In order to be successful it is highly recommended, government contractors must work closely with their accounting firm in order to verify reports, procedures, policies, and timekeeping to make sure they are compliant with contract requirements. It is essential for your organization to locate an experienced government contract accounting firm, to keep contracts moving forward, without delay, and prepared for any possible audits.
The best partner will be a government contract accounting firm that won’t just be able to help you with your government, local and state taxes, but one who can also assist you with passing your pre-award survey. For defense contractors it is also important that they are able to help assist you with making the most out of the visit by your Defense Contract Audit Agency (DCAA) examiner.
Here are four things to look for in a Government Contract Accounting Firm before picking one to serve your organization:
A Firm that Understands Government Contracts
Your first concern should be to find a government contract accounting firm educated about Federal Acquisition Regulations (FAR) and is able to consolidate these regulations sufficiently. A firm that comprehends the government’s contracting prerequisites can make the process exponentially easier, saving you time and money.
There are numerous government contract accounting firms who primarily serve customers that focus on non-government buyers and commercial customers. Commercial customers conduct business operations differently, with less oversight, compared to government contractors’ customers. With a specific end goal to get incredible results, limit your quest for a government contract accounting firm to the individuals who practice (in whole, or in part) in government contracting.
A Firm that Understands the Value of Timekeeping
Tracking time is imperative for all professional service organizations, especially a government contractor. Government contract timesheets are vital for the organization, the contractual worker, and the representative. Timesheets are eventual legal files that must be completed precisely in order to maintain and to avoid government administrative infringement or criminal accusations. A government contract accounting firm that can assess whether you are maintaining proper timekeeping policies and procedures is absolutely essential, especially ones that have experience setting up policies and procedures for tracking time.
A Firm that Understands the Importance of Compliance
Being compliant is critical for government contractors. Strategic compliance includes the bookkeeping framework configuration, training and implementation FAR (Federal Acquisition Regulations) Part 31, and CAS (Cost Accounting Standards) compliance. A government contract accounting firm that is educated and understands the intricacies of compliance will provide an advantage to your business.
A Firm that Understands Incurred Cost and Price Proposals
Provisional Billing Rates or Forward Rate Proposals are those that address anticipated expenses to be incurred on government contracts should a contract be award or an option year be granted, that incorporates both direct and indirect expenses. The Incurred Cost Submission (ICS) documents actual expenses incurred by the contract and compares against contractually allowed billing to the government. This procedure can be tedious because the DCAA can ask for numerous year audits.
A government contract accounting firm that understands government contract accounting essentials, the value in time keeping, the importance of compliance, provisional billing rates, and incurred cost proposals can be most beneficial to your business. Government contract accounting can be very challenging but partnering with an expert will make the process much less stressful. Before making your choice, become familiar with the firm’s expertise and limitations, its services with your organization’s objectives. At Cheryl Jefferson & Associates, government contract accounting is something that we excel at, and a large part of our expertise lies in navigating the world of government contracting.