Government contractors are required to understand and comply with accounting standards set forth by the Defense Contract Audit Agency (DCAA). The DCAA’s role is to prevent waste, fraud, and abuse in government contracting. To ensure compliance, any small business contracted with the government will be subject to regular audits, many of which are focused on accounting practices. The best way to pass an audit is to be trained and prepared. Scroll down to learn how to get started with DCAA accounting training.
DCAA Accounting Training: How to Get Started
In order to ensure compliance with government accounting standards and regulations, all small businesses serving as government contractors are subject to regular audits, both before and during their contract term. Failure to pass these audits can lead to a range of penalties, from delayed contract start to loss of cash flow to loss of current or future job opportunities.
To meet DCAA requirements, contractors must establish robust accounting systems and processes. Establishing these systems and passing audits can be a complex, time-consuming, and often confusing process. But it doesn’t have to be. Getting the right DCAA accounting training can enable you to navigate the complexities of government contracting requirements with confidence.
Familiarize Yourself with DCAA Guidelines
Before diving into DCAA accounting training, it’s smart to familiarize yourself with the agency’s guidelines and expectations. To start, the Department of Defense (DoD) provides a number of resources on its website that can help your organization understand what may be required in order to have compliant accounting practices. Make sure to also visit the DCAA website to access helpful resources, including the DCAA Contract Audit Manual (CAM) and the Defense Federal Acquisition Regulation Supplement (DFARS). Understanding these guidelines will provide you with a baseline of what is expected from your accounting practices as a government contractor.
Identify Relevant Training Programs
The next step will be looking for DCAA compliance training programs that meet your specific needs. To start, it’s important to seek DCAA accounting training programs specifically tailored to government contractors. They should be provided by reputable outside consultants who specialize in DCAA compliance and offer comprehensive courses on topics such as the following:
- Cost Accounting Standards (CAS) and their application in government contracts
- DCAA accounting system requirements and audit expectations
- Incurred cost submissions (ICE reports)
- Indirect cost rate development and allocation methodologies
- Setting up DCAA-compliant timekeeping in QuickBooks
- Preparation for DCAA audits and compliance reviews
Once you’ve identified relevant training programs, enroll in courses that align with your organization’s specific needs. Look for comprehensive training options; these will empower you to establish effective accounting systems, maintain compliance, and navigate the complexities of the DCAA audit process.
Don’t Forget Accounting Software
As you’ll learn in DCAA accounting training, part of DCAA accounting compliance is utilizing DCAA-compliant software. While the DCAA doesn’t require specific accounting software, it does require that whatever software you use for accounting and timekeeping meets certain stringent requirements related to job costing, tracking direct and indirect costs, and more.
Consider Outsourcing
You may also consider outsourcing your accounting to a team with specific expertise in government contracts and DCAA compliance. Outsourcing some or all of your accounting to a team with government compliance expertise gives you peace of mind. You’ll know that you’re always prepared to pass audits, freeing you up to focus on actually running your business.
GovCon provides full and partial accounting services, including a monthly audit check to ensure that your labor distribution and job costing are fully DCAA compliant. We’ll also prepare all necessary government reporting (Indirect Rate Computations and Cost Management Reports for Program Managers).
Whether you’re looking to outsource accounting, trying to find comprehensive DCAA accounting training, or just have questions about navigating the world of government contracts, GovCon has you covered. At GovCon, our mission is to help you successfully navigate the complex world of DCAA compliance, streamlining your operation to create the greatest efficiencies for you and your client, ultimately saving you money. And as a QuickBooks Solutions Provider, Gov-Con offers an unbeatable accounting software solution package specifically designed for government contract bookkeeping to help you remain DCAA compliant. Plus, we offer four different levels of full or partial accounting services and support to meet your accounting and DCAA compliance needs. Questions? Get in touch anytime.