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 Compliance
Timekeeping Setup for DCAA Compliance | GovCon Wednesday
Estimated read time: 6 minutes For government contractors, timekeeping is one of the most important parts of accounting system setup. Labor is often the largest cost on a contract, and the way employees record time can affect billing, indirect rates, contract profitability, and audit readiness. A commercial business may only need time records for payroll. A government contractor usually needs more detail. The company must show which hours were worked… Read More
GovCon Cost Pools: How to Configure Them | GovCon Wednesday
Estimated read time: 6 minutes Key Takeaways Point 1: The Immediate Fix. Never arbitrarily mimic another firm’s indirect rate architecture. Your cost pools must organically mirror your unique workforce footprints, project delivery environments, and cost behaviors under FAR 31.203 guidelines. Point 2: The Compliance Risk. Bundling mismatched indirect costs into a generic ledger bucket distorts allocation math and triggers structural compliance deficiencies. Under DFARS 252.242-7005, failing to maintain adequate accounting control over your cost pools allows… Read More
Direct vs. Indirect Costs: GovCon System Setup | GovCon Wednesday
Estimated read time: 6 minutes Key Takeaways Point 1: The Immediate Fix. Consistency is an absolute legal mandate under FAR Part 31. You cannot classify an expense as a direct cost on one contract and an indirect cost on another when the underlying circumstances are identical. Point 2: The Compliance Risk. Treating direct vs. indirect classifications as a casual data-entry task creates immediate exposure. Under DFARS 252.242-7005, system deficiencies in cost structural accounting can… Read More
GovCon Chart of Accounts: Setup Guide | GovCon Wednesday
Estimated read time: 6 minutes Takeaways Point 1: The Immediate Fix. Do not make your general ledger accounts do all the tracking work. Keep your Chart of Accounts (COA) lean by using accounts strictly for cost type (e.g., Direct Labor) and mapping where it belongs using your software’s project, job, or cost center modules. Point 2: The Compliance Risk. Mixing unallowable expenses like business entertainment or penalties into standard operating accounts contaminates your indirect cost pools…. 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