Oftentimes firms start reading about the 8(a) Certification and/or GSA Schedule and are so impressed by the potential that exists in the federal marketplace that they choose to go all in out of the gate, seeking to become both 8(a) Certified, as well as on GSA Schedule. During both certification processes there is a lot of action that is duplicated, so there is a cost savings when a firm chooses to do both simultaneously. December is almost here and many businesses are considering their budgets for next year. When considering GSA Schedule specifically, time may be of the essence in terms of starting your GSA Schedule Application in the current period. Here are two big reasons for not delaying starting your GSA Schedule Application into the next year.

1. Tax Advantage - The consulting fees used to obtain your GSA Schedule are fully tax deductible in the year in which the cost is incurred. A GSA Schedule is an investment that provides benefit through additional Federal sales for up to 20 years. Expensing your GSA Schedule in 2018 is advised because of the Time Value of Money. Starting your GSA Schedule in January delays the tax benefit a full year.

2. Maximizing New Schedule Benefit - Timing your GSA Application for maximum sales benefit is also important. The Federal Fiscal year begins in October and ends in September. If your firm begins the process of obtaining a GSA Schedule today, it will take roughly 5-6 months to obtain your new schedule. Federal Sales for Small Businesses spike in the 4th quarter and taking part in this helps shorten the payback period of your GSA Schedule. Below is the utilization rates for GSA Schedules in the 4th Quarter, as well as September compared to the rest of the year.

*According to Bloomberg’s Federal analysts.

These are two major reasons why it is a good idea to start your GSA application before the end of the year.

GSA Schedules
Whether looking to get on GSA Schedule, pursuing an 8(a) Certification, or going after both simultaneously, I recommend contacting the industry experts at Advance GSA and/or ez8a. Both are available at the click of a button, or are a phone call away. Neither charge for an initial consultation. Advance GSA can be reached directly by phone at (303)810-4580.