Government Contractor Accounting and DCAA Compliance Services
Navigate the complexities of government contracting with confidence. CFO Hub delivers specialized accounting expertise and compliance solutions designed specifically for federal, state, and local government contractors.
Our team of government contracting specialists understands the unique requirements of DCAA (Defense Contract Audit Agency) compliance, FAR (Federal Acquisition Regulations), and CAS (Cost Accounting Standards). We establish compliant accounting systems, develop proper indirect rate structures, and ensure your financial operations meet the stringent requirements government agencies demand.
- DCAA-Compliant Accounting System Design
- Indirect Rate Structure Development
- FAR & CAS Compliance Oversight
- Incurred Cost Submission Preparation
- Government Contract Proposal Support
- DCAA Audit Preparation & Response
- Contract Administration & Compliance
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Some of our Amazing Clients
What Is Government Contractor Accounting?
Why You May Need Government Contractor Accounting Services
Government contractors face unique accounting challenges that specialized expertise can effectively address:
- New government contractors establishing compliant accounting systems for the first time
- Growing contractors struggling with increasingly complex compliance requirements
- Companies facing DCAA audits or pre-award accounting system reviews
- Contractors with inadequate indirect rate structures or cost segregation
- Organizations seeking to expand their government contracting portfolio
Our government contractor accounting services establish compliant systems and processes that satisfy regulatory requirements while providing the operational efficiency needed to compete effectively in the government marketplace.
CFO Hub's GovCon Accounting and DCAA Compliance Services
DCAA-Compliant Accounting System Design
Comprehensive design and implementation of accounting systems that meet DCAA requirements. Our specialists configure your accounting software, establish compliant chart of accounts structures, and implement proper job costing and indirect rate pools. We ensure your accounting system satisfies SF1408 pre-award survey requirements and maintains ongoing compliance through proper controls and procedures.
Accounts Payable Processing
Efficient management of vendor relationships and payment processes that optimize cash flow and capture available discounts. Our accounts payable specialists implement approval workflows, ensure proper documentation, and maintain accurate vendor records. We help businesses streamline payment processes, avoid late fees, and maintain positive supplier relationships while protecting against payment fraud.
Incurred Cost Submission Preparation
Expert preparation of annual Incurred Cost Submissions (ICS) required for cost-reimbursable contracts. Our team gathers necessary documentation, formats required schedules, and ensures proper disclosure of direct and indirect costs. We help you meet submission deadlines while minimizing risk of DCAA audit findings that could lead to cost disallowances or payment delays.
DCAA Audit Preparation & Response
Comprehensive support before, during, and after DCAA audits. Our specialists prepare required documentation, conduct pre-audit readiness assessments, and represent your interests during audit fieldwork. We help you respond effectively to auditor requests while minimizing operational disruption and protecting your organization’s interests throughout the audit process.
Indirect Rate Structure Development
Strategic development of indirect rate structures tailored to your specific contract mix and organizational needs. Our government contracting experts analyze your cost structure, design appropriate indirect rate pools, and establish allocation methodologies that comply with FAR and CAS requirements. We help you develop competitive rates while ensuring full cost recovery across your contract portfolio.
FAR & CAS Compliance Implementation
Practical application of Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS) requirements to your specific business operations. Our specialists develop compliant accounting policies, implement proper time-keeping systems, and establish adequate documentation procedures. We help you navigate complex regulations while maintaining operational efficiency and contract profitability.
Government Contract Proposal Support
Specialized assistance with developing compliant cost proposals for government contract opportunities. Our team helps structure proposal pricing, develop proper basis of estimates, and ensure compliance with solicitation requirements. We provide the necessary financial expertise to create competitive yet profitable government contract proposals.
Contract Administration & Compliance
Ongoing support for government contract administration and compliance requirements. Our team helps manage contract modifications, track funding limitations, and monitor cost ceilings. We ensure proper billing practices, maintain required documentation, and support contract closeout processes that maximize final payment and minimize compliance risk.
Case Studies
What Our Clients Are Saying
“CFO Hub has been an invaluable resource for our company. Our CFO and accounting consultant helps keep our books updated and advises me on how to best create our financial forecasts. I’m so glad I get to work with them, I highly recommend them!”
“CFO Hub has been with us since day one. They provide outstanding accounting support and financial leadership we needed. They set up our accounting platform, managed our back-office ops, and assembled policies and procedures for our staff. I highly recommend the team at CFO Hub.”
“CFO Hub quickly identified and corrected some gaps in our management reporting and revenue recognition policies which really allowed me to move ahead at full speed toward our goals. Their quick and professional approach was refreshing and I’m glad we chose to work with them.”
“CFO Hub has been an excellent partner and invaluable resource to Tourmaline Labs. Their expertise and knowledge of general accounting practices and finance are a great asset to our company and allow us to focus on all other aspects of operations and growing our business quickly.”
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Frequently Asked Questions
What makes government contractor accounting different from standard accounting?
Government contractor accounting requires specialized systems and expertise beyond standard accounting practices. Key differences include: segregation of direct and indirect costs according to strict regulatory definitions; detailed timekeeping requirements and labor distribution; specialized indirect rate structures and allocation methods; extensive documentation requirements for cost allowability and reasonableness; unique contract types with varied billing methods; and preparation for government-specific audits. These specialized requirements demand accounting systems and expertise specifically designed for the government contracting environment.
When should we implement a DCAA-compliant accounting system?
The ideal time to implement a DCAA-compliant system is before you begin pursuing government contracts, particularly cost-reimbursable contracts that require approved accounting systems. However, many contractors begin with fixed-price contracts using standard accounting systems, then implement DCAA-compliant structures as they pursue more complex opportunities. The critical point is to have appropriate systems in place before undergoing pre-award surveys or accounting system audits, as retrofitting compliance is significantly more challenging than building it correctly from the start.
How long does it take to establish DCAA compliance?
The timeline for establishing full DCAA compliance typically ranges from 2-4 months depending on your current accounting structure and the complexity of your operations. The process includes accounting system configuration, policy development, staff training, and implementation of specialized processes for labor distribution, segregation of costs, and documentation. Organizations with established accounting systems typically require less time than those building from scratch, but all implementations require thorough testing and validation before undergoing government review.
Can we use QuickBooks for government contracting?
Yes, QuickBooks can be configured to support government contracting requirements, particularly for small to mid-sized contractors. The key is proper setup and supplementation with supporting systems and procedures. We specialize in configuring QuickBooks with appropriate job costing, indirect pools, and reporting capabilities to meet DCAA requirements. For larger contractors or those with complex contract types, we may recommend more robust ERP systems specifically designed for government contracting.
What are the most common DCAA audit findings we should prepare for?
The most common DCAA findings involve inadequate timekeeping systems and practices, unallowable costs charged to government contracts, insufficient documentation for claimed costs, improper segregation of direct and indirect expenses, and inconsistent application of accounting practices. Our compliance approach specifically addresses these high-risk areas through proper system design, staff training, and robust documentation procedures, significantly reducing audit risk and potential cost disallowances.
Do we need separate accounting systems for government and commercial work?
No, you don’t need completely separate systems, but you do need accounting structures that properly segregate government and commercial work. This typically involves appropriate job costing, detailed labor distribution, and clear distinction between contract types. Our approach integrates government contracting compliance within your existing accounting framework where possible, adding the necessary components to satisfy regulatory requirements without creating unnecessary duplication or complexity.
How do you help with indirect rate development and management?
We take a strategic approach to indirect rates, starting with a thorough analysis of your cost structure and contract mix. We design rate structures that comply with regulations while supporting your competitive position, establish provisional billing rates that minimize year-end adjustments, implement monitoring tools to identify rate variances early, and develop forecasting models to project future rates for proposal pricing. Our goal is rates that are both compliant and supportive of your business growth objectives in the government marketplace.