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DCAA Accounting System Requirement

DCAA auditors are not just looking to see if a contractor’s accounting system meets a checklist. It is crucial that a contractor have full control to direct charging of all indirect expenses and vice versa. It is very helpful if the contractor can show, via flowchart or other diagram, how the expense flows from the order to the actual purchase requisition. Contractors are required by DCAA auditors to post costs at least on a monthly basis. This includes all costs including direct and indirect.

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DCAA Accounting System Requirement

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  1. DCAA CONSULTING LLC Email: dcaaconsulting@gmail.com Phone: 336-880-9040 The Cost of Losing DCAA Compliance In addition to the obvious loss of potential business, losing DCAA compliance can have severe consequences. Unfortunately, for many contractors the rules of being a DCAA compliance consulting expert have changed immensely in the last decade. This has made it harder to keep DCAA compliant status. Under the new rules, the DCAA has changed the grading system to a pass/fail system. Contractors can no longer have degrees of non-compliance and still be DCAA-approved. This underscores the need for companies to be using best practices when it comes to time tracking, especially since time tracking makes up nearly 75 percent of what’s involved in DCAA compliance.

  2. DCAA CONSULTING LLC Email: dcaaconsulting@gmail.com Phone: 336-880-9040 How To Manage Indirect Costs From monthly DCAA compliant accounting services, to contract management & administration, and financial services & planning for contractors and grantees, our goal is to guarantee the success of our clients, and all small business government contractors. We like to evaluate actual DCAA indirect costs each month and compare them to the provisional rates. We also like to calculate what we call intermediate billing rates so that we can see what pools of indirect costs are causing problems. By knowing this, it becomes easier to manage the rates to confirm we come close to the provisional rate by the end of the year.

  3. DCAA CONSULTING LLC Email: dcaaconsulting@gmail.com Phone: 336-880-9040 DCAA Accounting System Requirement DCAA auditors are not just looking to see if a contractor’s accounting system meets a checklist. It is crucial that a contractor have full control to direct charging of all indirect expenses and vice versa. It is very helpful if the contractor can show, via flowchart or other diagram, how the expense flows from the order to the actual purchase requisition. Contractors are required by DCAA auditors to post costs at least on a monthly basis. This includes all costs including direct and indirect. The auditor will then determine whether the proposed DCAA accounting system requirement is acceptable and may recommend that a follow-up DCAA accounting audit be performed.

  4. DCAA CONSULTING LLC Email: dcaaconsulting@gmail.com Phone: 336-880-9040 What Is DCAA Audit And How It Can Be Performed? When you win a government contract, the DCAA’s time tracking rules apply to everyone in your company. When you win a government contract, the DCAA’s time tracking rules apply to everyone in your company. No matter what size your company is, this can be a big ask—with lots of training implications. So DCAA Audit pays to make time tracking as simple as possible and to do your research. If you get audited by the DCAA, your labor costs will be based on the total number of hours your employees work, not the number of hours they actually get paid for. This is particularly relevant when you have salaried employees because the two numbers won’t always be the same.

  5. DCAA CONSULTING LLC Email: dcaaconsulting@gmail.com Phone: 336-880-9040 ADDRESSEdward D. Moore, CPA dcaaConsulting LLC Email: dcaaconsulting@gmail.com Alternate Email: emoore@dcaaconsulting.com Phone: 336-880-9040Website: http://www.dcaaconsulting.com

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