DCAA ACCOUNTING

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

The accounting department works very closely with all departments of the Government contractor including the pricing department, Government contract management, project/program management, and executive management. Without the necessary DCAA accounting professionals, these departments would not have reliable information to make decisions upon. Since McNew & Associates has the accounting, pricing, and contracts management departments all in house, the communication between them is seamless.
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.