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 Systems & Controls
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
SF 1408 Explained Simply: What the Government Is Really Asking
GovCon Wednesdays Estimated Read Time: 5 minutes If you’re bidding on cost-type or flexibly priced government contracts, chances are you’ve heard of SF 1408 and possibly dreaded it. For many contractors, the form feels intimidating, overly technical, or like a pass/fail test they don’t fully understand. In reality, SF 1408 is not meant to trip you up. It’s a structured way for the government to assess whether your accounting system can… Read More
GovCon Accounting Systems & Controls Series #1: What Makes an Accounting System DCAA-Compliant?
GovCon Wednesdays Estimated Read Time: 5 minutes Winning (and keeping) government contracts requires more than competitive pricing and technical expertise. Your accounting system plays a critical role in whether you can bid on cost-type work, bill the government accurately, and withstand audit scrutiny. One of the most common misconceptions we see is this: “DCAA-approved accounting system” isn’t a formal certification. Instead, the Defense Contract Audit Agency evaluates whether your system meets specific criteria designed… Read More