Estimated Read Time: 6 mins Takeaways Point 1: The Immediate Fix. No software platform is “DCAA-approved” right out of the box. True compliance requires intentionally structuring your general ledger around distinct cost objectives and logical allocation bases under DFARS 252.242-7006. Point 2: The Compliance Risk. Failing to isolate unallowable costs or failing to reconcile your job-cost ledger with your general ledger creates structural audit risk. Under DFARS 252.242-7005, an unoptimized system with material weaknesses can trigger… Read More
GovCon Accounting System Setup: DCAA Basics | GovCon Wednesday
Estimated Read Time: 6 mins Key Takeaways Point 1: The immediate fix. Commercial off-the-shelf accounting software configurations are not compliant out of the box. You must immediately restructure your general ledger into explicit segments: direct costs, indirect pools, and FAR-defined unallowable accounts. Point 2: The compliance risk. Failing a Defense Contract Audit Agency (DCAA) pre-award survey—governed by the Standard Form (SF) 1408 checklist—will instantly disqualify your firm from winning cost-reimbursable, labor-hour, or… Read More
How Accounting Systems Support Growth & Contract Awards
GovCon Wednesdays Estimated Read Time: 5 minutes For government contractors, accounting systems are often viewed as a back-office necessitysomething to maintain for compliance and audits. In reality, a well-designed accounting system is a growth enabler. Strong systems don’t just protect you during audits. They influence whether you can: Bid confidently on new opportunities Support cost-type and hybrid contracts Withstand pre-award scrutiny Scale without operational breakdown This final article in our… Read More
Do You Have a PTO Policy in Place? Why It Matters More Than You Think
GovCon Wednesdays – Estimated Read Time: 6 minutes Paid Time Off (PTO) policies are often treated as an HR formality—something documented once and revisited only when issues arise. But in practice, PTO policies directly impact payroll accuracy, financial reporting, and, for government contractors, compliance and audit readiness. If your PTO policy is unclear or inconsistently applied, it can create “fringe” rate distortions that are much harder to defend during an… Read More
When to Upgrade Systems: Timing the Move Without Creating Compliance Risk
GovCon Wednesdays Estimated Read Time: 5 minutes For many government contractors, the decision to upgrade accounting systems is driven by frustration slow closes, audit pain, billing delays, or growing reliance on spreadsheets. By the time the decision feels obvious, risk has already increased. Upgrading too early can waste resources. Upgrading too late can jeopardize awards, compliance, and cash flow. This article explains when a system upgrade makes sense, what triggers the need, and… Read More
401(k) on Supplemental Wages: What GovCons Must Get Right for Compliance
GovCon Wednesdays – Estimated Read Time: 6 minutes When companies process bonuses, PTO payouts, or severance, most of the focus goes to payroll taxes and withholding. But one of the most common—and costly—oversights happens on the benefits side. 401(k) treatment on supplemental wages is not automatic. It depends on your plan document, your payroll setup, and how consistently you apply both. For government contractors, mistakes here don’t just impact employees—they… Read More