Are you performing or considering federal government contracting? Then you need to know these government contract accounting requirements and how your accounting software and supporting partner can help you fulfill them.
Pursuing government contracts can be a huge boost for any project-centric company. But unless you're well prepared, it also can be an enormous headache as you try to comply with federal regulations and prepare for audits, DCAA or otherwise. Even state contracts have become complex as most states have decided to follow federal guidelines. Here are 6 requirements you need to be aware of with information on how the right ERP software and partner can make it easier to comply:
All contracts are subject to the Federal Acquisition Regulation (FAR), a really big book. Synergy Business Solutions knows these regulations and how to implement software to meet them.
Contracts aren’t generally awarded until a contractor passes a Pre-award Accounting System Survey. Microsoft Dynamics SL, implemented by a partner like Synergy (with expertise in government compliance), will fulfill the survey‘s requirements.
When you take on a contract between $7.5M and $50M, you must comply with 4 requirements in the Cost Accounting Standards (CAS), another really big book. Under some circumstances, a “trigger” contract will lower that threshold to a 650K contract. Dynamics SL and Synergy ensure your system can meet these requirements.
With contracts over $50M, you must comply with all 19 CAS requirements. Dynamics SL and Synergy ensure your accounting system is compliant to these standards.
When subject to CAS, the government requires a CAS Disclosure Statement, which must validate a company’s accounting system. Synergy helps companies accurately fill out this statement.
To be acceptable, all costs on a contract, both indirect and direct, must be consistently allocated. Synergy and Dynamics SL enable you or an auditor to prove costs were determined using appropriate and consistent techniques.
Your accounting system can only reflect your potential for compliance. How it is implemented and the procedures employed are just as important as brand. Deploy a system – and utilize a partner that deploys both effective compliance procedures AND follows your business model. Synergy can help you meet those goals.
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