DCAA Compliance FAQ

Blog, News

4/22/2021

1) What is outsourced compliance accounting?

Outsourced compliance accounting provides companies with professionals outside of their organization who can:

  • Set up DCAA-compliant accounting systems

  • Provide monthly ongoing outsourced accounting services

  • Tabulate accounts payable and receivable

  • Prepare invoices

  • Administer timesheets

  • Tabulate company financials

  • Provide financial services for seniors

  • Handle KPI reporting

  • Monitor policies and procedures

  • Augment staff

2) How are smaller government contractors meeting DCAA requirements with NetSuite?

Utilizing NetSuite’s BPO program, contractors can procure the NetSuite ERP solution and its DCAA compliance SuiteApp (called “GovCon Essentials”) for mere pennies on the dollar. This solution includes:

  • DCAA-compliant timekeeping

  • Labor dilution and distribution

  • Cost allocations

  • Government contract billing and revenue calculations

  • Formal project and indirect cost reporting

  • Industry-specific KPIs and leading practices

To learn more about The Daston Corporation’s BPO bundle, click here for more information.

3) What are the benefits of GovCon compliance-ready software?

Improves Visibility

With an ever-changing business environment, getting timely visibility into your business operations is really crucial. To be best-in-class in the GovCon industry, you must have:

  • Real-time business intelligence – Enables instant knowledge of how your government contracts are doing in the present moment.

  • Self-service reporting – You cannot afford to wait for someone else to build the project status reports you need.

  • Integrated user experience – Gives you everything you need to manage responsibly by choosing the right course of action.

  • Shared view of the data – Provides consistent and reliable data across the business, so you can act without worrying whether your colleagues are making decisions using information that is different from yours.

  • Role-based dashboards – Provides information that is relevant to you and your responsibilities.

  • Summary to detail – Enables transparency into the underlying data and its context to better understand what’s going on.

Increases Profitability

Today, organizations are looking for solutions that are much more compatible with making decisions at the speed of thought, that can cater to everyone in the organization. This is why GovCon Essentials is designed to run your business – not just manage your financials. This solution:

  • Forms the dynamic core of your operational systems with a single data store and a unified data model.

  • Comes with built-in GovCon industry functionality, allowing you to manage effectively across all your business processes.

  • Is centered around key workflows and a role-based interface that works for all users, not just those in the finance department.

  • Offers a customizable dashboard, reports, and alerts, giving managers access to critical information on budget vs. actual costs and profits by department, customer, and project.

  • Allows users to react quickly, make actionable decisions, and drive cost efficiency and improved profit.

Mitigates Risk Through Built-in Charging Controls

This helps with:

  • Contract-specific project types

  • Timekeeping

  • Project Expenses

Ensures Transactions Retain Accuracy

This is accomplished through:

  • Alerts for non-compliance

  • Exception reports

4) Why is GovCon subject matter expertise so important?

Leveraging the leading practices in your industry can give you a leg up as you compete in the fierce GovCon marketplace. Managing basic and complex accounting tasks can be time-consuming. Automating business processes and outsourcing compliance accounting can maximize your time, enabling you to better grow your business and focus on market trends, cost competitiveness, and operational delivery excellence.

5) What are the risks of non-compliance?

During your analysis, you may find gaps in your ERP system’s ability to meet DCAA’s compliance requirements and/or its’ ability to assist you in achieving or maintaining compliance. Because penalties associated with non-compliance can be severe, you may find yourself highly incentivized to put remedies in place prior to your audit. For further guidance on operating in a DCAA-compliant environment and penalties for non-compliance, please click here.