Government Cost Accounting & Bookkeeping Services

Accounting & Bookkeeping

"Professional Government and Commercial Accounting Services Tailored To Your Company's Needs"

DCAA Accounting & Bookkeeping (Government Cost Accounting)

On the one hand, there is typical commercial accounting. Then there is this monster called Government Cost Accounting requiring much more sophisticated reporting tools, internal controls, and accounting processes. Worse yet, as a contractor builds its contract base, certain thresholds are exceeded requiring an expanded level of detail and sophistication. Because Government cost accounting rules are audited by the DCAA, many call it DCAA accounting. Due to the complexity of the contracts issued by the Government, Government contractors are subject to many unique accounting rules and regulations which require an accounting system that monitors contract costs and indirect costs to a very detailed level. DCAA accounting is more than your typical job costing...it is what we at McNew & Associates like to call job costing on steroids.

Government contractors are then, by default, required to have an accounting system as complex as the contracts they win. DCAA accounting requires more than your typical accounting professionals. You need Government Cost Accountants who have worked for DCAA, and have dealt with DCAA accounting rules and principles. McNew & Associates Government cost accountants have specialized training, practical knowledge, and experience in dealing with such detailed Government cost accounting systems. McNew & Associates has the accounting professionals you need to guarantee compliance and proper cost management. We understand the Government Cost Accounting Standards, FAR regulations, and DCAA accounting and audit objectives governing these Government cost accounting systems.

Government contractors must understand the following DCAA accounting basics:

• Direct Cost vs. Indirect Cost 
• Incurred Cost Submissions (Direct & Indirect Costs)
• FAR & CAS cost principles regarding cost allowability, allocability, and reasonableness of cost
• Accounting System Design and Implementation 
• Government Billings/Invoicing 
• Contract types and how each are monitored and accounted for within the accounting system

McNew & Associates provides financial reporting, accounts receivable and payable, budget development and analysis, regularly scheduled accounting (DCAA accounting focus), payroll processing, and invoicing functions. We perform routine monitoring of indirect rates, contract costs, and budgets. We also implement and maintain DCAA accounting system components required by the CAS and FAR to include timekeeping management, distribution of labor dollars to contracts and indirect cost pools, job cost subsidiary ledgers (Job Cost Summary), and indirect rates monitoring.

DCAA COMPLIANT QUICKBOOKS

Is your company struggling to create or maintain a DCAA compliant QuickBooks accounting system that properly aligns and tracks costs? QuickBooks is an incredible tool but is not always utilized to its fullest capabilities within DCAA Accounting. Despite the myth, there is such a thing as a DCAA compliant QuickBooks. Allow McNew & Associates, Inc. (MAI) to expand your system’s capabilities to become a fully DCAA compliant QuickBooks system. We will set your company on the path to success by aligning company costs into a specialized, fully compliant system from the start.

The key to any accounting system is its underlying policies and procedures. These policies and procedures are of utmost importance to a DCAA Compliant QuickBooks system. When DCAA arrives for your accounting system audit, they will ask for your accounting policies and procedures and will want to do audit testing to ensure contractor employees are following these procedures. They can also ask for any accounting system information, including the policies and procedures, at any time throughout the year. And if you haven’t yet heard, DCAA has taken on the Pass/Fail rating system for accounting systems, so it must be right the first time.

You know your business and where you want to take it. MAI will provide you with the tools needed in which to get there. While others struggle to align things into total compliance, you will know that you are right where you need to be.

If you are using another accounting system such as Deltek GCS, or plan to go to another system, we can help you establish and maintain compliance. If you are using QuickBooks we will configure and add to QuickBooks exactly what you'll need to be DCAA, FAR, and CAS compliant, for a price you can afford.

Our DCAA Compliant QuickBooks conversion comes with:

• System Conversion 
• Remodeled Chart of Accounts
• Activation of Critical QuickBooks Modules and Items
• Indirect Rate Development and Monitoring Capability
• Job Cost Summary Reporting 
• Segregation of Direct Costs from Indirect Costs. 
• Identification of Unallowable Costs
• DCAA Compliant Standardized Policies and Procedures