Offering fully outsourced accounting services and support to assure DCAA compliance.
Small and mid-sized government contractors often find they need help with their accounting to ensure costs are properly charged to contracts. Frequently, CPAs and internal bookkeepers and accountants have limited experience handling government contracts, which places organizations at risk for improper accounting, and penalties under audit.
For some clients, this is all that is needed. Others choose to outsource management of the accounting function, or their entire contract accounting function to CPA firms like ours to make sure their compliance with DCAA and DMCA requirements remains in place throughout the term of the contract.
Complete Outsourced Accounting Services
Outsource your accounting function to us completely and minimize internal staffing. We’ll handle everything from start to finish while keeping you informed of important changes or issues that arise, as they happen. Full, weekly and monthly reports are generated for your management and accounting staff, and all required reports and submissions to your contracting agency are included in this complete, all-in-one servicing arrangement.
Outsourced Accounting Department Management or Controller Service
If your internal staff is handling the day to day processing of your transactions, but need oversight and guidance, we can help manage the monthly reconciliation and closing process, as well as provide direction and management to your team.
Month-end and Year-end Closings
If your team is struggling to close your accounting records and prepare financial statements in a timely fashion each month and at year-end, we can help. We’ll guide your staff through the process and put systems in place to produce financial reports monthly, and to prepare for your audit, review, or compilation at year-end.
Accounting Guidance & Support
If your internal staff is handling the accounting for your contract, but your executive team and staff need occasional guidance and help, we can give suggestions and advice as needed. This support service has great appeal to many of our clients who just want to be sure they are doing everything right whether their questions are related to their accounting software, indirect rate management, incurred cost proposals, or other DCAA requirement.
Incurred Cost Submission Preparation and Review
Many government contracts require that you submit an Incurred Cost Proposal (ICP), within six months of the close of each fiscal year. This allows the contracting agency to adjust funds paid by using your actual costs instead of using previously provided Proposed Billing Rates. The format provided by the DCAA, known as the “ICE,” is actually quite complex, with a series of complex, interlocked spreadsheets. As experts in various GovCon areas, we can complete your ICE correctly or review your internally produced ICE for accuracy. We can also help you determine what costs are allowable and make sure your submission is correct – reducing the risk of an ICE audit. However, should you be selected for an audit, we can support you throughout the process.
Government contracts should be closed out properly, and all billings and payments reconciled, or else the contractor is subject to future repercussions and even loss of final payments. We are experts on this process and finding the issues that have resulted in “open items” that need to be cleaned up before final payments can be received. We can also determine if and how you might receive payments faster using “quick closeouts,” if agreeable to the contracting officer, which uses current billing rates rather than waiting for final actual cost figures.
Accounting System Selection and Implementation
Government contractors that need to install a DCAA compliant accounting software program for the first time will find a dizzying array of choices on the market. While some accounting firms specialize in only one or two different programs for their clients, we are fluent in a large number of them – so our advice is particularly helpful to new contractors or those looking to upgrade their accounting capabilities or efficiency. Here are just some of the programs for which we are qualified to advise you: QuickBooks | Deltek | Jamis | Procas | Unanet | Xero | Sage | Microsoft Dynamics | Microsoft Nav
Nothing makes government contractors more nervous than being selected for a DCAA or DCMA audit. We can reduce the anxiety you’ll feel should this happen to you. We have experience helping dozens of different government contractors through complex and contentious audits, so we can help you, too. Please call on us to review your systems and procedures before you receive notice of an audit, or to represent you once you receive notice of an upcoming audit.
Indirect Rate Management and Reporting
Understanding your indirect rates, and how they are impacted by increases and decreases in staffing, unproductive bench time, and business decisions, is critical as you manage your business and prepare proposals for new business. If rates are misunderstood, billings to the government will be incorrect. Overbilling the government will require repayment once costs and billings are reconciled through preparation and submission of the incurred cost proposal. Under billing on government, contracts may result in uncollectible reimbursements, which negatively impact your profits and cash flow. Monitoring and managing these rates is critically important to managing your overall profitability.
We offer staff augmentation services to supplement your current accounting team year-round or during peak periods. This service augments your internal staff with our professionals on an as-needed basis, preventing the need to search for and hire full-time staff accountants – for either short-term or long-term duty, caused by contract or seasonal work demands. Our experts can be embedded at your site and take constant direction from your management, allowing you to use their time most efficiently throughout their tenure.
Outsourced Controller or CFO
For many clients, we supply them with part-time Controller and/or CFO staffing – to satisfy the requirements of contracts and to give them peace of mind during periods of a vacancy in these critical positions. With outside support at this level, we will oversee all the key decisions and processes required to keep your back office and accounting support running smoothly and efficiently. If you have a temporary (or permanent) need for a Controller or CFO, please call us for a free consultation on how we might help.