When reviewing a DCAA proposal, auditors are to look for 11 deficiencies as outlined in The Defense Contract Audit Manual. To help you understand why a DCAA proposal might be denied, we have listed the 11 deficiencies here and described their meaning: 1. Unsupported Costs: This means that your DCAA proposal did not contain enough documentation to determine whether that cost is allowable or not. For cost estimates, this can become a problem because the estimate hasn’t occurred yet. Many auditors will keep the standard […]
Category Archives: DCAA FAQ
What to Look for in DCAA Software
There are many different types of DCAA software out there covering many different aspects of the audit, including timekeeping and accounting. Even though you may detest DCAA as a contractor, you should not forget why it exists. The DCAA is necessary to ensure that the government is not spending taxpayers’ money on frivolous expenses or unnecessary costs. The reason that DCAA software is so important in the audit process is because it shows DCAA that your company is professional and organized. It would be embarrassing […]
Contract Disputes Can be Avoided: It’s All About Communication
Contract disputes are a part of the contract process – it just seems to happen and be a part of the process. The parties involved shake their heads in wonderment while questioning how the dispute began in the first place.  Before you know it people are assigning blame, lots of fingers are being pointed, voices are rising, and tempers are flaring and fear is growing that the contract will be lost for not meeting the contracts agreed terms.  This type of stress can quickly hamper […]
BOE and DCAA Compliant Software Use
Now that you have decided to become a government contractor and have purchased your DCAA compliant software you’re not done preparing for proposal review. When dealing with the government and pricing you must be able to verify your pricing; hopefully you have selected DCAA compliant software that helps you with basis of estimate (BOE). So what is BOE? BOE is a cost structuring/explanation method. The goal and value of BOE is that it provides solid numbers when determining if you can perform a project at […]
Top 5 Tips to Selecting DCAA Compliant Software
As you know, before you can become a contractor you must first be audited by the Defense Contracting Auditing Agency (DCAA) for contract approval. This audit will include just about everything you can imagine – especially, every aspect of your accounting software. To be successful when desiring to become a government contractor, you must be able to comply with the DCAA regulations. However, there are still a few companies that use the old school paper and pencil method most use DCAA compliant software. What becomes […]
DCAA Compliant Software is Not Adequate Enough – Gotta Have the Whole Package
If you are dealing with government contracts or hope to become a government contractor, you know that your accounting system must be DCAA compliant. Selecting such software is difficult enough without having to worry about all the other aspects DCAA will be considering when reviewing your accounting system. Yet, you must! There a quite a few “systems†the DCAA will be reviewing for compliance and you need to be ready. To understand how in-depth the DCAA can get, you must first understand that the objective […]
Deciding to Hire a DCAA Consultant
You have come to the point that you believe your company can take on a government contract. You know that you can produce a product or service at a better price and more efficiently than any of your competitors. In addition, you have a great staff that is not only knowledgeable in many areas, but they are ready and willing to make the journey into government contracting with you. The stars seemed aligned in your favor, but there is one little problem – you are […]
Tips for keeping timesheets
Keeping timesheets is imperative for successfully dealing with the Defense Contract Auditing Agency (DCAA) and fulfill your contract in a proper manner. Meeting the requirements and demands of the DCAA can be time consuming and tedious; follow these five tips to ease the pain: ¬   Use DCAA compliant software. These software packages will keep everything at hand and make sure that all needed reports are developed. ¬   Hire a consultant to guide you through the DCAA Accounting System Review. This will prove beneficial from day […]
DCAA Reporting – What the Government Requires
The Defense Contract Auditing Agency (DCAA) requires a lot of reporting! For example, DCAA reporting requires that employee work hours be segregated from other areas of the business. If there are any changes to timesheets reports must show proper authorization and that the payroll department or personal cannot change or control employee hours. The DCAA also wants procedures and processes that can be checked and verified to ensure there have not been any violations to the timesheets or fraud and waste. Additionally, reports on timekeeping […]
What is a DCAA Contract?
If you are wondering what a Defense Contract Auditing Agency (DCAA) contract is you are not the only one. There is often confusion about what the DCAA does. The DCAA does not create contracts; the DCAA Audits government contracts to ensure that contractors are able to meet the government accounting requirements. The DCAA ensures that the contractor’s accounting system is able to separate accounting functions like timekeeping, accounts payable, payroll and others. They also ensure that policies and procedures concerning separate accounting functions are in […]