In this three-part series, Jenny Clark (Solvability) discusses the requirements for a DCAA-compliant accounting system, starting with the form SF1408 Pre-Award Survey. You will learn what it takes to become DCAA-compliant and how to pass a DCAA Pre-Award Survey SF-1408.
Specifically, Part 1 covers:
- The elements of a DCAA-compliant timesheet and labor distribution system.
- Cost accounting requirements based on accrual methods.
- Direct, indirect, and unallowable costs.
- Contract types and billing requirements.
In Part 2, we focus on your direct and indirect costs and what goes into Fringe, Overhead, and G&A expenses. You will also learn how your indirect rates used for bidding are calculated based on your actual income statement.
Specifically, Part 2 covers:
- How your costs affect your pricing.
- Pricing strategies to scale your business and compete at a higher level.
- Multiplier and wrap rate strategies based on your company performance and forecast.
In Part 3, you will learn how to set up these elements in the QuickBooks Pro desktop. (QuickBooks ONLINE is NOT an acceptable alternative.)
You will learn about all the hidden settings and specific practices to make QuickBooks Pro desktop work for you as a federal contractor. We’ll show you how to structure your Chart of Accounts for direct costs, Fringe, Overhead, G&A, and unallowable expenses. We’ll also show you how to set up your customers, including job settings to report by contract and best practices for processing employee and vendor transactions so that you can easily create billings and calculate indirect rates from your Profit and Loss.
Specifically, Part 3 covers the following:
- Settings you need in QuickBooks Pro to pass a DCAA PreAward Survey SF1408.
- Best practices for integrating timesheets, payroll, and billing.
- Tracking and forecasting your indirect rates for Fringe, Overhead, and G&A expenses using your correctly structured QuickBooks Pro Profit and Loss.
Target Audience: Small business owners in federal contracting focused on providing staffing services billed by labor categories and hours reporting. Accounting personnel responsible for processing timesheets, payroll, accounts payable, and producing billing and reporting for federal contractors.