Start your GSA Application

December is almost here and many businesses are considering their budgets for next year. Time may be of the essence in terms of starting your GSA Schedule Application in the current period. Here is two big reasons for not delaying your GSA Schedule Application into the New Year.

  1. Tax Advantage – The consulting fees used to obtain your GSA Schedule is 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 theTime 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 is usually takes 5-6 months to obtain a 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 of GSA Schedules in the 4th Quarter as well as just September compared to the rest of the year.
  4th QTR (Jul-Aug-Sep) September Alone
Multiple Award Contracts / GSA Schedules (Small Business)* 45%
(of Federal Sales for the year)
(of Federal Sales for 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!