Government Contract Accounting

Operating as a government contractor can be as challenging as it is rewarding, as companies face the added pressures of compliance with Federal Acquisition Regulations (FAR), Cost Accounting Standards (CAS), and stringent oversight by the Defense Contract Audit Agency (DCAA).

Peach State CPA, Inc. understands the intricacies of DCAA compliant and can help you navigate the complexities of compliance issues, prepare for audits, perform contract close-outs, detail incurred cost submissions and more.

We function as your trusted financial advisor, proactively identifying key areas for improvement and implementing solutions tailored to your business that optimize cost recovery and maximize your profitability.

Our Government Contract Accounting Services includes:

  • Bookkeeping
  • Payroll
  • Procurement Process
  • Unallowable Costs Tracking
  • Cost Accounting
  • Data Entry (Segregation of direct and indirect costs)
  • Provisional Billing Rates
  • Prepare direct cost
  • Prepare labor worksheets
  • Monitoring budgeted vs. actual indirect rates
  • ICE Schedule Preparation
  • DCAA Audits
  • Converting your data to fit DCAA’s model
  • Contract Segregation
  • Financial Reports
  • Incurred Cost Audit
  • General Ledger Control
  • Job Cost Ledger/Reports

15. Your Chart of Accounts is set up with expense accounts on an alphabetical basis
14. You don’t use timesheets
13. You use timesheets, but not everyone fills them out or they don’t fill out all time worked
12. Labor and other expenses are not segregated by direct and indirect categories
11. Direct expenses (both labor and other expenses) are not segregated by job or project
10. Indirect billing rates are not calculated monthly
9. Job costs and the application of indirect rates to each job are not calculated monthly
8. It’s difficult or impossible to reconcile payroll with expensed labor
7. You’re not sure if your contracts are fixed price, cost-plus or time and material
6. Your accounting system operates on a cash basis, not an accrual basis
5. You don’t pay your subcontractors within 30 days
4. You don’t produce an annual budget
3. You don’t have written policies and procedures for all of the above
2.  You’ve already failed a DCAA accounting system review

And the number one sign:
1.  Your accountant asks for a copy of FAR Part 31.