Government Contractor Accounting Software

Posted by Sdlconsulting on April 20th, 2019

The Defense Contract Audit Agency or the DCAA is a monitoring body that performs a strict audit before awarding contracts to any civil body. They do not conduct the audits by themselves but are asked to do so, on behalf of different military and even some civil wings. The strict audit is done to ensure that the taxpayer's money is well spent. Thus, there are several clauses and sub-clauses to abide by to pass the audit and secure the government contract. For this, you have to prepare an account that is DCAA compliant.

DCCA may be asked to assist in reviewing bid proposals, to audit indirect cost proposals, help with auditing the contract costs incurred; accounting system compliance reviews; audit of change contract modification costs; and more. There is an instruction manual for auditors who work on behalf of the government, and it's called DCAA Contract Audit Manual. This manual contains information on standards for auditing, how to plan for an audit, cost accounting standards, auditing for estimates and proposals, and more. DCAA Guidelines

If a business is involved in government contracts and sub-contracts, there are high chances that one needs to deal with DCAA at some time. The businesses that are managed under a contract with government agencies, especially DoD, have to annually pass a Cost-Incurred proposal. This proposal has to strictly meet the requirements of DCAA. Dealing with the government and its agencies mean one needs to be well aware about the complex rules and regulations, and comply with them which can be quite overwhelming for the new or inexperience contractors. There are consultants and attorneys who can help these contractors comply with all the requirements without any hiccups. Some of the consultants offering their expertise have been part of DCAA before starting their own service, and they have a thorough and complete understanding about everything related to government contracts. The help of experience can only make things easier for the business.

Enterprise Resource Planning As DCAA Compliant Accounting Software

One of the main aspects that the DCAA wants to see is a traceability of documentation. DCAA compliant account software needs to move beyond normal accounting functions, such as the standard QuickBooks functions, and really integrate an ERP (enterprise resource planning) system. Enterprise resource planning is a fully integrated computer software system used to pull together, manage, and coordinate all the resources, information, and functions of a business. DCAA Timekeeping Policy

Ultimately, ERP provides the traceability of documentation by using shared resources from an entire company to make all of the direct and indirect costs associated with a proposal to be transparent. This is a major stepping stone for DCAA compliant accounting software. The advantage over the typical accounting software suite is apparent when considering that proposals will now better aggregate all aspects of a proposal, and not just what the accountants are seeing. For example, Microsoft Dynamics systems are a total integration software package that makes for great accounting software for government contractors in addition to enterprise resource planning.

ERP System Benefits

The benefits of integrating enterprise resource planning software into account practices even go beyond mere compliance. Generating the information that the Defense Contract Audit Agency is looking for is also an excellent way to better understand your own company's situation. Interconnecting the front-end of a business with the finished deliverable is a boon by itself. Allowing communication between technologies, people, and departments greatly enhances productivity, reduces waste, and eliminates mistakes due to miscommunications.

ERP systems are about centralization of resources and companywide accessibility. Technology can create a bridge between design, manufacturing, and accounting. The entire revenue cycle can be laid out from invoicing all the way to cash receipts. The increased transparency that the DCAA is using as a criterion for bid selection will also make a company run more efficiently and generate better profits through cost reduction.

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Also See: Resource Planning, Enterprise Resource, Accounting Software, Dcaa Compliant, Software, Government, Dcaa
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