Estimated read time: 6 minutes Key Takeaways Point 1: The Immediate Fix. Stop treating audit prep as an annual fire drill. True compliance means embedding an automated, contract-level cost ledger structure into your monthly close routine—ensuring every direct transaction satisfies FAR 31.201-2 standards before an invoice is generated. Point 2: The Compliance Risk. Operating an un-reconciled or reactive accounting system invites immediate administrative disasters. Under DFARS 252.242-7005, significant deficiencies in your cost accounting internal controls allow… Read More
DCAA Audit Readiness
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
What Happens After a DCAA Audit? The Post-Audit Roadmap GovCons Should Expect
GovCon Wednesdays Estimated Read Time: 5 minutes The audit may be “over,” but the work often isn’t. After DCAA completes fieldwork, the post-audit phase typically shifts from document production to decision-making and resolution—including contracting officer actions, corrective measures (if needed), and final rate/closeout steps. DCAA’s audit process overview confirms audits conclude with reporting results to support Government contract decisions. This guide explains what happens after the audit, what you should do… Read More
Payroll Reimbursements for GovCons: Why QBO Users Should Move Toward Accounts Payable
GovCon Wednesdays – Estimated Read Time: 7 minutes In the world of government contracting, “payroll” and “reimbursements” are often lumped together because they both involve sending money to an employee. However, treating them the same way in your accounting system is a recipe for audit findings. For those using QuickBooks Online (QBO), handling reimbursements correctly is not just about convenience—it’s about protecting your indirect rates and maintaining an audit-ready labor distribution… Read More
DCAA Audit Outcomes: Pass, Deficiency, or Corrective Action — What Happens Next for GovCons
GovCon Wednesdays Estimated Read Time: 5 minutes When a DCAA audit wraps, most contractors ask the same questions: “Did we pass?” “Is this a deficiency?” “What do we have to fix—and how fast?” The reality is that DCAA issues audit results, and then contracting leadership (often the Administrative Contracting Officer / ACO) uses those results to make decisions about system adequacy, rates, billing, and next steps. FAR confirms that the Government evaluates and… Read More
How to Respond to DCAA Requests: A Practical Playbook for Government Contractors
GovCon Wednesdays Estimated Read Time: 5 minutes When DCAA sends a request—whether it’s an email for support, a formal data call, or a list of questions—your response strategy matters as much as the documents themselves. The fastest way to create delays (or raise suspicion) is to respond inconsistently, without a clear audit point-of-contact, or with files that don’t tie back to your accounting records. DCAA’s audit process overview explains that… Read More