Have you heard that as a government contractor that your business must have an accounting system that is approved by the Defense Contract Audit
Agency (DCAA) to do business with the U.S. Department of Defense.
No such requirement exists.
The Defense Contract Audit
Agency does not certify accounting systems.
The Defense Contract Audit Agency, under the authority, direction, and control of the Under Secretary of Defense
(Comptroller), is responsible for performing all contract audits for the Department of Defense, and providing accounting and financial advisory
services regarding contracts and subcontracts to all DoD Components responsible for procurement and contract administration.
They accept accounting systems.
These services are provided in connection with negotiation, administration, and settlement of contracts and subcontracts.
For more information on government auditing see below
Richardson Branch Office-
707 East Arapaho Road Suite 220
Richardson, TX 75081-2289
Assigned zip code: 71913
your assigned DCAA Office
Phone No: (214) 655-3750
Fax No: (214) 655-3820
You can set up a DCAA compliant accounting system using QuickBooks.
Organize the company chart of accounts to segregate direct costs from
indirect costs, organize indirect costs into cost pools, and segregate
Set up the company's jobs in QuickBooks.
Set up payroll item to properly distribute labor to intermediate and
final cost objectives.
Set up service items so that categories of billable direct labor can be
Set up Indirect Cost Allocation Tool (ICAT™)so indirect rates can be calculated and indirect costs can be allocated to contracts
Conduct user group discussions so attendees can share their experiences and ideas.
DCAA Manual # 7641.90 Information for Contractors, June 26, 2012
The manual is designed to assist contractors in understanding applicable requirements and to help ease the contract audit process. It describes what contractors should expect when doing business with the U.S. Government and interacting with DCAA auditors.
The examples in this manual are presented to illustrate some of the more frequent requirements that contractors encounter when working with DCAA auditors, and in responding to the Government procurement and administrative process.
These examples are intended solely to provide better insight into the procurement process and should not be construed as uniform guides.
Nor should this manual be considered a substitute for the applicable rules and regulations, as not all requirements are contained herein.
Each contractor must tailor its responses to its individual situation.