DCAA or the Defense Contract Audit Agency is charges with the responsibility of overseeing accounting processes and practices followed by government contractors. The Federal Government hands out different kinds of contracts – to qualify, you should have a DCAA accounting system in place to support cost type contracts.
Why this is necessary:
DCAA accounting systems are reviewed to make sure that a company meets the requirements put in place by the government. They should have the financial capacity to fulfill a contract. There are quite a few consultants who can help companies to get qualified and get awarded big contracts in different areas. The entire process can be pretty complicated so it is best to hire a person with the knowledge and experience to get it done right.
What is ICS?
The Federal Acquisition Regulations require contractors who are working on cost reimbursable contracts to submit incurred cost submission paperwork. This paperwork covers time spent on the job and material contracts. It can be a burden to small businesses if they are late – it is always good to hire a consultant with experience to navigate the process.
The incurred cost submission paperwork has to be submitted within 6 months of the fiscal year closing. Extensions can be applied for to make sure that the paperwork is filed correctly. This submission has to meet DCAA requirements. Quite a few reviews are held to ensure adequacy. It can be overwhelming but over time, it is easy to file once all the requirements are clear. Make sure to go through all the schedules – A through T.
