Job Cost Tracking HR & Payroll Billings & Accounts Receivable
Valuable Elements Dashboard / Key Performance Indicators Budget / Resource Management
Time Management Written Policies & Procedures
Segregate direct from indirect costs
Costs directly associated with performing the contract
If you didn’t have the contract, would you still incur the cost?
Subcontractors/consultants Materials Travel,
Doesn’t matter if its billable or not
Allows for the recovery of the cost of operations not associated with a
Based on simple math
No two companies are the same.
Types of Indirect Costs Fringe Overhead – Company Site
Overhead – Client Site G & A Subcontractor/Material Handling
Segregate & accumulate costs by contract Logical & consistent allocation of indirect expenses
Accumulation of costs under general ledger control Timekeeping system that identifies labor hours and labor cost
Labor distribution system that charges direct & indirect labor to what was
worked on Monthly determination of costs charged to contract through routine postings
Identification & exclusion of unallowable expenses Identification of costs by contract line item or task
Segregation of pre - production costs from production costs (or pre-contract
Types of Expenses
Direct Indirect Fringe Overhead G & A
What happens if you don’t have an Acceptable Accounting System?
Award(s) can / will be delayed You will be subjected to additional audits
Audit frequency will be increased (higher risk category) Additional reporting burdens may be required
Payments can be delayed Award can be canceled / terminated Contract can be terminated during performance
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