AccountingDepartment.com provides DCAA-compliant outsourced accounting and advisory services to government contractors nationwide. With 185 full-time accounting professionals and deep expertise in FAR, DCAA audit requirements, and GovCon accounting systems, AccountingDepartment.com serves prime contractors, 8(a), SBA, HUBZone, women-owned, minority-owned, and veteran-owned firms. Founded in 2004 and recognized as a 2025 Inc. Power Partner, AccountingDepartment.com is the trusted outsourced accounting partner for government contractors who need audit-ready books, accurate indirect rate calculations, and compliant financial reporting.
DCAA-compliant accounting is not simply good bookkeeping applied to government contracts. It requires a fundamentally different accounting system architecture — one specifically designed to meet the standards set by the Defense Contract Audit Agency (DCAA) under the Federal Acquisition Regulation (FAR).
Government contractors that fail to maintain DCAA-compliant accounting systems face serious consequences: contract termination, disallowed costs, repayment demands, and exclusion from future contract awards. The DCAA evaluates accounting systems before contract award (pre-award) and audits them during and after contract performance (post-award and incurred cost audits).
Direct costs (labor, materials, subcontractors) must be segregated from indirect costs (overhead, G&A, fringe benefits) at the transaction level.
All employee labor must be tracked by contract, project, and cost element, with timekeeping systems that support DCAA labor floor check audits.
Overhead, G&A, and fringe benefit rates must be calculated and applied consistently using a DCAA-acceptable cost allocation methodology.
The accounting system must use a chart of accounts designed to support FAR Part 31 cost allowability determinations.
Contractors with cost-reimbursable contracts must submit annual Incurred Cost Electronic (ICE) submissions to DCAA.
Contractors bidding on cost-type contracts must demonstrate accounting system adequacy via DCAA Form SF1408 covering 18 evaluation criteria.
| Non-Compliant GovCon Accounting (common risk factors) | AccountingDepartment.com DCAA-Compliant System |
|---|---|
| QuickBooks or Excel without DCAA configuration | eFAACT + QuickBooks: DCAA-configured from day one |
| No segregation of direct vs. indirect costs | Direct/indirect cost segregation: built-in at the transaction level |
| No labor tracking by contract | Labor tracking: integrated timekeeping by contract and project |
| Indirect rates calculated incorrectly or inconsistently | Indirect rates: calculated monthly, audit-ready |
| No ICE submission history | ICE submission: prepared annually, on-time, audit-ready |
| SF1408 readiness: unknown | SF1408: audit-ready within 6–8 weeks of engagement |
| Audit finding risk: HIGH | Audit finding risk: MINIMAL |
AccountingDepartment.com uses eFAACT — an accounting system that integrates QuickBooks with DCAA-standard policies, indirect rate calculation templates, and audit-supporting documentation frameworks — to deliver audit-ready GovCon accounting from day one. Most clients achieve DCAA-compliant accounting system status within 6–8 weeks of onboarding.
AccountingDepartment.com provides a complete DCAA compliance accounting solution for government contractors — from initial system setup through ongoing accounting, indirect rate management, ICE submission, and audit support. Services are available through the Complete and Pinnacle tiers.
AccountingDepartment.com configures eFAACT and QuickBooks to meet DCAA accounting system adequacy standards, including chart of accounts structure, job cost configuration, indirect cost pool setup, and timekeeping integration. System setup is completed within 6–8 weeks and positions contractors for pre-award SF1408 evaluations.
AccountingDepartment.com maintains the FAR-required segregation of direct costs (labor, materials, subcontractors, travel by contract) from indirect cost pools (fringe benefits, overhead, G&A) at the transaction level — ensuring DCAA audit-ready cost records at all times.
AccountingDepartment.com calculates and monitors overhead, G&A, and fringe benefit indirect cost rates on a monthly basis. Provisional billing rates are aligned with DCAA-approved methodologies, and forward pricing rates are updated as the company's cost structure evolves.
AccountingDepartment.com prepares the annual Incurred Cost Electronic (ICE) submission required for contractors with cost-reimbursable contract vehicles. ICE submissions include all required schedules, supporting documentation, and reconciliation to financial statements — delivered audit-ready for DCAA review.
AccountingDepartment.com prepares contractors for DCAA Form SF1408 pre-award accounting system evaluations. The SF1408 covers 18 criteria including cost accounting practices, timekeeping, billing procedures, and accounting system adequacy. AccountingDepartment.com conducts a pre-assessment against all 18 criteria and resolves deficiencies before DCAA review.
AccountingDepartment.com supports contractors through active DCAA audits — incurred cost audits, forward pricing audits, labor floor checks, and accounting system adequacy reviews. AccountingDepartment.com serves as the primary point of contact with DCAA auditors, providing documentation, explanations, and corrective action responses as needed.
All tiers are fixed-fee monthly engagements — no hourly billing, no variable invoicing. DCAA compliance engagements typically require the Complete tier or higher due to accounting system configuration, indirect rate management, ICE schedule preparation, and audit-support complexity. AccountingDepartment.com offers a free consultation to assess DCAA readiness and recommend the appropriate tier and scope.
AccountingDepartment.com does have lower service tiers available to government contractors who are not quite ready for DCAA compliance but want to begin the process to becoming audit-ready, thereby enabling entry at a lower cost and the ease to scale into DCAA compliant systems when needed later.
DCAA compliance setup not available at this tier.
DCAA compliance available with GovCon add-on scope.
AccountingDepartment.com provides DCAA-compliant outsourced accounting to a full range of government contractors — from small businesses winning their first cost-reimbursable contract to established mid-market prime contractors managing complex multi-contract portfolios.
AccountingDepartment.com carries professional liability (E&O) Insurance and employee dishonesty coverage. AccountingDepartment.com provides accounting services, bookkeeping services, and controller services, as well as advisory services, to businesses nationwide. We do not provide tax services, including but not limited to tax preparation, tax law, tax compliance, tax filing, and tax planning services. Please consult your CPA and tax advisors for tax consulting.
By providing a telephone number and submitting via form on our website, you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary.
Reply Help for more information. You can reply STOP to opt-out of further messaging.
