Understanding What It Means To Comply With The DCAA

Posted by dcaasoft on January 11th, 2021

Being successful in the industry of government contracting in the USA depends profoundly on meeting the conformance regulations. Those who wish to be a successful contractor must ensure that every business process they incorporate adheres to the compliance requirements of the Defense Contract Audit Agency. Of course, you’ll need more than just an appropriate DCAA Accounting System, but it will prove immensely helpful in your venture. If you manage to complete an audit successfully, you not only ensure the legality of your work but also bolster your position and declare yourself eligible to handle more contracts. Now, if you’re wondering what it means to comply with the DCAA, this topic can help you understand.

Conforming to the DCAA

In short, complying with the DCAA means incorporating systems and procedures acknowledge by the DCAA. The officials of this organization will conduct audits to ensure the credibility of your systems. They won’t certify you as a government contractor or provide you any formal statement to announce that you’re obeying their norms. Instead, the audits will check whether your company sticks to specific government rules, such as Federal Acquisition Regulation, Cost Accounting Standards, etc. If you wish to pass these audits unscathed, you’ll need a DCAA Compliant Accounting Software solution. It will verify whether your financial behavior and management strategies are in tandem with the standards enforced by the DCAA or not. You must disclose how you’re utilizing the money you get and the results you achieved using the same.

Uncovering the truth

Accounting solutions can boast of features that make them appropriate for DCAA-related work, but you should know that there aren’t any commercially available solutions formally agreed upon by this government department. If you have a digital accounting program conforming to the DCAA, it simply means it has features meeting the specificities of different audits. It never accredits or approves of any system. That’s why you must keep your eyes open while seeking an accounting solution for your business. Several programs available these days are good enough for DCAA work, but there’s no system officially declared “perfect” by the DCAA. Any digital product manufacturing company claiming to have DCAA-approved accounting solutions is attempting to reel in novice government contractors with incorrect information.

To end

In reality, DCAA conformance depends strictly on a combo of accounting practices and software programs. Regardless of what you and your team use, you must implement procedures and policies that allow you to keep a note of your financed proficiently. Understandably, a solution that lets you do your job while staying in line with the DCAA can be a significantly valuable asset.