GovCon Wednesdays Estimated Read Time: 5 minutes For contractors with flexibly priced contracts, timely submission of the annual Incurred Cost Submission (ICS) is required under FAR 52.216-7. Missing the deadline can slow down contract closeouts, trigger increased audit scrutiny, or even result in the government setting your indirect rates for you through a unilateral determination.This part of the ICS Essentials Series explains the key thresholds and deadlines that GovCons must… Read More
Audit Readiness
ICS Essentials #1: What Is an Incurred Cost Submission (ICS)?
GovCon Wednesdays Estimated Read Time: 5 minutes If your business has flexibly priced contracts, cost-reimbursable or certain T&M agreements, you are required to submit an Incurred Cost Submission (ICS) each year under FAR 52.216-7. An ICS ensures that every cost billed to the government is reasonable, allowable, and allocable, and that final contract costs reflect what your business actually incurred during the fiscal year. This first installment of the ICS… Read More
Tip # 7: Final Wrap-Up — Year-End Complete, What’s Next?
GovCon Wednesdays Estimated Read Time: 5 minutes Congratulations, you’ve made it through your GovCon year-end close! After weeks of reviewing invoices, reconciling accounts, validating entries, and preparing reports, it’s time to take a step back and look at the bigger picture: What’s next for 2026? This final tip in the GovCon Year-End Closing Series focuses on strengthening internal processes, refreshing compliance requirements, and setting a solid foundation for the new year. Reflect… Read More
Tip # 5: Year End – Prepare 1099s & Charitable Contributions
GovCon Wednesdays Estimated Read Time: 5 minutes As government contractors prepare to close out the year and transition into 2026, one of the most important steps is reviewing vendor payments, ensuring proper documentation, and preparing for updated IRS reporting requirements. This year is especially important because the One Big Beautiful Bill Act has introduced new reporting thresholds that will take effect for the 2026 tax year. If your business does not prepare now, next year’s… Read More
Tip # 4: Year End – Validate Revenue & Lease Entries
GovCon Wednesdays Estimated Read Time: 5 minutes Revenue recognition and lease accounting are two of the most complex and most audited areas for government contractors. Getting these entries right ensures your financial statements comply with GAAP, meet DCAA standards, and present an accurate picture of your 2025 performance before year-end. Why It Matters When auditors or contracting officers review your financials, they look closely at how you recognize revenue and account for leases. Revenue recorded… Read More
Tip # 3: Year End – Reconcile and Analyze Accounts — The Core of a Clean Year-End Close
GovCon Wednesdays Estimated Read Time: 5 minutes Once your accounting system is ready and your team has connected with auditors and tax professionals, it’s time for one of the most critical parts of year-end closing: reconciling and analyzing your accounts. Reconciliation is more than a bookkeeping task it’s how you prove that your financials are accurate, your records are complete, and your company is audit-ready under DCAA and GAAP standards. Why… Read More