I often hear people say they want to buy accounting software that is “DCAA Approved”. Or sometimes they say that they need an accounting system that is “DCAA Approved”. This is a bit of a misnomer. First of all, the DCAA does not “approve” software packages nor do they “approve” accounting systems. A software package may be designed to meet FAR and DCAA requirements, or as it sometimes is referred to, to be “compliant” with DCAA requirements. As we have discussed in previous blogs, there are accounting software packages out there that are designed to be compliant with DCAA requirements. There are also accounting software systems that are not designed to be compliant with DCAA requirements but they can usually be incorporated into a compliant system by adding on some external features to cover all of the compliance issues. These “external systems” usually include things like timekeeping systems, expense reporting systems, indirect rate calculation systems and complete subsidiary job cost reporting systems among others. Finally, whether the software is designed to meet DCAA requirements or not, the company employing the system must have a set of policies and procedures to support operation of the system in a uniform manner.
At ReliAscent we realize that a large number of small government contractors use QuickBooks® as their accounting system. Since QuickBooks® is not designed to meet FAR & DCAA requirements, there must be some add-ons as well as a strong system of policies & procedures in order to have a compliant system.