Whether you’re an established government contractor or are preparing for your first bid, federal regulations dictate your whole operation. Compliance Defense Contract Audit Agency (DCAA), Cost Accounting Standards (CAS), Federal Acquisition Regulation (FAR), and other government rules are not options. As a contractor, you have no choice but compliance. If your accounting can’t meet these rules, your business will suffer.
The good news is that with the right technology and assistance, meeting these requirements can be smooth and a great benefit to your company as a whole. Let’s dive into five critical reasons to work with government accounting specialists.
5 Critical Reasons to Work With Government Accounting Specialists
Federal compliance is a two-pronged approach. You need software tools to perform, manage, and document your work following government contract rules. Additionally, internal controls and procedures must be established to help staff conform to government accounting regulations. This all requires specialized training and expertise in order to properly establish DCAA compliance in your organization. Working with government accounting specialists gives you a host of benefits, but chief among them is the security and sustainability of your government contracting business. Let’s break down the benefits in detail.
Protect Your Company
Compliance issues can seriously jeopardize the project you’re working on. If auditors can’t find the information they need because your accounting system isn’t properly optimized, your whole operation will be stalled while they investigate. Besides delays and increased expenses, your income for the project can be frozen while auditors confirm whether the finances of the project are aligned with the standards. This could damage your business’ reputation and make it harder for you to secure new bids. In severe cases, you could lose the contract completely and/or face legal repercussions. Why take the risk? Seek professional guidance!
Smooth Software Selection and Implementation
Before you even begin working on your projects, you need the right tools. You’ll want a secure management system like Salesforce and an accounting application that has the flexibility and features needed for DCAA compliance. Invest in a flexible solution like Accounting Seed that’s designed to adapt to your individual needs and help you scale effectively as the scope of your contracts grows. But how do you set the system up to be fully DCAA compliant?
Government Accounting Specialists like Compliance Central help you select and implement the best solutions for your company. They then help you customize these tools to streamline key processes according to your contract’s needs and ensure all essential requirements are met. This gives you the reassurance that your tools are functioning properly, giving you the maximum return on investment.
Internal Control Optimization
Software tools are only a part of meeting government regulations. Your organization must adopt the correct processes to document and manage these tools appropriately. You need the right internal controls. Internal controls are the procedures and rules implemented to guarantee consistent reliability and accuracy throughout the accounting system. These rules help you operate effectively, prevent and control risks, and comply with federal regulations. For example, you’ll want internal controls within your time tracking module in the accounting system to make sure hours are documented and secured according to DCAA standards. You must also educate your team on the correct procedures. Missing just one of these requirements can lead to failing an audit. Compliance and government accounting specialists help you avoid this loss by helping you implement these internal controls where they’re required.
In addition to using advanced, robust accounting software, you and your staff still need to navigate the world of federal project accounting and compliance. Trusted government accounting specialists help you not only satisfy the DCAA reporting requirements but also help you implement stronger accounting practices as a whole. The internal controls and system implementations have the side benefit of streamlining key functions. The more visible and transparent your accounting is, the faster and more efficiently auditors can do their job. This saves you valuable time and resources in the long run too. These measures also help your reports remain accurate and enable you to trace accounting and time entries more fluidly. Additionally, these features help your team gather and analyze data more effectively to develop stronger business strategies.
Peace of Mind
Working with compliance specialists gives you peace of mind that your business isn’t at risk of federal backlash. Government contracting comes with a fair amount of stress and work; the last thing you should have to worry about is federal compliance. This doesn’t have to be the case when you have access to proven professionals who can help you establish long-lasting compliance parameters.
Firms like Compliance Central help your business function smoothly and legally so that you can just focus on winning contracts and providing the best service to the customer. These specialists bring the financial and technical expertise needed to ensure that you can take on government work from start to audit and completion. It never hurts to get an outside opinion. In this case, it will give you concrete answers and solutions that help your business reach its potential and prevent you from missing essential DCAA requirements.
Be Compliant, Use the Right Tools. Try Accounting Seed
As you look to take on more complex projects, you’ll need an accounting platform that is equipped to meet all the DCAA requirements. Accounting Seed gives you the key features you need to pass DCAA audits while offering a flexible, automated accounting solution that maximizes your contract’s financial management. A native Salesforce accounting platform, our product seamlessly and securely draws project data from your other solutions to save you time and give you consistent, accurate financial data. Additionally, we work with many connected apps and industry specialists to give you additional resources. Accounting Seed partners with Compliance Central to help you make DCAA compliance a done deal.
Not a Salesforce user? Our product can work with a variety of other systems and also as a solo solution. Sign up for a free, custom demo today!
Check out our guide on DCAA compliance and accounting software