Posts Tagged ‘government contracting’
Maximizing Cash Flow Management for Government Contractors
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…
Read MoreTax Implications of Government Contract Types: Choosing the Right Fit for Your Business
Summary of Keypoints Government contract type directly affects tax timing, reporting, and audit exposure, influencing when income is recognized, how expenses are deducted, and how closely your records are scrutinized by agencies like the IRS and DCAA. Fixed-price contracts offer revenue predictability but can accelerate taxable income, requiring careful use of percentage-of-completion revenue recognition and…
Read MoreThe 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…
Read MoreWhy You Need a Government Contracts Advisor to Work on Your Government Contracting Business Taxes
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…
Read MoreWhy 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…
Read MoreUnderstanding 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…
Read MoreList 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…
Read MoreA 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…
Read MoreWhat 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…
Read MoreWhat is a Forward Pricing Rate Proposal and Why is it Important?
Summary of Keypoints A Forward Pricing Rate Proposal (FPRP) is a forecast of future indirect rates: It projects overhead, G&A, fringe, and labor rates for a defined future period and is submitted to agencies like DCMA to support government contract negotiations. FPRPs are central to fair contract pricing and negotiations: They establish cost realism and…
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