The Sincerity and the Severity of Government Contracting
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Government contracting can prove to be very profitable to a small business. It also can be very dangerous as well. If all of your "I's" and "T's" aren't where they are supposed to be, it could cause a big problem. Hopefully, you've read our article about the FAR, which is the "play-book" for the Federal Government. It tells you [and them] about the do's and don'ts of doing business.
For a small business (or any business for that matter) to get on the bad side of the federal government may be a fatal blow to its operations and reputation. It's very important that you play by the rules when you deal with the government. Yes, there may be some out there that don't play by the rules both on the business side and on the government side. Do not let this become discouraging to you. If you think about it, those kinds of situations are in every walk of life. Just remember that sooner or later, the cheaters will get caught, period.
The key to staying out of trouble with Uncle Sam is to know your boundaries. You do this by understanding the rules in the beginning and follow them. We know this sounds pretty generalized, but it's true. That's why in the beginning, we told you to understand what you are delving into when you decide to become a government contractor, read the Federal Acquisition Regulation (FAR).
Another key element of staying out of trouble is to make sure you file your reports in a timely manner. File your quarterly reports, quarterly and file your annual reports, annually. The government does not like to spend man hours notifying you that your business has past due reports that have not been filed. If you make it a habit of filing these on a timely basis, they will love you. It's like you're helping them do their job.
Lastly, make sure you pay your taxes in a timely fashion because if you owe Uncle Sam any taxes, He will take your would be payment that was coming from your contract and apply it to what you owe with penalties and interest. This can snuff your business out quickly because you wouldn't have that crucial cash flow that you need to operate your business.
Bottom line, if you learn how to do it right in the beginning, it will be second nature to you along the way. Also, it will strengthen your core business as well. Follow the rules and regulations that the federal
government has laid out for you as a blueprint and guide to building
your business while servicing their needs. If you don't, you could be
penalized, fined, imprisoned and or both.
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