If you have ever worked with the United States Federal Government as a contractor or subcontractor, you’ve likely heard of the Defense Contract Audit Agency (DCAA). Implemented to regulate and nurture financial fidelity, the DCAA imposes practices to authenticate and validate financial claims from contractors in a governmental arena. A mechanism this agency utilizes to…
DCAA compliance, also known as adherence to the Defense Contract Audit Agency’s stipulations, is not only a mandate for large corporations but also small-to-medium-sized businesses (SMBs) involved in government contracting. These guidelines serve as the cornerstone of ethical contract deliberations and sound financial practices, pivotal in streamlining contractor activities. But what does DCAA compliance mean…
For government contractors, all roads converge to stringent compliance with regulations, which include the mandates set forth by the Defense Contract Audit Agency (DCAA). Well-structured, accurate accounting practices play a pivotal role in maintaining this compliance. A frequently asked question by businesses in the process of embarking on government contracts is, “Does DCAA require total…
In the world of government contracting, achieving and maintaining all Department of Defense (DoD) standards is not simply beneficial, it’s essential. Given this, understanding DCAA (Defense Contract Audit Agency) compliance and its implications is a fundamental economic imperative for businesses navigating the complex terrain of contracts with the U.S. Government. From ensuring accuracy in financial…
If you are a business owner with employees, you may be wondering, “What is DCAA compliance time tracking?” In businesses engaged in government contracting, maintaining DCAA compliance is a critical factor, especially when it comes to time tracking. The Defense Contract Audit Agency (DCAA), as described on its website, is an agency under the Department…
What is a Wrap Rate? A wrap rate, in simple terms, is a multiplier used to estimate the indirect costs related to a project or contract. It allows businesses to calculate the total cost, both direct and indirect, that they’ll incur when executing a specific project. In the government contracting industry, wrap rates hold significant…
Understanding the concept of incurred costs is vital for every business in the GovCon industry. Not only does it help in tracking your company’s expenses, but it also plays a significant role in maintaining compliance with the Defense Contract Audit Agency (DCAA) requirements. What Are Incurred Costs? Incurred costs are the expenses that a company…
Do you know what to expect from a DCAA auditor? Do you know why you are audited? Do you know when you can expect an audit as a government contractor? Let’s discuss! The Role of a DCAA Auditor A DCAA auditor’s primary role is to ensure that government contractors are maintaining compliance with the Federal…
Wondering when it’s the right moment to upgrade your timekeeping software tool? If any of the following four points resonate with you, then this article is a must-read! Planning Your Transition Before you start looking at new software, identify your specific needs. What features are essential for your operations? What issues have you encountered with…
Our clients frequently request our assistance in developing a DCAA Compliant Timekeeping policy to include in their official handbook. Below is a sample policy that addresses all the necessary elements outlined on the DCAA website. DCAA Compliant Timekeeping Policy This document outlines our company’s timekeeping policy to ensure we meet the Defense Contract Audit Agency’s…
