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
T&M Contracts
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
ICS Essentials #2: Who Must Submit an ICS? (Contract Types & Exemptions)
GovCon Wednesdays Estimated Read Time: 5 minutes Not every contractor is required to file an Incurred Cost Submission but if your contracts include cost-reimbursable elements, the ICS becomes an annual compliance requirement under FAR 52.216-7. Understanding whether your contract requires an ICS is essential for staying compliant and avoiding unilateral rate determinations from your ACO. This article explains exactly who must submit an ICS and which contracts are exempt. Core Concept:… Read More
How PBRs Impact Invoicing and Cash Flow
GovCon Wednesday’s Ensuring Steady Cash Flow Through Accurate InvoicingEstimated Read Time: 8 minutes For government contractors navigating cost-type or T&M contracts, nothing disrupts operations faster than delayed reimbursements. And when indirect costs fringe, overhead, G&A go unbilled, it’s often because a Provisional Billing Rate (PBR) isn’t in place or properly applied. This article Part 7 in VSINGH CPA’s 10-part series on indirect rate strategy explores the real-world impact of PBRs… Read More
Do I Need a Provisional Billing Rate (PBR)?
GovCon Wednesday’s When PBRs Are Required—And How to Get One ApprovedEstimated Read Time: 8 minutes If you’re working with the federal government on cost-reimbursable or Time & Materials (T&M) contracts, one question should come up before your first invoice is sent: Do I need a Provisional Billing Rate (PBR)? For many small and mid-sized government contractors, the answer is yes. This article Part 2 in our 10-part series explains when a… Read More
What Are Provisional Billing Rates (PBRs)?
GovCon Wednesday’s A Guide for Indirect RatesEstimated Read Time: 8 minutes Government contractors operating under cost-type or Time & Materials (T&M) contracts are expected to recover not only their direct project costs but also indirect costs expenses like rent, benefits, and admin support that keep the business running. But here’s the catch: unless you have an approved Provisional Billing Rate (PBR), you may not be able to bill those indirects at… Read More