DCAA Accounting Expert Can Help You Clear The Audit Successfully

You have a business to run and also get more business to keep it going strong and build a name for yourself. This means procuring of more contracts and getting more work done in the field that you specialize in. When it comes to government contracts, there is, however, a different specification to meet – the DCAA. It is the hawk body that conducts the audit of all the contracts before they are actually awarded to the companies. There are several specifications in which the billing and the accounts are to be presented.

Bearing serious consequences

The details that the DCAA accounting demands are very different from the normal accounting practices, though there are areas that overlap. Any non-compliance of your existing accounting system with those of the DCAA specifications usually result in the outright rejection of the contract and at times call for heavy penalties too. This indeed becomes a burden for the small and the medium companies that have to bear the severe consequences. At times, such companies reel under the impact for a long time before they can actually make a comeback in business.

Taking the professional help

One of the best ways to succeed in the bid for government contracts is to opt for the services of someone that is well-versed with the DCAA accounting having worked with it for years. There are professionals that earlier worked for the DCAA and now offer their expertise in the specific field to draw up the appropriate accounts for companies that bid for the government contracts. Having worked on the other side of the table, these professionals will know exactly what the DCAA auditors will be looking for in the accounts.

Drawing up the system

It is important that you have the proper accounting system documentation for auditors to review them as being adequate as per their stipulations. There are stringent levels that they expect to be maintained either manually or electronically. The situation is critical for the negotiated contracts that will call for an accounting system that will exactly represent the criteria of the FAR sub-clauses. The cost reimbursable contracts have to maintain the standards of the accounting documentation strictly as they are likely to be reviewed according to strict standards.

The time-keeping specification

The deft professionals will help you in segregating the direct costs from those of the indirect and accumulate the contract cost by cost for each element. A crucial area that the DCAA auditors emphasize on is the adequate timekeeping system that can be manual or electronic. The actual time spent as labor hours and not any other way of calculating is a must. The records of the working hours of each of the employees and the detection of the identity and the documentation are all crucial parts of the successful DCAA accounting system.

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