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
Chart of Accounts
GovCon Chart of Accounts
Using a Single Overhead Rate?Simplify Your Chart of Accounts: For easier tracking and reporting, consider structuring your general ledger accounts as follows: direct costs starting with 5, fringe with 6, overhead with 7, G&A with 8, and unallowable costs with 9. While you’re free to customize the numbering to suit your preferences, this sequence provides a clean, intuitive framework that keeps things simple and consistent.