While a DCAA audit can seem intimidating at first glance, you can take several steps beforehand to prepare for the audit and ensure that the process goes smoothly. If you structure your business to remain compliant with the DCAA’s requirements — reviewing your work processes, staffing, accounting, timekeeping, and more — you can virtually eliminate your risk of failing an audit. Desperate for a little peace of mind? Scroll down to learn how to prepare for a DCAA audit.
How to Prepare for a DCAA Audit
Aim to always be prepared.
First, it’s important to remember that your business should be designed so that you’re always prepared for a DCAA audit. If you stay prepared throughout the year, you’ll always be prepared when an audit arises. Also, you won’t have to worry about surprise visits from auditors, a lack of proper documentation, incorrect calculations, poor employee interviews, and more. Stay on top of the requirements for DCAA compliance, and don’t let your guard down.
Review the audit program.
Which specific audit process applies to your business? Find it using the Directory of Audit Programs on the DCAA website, download the PDF of the audit program, and study it. Look at the audit program as a study guide or a playbook. Because it’s produced by the DCAA, you can trust that all the information is accurate. Familiarize yourself with the audit process and auditing standards to ensure that your company is organized and ready.
Focus on these critical factors.
When prepping for a successful DCAA audit, we encourage you to focus on the following factors for best results:
- Establishing DCAA-Compliant Procedures. As you set up (or revamp) your business, focus on creating DCAA-compliant procedures when it comes to your timekeeping and payroll practices. You will also need to establish a system for performing indirect rate calculations.
- Training Your Staff. First, train your staff and frequently check that they’re performing their work duties properly. They should understand your timekeeping procedures, understand why these procedures are important, and work hard to keep your business DCAA compliant.
- Tracking Your Time and Expenses. Be extremely thorough when tracking your time, expenses, and any other essential project information. Remember that it’s always better to be too detailed than to accidentally leave something out.
- Organizing Your Documents. Audits require a lot of paperwork, so it’s essential that you organize the necessary documents properly, preparing them for review. This will speed up the process and lower your risk of non-compliance.
- Use the Right Accounting System. Your accounting system should be up-to-date, easy to use, and designed for DCAA audits. An intuitive and well-structured accounting program will make it easy for you to remain DCAA compliant.
- Provide a Current Contract. Your contract documents should be up to date and include all recent modifications. If you cannot provide the newest iteration of the contract, you risk issues arising during the audit process.
Perform an internal audit.
Do a test run! By performing an internal audit, you can identify any current issues with your accounting processes, timekeeping, and more. While it can be disappointing to pinpoint problems, remember that if you find issues before the DCAA does, you can address them before the audit begins.
Team up with GovCon.
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.