The competition for government contracts is fierce, so it’s vital that you stay on top of DCAA compliance rules and ensure that your business is operating within the guidelines set by the Defense Contract Audit Agency (DCAA). That way, you’ll always be prepared for the inevitable audits. Whether you just secured your first government contract or you’re on your 30th contract, it never hurts to review a DCAA audit checklist. Scroll down to review what’s expected of government contractors and how you can stay ahead of the game.
Wondering where to begin? First, check out the DCAA’s website, which includes a page dedicated to DCAA audit checklists and tools. Contractors can use these links to learn exactly what DCAA auditors are looking for during audits. This invaluable information can help you evaluate your current work processes and procedures — including staffing, training, accounting, timekeeping, and more — and make changes that will reduce your risk of failing an audit. The page includes links to all of the following checklists and tools:
Once you’ve reviewed the DCAA audit checklists and tools that apply to your company, you can use that information to prepare for the entrance conference.
During the entrance conference, the DCAA auditor will visit your workplace and explain the purpose and structure of the audit. They may ask you and your team questions, collect information, and request specific documents. If necessary, the DCAA may request a timekeeping audit, which allows the auditor to visit your workplace unannounced and/or schedule a follow-up visit.
Review and organize your accounting reports so that they’re ready when the auditor requests them. In some cases, the auditor may need to track transactions back to their original source to check that the costs are incurred appropriately. If your accounting reports contain inconsistencies or errors, this will negatively impact your audit and could harm your company’s standing as a contractor with government agencies. For this reason, it’s vital that you keep accurate, updated records.
The official checklists found on the DCAA’s website will be your most valuable resource when it comes to audit preparation, but the simplified checklist below should also help you get your ducks in a row:
To make all of these tasks easier, we highly recommend that you use DCAA-compliant accounting software. The right software will simplify all these tasks and securely store your information so it’s ready to go whenever an audit is announced.
If you’re concerned about your DCAA compliance, we’re here to help! For over 20 years, GovCon has helped hundreds of clients navigate the complex world of DCAA compliance, streamline their operations, pass audits, and win contracts. We use our real-world experience to simplify your process, reduce the cost of compliance, and improve accuracy. Our government contracting software is built specifically to manage DCAA accounting and compliance, leaving no expense unaccounted for. We’d love to show you how GovCon can simplify DCAA compliance for you. Contact us any time.
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