Why Your Forward Pricing Rates Are Costing You Contracts (and How to Fix Them)

forward-pricing-rates

Summary of Keypoints Forward pricing rates can be fully approved yet still undermine competitiveness, because DCAA approval confirms adequacy and compliance—not whether rates position a contractor to win best-value awards. Overstated or outdated indirect rates inflate fully burdened labor costs, leading to uncompetitive cost volumes, inconsistent win rates, and contracts that strain margins despite strong…

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Compliance Readiness for Government Contractors: A Strategic Guide to Building Audit-Proof Systems for SF1408, ICE, and CAS

Compliance-readiness-government-contractors

Summary of Keypoints Compliance readiness is a proactive operating state, not a one-time audit event, requiring embedded financial controls, FAR-aligned policies, consistent accounting practices, and systems that are always prepared for DCAA, DCMA, or IRS review. SF1408, ICE, and CAS are interconnected pillars of audit readiness, relying on the same core foundations: job costing by…

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Maximizing Cash Flow Management for Government Contractors

government-contractors-cpa

Summary of Keypoints Cash flow challenges in government contracting stem from timing mismatches, including long payment cycles, provisional billing rates, cost-reimbursement structures, and approval delays, making proactive cash management essential even for profitable contractors. Strong receivables management is critical to liquidity, requiring prompt invoicing, weekly tracking of invoice status, early escalation of delays, and timely…

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The GovCon’s Guide to DCAA Incurred Cost Submissions

The GovCon’s Guide to DCAA Incurred Cost Submissions

Summary of Keypoints An Incurred Cost Submission (ICS) is a mandatory annual requirement for contractors with cost-reimbursable or T&M contracts, used by DCAA to reconcile provisional indirect rates with actual costs and establish final allowable rates under FAR 52.216-7. Timely and accurate ICS filing protects cash flow and credibility, while late or inadequate submissions can…

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Why You Need a Government Contracts Advisor to Work on Your Government Contracting Business Taxes

Government Contracts Advisor

Summary of Keypoints Government contracting taxes require specialized expertise: Government contractors face added complexity from FAR, DFARS, CAS, and federal tax rules, making general tax preparation insufficient for compliance and profitability. A Government Contracts Advisor goes beyond tax filing: These advisors integrate tax strategy with cost accounting standards, indirect cost allocation, audit readiness, and tax-advantaged…

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Why is Using a Government Contracts Accountant Important?

Why is Using a Government Contracts Accountant Important?

Summary of Keypoints Government contracting requires specialized accounting expertise: Compliance with CAS, FAR, DFARS, and agency-specific rules creates financial complexity that traditional accounting alone cannot manage effectively. A Government Contracts Accountant (GCA) focuses on compliance and cost recovery: GCAs specialize in indirect rate structures, audit preparation, forward pricing rate proposals, and maintaining systems that meet…

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Understanding How to Bid on Government Contracts: A Guide for Government Contractors

Understanding How to Bid on Government Contracts: A Guide for Government Contractors

Summary of Keypoints Government contracts offer stable, long-term growth opportunities: Bidding on government contracts provides reliable, publicly funded revenue, multi-year stability, enhanced credibility, market expansion, and opportunities for innovation and research. Successful bidding follows a structured, step-by-step process: Contractors must research opportunities (SAM.gov, agency sites), understand RFP and FAR requirements, develop strong technical and cost…

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List of the Best DCAA Approved and Compliant Accounting Software Systems

Summary of Keypoints DCAA-compliant accounting software is essential for government contractors: These systems support audit readiness, FAR and CAS compliance, accurate cost allocation, transparent reporting, scalability, and reduced risk of penalties or lost contracts. Core features define DCAA compliance: Required capabilities include a compliant general ledger, detailed cost accounting for direct and indirect costs, approved…

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A Complete Government Contract Compliance Checklist: A Guideline for Success

Summary of Keypoints Compliance is a competitive advantage in government contracting: Adhering to FAR, CAS, labor laws, cybersecurity standards, and contract-specific requirements helps contractors win contracts, avoid penalties, ensure smooth operations, and build long-term trust with government agencies. Core compliance areas span finance, labor, ethics, and cybersecurity: Contractors must maintain a DCAA-compliant accounting system, properly…

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What is an Adequate Accounting System for Contract Proposals?

Summary of Keypoints An adequate accounting system is foundational to government contract success: It supports compliance, audit readiness, accurate cost proposals, financial transparency, and strengthens competitiveness during the bidding process. Compliance and cost accuracy are primary objectives: The system must meet FAR and DCAA standards, precisely track and allocate direct and indirect costs, and support…

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