Tax compliance crucial for government contract payments

Business owners pursuing government contracts were reminded in the Funded in Focus feature that winning a bid is only part of the process. The segment said public-sector work can help improve cash flow, but companies must remain tax compliant from award through completion.

A lapsed tax certificate while a contract is being carried out can hold up payments or create problems with the agreement. Businesses were urged to track the status of their certificates across the full contract period.

The feature cited Travon, a client who secured a government contract but almost missed out on payment because his tax certificate had expired. After professional support and proper systems were introduced, his compliance process improved, helping him maintain continuity and reduce rejected government-contract submissions.