Contractors competing for government contracts understand
the importance of incurred cost submission (ICS)
to survive in the landscape of DCAA or Defence
Contract Audit Agency. This is a process that is needed to be followed to
maintain transparency and precision on the business’s financial reports. This
indeed is an important foundation for a successful management of federal
contracts. To explain ICS, it is an all-inclusive report that the contractors
submit to DCAA, which documents the details of actual costs incurred during the
contracts’ performance. Now, these submissions act as a vital tool in auditing
as it is only through studying them that the costs are decided under the
categories of reasonable, allocable, and allowable in accordance to DCAA
compliance.
The incurred cost
submissions help to bring together the estimated costs at proposal
stage and the actual costs incurred during the execution. This process of ICS
demands a deep understanding on the accounting records, documentation, and
accounting fundamentals. The contractors must adhere to submitting the reports
keeping in mind the deadlines which are usually within six months of fiscal
year closure. If in case these deadlines are not met in time, then the
contractors are asked to submit the penalties or even their future eligibility
to gain government contracts gets jeopardized. For an easy go through this
process of ICS, it is important to have a proactive approach. Contractors must
have efficient accounting system, management of internal controls, and
maintenance of records throughout the execution of contract. Also, along with
this it is continuous reviewing and conducting internal audits that help in
reducing the financial discrepancies.
Dcaa Consulting experts
provide best support in this domain, and their website can be read for their
services.
