The Importance Of DCAA Compliance For Successful DoD Contracting Deals

1. The Importance Of DCAA Compliance For Successful DoD Contracting Deals There is a complicated process of DCAA compliance for any company looking to be a part of the Defense contract deals. For most part there is not much difficulty if you can understand the complicated and the long list of rules and regulations set forth by the federal authorities. Tenets Of DCAA Compliance Every company that is looking forward to be a part of the million-dollar defense contract deals need to be DCAA compliant. The DCAA stands for Defense Contract Audit Agency and is the authority directly responsible for supervision of DCAA accounting system of the contractor companies and advising the federal authority accordingly. There are several regulations a contractor company must follow as part of accounting guidelines during the contract period. Maintenance of job costing records Separation of accounts for direct and indirect costs incurred Unallowable costs Maintenance of labor payment records

2. Maintenance of timekeeping records of employees These are only some of the guidelines and regulations among many others that need to be followed. The Unallowable Costs Among many guidelines that have been set for the contractor companies to follow, there is the Unallowable Cost Accounting. This is a list of costs incurred by the contractor company that will not be reimbursed by the DoD. It is clearly specified and falls completely on the contractor company if they still go ahead and incur the same costs. During final audits these will be left out of accountable costs for payments. Professional Audit Companies There are several professional audit and accounting services companies available for DCAA Accounting and compliance. As a company new to the sphere of defense contract deals you may not be aware of the intricate details of guidelines and regulations. This is where the assistance of a professional company can be of genuine importance; they can not only guide you through the maze of federal regulations but also form the work structure according to requirements to enable progress with the deals.

3. At the start of acquiring a defense contract you need to ensure that your company’s accounting system is compliant with DCAA. Having a professional company to assist in this can be an advantage. Hiring professional companies to fulfil auditory requirements will only make the task of maintaining accounts and audit reports easier and more compliant.