If you have a contracting business, you might be looking for more information about DCAA or how you can make sure you are prepared for audits and compliance standards. DCAA stands for Defenses Contract Audit Agency. Their main job is to provide audit and financial advisory services to federal agencies to make sure that companies are keeping track of their finances and that their money is always going to the right place. They will also perform audits to make sure that no illegal things are going on with the money.
In most cases, you don’t need to be concerned about the DCAA and its audits. Many people never get audited, or they just get basic routine audits that are just part of a company’s job to make sure all the proper procedures are in place for keeping track of money.
If you happen to get a cost-reimbursement type of federal contract though and you get audited, you might need to be a little concerned and you need to be sure you have professional accountants on your side to help you through the audit and legal procedures. Keep in mind that small businesses can also be audited, so make sure you have a reputable and professional accountant that does all your financial services and is ready to work with you should an audit happen.
How to Implement the DCAA Accounting System
Whether you have a DCAA contract company or not, an accountant being part of your legal and business team is always a good idea because it ensures you have the help you need when the time comes. Even for small businesses, it can be hard to keep track of spending and cash flow.
Sometimes you might experience issues with the finances if someone is careless or if you don’t have a system in place to track spending and money coming in. If you are DCAA compliant though, you are probably aware that you have to have a very specific accounting system in place to make sure all the money is being tracked.
If you have this system, all your spending and cash should already be tracked and you can simply refer back to the system to see anything you need to about the financial aspects of your company. These accounting systems also make it much easier for an accountant to see your finances and see the reason behind why there might be an audit being performed.
