Advice
DCAA 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.…
Read MoreCash Flow Management for Small Business: Strategies That Actually Work
Summary of Key Points Cash flow problems are caused by timing gaps—not lack of profit—especially during growth when expenses rise faster than incoming payments and businesses must fund operations upfront. Effective cash flow management relies on three core pillars: accelerating receivables (invoice quickly, shorten terms, track aging), controlling payables strategically (align outflows, negotiate terms, prioritize…
Read MoreForward Pricing Rate Agreements: Building Rates That Win Contracts and Survive Audits
Summary of Key Points Forward Pricing Rate Agreements (FPRAs) establish the indirect cost rates contractors use when pricing government contract proposals. These rates typically include fringe benefits, overhead, and general and administrative (G&A) expenses, and are negotiated with contracting officers based on projections supported by historical data and compliant cost accounting practices. Developing an FPRA…
Read MoreFractional CFO Services: Strategic Financial Leadership Without Full-Time Cost
Summary of Key Points Fractional CFO services provide executive-level financial leadership on a part-time basis. Unlike bookkeepers or tax accountants who focus on recordkeeping and compliance, fractional CFOs support strategic decision-making through financial planning, forecasting, cash flow management, profitability analysis, and executive-level reporting. Businesses often engage fractional CFOs during growth or strategic transition points. Common…
Read MoreDCAA Compliant Accounting Systems: What Makes Yours Pass or Fail
Summary of Key Points DCAA evaluates accounting systems using the SF 1408 Pre-Award Accounting System Survey. This review determines whether a contractor’s accounting system can properly accumulate and bill costs on government contracts. Failing any of the six required criteria can result in a qualified or inadequate determination that may prevent contract awards. The six…
Read More