GOVERNMENT CONTRACTING, PE-BACKED
Three Financial Statements. One Integrated Model. Zero Manual Adjustments.
12 months
of unreconciled cash cleared
3 days
cut from post-close reporting
~20 hrs
to complete a full year bank reconciliation
The Problem
The company was a PE-backed government contractor running on Deltek Costpoint. Financial reporting was fragmented across Excel workbooks, manual journal entries, and a legacy ERP configuration that had never been properly documented.
The balance sheet had not been fully reconciled in over a year. Cash was off. Intercompany was off. Revenue recognition was handled manually in spreadsheets with logic that only one person understood. Post-close reporting to the PE sponsor took days of manual assembly, and every board deck required a caveat about data reliability.
Leadership knew the numbers were directionally correct. But directionally correct is not defensible. And the PE sponsor was asking harder questions every quarter.
The Outcome
Novexa built a three-statement integrated financial model in Power BI connected directly to Deltek Costpoint. The model produced a balance sheet, income statement, and cash flow statement from source data with no manual adjustments.
Twelve months of unreconciled cash was cleared. A full year of bank reconciliations was completed in approximately twenty hours. Post-close reporting to the PE sponsor was reduced by three days. Revenue recognition logic was documented and embedded in the model, removing the single-person dependency.
The CFO stopped spending the first three days after close assembling reports and started using that time to analyze them.
The Approach
- 1.
Mapped the existing reporting infrastructure
Documented every data source, manual adjustment, and reporting output across the finance team. Identified where Costpoint data was being overridden by spreadsheet logic and where intercompany entries were creating reconciliation gaps.
- 2.
Rebuilt the chart of accounts mapping
Created a clean mapping layer between Costpoint's project-based chart of accounts and the financial statement structure the PE sponsor required. This eliminated the manual reclassification step that was adding two days to every close.
- 3.
Designed a three-statement model in Power BI
Built an integrated balance sheet, income statement, and cash flow statement pulling directly from Costpoint. DAX measures handled revenue recognition, intercompany eliminations, and period-over-period variance calculations. No manual inputs required.
- 4.
Reconciled twelve months of cash
Used the new model to identify and clear every unreconciled cash item from the prior twelve months. Documented each adjustment so the reconciliation was audit-ready.
- 5.
Built the PE reporting package
Designed a standardized monthly reporting package that pulled directly from the Power BI model into formatted PowerPoint outputs. The package included financial statements, KPI summaries, and variance commentary templates.
- 6.
Documented everything and trained the team
Delivered a full SOP package covering the data model, measure definitions, reconciliation procedures, and monthly close checklist. Trained the finance team to maintain the system independently.
When the logic is documented and the source is clean, the report defends itself. That is the difference between reporting that gets questioned every month and reporting that gets trusted.
Identifying details have been generalized to protect client privacy. Outcomes reflect actual engagement results.
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