Working with GSA’s bookkeeping services
has allowed us to closely monitor the financial health of our company without hiring a full time resource. GSA took the time to learn our business processes and how we manage our projects. I would highly recommend them!
The Handy Mensch
Accounting for Government Contractors
A government contract can be a welcome source of income for your company, but it also comes with a few stringent regulations and auditing requirements that need to be adhered to. The biggest of these is DCAA Compliance–and you may need the assistance of a reputable accounting company for this. Being able to successfully complete a DCAA audit helps to ensure not only the legality of your business but also that you get additional government contracts in the future.
Three things every government contractor needs to know about DCAA compliance
1. The whole company needs to follow the same standards whether they are working on a government contract or not.
This compliance pertains to every single employee and includes daily time entries, accurate project-level time allocations and a clear record of both unpaid and paid time.
2. Accurate time and labour tracking are key.
Software tools that can record and classify information precisely can help in this regard. Nearly 75% of DCAA compliance requirements are related to time tracking.
3. In the past, DCAA compliance was graded, and government contractors could fall short in a few areas but still be deemed compliant as long as they addressed the issues where they fell short
These days, however, it’s either a PASS or a FAIL. You will not be given time to address any issues and you simply won’t make the cut if your systems are not up to scratch.
Government contracting is a world of changing regulations and stringent budgetary practices. Major changes in audit practices and compliance practices also underscore the need for experienced accounting professionals to provide support for contractors.
In addition to traditional tax and financials services, Georgen Scarborough adds value for those who work with the public sector by offering the following services:
—Maintain compliance with the United States Small Business
—Administration and the Defense Contract Audit Agency
—Generate government invoices
—Manage contract funding and program budget variances
—Prepare incurred cost submissions
—Develop and evaluate internal controls
—Provide indirect rate structure development, analysis, monitoring and audits
—Produce year-end financial documents
The decision to work as a contractor for the Federal government can be both exciting and worrying. While working as a contractor for the government may give you access to large, ongoing projects that you wouldn’t necessarily have been able to land in the private sector, it can also send even well-established accounting departments into a tailspin.
At Georgen Scarborough Associates, PC, we work with government contractors of all sizes. Whether you have a large business with years of experience with DDCA accounting or you are a small start-up that wants to ensure your accounting is perfect for government work, we can help you.
Using the latest in technology for financial and accounting services
The professionals at Georgen Scarborough Associates, PC keep up-to-date on income tax guidelines and financial practices. We also utilize the latest in technology for financial and accounting services, including NetClient CS. This secure online software package puts write-up, trial balance, tax, and accounting software on a single platform, creating powerful password-protected connections with our clients. It’s a tested, proven approach that combines powerful functionality and unprecedented collaboration capabilities into an unparalleled package.