5 Easy Steps for DCAA Compliance

You don't need an expensive and complicated accounting system to achieve DCAA and FAR compliance. The inexpensive and easy-to-use QuickBooks Online accounting system, when paired with GovBooks Pro, passes DCAA and FAR audits.

 

Table of Contents

 

Click on the links below for step-by-step instructions. This series of articles is intended for government contractors who are interested in implementing GovBooks Pro. For those who prefer to engage a consultant or accounting firm for implementation services, please refer to the Accountants page to see a list of resources.

 

Step 1: Indirect Rates

 

Calculating indirect rates in GovBooks allows for a high degree of customization. With the ability to set up 10 pools of each type (51 pools in total including G&A), GovBooks allows for thousands of scenarios. Start by organizing expenses into pools and dividing each pool by its allocation base to produce a percentage (the indirect rate). Create a DCAA‑compliant chart of accounts in QuickBooks Online, import it into GovBooks, assign general ledger accounts to Fringe, Overhead, Facility, Value-Added, Service Center and G&A pools and to the appropriate allocation bases, then let GovBooks compute pool totals and bases (supporting 2‑tier or 3‑tier methods and custom pools). You can refine pools by including/excluding accounts, apply fringe automatically to other pools, allocate overhead to B&P/IR&D and either include or exclude unallowable accounts from overhead or G&A.

 

Part 1: Chart of Accounts

Part 2: Indirect Rate Setup in GovBooks

Part 3: Indirect Rate Reports

 

Step 2: Contracts

 

Part 1: Contract Setup in QuickBooks Online

Part 2: Funding Setup in GovBooks

Part 3: Project and Funding Reports

 

Step 3: Timesheets

 

Step 4: Labor Distribution

 

​Part 1: How to Create the Labor Distribution

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Step 5: Billing