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Government Contractor Accounting
Accounting built around how federal contracts actually get reviewed - indirect rates, allowable costs, and reporting that holds up under audit.
Schedule a ConsultationWho this is for
Small and mid-size government contractors
Businesses holding federal prime contracts or subcontracts who need books that meet contract accounting requirements, not just general bookkeeping.
8(a), WOSB, SDVOSB, and other set-aside contractors
Contractors who need accounting systems in place early, since compliant financial systems are often expected as contracts grow in size and complexity.
Contractors preparing for a DCAA audit or review
Businesses that need their accounting system and cost records reviewed and strengthened before a pre-award survey or incurred cost audit.
Contractors switching from a generalist bookkeeper
Companies whose current books don't separate direct and indirect costs correctly, or don't track costs by contract.
What we do
DCAA-compliant accounting system setup
Chart of accounts and job costing structured to meet DCAA expectations for timekeeping, cost segregation, and labor distribution.
Indirect cost rate calculation
Overhead, fringe, and G&A rate pools calculated and tracked, so your provisional and actual rates hold up under review.
Contract-level job costing
Costs tracked by contract and task order, so you can see profitability and billing status on each contract, not just the business as a whole.
Incurred cost submissions
Annual incurred cost submission preparation, built on accounting records that are organized and defensible throughout the year.
Allowable vs. unallowable cost tracking
Costs classified correctly under FAR cost principles, so unallowable costs are identified and excluded before they become a problem.
Monthly financial reporting
Reporting built for contract compliance and for managing cash flow around government payment cycles.
How we get started
- 1
Free consultation
We review your current accounting setup, contract types, and where your system currently falls short of DCAA expectations.
- 2
System & chart of accounts review
We assess whether your accounting system can properly segregate direct and indirect costs, and correct it if not.
- 3
Setup or cleanup
We build or repair the accounting structure - cost pools, job costing, timekeeping integration - needed for compliant reporting.
- 4
Ongoing monthly accounting
Reconciliations, contract-level reporting, and indirect rate tracking on a predictable monthly schedule.
Common questions
- What does it mean for an accounting system to be "DCAA-compliant"?
- It means your accounting system can properly segregate direct costs from indirect costs, track costs by contract, exclude unallowable costs, and support a reliable timekeeping system - the core requirements DCAA looks for when reviewing a contractor's accounting system.
- Do I need DCAA compliance if I only hold a small contract or subcontract?
- Requirements scale with contract type and size, but building sound cost-segregation habits early makes it much easier to grow into larger contracts later, rather than having to rebuild your accounting system under time pressure.
- What is an indirect cost rate, and why does it matter?
- Indirect cost rates (such as overhead, fringe, and G&A) allocate costs that can't be tied to one contract across your contracts fairly. Getting these rates right affects both what you can bill and what you can defend in an audit.
- Can you help with an incurred cost submission?
- Yes. Because we track direct and indirect costs by contract throughout the year, preparing your annual incurred cost submission draws on records that are already organized, rather than requiring a reconstruction after the fact.
- Do you work with contractors outside the DC/DMV area?
- Yes. While we're based in Washington, DC - in the middle of one of the largest concentrations of federal contractors in the country - our accounting services are delivered remotely and we work with government contractors nationwide.
Need your accounting system ready for federal contract requirements?
Start with a free consultation - we'll assess where your current books stand against DCAA expectations and what it would take to close the gap.