Government contractors span a huge variety of different business models. One thing that all government contractors have in common though is a high level of oversight. With the increased importance of financial transparency there is a particular need for strong accounting controls. The right accounting software can help your government contracting company ensure financial visibility for the different monitoring organizations and compliance with relevant regulations. Discover more about the variety of government contractor accounting software solutions on the market and the capabilities of these systems in this article.
DCAA Compliant Accounting software is any financial solution compliant with the Defense Contract Audit Agency (DCAA) requirements. The DCAA is responsible for auditing government contracts. If a software is DCAA compliant, it simply means it follows the DCAA’s recommendations to stay compliant.
Many government contractors looking to win bids and contracts for jobs will need an accounting system that can pass an audit from the DCAA and easily prove a contractor’s compliance with Federal Acquisition Regulation (FAR) regulations.
One thing to note is that there is no software that is officially “DCAA approved”. The term itself is an inaccurate designation. In reality, it’s your organization and procedures you follow that need to be managed better for compliance. Any accounting software that could pass the accounting system audit could be classified as DCAA compliant.
Accounting software designed for your government contracting business can help you account for costs, revenues, and profits, while providing the ability to view the information on a per project basis. With the right accounting tools you can establish easily auditable financial records. While writing custom software is always an option, it can be expensive and difficult to maintain a custom program. With the huge variety of options already on the market, there is likely a solution that will meet the needs of the way you do business without the hassle and expense of customization.
The scope of the different applications and modules available to government contractors is as varied as the types of businesses that perform government contract work.
Accounting software packages designed for government contractor companies offer a full range of financial management tools. Accounting features include the ability to print checks, pay bills, track expenses, manage payroll, create orders and invoices, manage receivables, establish budgets, perform bank reconciliations, and create top level financial reports.
Additionally, there is a huge variety of applications available to meet your specific operational needs. For example, manufacturers will find MRP, inventory control, and bill of materials modules, while food services firms can benefit from point of sale solutions. Other typical applications can include time and billing, job costing, CRM, e-Commerce, and work order management to name just a few.
One common need for government contractors is functionality to assist with bid and proposal processes. Applications are readily available that will help manage a portfolio of projects, while assisting in developing bids and managing on-going work for specific projects.
Government contractor organizations are among the most frequently audited businesses. Compliance with assorted regulations is part of doing business as a government contractor. Especially for smaller government contractors, there may be little expertise in dealing with audit agencies and the wide variety of different regulations. Software specifically designed to promote regulatory compliance can be of enormous assistance in helping your organization meet DCAA, DCMA, IG, and GAO standards.
The right accounting software should do more though than simply ensure regulations compliance. It should provide you with the tools you need to boost your the profitability of your business and lower your operational cost. By more effectively monitoring profitability you can better identify which projects are most financial beneficial to your business and gain insights into the departments, processes, and projects that you need to improve. Additionally, automating your processes can not only save you time, but help you avoid costly errors that arise frequently when data is not integrated or needs to be manually re-entered in multiple systems.