In episode 141 of The Woodard Report Podcast, hosts Joe Woodard and Heather Satterley dive into two potentially game-changing developments for the accounting profession: proposed revisions to federal contractor accounting rules and a controversial Congressional proposal aimed at overseas outsourcing.
As always, the show also includes member highlights, professional development insights, and pop culture reflections that illuminate business wisdom in unexpected places.
Heather opened the episode with significant news for professionals supporting government contractors. The White House has proposed eliminating 60 accounting requirements under the Federal Acquisition Regulation (FAR), a move that could drastically reduce compliance burdens.
As Heather explained, FAR currently imposes accounting treatments that diverge sharply from generally accepted accounting principles (GAAP), creating costly and time-consuming challenges for contractors. If adopted, the changes would realign federal standards with GAAP in key areas like depreciation, capitalization, and expense allocation.
Heather, drawing from her own experience supporting government contractors, called this "a really, really big deal."
Many smaller firms and innovative startups are currently discouraged from bidding on government contracts due to the dual-bookkeeping requirements and rigorous annual audits. If the proposed changes are implemented, it could open the door for a more diverse pool of government vendors.
Joe probed the implications for cost-plus contracts, confirming that while operational costs may not shift, the reporting mechanisms would. The simplification could affect how costs appear on tax filings and reduce the reliance on sprawling spreadsheet allocations.
Joe then turned the spotlight on a newly proposed Congressional bill with wide-reaching implications for CPA firms and their outsourcing partners. The Halting International Relocation of Employment Act (HIRE Act) proposes a 25% excise tax on payments to foreign service providers whose work benefits U.S. consumers. Even more striking, it would eliminate the ability to deduct those costs from U.S. tax filings.
Joe noted that it's not yet clear whether the bill would apply only to vendor-based outsourcing or also to firms that hire their own overseas employees. But the potential impact is clear: “I think it's going to be monumentally disruptive for a lot of firms."
Heather voiced concern about the timing, as many firms rely on outsourced talent to meet client demand. With accounting graduate numbers down and CPA exam participation still declining, the profession is already struggling to meet labor needs.
Joe added that about 15 of Woodard's 160 sponsors are outsourcing providers, underlining how deeply integrated these partnerships are in the current CAS landscape.
The conversation expanded into a broader reflection on the profession's image and recruiting challenges. Heather emphasized the need to introduce accounting as a career path earlier in education, even as early as middle school.
Joe agreed, arguing for a narrative shift: "But if instead we tell people you can either you have three paths, you can work in a business, you can run a small business and try to grow it to something that's not small, or you can be the protector of a bunch of small businesses. Which ones of those three options appeal most to you? That's the way you frame the opportunity.”
They also discussed the divide between credentialed and noncredentialled accounting professionals. Heather, a CPA who worked for years as a noncredentialledtialed bookkeeper, called for mutual respect and recognition of diverse pathways. Joe suggested the profession should establish a formal certification for bookkeepers and CAS professionals, similar to systems in Australia and the UK.
Heather shared a poignant quote from the film Her (2013): "None of us are the same as we were a moment ago and we shouldn't try to be." She used the quote to highlight the importance of adaptability in both personal and professional growth.
Joe found an unlikely source of wisdom in an interview with Charlie Sheen, reflecting on his tumultuous past. Sheen's quote, "Shame can be your North Star, shame can be your South Star or shame can be your Death Star.” Sheen’s quote underscored the power of transparency and accountability in shaping a meaningful future.
Heather reported on a surprising innovation: Fourlane launched a tool that enables cloud-based interaction with QuickBooks Desktop, without traditional hosting. The product could breathe new life into legacy systems still used by over two million users.
Joe revisited Daniel Susskind's A World Without Work, highlighting its distinction between "complementing" and "substituting" technologies. Complementing tech enhances human work, while substituting tech replaces it. With AI now mimicking human cognition, Susskind warns that substitution may outpace complementing, challenging previous assumptions about technology-driven job creation.
This week’s game covered golf trivia and accounting software origin stories. Heather revealed that while golf was not originally an acronym for "gentlemen only, ladies forbidden," the sport is the only one played on the moon. Joe stumped Heather with a fabricated tale about Sage Software being named after a favorite spice; no spoiler alerts here.
Lamont Nesbitt joined the show to spotlight Brittany Bird, a Woodard member whose firm has grown sixfold in just two years. Specializing in the construction niche, Brittany has embraced the Scaling New Heights model, attended multiple events, and demonstrated a willingness to pivot, iterate, and scale with purpose.
Heather highlighted Alicia Katz Pollock’s recent piece, "Next-Level Bookkeeping in QuickBooks Online." The article is part of a new series aimed at helping readers master advanced features in QBO. Pollock, founder of Royalwise, brings deep product knowledge and a hands-on teaching style that makes complex topics accessible.
This episode spotlighted the evolving rules and realities shaping the accounting profession. Whether it’s easing burdens for government contractors, confronting challenges to global outsourcing, or preparing for the future of work, one theme is clear: firms that adapt with agility and integrity are positioned to lead.
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This article was written with the assistance of AI and edited by a human.