DCAA COMPLIANCE BLOG

Your Source for DCAA News and Government Contracting Information 


 

DCAA Committe - NDIA & SBTC: Issue Consultant Guidelines

Posted by Mike Anderson on 12/20/13 4:01 PM

As you may know, one of our founders Russ Farmer is serving on a joint committee of the National Defense Industry Association (NDIA) and the Small Business Technology Council (SBTC) to work with the Defense Contract Audit Agency (DCAA) to help discuss and resolve issues critical to small business.  A guidance memorandum (13-PAC-026(R) came out of the DCAA office this week as the result of the committee that Russ heads up. 

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Topics: DCAA, NDIA, SBTC


What is the difference between the DCAA and the DCMA?

Posted by Mike Anderson on 11/18/13 3:25 PM

Earlier this year I was asked to participate in a webinar to cover the difference between the DCAA and the DCMA as well as describe what each agency did.  The audience was a group of companies that were Small Business Innovation Research (SBIR) award winners.  I think this may get confused for a number of people that do business with the Federal Government and so worth a little time today to discuss.  Both of these agencies originate from the Department of Defense and are primarily concerned with helping the Department of Defense handle their contracting business.  So what are the differences?

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Topics: DCMA, DCAA compliance, DCAA, DCAA audit, contract management, DCMA DCAA, DCMA vs DCAA, DCAA vs DCMA


Year-end change: Government Approved Accounting System

Posted by Mike Anderson on 10/29/13 4:18 PM

If you are a small business, working with funds from awards from the Federal Government and you don't know if your accounting system is compliant with government regulations such as the FAR, you should consider making the switch.  The perfect time to switch your accounting system is the end of a fiscal year.  We are approaching the end of the fiscal year for a large percentage of businesses (65% of publically traded companies in the US have a Dec. 31 fiscal year end).  With the approach of a major holiday season as well, the time to consider changing your accounting system is right now.  If you start working on this change now, it will be ready to operate come January first. 

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Topics: DCAA compliance, DCAA, DCAA accounting, Government Approved Accounting System


Invoice Compliance for the Federal Contractor

Posted by Mike Anderson on 10/18/13 9:22 AM

In the past we have talked about DCAA compliance on Federal Contractors and focused mainly on the accounting system.  Many times some of the auxiliary systems get either "swept under the rug" or assumed that they are not a big issue.  These auxiliary systems include timekeeping, invoicing, subcontracting among others.  Obviously these systems utilize the accounting system and data but they also have regulations and must be done properly in order to maintain compliance.  Today I would like to focus just on the Invoicing part.

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Topics: FAR, DCAA


Using QuickBooks® for Government Accounting

Posted by Mike Anderson on 10/15/13 5:40 PM

The number one software for accounting for small business is usually considered to be the QuickBooks® program.  This program is very flexible and very complete for setting up and operating a small business.  When the small business decides that they want to participate in government contracting or they secure a government grant, the QuickBooks® software is not designed to meet the requirements set forth by the CFR, FAR and DCAA.  This does not mean that the program cannot be made compliant however.  Since QuickBooks® is not designed to meet government requirements, many people panic.  By setting up the QuickBooks file in a specific manner and then using some secondary programs to supplement the system, the program can be made to comply with government requirements and pass government audits, such as those conducted by the Defense Contract Audit Agency (DCAA). 

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Topics: government contractor, DCAA, QuickBooks, Government Accounting


DCAA Accounting Software for Government Contract Accounting

Posted by Mike Anderson on 9/25/13 9:52 AM

Government Contract Accounting - Software 

Many small businesses are overwhelmed when they begin their first government contract.  The ability to pass a DCAA audit for an accounting system is daunting. Many government contractors mistakenly believe that if they purchase a dcaa accounting software package that is designed to meet DCAA requirements that they are safe.  Nothing is further from the truth.  It is a first step to get accounting software that is designed to meet FAR and DCAA requirements but the system set up around that software, the consistent operation of that system and the retention of supportable records is also required to pass a DCAA audit.  The government wants to see a full system and the compliant operation of the system to assure that they are not overcharged for the goods and services that they purchase.  In addition, since they are the single largest purchasing entity in the United States, they also want to see that they get the "best deal".  These seemingly simple goals have resulted in some complex regulations for Contracting Officers and also for government contractors.  Today I would like to take just a brief look at the software packages that would be available to a government contractor, especially the small business, to form the backbone of their compliant business system for doing business with the Federal Government.

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Topics: DCAA, DCAA accounting, QuickBooks, Accounting Software, government contract accounting


NDIA & SBTC Committee to address DCAA issues for Small Business

Posted by Mike Anderson on 8/16/13 8:28 AM

A while back I wrote a blog about our Russ Farmer heading a joint committee of the SBTC and NDIA to take small business concerns to the DCAA and DCMA for resolution.  At that time the committee was asking for input from Small Business of concerns or problems that they were having with primarily the DCAA but also any issues they might have with DCMA.  As you might imagine, there are some issues out there.  The first priorities of the committee were to 1) establish a relationship primarily to identify and resolve issues that were common, broad-based and significant and 2) to define a path forward to work on resolution of consultant cost conflicts on dated outstanding incurred cost audits.  The issue on the consultant costs has 3 primary issues:

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Topics: DCMA, DCAA, Small Business, NDIA, SBTC


DCAA Compliant Accounting: Pay me now or Pay me Later!

Posted by Mike Anderson on 7/2/13 11:01 AM

 

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Topics: DCAA compliance, DCAA, Outsourced Accounting