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
Labor Distribution
Labor Distribution Setup for GovCon Contractors | GovCon Wednesday
Estimated read time: 6 minutes Key Takeaways Point 1: The Immediate Fix. Timekeeping software only records raw hours; labor distribution translates those hours into compliant general ledger dollars. You must map every time code to a clear financial parameter right at the point of entry under FAR 31.202 standards. Point 2: The Compliance Risk. Letting labor distribution float as an un-reconciled spreadsheet math problem invites immediate defense system failures. Under DFARS 252.242-7005, structural deficiencies in labor… Read More
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
How to Set Up a DCAA-Compliant Accounting System | GovCon Wednesday
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
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
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