification, encryption, and security awareness training will continue to be a top priority.

Simplifying Back-office Functions

As companies embrace digital transformation, they are moving towards connecting back-office functions into a comprehensive system that improves visibility, communications, and access. While this functionality has been traditionally limited to a full ERP implementation for larger enterprises, novel technologies are making this possible for smaller companies to eliminate tedious processes, improve efficiency, limit risks, and reduce human error.

These trends indicate that technology advancements will remain a priority in the finance and accounting industry. It is important to note, however, that technology will not replace accounting and finance professionals, but rather enable them to focus on higher level tasks such as financial analysis, process development, and strategic initiatives.

If you would like to learn more about these trends and how they can help your company succeed, please schedule an introductory meeting.

This content is for information purposes only and should not be considered legal, accounting, or tax advice or a substitute for obtaining such advice specific to your business.

Ted Rose

President, CEO, and Founder

2023 Budget & Planning in Uncertain Times

Tue, 15 Nov 2022 23:38:00 GMT

The post 2023 Budget & Planning in Uncertain Times appeared first on Rose Financial Solutions .

GovCon Billing Strategies to Get Paid Without Delay

Mon, 03 Oct 2022 20:23:00 GMT

There are many benefits to being a government contractor, including prompt payment. Contractors are safeguarded against late payments by the federal government under the Prompt Payment Act (PPA), which requires agencies to pay “proper” invoices on the payment date established in the contract or within 30 days of receipt.

Cultivating a Customer-Centric Organization in a Digital World

Mon, 03 Oct 2022 20:22:00 GMT

Not so long ago, face-to-face interactions were the way businesses operated. However, today automation and digital interaction have become the norm. Undoubtedly, the pandemic has affected how businesses interact with clients. With the growing popularity of Zoom, WebEx, and Teams, in-person sales meetings are becoming a thing of the past for many professional services firms.

Issue 58 – Strategies to Implement Now for Success in 2023

Mon, 03 Oct 2022 20:21:00 GMT

GovCon Billing Strategies to Get Paid Without Delay

Cultivating a Customer-Centric Organization in a Digital World

Are You Ready to Become a Prime Contractor? Find out.

Mon, 29 Aug 2022 14:22:00 GMT

The new government fiscal year is right around the corner, opening opportunities for prime contractors in the upcoming year. If you are a government subcontractor or commercial company wanting to make the jump to working directly with the federal government, now is the time to implement processes to manage subcontractors and ensure that the work defined by the contract is completed on time and within budget.

Issue 57 – Tips for Managing Growth

Mon, 29 Aug 2022 14:20:00 GMT

Are You Ready to Become a Prime Contractor? Find out.

4 Tips on Managing Costs When Growing

Mon, 29 Aug 2022 14:20:00 GMT

Every successful company experiences growing pains. In fact, according to a 2021 Wakefield Research study , 42% of growth company executives surveyed stated that scaling their business was more challenging than the start-up phase. While rapid business expansion is practically every business owner’s ambition, it can spiral into a disaster if not handled carefully.

Nonprofit Board Meetings That Run Without a Hitch

Thu, 04 Aug 2022 16:05:00 GMT

A nonprofit’s board of directors serves as its governing body and provides high-level strategy, oversight, and accountability to ensure your organization achieves its mission. As fiduciary overseers of a nonprofit, board members serve as the trustees of the organization’s assets and are responsible for guaranteeing that the nonprofit is operating effectively and that its financial standing is stable.

Overcoming Today’s Nonprofit Challenges

Thu, 04 Aug 2022 16:05:00 GMT

With today’s economic headwinds and workforce shortages, nonprofit organizations face challenging times. Caught between shrinking resources, both financial and staffing, and rising demands from those affected by the economic downturn, organizations have to get by doing more with less.

Issue 56 – Nonprofit Growth Strategies

Wed, 03 Aug 2022 16:15:00 GMT

Overcoming Today's Nonprofit Challenges

Nonprofit Board Meetings That Run Without a Hitch

A nonprofit’s board of directors serves as its governing body and provides high-level strategy, oversight, and accountability to ensure your organization achieves its mission.

Balancing the Great Resignation, Inflation and Recessionary Headwinds

Mon, 27 Jun 2022 11:43:00 GMT

Are you having issues hiring and retaining employees? Is inflation adversely affecting your costs from critical suppliers and the salary expectations from staff? Are you worried that rising interest rates, spiking energy costs, supply chain issues, and the 2022 stock market correction will push the economy into a full and extended recession?

Lessons GovCons and Commercially Focused Businesses Can Learn From Each Other

Mon, 27 Jun 2022 11:43:00 GMT

Our over 27 years of experience serving government contractors and commercially focused businesses has taught us that B2B and B2G companies are similar in many ways. After all, the federal government is not an industry; it is the largest customer in the world and purchases many of the same products and services as the commercial sector.

Issue 55 – Tackling the Challenges of Today’s Business Landscape

Mon, 27 Jun 2022 11:43:00 GMT

Balancing the Great Resignation, Inflation, and Recessionary Headwinds

Lessons GovCons and Commercially Focused Businesses Can Learn From Each Other

Our over 27 years of experience serving government contractors and commercially focused businesses has taught us that B2B and B2G companies are similar in many ways.

Peeling Back the Layers of DCAA/GovCon Compliance

Tue, 17 May 2022 17:31:00 GMT

Many contractors have the misconception that if they have accounting software that is DCAA/GovCon compliant, they must be compliant. However, that’s just the starting point. DCAA compliance is actually made up of three layers: software, policy, and processes.

How to Save Time and Be More Productive

Tue, 17 May 2022 17:31:00 GMT

It’s been said that time is the most valuable commodity. For CEOs, this especially true as on average they work 62.5 hours per week, according to a Harvard Business Review study. The study also found: 25% of their time is spent on building relationships, 25% on business and administrative reviews, 16% on organization and culture, and 21% on strategy.

Issue 54 – More Efficient Business Operations

Tue, 17 May 2022 17:30:00 GMT

Peeling Back the Layers of DCAA/GovCon Compliance

How to Save Time and Be More Productive

It’s been said that time is the most valuable commodity. For CEOs, this especially true as on average they work 62.5 hours per week, according to a Harvard Business Review study .

Clean Up Your Financial Processes for Growth

Mon, 18 Apr 2022 16:45:00 GMT

Spring is a time of renewal and change. It’s when we plant seeds and watch them grow. Like a garden, financial processes need to be tended to ensure they are prepared for business growth. In this after-tax season, many business owners realize that their financial and accounting systems aren’t as well-organized as they assumed.

Issue 53 – Current Trends for Business Growth

Mon, 18 Apr 2022 16:44:00 GMT

Clean Up Your Financial Processes for Growth

Spring is a time of renewal and change. It’s when we plant seeds and watch them grow. Like a garden, financial processes need to be tended to ensure they are prepared for business growth.

Creating an Innovation-focused Corporate Culture

In today’s competitive business environment, you must innovate to remain at the forefront of your sector. Continuous improvement is essential for creating better products and services, establishing more efficient methods, and growing your organization.

Creating an Innovation-focused Corporate Culture

Mon, 18 Apr 2022 16:44:00 GMT

To Return to the Office, or Not to Return, that is the Question

Tue, 15 Mar 2022 13:14:00 GMT

In order to keep staff safe and healthy at the onset the pandemic, organizations had to rethink how and where their employees worked, which led many to implement a remote workforce policy. While the shift wasn’t easy for everyone, two years later most employees have adapted to telecommuting.

Issue 52 – Driving Business Growth

Tue, 15 Mar 2022 13:14:00 GMT

To Return to the Office, or Not to Return, that is the Question

In order to keep staff safe and healthy at the onset the pandemic, organizations had to rethink how and where their employees worked, which led many to implement a remote workforce policy.

Strategies to Drive Business Growth

Revenue is widely used by enterprises to measure their success. However, even growing businesses encounter challenges getting from where they are to where they want to be.

Strategies to Drive Business Growth

Tue, 15 Mar 2022 13:14:00 GMT

Revenue is widely used by enterprises to measure their success. However, even growing businesses encounter challenges getting from where they are to where they want to be. Fortunately, there are navigational tools available to assist you in your quest for greater financial success.

Top 3 Accounting Mistakes Nonprofits Make

Wed, 16 Feb 2022 14:34:00 GMT

Keeping costs down is key for non-profit organizations, which often leads to fewer accounting and administrative personnel than for-profit companies. However, compared to other organizations, nonprofits face unique finance and accounting challenges. Here are the top three accounting mistakes associations make along with tips on how to avoid them.

Business Operations in a World of Inflation

Wed, 16 Feb 2022 14:34:00 GMT

The pandemic has had a transformational impact on the way businesses operate during the last two years. From health concerns to hiring issues, business leaders have faced a slew of challenges. On top of it all, now the rate of inflation is increasing.

Issue 51 – Post-pandemic Business Success

Wed, 16 Feb 2022 14:33:00 GMT

Business Operations in a World of Inflation

The pandemic has had a transformational impact on the way businesses operate during the last two years. From health concerns to hiring issues, business leaders have faced a slew of challenges.

Top 3 Accounting Mistaking Nonprofits Make

Is Your Accounting System Keeping You from Achieving More?

Wed, 19 Jan 2022 23:39:00 GMT

They say, “Time is money.” As successful CEOs know, time is a valuable asset and one that once spent can’t be recovered. So why is it that some small- to mid-size company leaders are still spending a lot of time maintaining manual accounting processes when with the right accounting processes and software CEOs could work smarter and faster and use their time growing their business?

Growth CFO: A CEO’s Partner to Long-term Success

Wed, 19 Jan 2022 23:38:00 GMT

Your business has grown from a one-person operation to a large team with a growing number of clients. You understand accounting and finance operations and have a clear vision of your goals for the company for the next five years.

Issue 50 – Set a Course for Long-term Growth

Wed, 19 Jan 2022 23:38:00 GMT

Is Your Accounting System Keeping You from Achieving More?

Growth CFO: A CEO's Partner to Long-Term Success

‘Tis the Season for Understanding Your Numbers

Thu, 16 Dec 2021 13:02:00 GMT

As we close out 2021, companies are busy forecasting and setting budgets for 2022. While these business operation functions are a yearly tradition, they have taken on a more urgent role as we head out of the healthcare crisis. Why? Last year’s sudden onset of the pandemic caught many businesses off guard.

Issue 49 – Achieve More in 2022

Thu, 16 Dec 2021 13:02:00 GMT

'Tis the Season for Understanding Your Numbers

2022 Annual Planning: What Will Your Workforce Look Like?

Simply put, an annual plan serves as a financial roadmap that helps your company stay on track to meet your goals. As businesses set up their annual plans for their company and employees, it’s important to examine the past year’s performance to help inform goals for the coming year.

2022 Annual Planning: What Will Your Workforce Look Like?

Thu, 16 Dec 2021 13:02:00 GMT

Top Finance and Accounting Industry Trends for 2022

Tue, 23 Nov 2021 16:55:00 GMT

For the past two years, COVID-19 has presented many challenges to the business world, driving companies to implement transformative changes to the way they operate, including how they manage their finance and accounting functions.

Issue 48 – The Roadmap to Success in 2022

Tue, 23 Nov 2021 16:55:00 GMT

Top Finance and Accounting Industry Trends for 2022

2021 Year-End Tax Planning for Businesses

Tax planning should be addressed throughout the year and be an integral part of financial planning. As 2021 wraps up, we suggest year-end tax planning to take a close look at your current tax strategies to make sure they still meet your needs and take any last-minute steps that could save you money.

2021 Year-End Tax Planning for Businesses

Tue, 23 Nov 2021 16:54:00 GMT

RFS Congratulates PowerTrain on Making the WBJ’s List of Fastest Growing Companies

Mon, 25 Oct 2021 19:28:00 GMT

Rose Financial Solutions (RFS) congratulates its client PowerTrain, a provider of cloud-based IT learning management systems, learning and development products, and talent management solutions, on being named to the Washington Business Journal’s 2021 list of the 75 Fastest Growing Companies in Greater Washington, DC.

The rapidly growing company, led by CEO Lisa Cox, provides training and human capital support spanning across the federal government as well as in the commercial industry.

“We couldn’t be more excited to hear that PowerTrain made the Washington Business Journal’s list,” says Ted Rose, President and CEO of Rose Financial Solutions. “Their commitment to supporting creative, innovative, and flexible work environments has never been more important as the pandemic has redefined the corporate workspace.”

“Rose Financial Solutions has been our trusted advisor since we turned to them to ensure that our accounting system was DCAA-compliant,” says Lisa Cox, CEO, PowerTrain. “We’ve relied on their extensive knowledge of all aspects of government contracting to help us navigate federal government regulation compliance, including governmental audits and indirect rate complexities.” Cox adds, “Their financial guidance has been very beneficial to PowerTrain’s success and helping us get to where we are today.”

Issue 47 – Preparing for Success in 2022

Mon, 11 Oct 2021 16:41:00 GMT

A Q&A with Ted Rose on the Future of the Finance and Accounting Industry

We recently sat down with Rose Financial Solutions’ (RFS) CEO Ted Rose for his take on where the finance and accounting industry is headed and the role his company will play in its evolution.

How Project Controls Can Make or Break Your Success in Unprecedented Times

While there was much hope that the impact of the pandemic on businesses would subside this past year, the rate of Covid-19 cases has increased since July due to the highly contagious Delta variant.

A Q&A with Ted Rose on the Future of the Finance and Accounting Industry

Mon, 11 Oct 2021 16:41:00 GMT

We recently sat down with Rose Financial Solutions’ (RFS) CEO Ted Rose for his take on where the finance and accounting industry is headed and the role his company will play in its evolution.

How Project Controls Can Make or Break Your Success in Unprecedented Times

Mon, 11 Oct 2021 16:37:00 GMT

While there was much hope that the impact of the pandemic on businesses would subside this past year, the rate of Covid-19 cases has increased since July due to the highly contagious Delta variant.

RFS Congratulates Interos on Unicorn Status

Thu, 23 Sep 2021 16:33:00 GMT

Rose Financial Solutions (RFS) congratulates Interos, a Northern Virginia risk management and operational resilience technology startup company that recently obtained unicorn status after receiving Series C financing of $100 million. The new funding brings Interos’ valuation to over $1 billion.

Issue 46 – Strategies for Long-Term Success

Fri, 06 Aug 2021 15:50:00 GMT

Have You Found Your North Star Metric?

Long before GPS or even a compass, ancient sailors used the star Polaris (also known as the North Star) to navigate their ships when out of sight of land. Why? Because it serves as a constant focal point that stays in nearly the same place in the night sky while other stars circle around it.

Government Contractors: Are You Prepared to Win the Next Big Proposal?

With the proposal season fast approaching, government contractors must not only handle the frenetic business of the year’s final selling period, but also prepare for the year ahead.

Have You Found Your North Star Metric?

Fri, 06 Aug 2021 15:50:00 GMT

Government Contractors: Are You Prepared to Win the Next Big Proposal?

Fri, 06 Aug 2021 15:33:00 GMT

With the proposal season fast approaching, government contractors must not only handle the frenetic business of the year’s final selling period, but also prepare for the year ahead. To successfully compete, contractors should have a well-documented accounting system in place, build a basis for each incoming proposal, define selling points, budget costs, and set projected rates in order to be prepared.

Fraud on the Rise Due to COVID-19: Is Your Finance and Accounting System Prepared?

Mon, 28 Jun 2021 15:45:00 GMT

COVID-19 has impacted every facet of the business landscape. From managing remote employs to understanding PPP loans, the past year has challenged companies in ways that couldn’t have been imagined.

3 Reasons Why Savvy Business Owners Automate Accounts Payable

Mon, 28 Jun 2021 15:45:00 GMT

Many small- to mid-size business owners believe that their accounts payable (AP) processes are adequate and that they can’t afford to automate their bill payments. However, nothing could be further from the truth. The reality is that manual check processing is more time-consuming, expensive, and vulnerable to fraud than electronic payments processes.

Issue 45 – Focus Your Time on What Matters Most

Mon, 28 Jun 2021 14:54:00 GMT

Fraud on the Rise Due to COVID-19: Is Your Finance and Accounting System Prepared?

3 Reasons Why Savvy Business Owners Automate Accounts Payable

Many small- to mid-size business owners believe that their accounts payable (AP) processes are adequate and that they can’t afford to automate their bill payments.

What is OCR and How Does It Work?

Wed, 26 May 2021 17:08:00 GMT

Rose Report: Issue 44

By Ted Rose , CEO Rose Financial Solutions

How is Optical Character Recognition advancing the finance and accounting industry?

While data is everywhere in today’s information-driven world, it offers little insight unless it is organized and stored in a format that allows it to be used efficiently. As businesses increasingly rely on data-driven information such as financial forecasting, key performance indicators (KPIs), and cashflow analysis to make better business decisions, the need to store data in digital form is becoming more critical. However, not all accounting transactions are paperless, and manually converting printed invoices to digital data is a time-consuming process. Fortunately, Optical Character Recognition (ORC) takes on this tedious task.

Simply put, OCR technology converts text, whether handwritten, typed, or printed from an image or PDF to encoded text that is digitally stored and can be electronically edited and searchable. You may not be aware, but daily you use this technology when you write a check or access a website via a QR code. In accounting, OCR is utilized to process non-digital invoices, statements, checks, etc., automate the data entry, and integrate that data into your accounting solution . OCR significantly saves time, increases accuracy, and improves reporting by reducing the need for manual data entry. OCR isn’t a new technology. In fact, it has been around for nearly a century as it is reported that the first OCR device was developed in the late 1920s and used in computer applications since the 1950s. However, the capabilities of early OCR technology to today’s are like comparing the Wright brothers’ plane to a modern-day jet in speed and accuracy.

Advantages of Utilizing OCR

Saves Time: OCR significantly reduces the time it takes to capture data and enter it into an accounting system. This empowers accounting and finance professionals to spend less time working on mundane data entry processes and more time providing financial management services that utilize higher-level skills—including professional judgement and strategic guidance.
Increases Accuracy: Technology has revolutionized the finance and accounting industry in ways that just a decade ago would have seemed impossible. Yet, there is one fundamental challenge that remains: human error. Typos happen, and misplaced commas or incorrect numbers can be costly. Since OCR removes the need for manual entry of data by staff, these types of errors are eliminated.
Improves Reporting: Streamlining accounting processes is critical for timely reporting. Structured accounting data is an evolutionary process: when structured data accumulate into financial information it becomes exponential and creates new and novel information. Delays due to manual data entry can hamper a “big picture” view of your financial position. Utilizing OCR ensures that you have the timely and accurate finance and accounting reporting that leads to better business decisions.

At Rose Financial Solutions (RFS), we wrap 25+ years of finance and accounting expertise into our solutions and utilize OCR to streamline our clients’ processes. With the best people + processes + technology, we’ve built our reputation as the leader in the next generation of finance and accounting outsourcing called Finance as a Service (FaaS). We combine a team of experienced finance , accounting, tax , and technology professionals with our leading-edge technology, Easby Powered by RFSWorkflow, that delivers an unprecedented view of your company’s performance. Set your course for confident business decisions and achieve more. Contact us to learn more about our FaaS solution and OCR.

Post Pandemic Recovery: The Critical Role of a CFO

Wed, 26 May 2021 17:06:00 GMT

The financial impact of COVID-19 on businesses can’t be overstated. The past year has been rollercoaster ride for many businesses with unpredictable dips, turns, and pivots. In fact, a 2020 survey of nearly 6,000 small business owners found that the median business with more than $10,000 in monthly expenses had only about two weeks of cash on hand at the time of the survey.

Issue 44 – Achieve Your Targeted Objectives for 2021 and Beyond

Wed, 26 May 2021 13:58:00 GMT

What is OCR and How Does It Work?

Post Pandemic Recovery: The Critical Role of a CFO

The financial impact of COVID-19 on businesses can’t be overstated. The past year has been rollercoaster ride for many businesses with unpredictable dips, turns, and pivots.

Small Business Relief: Round 2

Mon, 25 Jan 2021 17:56:00 GMT

Last year proved to be a tough year for businesses due to the COVID-19 pandemic—even for those that received funding from the initial Paycheck Protection Program (PPP). Recognizing the hardship that COVID-19 has placed on companies, the Small Business Administration (SBA) in consultation with the U.S. Treasury Department has reopened [...]

Government Contractors: How to Align Finance and Accounting with Your Projects

Mon, 25 Jan 2021 17:36:00 GMT

Rose Report: Issue 43

BY TED ROSE , ROSE FINANCIAL SOLUTIONS

Project-centric organizations such as government contractors , construction companies, and architect firms, know that success relies on ensuring projects are delivered on time and on budget. Having project controls in place helps companies monitor the status of a project to make sure that goals are being met—both from a timeline and financial perspective.

Typically, project-centric organizations track costs by project, recognize revenue by project, and ultimately, project performance and profitability drives the overall organizational structure. Often, these organizations have individual project managers that are responsible for managing a project’s operational performance as well as its overall profitability. Those projects are then rolled up to individual programs which may then roll up to individual divisions and finally roll up to an overall firmwide view. While many large project-based companies organize their internal finance and accounting department where project controls is a specific function, many smaller project-centric companies have accounting-centric solutions where the focus is on the past performance of a contract, not the future performance and looks at the overall performance of the company without understanding the profitability at the individual project level, which is where the true profitability of a company can be impacted.

What’s missing is the interface between the accounting transactional data, the contract administration, and the project manager working on a customer site to oversee the project success. Project managers tend to prioritize project operational success over spending time taking care of other administrative responsibilities including approving time sheets, examining profitability of individual staff working on the contract, calculating estimates to complete on the project, and verifying billings to the customer.

Introducing RFS Project Controls

At Rose Financial Solutions (RFS), we align our finance and accounting functions in the same manner in which larger project-centric government contractor clients operate. Through RFS Project Controls, small- and mid-sized government contractors can gain the project controls capabilities that large firms have embedded in their finance and accounting systems. Combining people + processes + technology, our Project Controls solution not only provides the interface between your traditional accounting function, contracts, and your project manager, our team has the knowledge and expertise to help navigate government contracting requirements and regulations.

RFS Project Controls leads to:

Greater visibility into project performance—from both a timeline and financial perspective
Enhanced ability to perform Estimates to Complete
Better progress monitoring capabilities also known as earned value analysis (EVA). This can reduce cost overruns and is used for progress monitoring at every step of the contract
Improved profitability of projects over the life of the engagement
Accounting functions that are aligned with contracts
Increased accuracy and lower rejection rates on invoices that are submitted to customers
Increased cash flow by reducing the amount of time for accounts receivables to collected
Improved reconciliations, contract compliance including reduced cost and burden of Incurred Cost Submissions

At RFS, we position our clients for project success. Our Finance as a Service (FaaS) solution provides you with the capabilities of an entire in-house finance , accounting , and tax department at a fraction of the cost. Going beyond traditional accounting outsourcing, RFS’ solution combines our cutting-edge technology platform, Easby-powered by RFSWorkflow , and our team of experienced finance, accounting, tax, and technology professionals. With the best people + processes + technology, we help our clients achieve more with financial confidence.

Find out more on how RFS Project Controls can align your finance, accounting, contract, and project management functions for project and firmwide success.

Ted Rose