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Liquidity Ratios: Current vs. Quick Ratios
Current Ratio vs. Quick Ratio Liquidity ratios are an important tool used to measure how efficiently a company can pay off its debt. The most common liquidity ratios used are the current and the quick ratio. These ratios help investors and creditors assess the...
Indirect Costs and Billing Rates
Indirect Costs and Billing Rates For government contractors there is a considerable amount of emphasis on indirect costs. The Federal Acquisition Regulations (FAR) provides the parameters for grouping these costs. Per FAR 31.203(c), “logical cost groupings” are for...
FAR Compliance in QB
How to Maintain FAR Compliance in QB One of the areas of concern to government contractors is meeting the requirements for bookkeeping under Federal Acquisition Regulations (FAR). While the Defense Contract Audit Agency (DCAA) does NOT approve or recommend any...
Tax Changes in 2018 That Will Impact You
Tax Changes in 2018 That Will Impact You There have been a lot of rumors and speculations in the past year regarding potential tax changes. At the close of the tax year, it is hard to know what is fact and what is fiction. Here is a recap of selected changes affecting...
S Corp Shareholders: Section 199A Qualified Business Income
What does Section 199A Qualified Business Income mean for S Corp Shareholders? There have been a lot of changes and uncertainties with the 2018 corporate tax changes. Since an S Corporation (S Corp) is a pass through entity, the corporation does not pay taxes in most...
FAR: Government Contracting Mystery
Government Contracting Mystery The world of government contracting is often a mystery for those looking in from the civilian world. Many wonder what DCAA and FAR are. To clear up some of the mystery, here are answers to some common questions. What Is DCAA and FAR? A...
More Unallowable Costs
More Unallowable Costs Government contractors must adhere to the Federal Acquisition Regulation (FAR), which provides businesses the guidelines on contract procurement. Under FAR, there are costs that are not billable to the government, such as, organizational costs,...
Allowable or Unallowable?
Allowable or Unallowable? Most business owners try to avoid nondeductible expenses for tax purposes per the Internal Revenue Service (IRS) rules. Government contractors take this a step further by avoiding unallowable costs as per Federal Acquisition Regulations...
How Can the HUBZone Help?
How Can the HUBZone Help? The world of government contracting can be a difficult world to establish a new business, especially a small business. This has been addressed through the ‘Small Business Reauthorization Act of 1997’. As a result, the Small Business...