Posts by Jennifer Eubanks
Incurred Cost Audit: What DCAA Reviews and How to Survive Scrutiny
Summary of Key Points An incurred cost audit begins after a contractor files its incurred cost submission (ICS). DCAA reviews actual costs, indirect rate calculations, and contract allocations to verify compliance with FAR requirements, making audit readiness essential from the moment the submission is filed. DCAA’s primary focus areas include indirect rate verification, allowable cost…
Read MoreMid-Year Financial Review: Strategic Questions Every Business Owner Should Ask
Summary of Key Points A mid-year financial review helps business owners compare actual performance against budgets and forecasts while there is still time to improve year-end results. The review focuses on identifying gaps, understanding causes, and making strategic adjustments. Business owners should evaluate whether revenue is tracking to plan, analyze the reasons behind overperformance or…
Read MoreThe Augusta Rule: How to Earn Tax-Free Rental Income From Your Own Home
Summary of Key Points Section 280A(g) of the Internal Revenue Code allows U.S. homeowners to rent their home for up to 14 days per year and exclude that rental income from federal taxes entirely — no reporting required. To qualify, the rental must involve a primary or secondary residence, the total rental period cannot exceed…
Read MoreBusiness Budgeting and Forecasting: Creating Financial Plans That Drive Decisions
Summary of Key Points Business budgeting establishes financial goals and spending plans, while forecasting provides continuously updated projections based on current business conditions, making both tools essential for informed decision-making. Traditional annual budgets often fail growing businesses because revenue changes unpredictably, growth expenses occur before related revenue arrives, and business conditions evolve faster than static…
Read MoreDCAA Audit Preparation: The Complete Checklist for Government Contractors
Summary of Key Points DCAA audit preparation is an ongoing operational process, not a last-minute task, and successful audits depend on maintaining documented, supportable, and consistently applied accounting and compliance systems at all times. DCAA audits focus heavily on accounting system adequacy, including the segregation of direct and indirect costs, contract-level cost tracking, identification of…
Read MoreFinancial Statement Analysis: Understanding What Your Numbers Actually Tell You
Summary of Key Points Financial statement analysis is a business skill that helps owners understand profitability, stability, and liquidity by reviewing the income statement, balance sheet, and cash flow statement together rather than relying only on the bottom line. The income statement reveals whether revenue growth, direct costs, and overhead are improving or hurting profitability,…
Read MoreIncurred Cost Submissions: Why April Planning Prevents June Panic
Summary of Key Points Incurred cost submissions are due within six months after fiscal year-end under FAR 52.216-7, which means June 30 for most calendar-year government contractors with cost-reimbursable, time-and-materials, labor-hour, or other flexibly priced contracts. An incurred cost submission is a comprehensive reconciliation package, not a single form. It uses the DCAA ICE model…
Read MoreOutsourced Controller Services: The Middle Ground Between Bookkeeper and CFO
Summary of Key Points Outsourced controller services help growing businesses close the gap between bookkeeping and CFO-level strategy by adding financial oversight, accurate reporting, accounting system management, and compliance support without the cost of a full-time controller. A controller is responsible for making financial data reliable and useful, including month-end close, account reconciliations, accruals, revenue…
Read MoreDCAA Compliant ERP: What Your Enterprise System Actually Needs to Do
Summary of Key Points A DCAA-compliant ERP should be evaluated by what the system can actually do, not by popularity in the GovCon market. The article emphasizes that a compliant accounting system must support SF1408 pre-award survey requirements, not just market itself as “government contractor friendly.” Core DCAA ERP requirements include segregating direct and indirect…
Read MoreGovernment Contract Pricing Strategy: How to Price to Win Without Leaving Money on the Table
Summary of Key Points Winning government contracts requires balancing four factors: competitiveness, realistic cost execution, audit supportability, and sustainable profit—rather than simply offering the lowest price. Underpricing to win contracts often leads to performance issues, reduced margins, and damaged past performance ratings; government evaluators actively flag unrealistic pricing through cost realism and price reasonableness reviews.…
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