Estimated Read Time: 6 minutes When employees receive pay outside their normal base wages, many companies treat it like just another payroll item. That is where problems start. For government contractors, supplemental wages are not only a payroll tax issue. They also affect labor reporting, indirect rate consistency, compensation allowability, and the overall reliability of your accounting system. If the treatment is inconsistent, what looks like a simple bonus or… Read More
GovCon Accounting
Labor Distribution Controls: The Backbone of DCAA-Compliant Accounting
GovCon Wednesdays Estimated Read Time: 5 minutes Labor is typically the largest cost element on government contracts and the most scrutinized during audits. Even contractors with strong accounting systems can fail reviews if labor distribution controls are weak, undocumented, or inconsistently applied. In GovCon, labor distribution isn’t just about tracking hours. It’s about proving that labor costs are accurate, allocable, approved, and traceable from time entry all the way to billing. This article… Read More
QBO vs ERP for GovCons: Choosing the Right System for Compliance and Growth
GovCon Wednesdays Estimated Read Time: 5 minutes One of the most common questions government contractors ask is deceptively simple: “Is QuickBooks Online enough, or do we need an ERP?” The answer isn’t one-size-fits-all and choosing the wrong system at the wrong time can create compliance risk, billing issues, and expensive rework later. This article breaks down QBO vs ERP for GovCons in a practical, compliance-focused way so you can make the… 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
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
ICS Essentials #8: How to Prepare a Compliant ICS (Documentation & Best Practices)
GovCon Wednesdays Estimated Read Time: 5 minutes Preparing a compliant Incurred Cost Submission (ICS) requires more than filling out schedules, it requires accurate documentation, consistent accounting practices, and strong compliance with FAR cost principles. This final installment in the ICS Essentials Series explains the best practices contractors should follow to assemble an accurate and audit-ready ICS package. All recommendations are based on your ICS slide deck guidance. Core Concept: What… Read More