The Cornerstone of Winning Bids: Understanding Proposal Adequacy for Government Contractors

proposal-adequacy-checklist

Summary of Keypoints Proposal adequacy is the baseline requirement for winning government contracts, ensuring a proposal fully aligns with all financial, technical, and compliance requirements outlined in the Request for Proposal (RFP). Adequate proposals reduce risk and protect reputation, as incomplete or inconsistent submissions can be rejected outright or trigger increased scrutiny from agencies such…

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Accrual vs Cash Accounting for Small Businesses: Which is Right for You?

accrual-vs-cash-accounting

Summary of Keypoints Accrual and cash accounting differ in when income and expenses are recorded, with accrual accounting recognizing transactions when they are earned or incurred, and cash accounting recognizing them only when money changes hands. Accrual accounting provides a clearer picture of long-term performance, matching revenues and expenses to the correct periods and tracking…

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Cloud Migration Consulting: Why does your business need it?

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Summary of Keypoints Cloud migration improves efficiency, scalability, and cost-effectiveness, but the process is complex and often requires specialized expertise to avoid downtime, security risks, and misaligned technology decisions. Cloud migration consultants align cloud solutions with business strategy, assessing organizational needs, selecting appropriate cloud platforms, and creating customized migration plans tailored to business goals. Consultants…

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What is the DCAA? All You Need To Know as a Government Contractor

what-is-dcaa-audits

Summary of Keypoints The Defense Contract Audit Agency (DCAA) provides audit and financial advisory services to the Department of Defense and other federal agencies to ensure contractor costs are allowable, allocable, and reasonable under the Federal Acquisition Regulation (FAR). DCAA compliance applies to both prime contractors and subcontractors, including small subcontractors, when contracts are cost-reimbursement…

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Understanding Incurred Cost Proposals: Avoiding the Top 5 Audit Issues

understanding-incurred-cost-proposal

Summary of  Keypoints Incurred Cost Proposals (ICPs) are required annually for contractors with cost-type or T&M contracts, and reconcile provisionally billed indirect costs with actual incurred costs to establish final indirect rates and calculate over- or under-billings. The ICP functions like a tax return for government contracts, finalizing indirect rates after the fiscal year closes…

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Understanding Allowable Costs Speeds Reimbursement: 6 Best Practices for Avoiding Unallowable Costs

avoiding-unallowable-costs

Summary of Keypoints Allowable costs must meet strict federal standards, requiring that expenses be reasonable, allocable, necessary to the project, consistently treated, adequately documented, and compliant with FAR, contract terms, and applicable accounting standards such as GAAP or CAS. Unallowable costs are common but must be excluded from government billings, as submitting them for reimbursement…

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Are You Ready for a DCAA Floor Check?

dcaa-floor-check-readiness

Summary of Keypoints A DCAA floor check is an unannounced audit focused on labor and timekeeping, designed to verify that contractors’ timekeeping policies, labor charging practices, and internal controls comply with FAR requirements. Floor checks occur randomly and are not contractor-requested, typically initiated by contracting officers, administrative contracting officers, random sampling, or concerns about a…

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The Complete Guide to DCAA Pre Award Audits: An 8 Point Readiness Checklist

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Sumary of  Keypoints A DCAA pre-award audit is required before awarding cost-reimbursable defense contracts, assessing whether a contractor’s accounting system can properly track, allocate, and report contract costs before funding is released. The purpose of the pre-award audit is to determine contractor qualification, focusing on accounting policies, procedures, and internal controls rather than conducting a…

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What is an Adequate Accounting System? 10 Questions to Determine if Your Accounting System is Adequate for Government Contracts

adequate-accounting-system

In many cases, having an “adequate accounting system” is an integral part of successfully winning and performing on Federal contracts. Many companies find it challenging to determine when accounting system requirements are triggered and how to navigate obtaining a determination of adequacy.  Our clients and prospects unanimously have the same questions.  Since these questions are…

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