According to Federal Acquisition Regulation or FAR, it is mandatory for an accounting system to be DCAA compliant. This is required for any government contractors or businesses that have cooperative agreements with the government projects and grants. To make sure that you follow all the rules and fulfill all necessary requirements of the government you should hire a DCAA accounting expert. The expert will make sure that you and your accounting systems is safe from any penalties and pecuniary measures and continue to win government tenders and grants. As most people are unaware of the existing as well as the constantly changing DCAA compliance rules, hiring such an expert that has wide and extensive knowledge about DCAA compliance seems to be a feasible and prudent decision.
Pass The Audit
Your ulterior motive should be passing the DCAA audit that happens to be the most stringent. If you are unaware of DCAA compliance then there are bound to be flaws and errors in your accounting system. There are lots of formalities and rules to follow and missing out on anyone may be termed as deliberate act with intent of misappropriating government funds. Your payment may be suspended and you will lose future projects and grants. Therefore, it is important that your account and bookkeeping is in accordance to the rule and contains all the necessary inclusions such as Indirect Cost Submissions or ICS, times and materials management, contract costs and much more.
Support In Upgrading
The expert having extensive knowledge about DCAA accounting compliance will provide you with valuable insights that will help you to upgrade your existing accounting system to make it DCAA complaint. You will have a clear concept about what to include and what to exclude and how to go about it. You will also be updated about the recent developments in the set standards and requirements by the government. You will be able to show through your accounts that you have the financial strength and capacity to take up and work on any government project entrusted on you. Therefore, hire an expert if you nit have to know about DCAA compliance and follow it.