8.8
Editor’s Rating:
Best Overall
JAMIS Prime ERP: HR Dashboard
JAMIS Prime ERP
  • Easy to use with government contracts
  • Multiple payment methods
  • iOS and Android apps
8.7
Editor’s Rating:
Advanced Indirect Cost Management
Deltek Costpoint: Dashboards
Deltek Costpoint
  • Accurate and detailed timekeeping
  • Supports indirect cost rate management
  • Handles complex labor distribution
8.0
Editor’s Rating:
Most User-Friendly
WrkPlan: Contract Management
WrkPlan
  • Easy setup
  • Modern interface and highly responsive
  • Very user friendly

We’ve ranked the best DCAA-compliant accounting software based on ease of use, scalability, and key features like time-tracking and indirect cost management.

1 JAMIS Prime ERP - Best Overall

Why we chose it: JAMIS Prime ERP is our top overall pick because it’s an intuitive, easy-to-use ERP solution designed for government contractors in need of compliant accounting. This software brings all your data into one system for easy access and use. Both displays and reports can be customized.

Best Overall:
JAMIS Prime ERP

JAMIS Prime ERP: HR Dashboard
JAMIS Prime ERP: Executive Dashboard
JAMIS Prime ERP: Controller Dashboard
What We Like
Easy to use with government contracts
Multiple payment methods
iOS and Android apps
What We Don’t Like
Menu interface can be unintuitive
Limited multi-currency support
Limited inventory and HR modules
Overview
Price Range: $$$
Client OS: Web
Deployment: Cloud Hosted

2 Deltek Costpoint - Advanced Indirect Cost Management

Why we chose it: We went with Deltek Costpoint for its indirect cost management. The software enables users to accurately define and allocate indirect costs, such as overhead and general and administrative expenses. It also provides the flexibility to set up multiple indirect rate structures for various government contracts.

Deltek Costpoint also provides accurate and detailed timekeeping. The platform allows for precisely tracking employee hours against specific projects or tasks. Its ability to handle complex labor distribution and report these costs in detail is a significant advantage for maintaining DCAA compliance.

Advanced Indirect Cost Management:
Unanet ERP GovCon

Unanet ERP GovCon: Dashboard
Unanet ERP GovCon: People=Profile Settings
Unanet ERP GovCon: Expense Wizard
Unanet ERP GovCon: Customer Profile
Unanet ERP GovCon: People Periodic Headcount Chart
Unanet ERP GovCon: Project Summary
Unanet ERP GovCon: Timesheet
Unanet ERP GovCon: Labor Details
Unanet ERP GovCon: Expense Management
What We Like
Accurate and detailed timekeeping
Supports indirect cost rate management
Handles complex labor distribution
What We Don’t Like
Requires consult call for pricing
Complexity in defining roles and access management
Overview
Price Range: $$
Client OS: Web
Deployment: Cloud Hosted

3 Wrkplan - Most User-Friendly

Why we chose it: WrkPlan is a popular project accounting solution that is both DCAA-compliant and easy to use. This software is popular with small to mid-size Federal Government contractors looking to save time and automate accounting processes. The Government Format Automatic Invoice Generation feature covers Fixed Price, Time & Materials, Cost Plus Contracts, and Funding Status Tracking.

Most User-Friendly:
WrkPlan

WrkPlan: Contract Management
WrkPlan: Cost Accounting Timesheets
What We Like
Easy setup
Modern interface and highly responsive
Very user-friendly
What We Don’t Like
Payroll integration is absent
Some challenges with date controls in the system
Initial learning curve for non-accountants
Overview
Price Range: $$$
Starting Price: $450/month
Client OS: Web
Deployment: Cloud Hosted

4 Unanet ERP GovCon - Flexible Deployment Options

Why we chose it: Unanet ERP GovCon made the top of our list because it offers both on-premise and cloud-based deployment options. It’s a tailorable and lightweight ERP that is both intuitive and well-designed. This fully integrated solution is 100% web-based, providing access to one database for real-time visibility into project labor and expense, direct and indirect costs, profitability, invoicing, revenue recognition, and performance against budget.

Flexible Deployment Options:
Unanet ERP GovCon

Unanet ERP GovCon: Dashboard
Unanet ERP GovCon: People=Profile Settings
Unanet ERP GovCon: Expense Wizard
Unanet ERP GovCon: Customer Profile
Unanet ERP GovCon: People Periodic Headcount Chart
Unanet ERP GovCon: Project Summary
Unanet ERP GovCon: Timesheet
Unanet ERP GovCon: Labor Details
Unanet ERP GovCon: Expense Management
What We Like
Flexible setup and configuration
Integrates between time tracking and financials
Scalable and cost-effective
What We Don’t Like
Requires consult call for pricing
Complexity in defining roles and access management
Overview
Price Range: $$
Client OS: Web
Deployment: Cloud Hosted

5 eFAACT - Best for SMBs

Why we chose it: eFAACT is our top choice for small to medium businesses because it integrates timekeeping, expense reporting, and indirect rate calculation in one platform. It reduces the need for multiple software solutions, streamlining government contract accounting for smaller teams.

eFAACT also features real-time indirect rate calculation. This allows contractors to monitor their indirect costs continuously and make informed decisions about project pricing and cost control. This level of automation helps SMBs manage government contracts alongside other business operations.

Best for SMBs:
eFAACT

eFAACT: Track Revenue Report
eFAACT: Budget Report
What We Like
Integrates timekeeping and expense reporting
Real-time indirect rate calculation
Responsive customer support
Overview
Price Range: $$$

6 PROCAS - Strong Project Accounting

Why we chose it: We picked PROCAS for its advanced project accounting. It enables detailed tracking of costs and revenues at the project level. This includes the ability to track direct and indirect costs, bill rates, and funding limits.

PROCAS maintains automated audit trails, ensuring all financial transactions are documented. It records who entered or changed information, along with the dates and times of these actions. This helps provide the transparency and accountability needed for passing DCAA audits.

Strong Project Accounting:
PROCAS

PROCAS: Project Status Report
PROCAS: Indirect Rates
PROCAS: Expense Report
PROCAS: Accounting Dashboard
PROCAS: Timesheet
PROCAS: Mobile Timesheet
PROCAS: Chart of Accounts
What We Like
Flexible setup and configuration
Integrates between time tracking and financials
Scalable and cost-effective
What We Don’t Like
Customization of indirect rates can be time-consuming
Limited report options
Overview
Price Range: $$
Starting Price: $295/month
Client OS: Windows, Web
Deployment: Cloud Hosted

What is DCAA Compliant Accounting Software?

DCAA Compliant Accounting software is any financial solution compliant with the Defense Contract Audit Agency (DCAA) requirements. DCAA compliance refers to the adherence of a company’s accounting, financial, and timekeeping systems to the recommendations and guidance provided by the DCAA. This federal government agency is responsible for auditing DoD contracts, ensuring that the business processes and systems of organizations seeking or holding government contracting work align with DCAA requirements.

Since these contracts can be worth hundreds or even billions of dollars, funded by taxpayers, DCAA audits are crucial for maintaining transparency and accountability. A DCAA-compliant business system should be able to track various costs, such as direct and indirect costs, accounting, billing, and labor costs, and be fully integrated with its timekeeping system. This way, the company can efficiently produce all necessary reports required by the DCAA during an audit.

One thing to note is no software is officially “DCAA approved,” as the term itself is an inaccurate designation. Instead, the DCAA audits a company’s financial systems to determine their compliance with government Job Cost Accounting regulations found in the Federal Acquisition Regulation (FAR). Any ERP platform or accounting software could be classified as DCAA compliant if it passes the required accounting system audit based on Government Auditing Standards from the “Yellow Book.”

Government contractors span a huge variety of different business models, from small businesses to global enterprises. However, one thing that all government contractors have in common is a high level of oversight with DCAA audits. The right accounting software can help your government contracting company ensure financial visibility for the different monitoring organizations and compliance with relevant regulations.

Key Features of DCAA Compliant Accounting Software

  • Expense Reporting: Measure financial data in a general ledger to balance Accounts Receivable (AR) and Accounts Payable (AP) and report on all direct and indirect costs
  • Cost Accounting: Accurately report on the allocation of funds to produce goods and services during government contracted projects
  • Contract Management: Manage the creation, negotiation, signing, and renewal of legally-binding government contracts, including subcontracts
  • Project Management: Coordinate and streamline the execution of project tasks to optimize direct and indirect costs related to labor and equipment utilization
  • Timekeeping System: Use timesheets for employee time tracking on all DoD contracted work assignments to ensure accurate hours are reported
JAMIS Prime ERP DCAA Compliant Software
JAMIS Prime ERP is an intuitive and agile cloud-based ERP for government contractors.

The scope of the different project accounting practices available to government contractors is as varied as the types of businesses that perform government contract work. Some small businesses will need to perform their own accounting in-house while others can afford Certified Public Accountants (CPAs) to handle the work for them. With so many possibilities, accounting software packages designed to meet DCAA requirements for government contractor companies must offer a full range of financial management tools. Accounting features include the ability to track real-time expenses, manage payroll from labor distribution, estimate job costs, perform bank reconciliations, and create top level financial reports.

Additionally, there is a huge variety of applications available for your specific DCAA compliant accounting system. 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, eCommerce, 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.

Best Government Contractor Accounting Software Benefits

Accounting software designed for your government contracting business can help you manage costs, revenues, and profits, while providing the ability to view the information on a per project basis. With the right accounting tools you can easily establish auditable financial records.

Manage Unallowable Costs

A common issue companies face when dealing with government agencies is determining allowable and unallowable costs. The former can be reimbursed or fully covered by a contract’s terms. The latter can leave your business footing the bill. Generally, allowable costs are those which are necessary for the completion of a project: expenses related to manufacturing, delivery, or a service.

Unallowable cost as defined by FAR 31.205 are those which do not meet these criteria:

  • Reasonable
  • Allocable
  • Cost Accounting Standards (CAS)
  • Contract terms
  • FAR subpart limitations

For instance, imagine a small business wins a government contract. They require transportation for their workers to get to and from a job site. Purchasing one or two vehicles would be reasonable and therefore an allowable cost under DCAA regulations. On the other hand, buying a fleet of luxury cars would be considered unreasonable and thus unallowable.

It’s important to note many indirect costs fall under the unallowable umbrella. With DCAA compliant accounting software, your employees can remain aware of whether their work is or isn’t covered.

PROCAS ERP Software
Calculate indirect rates to determine unallowable costs with PROCAS.

Maintain Government Contractor Accounting Compliance

Government contractor organizations are among the most frequently audited businesses in the world. 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. Approved accounting systems specifically designed to promote regulatory compliance can be of enormous assistance in helping your organization meet DCAA, DCMA, DOL, IG, and GAO standards.

DCAA Compliant Accounting System Costs

DCAA compliant accounting software is available for companies of all sizes. While completely custom software systems are always an option, it can be expensive and difficult to maintain such a program. With the huge variety of options already on the market, there is likely a solution to meet the needs of your business without the hassle and expense of customization. Some SaaS options are available for as low as $25 per month per user while others are up to $450 per month.

The right government contract accounting software should do more than simply ensure regulations compliance. It should also provide you with the tools you need to boost the profitability of your business and lower your operational cost. By more effectively monitoring profitability you can better identify which project management processes you need to improve. Additionally, if you streamline your accounting processes you can save time and avoid costly errors which arise frequently when data is not integrated or needs to be manually re-entered in multiple systems.

Is QuickBooks DCAA Compliant?

QuickBooks by Intuit offers incredibly popular accounting software products to businesses of all industries. As such, many government contractors have asked if their current QuickBooks software is already DCAA compliant. The answer depends on usage and additional software integrations. For instance, when time tracking features are used correctly and honestly by all team members, QuickBooks can be DCAA compliant by creating an audit trail for timesheets. And the software is compliant when used in conjunction with another approved system, such as GovCon, so you don’t have to change your entire accounting system if you already use QuickBooks.

Digisoft DS Software
Digisoft DS is a DCAA compliant accounting system.

All Products

No products found
JAMIS Prime ERP Screenshot

JAMIS Prime ERP

★★★★★
★★★★★
(1)
JAMIS Prime ERP is a DCAA-compliant accounting software with government contract compliance and efficient project management. The software offers comprehensive project accounting and job costing capabilities. Its integrated approach combines finance, operations, and contract management, backed by strong analytics and reporting features.
Price Range
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Client OS
Web
Deployment
Cloud Hosted
Deltek Costpoint Screenshot

Deltek Costpoint

★★★★★
★★★★★
(3)
Deltek Costpoint is an ERP software for government contracting. It offers capabilities in financial management, HR, project management, and more. Its features, such as advanced reporting, HR process automation, and compliance safeguards, are specifically tailored to meet the complex needs of government contractors and project-based enterprises, ensuring they can manage their operations effectively.
Price Range
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   $     $     $     $     $   
Deployment
Cloud or On-Premises
WrkPlan Screenshot

WrkPlan

★★★★★
★★★★★
(3)
WrkPlan is a DCAA-compliant accounting software for government contracting and project-based businesses. It provides a suite of tools for project accounting and contract management. Key features include full accounting services, cost accounting tailored for project-based businesses, and CRM. It also includes features like learned value management, budgeting, and indirect rate calculation.
Price Range
   $     $     $     $     $   
   $     $     $     $     $   
Starting Price
$450/month
Client OS
Web
Deployment
Cloud Hosted
eFAACT Screenshot

eFAACT

eFAACT is the proven QuickBooks solution for meeting DCAA and other audit agency compliance requirements. SIMPLE, CONSISTENT and AFFORDABLE. Time Tracking Compliance: TimeCard Web for employees and consultants; Online work authorization reference; TimeCard online signature and supervisor approval; Automatic TimeCard reminders; and Time entries sent to QuickBooks ready for payroll. Expense Reporting: eFAACT Expense Web for authorized users; Administratively controlled expense report options; and
Price Range
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Unanet ERP GovCon Screenshot

Unanet ERP GovCon

★★★★★
★★★★★
(3)
Unanet ERP GovCon is a software designed for government contractors. It offers both on-premise and cloud-based deployment options. The software stands out for its robust features that include resource planning, skills management, budgeting, forecasting, time tracking, expense reporting, billing, revenue recognition, and project status and performance reporting​​. It integrates Professional Services Automation (PSA) and Project Portfolio Management (PPM) with financials, providing real-time insights into projects and resource optimization based on availability, skills, and budget.
Price Range
   $     $     $     $     $   
   $     $     $     $     $   
Client OS
Web
Deployment
Cloud Hosted
PROCAS Screenshot

PROCAS

★★★★★
★★★★★
(5)
PROCAS is a DCAA-compliant accounting software with integrated timekeeping capabilities. It includes efficient handling of indirect rates for billing and the ability to generate detailed and customizable reports. The software features a full disclosure general ledger, budgeting tools, accounts payable and receivable management, and labor distribution.
Price Range
   $     $     $     $     $   
   $     $     $     $     $   
Starting Price
$295/month
Client OS
Windows, Web
Deployment
Cloud Hosted
Light4 Screenshot

Light4

A comprehensive, full-featured, financial and project cost accounting and project management application designed for multi-user access across all TCP/IP networks.
Client OS
Windows, macOS, Web
Deployment
Cloud Hosted
Digisoft DS Screenshot

Digisoft DS

★★★★★
★★★★★
(2)
Maintaining DCAA compliance can be a daunting task, but it doesn’t have to be when you have an integrated system that can help keep your company compliant at all times. Whether you are a seasoned government contractor looking to streamline your operations/accounting, or a new contractor looking for best practices, DS” powered by Digisoft Solutions” can help your company achieve and maintain compliance throughout the life of your government contracts. DCAA Compliance; Timekeeping + Time Off;
Price Range
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   $     $     $     $     $   
Starting Price
$25/user/month
Client OS
Web
Deployment
Cloud or On-Premises
QuickBooks Desktop Enterprise Screenshot

QuickBooks Desktop Enterprise

★★★★★
★★★★★
(36)
QuickBooks desktop Enterprise is an on-premises, Windows-based accounting system, specifically designed for small to medium businesses. It’s perhaps Intuit’s most advanced platform under the QuickBooks brand offering more capacity and especially better advanced inventory features. The software’s strong inventory management features, including advanced tracking and automation, are particularly beneficial for businesses managing complex inventory across multiple locations. QuickBooks Desktop Enterprise offers industry-focused editions with tools and reporting tailored to specific business needs, enhancing customization.
Price Range
   $     $     $     $     $   
   $     $     $     $     $   
Starting Price
$199/month
Client OS
Windows
Deployment
Cloud or On-Premises
SYMPAQ SQL Screenshot

SYMPAQ SQL

★★★★★
★★★★★
(1)
SYMPAQ SQL cost accounting is the result of Aldebaron’s years of experience with servicing government contractors and not-for-profits. SYMPAQ SQL has all of the power and capability you need to report cost data on government contracts. SYMPAQ SQL is built from the ground up to use the latest in database technology. Total scalability: SYMPAQ SQL’s feature set allows government contractors to grow rapidly. SYMPAQ SQL will always fit your cost accounting needs, now and in the future.;
Price Range
   $     $     $     $     $   
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Starting Price
$5,000/year
Client OS
Windows, Web
Deployment
Cloud Hosted
Aspire GovCon Accounting Screenshot

Aspire GovCon Accounting

★★★★★
★★★★★
(2)
ASPIRE is a compliant project-based Accounting, Financial Management and Collaboration platform for growing government contractors. Aspire offers a powerful combination of the best Cloud technologies and DCAA-compliant accounting features for small to mid-sized businesses. Aspire embraces a Cloud-native architecture and targeted functionality, making it highly cost-effective. Aspire includes tailored modules for General Ledger, Time & Expense, Projects, Accounts Payable, Workforce, Cash
Price Range
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   $     $     $     $     $   
Starting Price
$125/month
Client OS
Web
Deployment
Cloud Hosted
GovCon Connect Screenshot

GovCon Connect

★★★★★
★★★★★
(2)
GovCon Connect is a DCAA compliant software for government contractors using QuickBooks Desktop or QuickBooks Online . The solution is a low cost way to pass DCAA audits and provide contract management and indirect rate calculations. @youtube Timesheets; Chart of Accounts; Job Costing; Labor Distribution; CLINN/Task Reporting; Indirect Rate Calculation; Contract Management; and Budget and Provisional Indirect Rate Development. Standard (entry level government contractors); Business (includes
Client OS
Windows, Web
Deployment
Cloud or On-Premises
Dynamics 365 Business Central Screenshot

Dynamics 365 Business Central

★★★★★
★★★★★
(10)
Microsoft Dynamics 365 Business Central provides finance, human resources, operations, marketing, sales, and more functionalities. It is a part of Microsoft’s suite of enterprise applications and integrates seamlessly with services like Office 365, Power BI, and Azure.
Price Range
   $     $     $     $     $   
   $     $     $     $     $   
Starting Price
$70/user/month
Client OS
Web
Deployment
Cloud or On-Premises
DCAA-Assist Screenshot

DCAA-Assist

DCAA-Assist is here to help you navigate and master the complexity of government contracts requirements so you may develop and implement accounting solutions that are fully compliant with these unique accounting and reporting regulations. DCAA-Assist works with you to create a simplified approach for the setup, maintenance, and tracking of projects so your business can implement and rely upon on a DCAA approved labor reporting system and internal control environment essential for successful
Daston GovCon Essentials Screenshot

Daston GovCon Essentials

Daston GovCon Essentials is developed specifically to meet the unique accounting and compliance needs of Federal Government Contractors. Daston GovCon Essentials is 100% secure cloud based and designed to make it easier for your team to deliver DCAA compliant reporting and invoicing. Whether you are a new government contractor facing an SF-1408 Pre-Award audit or an experienced government contractor seeking a more affordable and better solution, Daston is built for you! Daston Software is
Price Range
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Starting Price
$750/month
Client OS
Web
Deployment
Cloud Hosted
ContractEdge Screenshot

ContractEdge

Get high ROI and continuous value from your cloud accounting software provider, not just a maintenance bill. With ContractEdge powered by Intacct, you receive automatic quarterly upgrades that are touch-free for you—no business disruption, no costly upgrade projects. You can eliminate hardware costs and IT effort from your cost of ownership. And Intacct deliver worldclass, backups, and disaster recovery, protecting your financial data and system at a much higher level and lower cost than if you
Client OS
Web
Deployment
Cloud Hosted
S2 Project Accounting Screenshot

S2 Project Accounting

Government contractors know all about the Defense Contract Audit Agency. So do we! In fact, S2 Incorporated originally designed the S2 Project Accounting module after extensively working with government contracting agencies and providing consulting for products such as Deltek’s GCS Premier”, Costpoint “ and MAS 90”. Having completed numerous presentations and product demonstrations for government contracting firms and CPA’s, some being former DCAA auditors, we have continually developed our
Client OS
Windows
GCAS (Government Cost Accounting System) Screenshot

GCAS (Government Cost Accounting System)

Track Your Contract Project Costs with a complete Accounting System! Experience significant cost savings as you better control operating costs, increase labor efficiency, support DCAA audits, monitor company cash flow, and effectively manage individual project costs. GCAS provides everything a small to mid-sized business needs, from accounting, payroll, project management, compliance monitoring and reporting. With GCAS, government contractors can maximize business productivity, comply with CAS,
Price Range
   $     $     $     $     $   
   $     $     $     $     $   
Corp_ProSM Screenshot

Corp_ProSM

Corp_ProSM is a revolutionary new tool for small government contractors and non-profits. It offers a completely self contained DCAA compliant job cost accounting combined with an enterprise management system&with no up front costs and no special server or security set up. Corp_ProSM has considerably more features than other popular alternatives. Accounting is only one of a number of modules. This is why we call it a CORporate PROcess manager. It is not just an accounting system. It provides

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