Federal Government Contractor Accounting

The U.S. government is the largest company in the world with 11 million federal contracts signed per year. 95% of those federal contracts are awarded to small and medium sized business vendors and approximately $1 billion in new opportunities in the services sector of government contracting is available to bid on every day.

There are four contract types: cost plus, time and materials, indefinite quantity/indefinite delivery, and fixed price.

Part of the US government is the DCCA, or Defense Contract Audit Agency. The DCAA is the largest audit agency within the government and they are tasked with auditing federal contracts. It is an agency of the Department of Defense under the direction of the Under Secretary of Defense (Comptroller). The DCAA reviews the accounting practices and accounting of government contractors, including prime contractors and subcontractors. It is a global organization with offices throughout the US, Asia, Pacific, and Europe. It began to provide audit and financial advisory services to Government contracting officials in July 1, 1965.

The most common DCAA audits are: accounting system reviews, cost proposals, incurred costs, and labor floor checks. The top 7 elements required in an accounting system are: identify and accumulate direct costs by contract; allocate indirect costs to intermediate and final cost objectives; accumulate costs under general ledger control; an integrated time-card collection system; exclude unallowable costs from contracts; identify costs by contract line item; and a proper segregation of direct and indirect costs.

Popular accounting software includes: Deltek, Jamis, QuickBooks, Procas, Microsoft Dynamics, Unanat, and more.

Related Post -   Will Modi Have to Bear His Teeth to Congress?

For more information, visit KDuncan & Company kduncan.com, a licensed and certified Public Accounting and Financial Services firm that provides support to agencies of the federal government and government contractors. KDuncan is headquartered in Silver Spring, MD but provides support nationwide and is a member of the Association of Government Accountants.

Federal Government Contractor Accounting
Federal Government Contractor Accounting

Recommended Post

The Journey of Demonetization At the stroke of midnight hour, when the world sleeps, India will awake to life and freedom. We all remember this historic quote from the “Tryst with...
Presidential Lawyers Did you know that many of our former Presidents and current President Barrack Obama were lawyers?  In fact over 59 percent of our past (and current) P...
Loksabha Elections Crime Report In a recently published report, National Election Watch and Association for Democratic Reforms have assessed the affidavits of 541 winners (of the tot...
2016 – An Election of Surprises This infographic highlights the 2016 political election surprises in America. The infographic also takes us through a bunch of historical surprises...
Will Modi Have to Bear His Teeth to Congress? myinfoline.com Indira Gandhi’s 98th birth anniversary, over thirty years after her assassination, was marked not by her legacy as a prime minister...
PM Narendra Modi’s Assets How did PM Narendra's Modi's assets change from May 2014 to March 2015? The figures in the infographic are based on the property returns available ...
How India Forms A Government? A Beautiful infographic presented by Aljazeera.com describing in detail the levels of ministry in Indian Government. Aljazeera.com has launch this ...