DCAA is the “Defense Contract Audit Agency” which works under the Department of Defense (DoD). DCAA helps enforce rules and guidelines for contractors and agencies created by the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS). The primary role of DCAA is to ensure tax dollars are being spent wisely by auditing and checking various contractors for compliance on these rules. Buying and selling of goods and services done by the federal government is regulated by FAR and CAS to fulfill this mission. While DCAA is housed under DoD, other federal entities can utilize its services to audit or check each and every contractor.
To better explain DCAA, we have created an overview that outlines everything about DCAA compliance:
DCCA requires that you follow specific accounting and bookkeeping techniques to ensure you are compliant, especially if audited. While DCAA provides various tools and checklists to help with this, the process can be complicated and confusing. Additionally, DCAA compliance is required by entities of all sizes whether you are a certified small business or a big system integrator. At 365BOOKSPRO we understand the standards and best practices and can help implement them in your business. Some of the ways we can help include:
- Providing adequate accounting and bookkeeping service to ensure that the company can
meet requirements of federal contracting rules
- Preparation of financial reports: balance sheet and profit and loss statement
- Overhead rate creation in accordance with DCAA standards to facilitate approval
- Quarterly incurred Cost Model
- Monthly project costing
- Segregation of unallowable cost in accordance with FAR
- Hourly rate buildup
- Continued accounting and accounting controls by preparing and recommending policies
Most Govcon Small Businesses are unfamiliar with this compliance, let alone following the proper guidelines. Get your bookkeeping and accounting squeaky clean today with our bookkeepers, accountant and CPA’s!