DCAA-Compliant Accounting Software for QuickBooks Online

Built for Government Contractors

Passing a DCAA Preaward Accounting System Survey (SF 1408) is a critical requirement for government contractors pursuing cost-reimbursable, T&M, and grant-funded contracts.

During this audit, DCAA evaluates whether your accounting system can properly segregate costs, compute indirect rates, track funding, and distribute labor in compliance with FAR and DCAA regulations.

GovCon Connect extends QuickBooks with the controls and automation required to meet DCAA accounting system requirements — without relying on error-prone spreadsheets.

Is QuickBooks DCAA Compliant?

QuickBooks alone is not DCAA compliant.

However, when QuickBooks is integrated with GovCon Connect and configured correctly, it becomes a fully DCAA-compliant accounting system suitable for government contracting audits.

GovCon Connect fills the functional gaps that DCAA auditors commonly identify during SF 1408 reviews.

How GovCon Connect Makes QuickBooks Online DCAA Compliant

GovCon Connect automates the accounting processes required by DCAA and FAR — processes that quickly become unmanageable when handled manually or in spreadsheets.

GovCon Connect enables you to:

• Compute compliant indirect rates
• Allocate indirect expenses to contracts and projects
• Track contract awards, funding, and backlog
• Perform DCAA-approved labor distribution
• Maintain audit-ready documentation

Automated Indirect Rate Calculations

DCAA requires contractors to demonstrate the ability to compute indirect rates, often monthly, especially when billing provisional rates on cost-reimbursable contracts.

Manual rate calculations are time-consuming and prone to error.

GovCon Connect automatically:

• Calculates overhead, G&A, and fringe rates
• Supports provisional and actual rate tracking
• Helps ensure future billings remain compliant

This automation significantly reduces audit risk and administrative burden.

Indirect Cost Allocation by Contract & Project

DCAA compliance requires indirect expenses to be allocated to contracts and projects on a regular basis.

GovCon Connect:

• Applies calculated indirect rates consistently
• Allocates costs across multiple contracts and task orders
• Helps prevent over-billing and funding overruns

This process is fully automated and audit-ready.

Contract Awards, Funding & Backlog Tracking

Tracking contract awards, incremental funding, CLINs, and backlog is a common audit challenge — especially as contract volume grows.

GovCon Connect:

• Tracks total contract value and funded amounts
• Manages incremental funding modifications
• Calculates contract backlog in real time

All without spreadsheets.

DCAA-Compliant Labor Distribution

Labor distribution is one of the most scrutinized areas in a DCAA audit.

GovCon Connect supports DCAA-approved labor distribution methods, including:

Total Time Accounting

• Uses actual hours worked and leave recorded per pay period
• Calculates effective hourly rates for salaried employees
• Ensures full compliance with DCAA timekeeping rules

Standard Rate Distribution

• Accrues and posts payroll variances correctly
• Allocates labor to appropriate cost pools

Unlike native QuickBooks labor tracking, GovCon Connect posts labor to the correct accountsrequired for indirect rate computation, including:

• Direct Labor
• Overhead Labor
• G&A Labor
• Paid Leave

Who Needs DCAA & FAR Compliance?

Government Contractors & Subcontractors

Any company performing work under a federal contract — as a prime or subcontractor — must comply with FAR, and often DCAA, requirements.

Small Businesses

Small businesses awarded government contracts must meet the same compliance standards as large contractors.

Cost-Reimbursable & T&M Contractors

Contractors billing allowable costs are subject to heightened audit scrutiny and must maintain compliant accounting systems.

Benefits of DCAA Compliance

• Eligibility for cost-type government contracts
• Reduced audit findings and penalties
• Improved financial controls and visibility
• Increased credibility with contracting officers

How GovCon Connect Helps You Stay Compliant

GovCon Connect is purpose-built for government contractors using QuickBooks.

It helps you:

• Prepare for SF 1408 audits
• Maintain FAR-compliant accounting practices
• Reduce reliance on spreadsheets
• Stay audit-ready as your business grows