All government contractors have Incurred Cost Proposals or ICP that is due to the government and such an account should be meticulously prepared. This is extremely necessary part of DCAA Accounting Services so that you are exempted from any penalties or legal hassles or even lose your opportunity to win more government contracts. It is stressful and a time consuming aspect which requires a lot of expertise and experience, proper calculation and meticulous presentation. The government contractors need to consider a lot of contributing factors while preparing the ICP for the financial year. If you are wondering how to maintain ICP adequacy without much time spent, stress and error then here are some easy to follow and simple tips that will benefit you in maintaining your accounts and bookkeeping.
Always Start Early And Stay Updated
The first and most significant way to reduce stress while preparing the ICP account and also to maintain DCAA compliance, is to start early with your work. You should not wait till the last week when your ICP is due. Instead you should begin your accounts preparation as and when such costs are incurred so that you have enough time before the deadline of June 30 to review your submission adequately and properly enough. This will also ensure that the multiple schedules are prepared immaculately and all these are free from any mistakes. Any such error will make the submissions inadequate and the auditor will consider that costs are misrepresented.
Understand The Requirement
You should also understand the requirement of such systems so that you pass the dcaa audit with ease. You must know the contracts that require an ICP submission which are exempt from it. In most of the cases, those contracts that actually have Cost Reimbursable features which is cost plus time and materials will require an adequate ICP. However, it is all determined by the FAR clause as to which contract will require such a submission and which will be exempted. According to FAR 52.216-7 clause the Allowable Cost and Payment Clause mentions which are the contracts that needs to submit an Incurred Cost Proposal.