The essence of the DCAA compliant accounts is complex and cannot be handled by the normally qualified accountants. There are several clauses and sub-clauses that attach special importance to specific cost break up and managing a streamlined system. Especially for the cost reimbursable contracts, the stipulations are more complex and important. The DCAA conducts the audit when commissioned by any of the government agencies before handing over a contract that will be executed by using the taxpayers’ money.
Costs on accrual bais
Some of the major stipulations that the experts in the DCAA accounting system will stress on is segregating the direct and indirect costs in separate accounts showing the detailed incurring cost of the same. The job cost is a vital area that has to be clearly delineated to prepare a clean account. This may well call for the detailed cost ledger that shows in details all charges against a job. The entire cost incurred on an accrual basis record is yet another essential that the DCAA will look for and not the cash basis accounts.
Well-recorded timekeeping system
Apart from this, there is also the perfect timekeeping system that the DCAA accounting will be looking for as labor charges is one of the major costs that any contract will incur. While both manual, as well as electronic systems, are accepted, they have to be well-recorded with up-to-date records. The entire account of cost incurring will have to be updated at least on a monthly basis for the DCAA to approve of it. It is thus essential to have well-developed systems under professional instructions for approval.
Costs on accrual bais
Some of the major stipulations that the experts in the DCAA accounting system will stress on is segregating the direct and indirect costs in separate accounts showing the detailed incurring cost of the same. The job cost is a vital area that has to be clearly delineated to prepare a clean account. This may well call for the detailed cost ledger that shows in details all charges against a job. The entire cost incurred on an accrual basis record is yet another essential that the DCAA will look for and not the cash basis accounts.
Well-recorded timekeeping system
Apart from this, there is also the perfect timekeeping system that the DCAA accounting will be looking for as labor charges is one of the major costs that any contract will incur. While both manual, as well as electronic systems, are accepted, they have to be well-recorded with up-to-date records. The entire account of cost incurring will have to be updated at least on a monthly basis for the DCAA to approve of it. It is thus essential to have well-developed systems under professional instructions for approval.
