- One of the biggest requirements for doing work with the federal government is the need to satisfy the Defense Contract Audit Agency, or DCAA, which is responsible for performing all audits and for providing accounting and financial advisory services to the Department of Defense and many other federal agencies.
- Government contractors are subject to Generally Accepted Accounting Principles (GAAP) and are not usually awarded contracts until they pass a pre-award accounting system survey.
- Federal Acquisition Regulations (FAR) are a set of regulations that outline the requirements of contractors that sell to the government. These are rules on specifications, payments and conduct and actions regarding solicitation of bids and payment of invoices.
- Depending upon the size of the contract, you may have to comply with different requirements under the Cost Accounting Standards and will need to submit a CAS Disclosure Statement that validates your accounting system.
Your accounting system only reflects your potential for compliance – equally important is how the system was implemented and the procedures you use every day.
Written by Accountnet, Inc.