Government contract accounting comes with a significant number of ever-changing Defense Contract Audit Agency (DCAA) and Federal Acquisition Regulation (FAR) rules and regulations. Complying with such a dynamic and extensive set of complex rules can be difficult to decipher let alone apply efficiently and without error to your daily business practices. Now, there is an easier way to safely meet each and every regulation while staying on task and on budget.
DCAA Expectations for Your Accounting Practices
The DCAA audits government contracts to ensure the funds are being allocated correctly. As a result, this auditing organization boasts saving the government over $3 billion annually. Translation – DCAA audits are not slowing down in the foreseeable future and business owners need to remain in compliance at all times while being fully prepared for a thorough audit on any given day.
Here are some of the top checkpoints that may be evaluated during the audit:
- Is your accounting solution designed to meet the complex needs of government contract accounting?
- Are all requirements of the contract as well as additional government regulations being met?
- Is the project staying on budget based on the price proposal?
- Is the contract on target to be completed within the proposed time schedule?
- Are subcontractors approved and meeting the contract terms and conditions?
Possible Consequences for Accounting Errors
Securing a government contract for a service or product your company offers is an incredible opportunity for business owners. Therefore, it is imperative your accounting remains in full compliance with all government rules and regulations without exception in the event you are selected for a DCAA audit. Failing an area of an audit leaves a stain on your business’s reputation and can prevent your business from being awarded future government contracts. Moreover, the DCAA can suggest you are not meeting the requirements of your current contract and recommend an immediate stop to production. In other words, your current project could be shut down and expected funding could be withheld.
Types of DCAA Audits
There are different types of DCAA audits. Some of the most common are centered around accounting system requirements, labor compliance, billing rates, project timing, and incurred costs. It is also important to note real-time audits may occur without advanced notice.
One Easy Step to Ensure Compliance & Dramatically Reduce the Risk of Errors
Historically, remaining in compliance has been a challenge for government contractors. Navigating through the evolving rules and regulations is time-consuming and can slow productivity. Also, applying government restrictions and ensuring conditions of the contract are being met within the agreed-upon timeframe and budget can place a heavy burden on the business owner as well as employees.
Peter Witts saw this struggle first-hand while working for the DCAA. That’s why he has been producing a better accounting system since 2008 that incorporates the direct knowledge he gained to tear through the red tape that holds up production and turns meeting compliance requirements into an overly complicated and taxing process. By making the decision to work with Peter Witts, CPA PC, you will gain access to this simpler yet more powerful accounting management system designed to meet government regulations and the contract terms for your project and business while saving money by reducing the risk of errors and penalties.
What You Can Expect When You Choose Peter Witts, CPA PC
- Get direct knowledge of the DCAA and FAR requirements that will be interwoven throughout your easy-to-manage government accounting solution.
- Use an accounting system designed around your unique business and contract needs.
- Benefit from familiarity with the DCAA audit process and checklists.
- Reach out for help navigating through compliance red flags, mistakes, and negotiations.
- Receive monitoring options for remaining on budget and within the contract guidelines.
- Reduce the time your employees spend on complex accounting requirements and errors.
- Increase the security of your data.
Ready to Get Started Finding a More Productive & Advanced Path Forward?
Are you ready to shift the focus back to designing, enhancing, and producing your company’s core services and products? Reach out to Peter Witts, CPA PC today, and let’s make a better plan for your government contract accounting current and future needs together.