Accounting can be difficult within any industry or size of company.
Debits and credits, fiscal periods, ledgers, fixed and adjustable costs, allowable and unallowable expenses, inventory, profit or revenue; the list, even if short, seems to go on forever. Accounting is daunting, but never as so much than for those who win contracts with the government and face the DCAA accounting system.
Researching what is involved with DCAA accounting is a long and tedious endeavor; there is an immense amount of requirements to be met. To start understanding DCAA accounting requirements begin with timesheets, employee compensation, and allowable and non-allowable expenses. For example, hourly versus salaried employees, procedural training, authorization tracking, direct versus indirect costs, employee leave, and timecards. Yes, it is a lot!
If, after reading all the necessities, you finally understand the requirements of the above accounting measures, you will be able to prepare yourself to be a successful government contractor. However, there is lots of room for mistakes, especially if you are using the old-school approach to accounting. Not only is there the issue of error, but there is the issue of such errors looking like you are attempting to commit fraud. Such an event can terminate your contract. Instead of attempting to reach for the pencil and paper, opt for a software solution that is designed to address the DCAA accounting requirements. Many of these programs offer itemization that you may never think of, but that will be expected if you are audited. Plus, many come with manuals that help explain DCAA accounting methods and procedures. More importantly, these programs will allow you do develop ad hoc or specialized reports to answer audit questions at the touch of a keyboard. Prepare your success with DCAA accounting with software that sets you up for contract and accounting compliance.
– DCAA News