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Summary of Key Points A DCAA chart of accounts is the foundation of government contractor accounting, supporting cost accumulation, indirect rate calculations, proposal pricing, billing, incurred cost submissions, and audit readiness. Poor account structures create inefficiencies, reconciliation issues, and compliance risks. A DCAA-compliant accounting system must support direct and indirect cost segregation, indirect cost pool…

Summary of Key Points Accounting system implementation failures are usually caused by poor planning, rushed setup, inadequate training, weak data migration processes, and unclear project ownership—not the software itself. A successful transition requires treating implementation as a business process project rather than an IT project. A successful implementation begins with pre-launch planning, including defining reporting…

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…

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…

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…