Federal contractors have tough jobs. Not only are they putting their time, effort, and talents into critical projects for the government, but they’re also working to comply with DCAA (Defense Contract Audit Agency) requirements.
Six tips to ensure DCAA compliance for federal contractors:
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DCAA Compliance can actually save you money. The DCAA is responsible for checking out activities that affect the costs of government contracts, but they’re also looking for ways to help contractors save money or avoid costs through operations audits.
However, keeping track of all of that information for the system to spot savings can be challenging. One solution for easy information management is having software with audit, which automatically comes with policy compliance.
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The DCAA has very specific requirements for reporting travel and entertainment expenses. Whether it’s in-flight Wi-Fi or vehicle mileage, you need an accounting system that will reduce your risk of violating any part of the complicated DCAA Manual.The DCAA evaluates whether your accounting system properly manages specific costs for travel and entertainment. The system needs to automatically have this in place for meeting these regulations.
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Your timekeeping systems are essential to the DCAA. Because you don’t have a receipt for your labor charges, the most important part of any time keeping system is you! Federal contractors have the burden of responsibility when it comes to reporting accurate time. It’s so important that if time is inaccurately reported, criminal charges can be filed against those who submit timesheets with false information or even against supervisors who approve timesheets with knowledge of false information.
This means that you have to be diligent not only in filing timesheets daily for accuracy, but also in maintaining clear and precise systems for filing those timesheets. Having a quick and easy time keeping solution for any federal contractors who need a reliable, DCAA-compliant system to avoid accidents with timekeeping.
Related Article:Why Government Contractors Need Mobile Time & Expense
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The DCAA can visit you, just to “check in.” It’s strange to consider, but the DCAA has auditors responsible for performing random in-person observations to ensure that information previously filed is correct. These are called “labor floor checks” or “interviews.”
Auditors might be looking to make sure that workers are performing the jobs they were assigned and that workers are in the right place at the right time. Employees can be asked about timekeeping practices and about whether their company has provided clear written information about how to submit a time card.
This is another reason why having an easy-to-understand, clear timekeeping system (like DATABASICS Time, which can create reports specifically for floor checks) is essential so that all employees can pass this audit. Failing this floor check audit can mean not only delays in current contract work, but also losing future contracts.
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You might be pre-approved! You might hear that often when it comes to a random credit card solicitation in the mail, but in the case of Pre-Award Surveys, it might be true.
These surveys are evaluations of a contractor’s pre-existing systems before a contract is awarded to determine whether the contractor is prepared to complete a particular contract. This survey might concern quality assurance or technical work, but it can also take into consideration the contractor’s accounting system. The accounting system is of “paramount importance,” according to the most recent version of the DCAA Manual.
One catch in this survey is that the government requires a specific accounting system in place and a contractor might not want to make the switch to a new system unless they are granted a contract. The good thing about a time time keeping system built for federal contractors is that this solution can fulfill government accounting requirements just by switching DCAA to “on” for the business units that need it.
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Your future work can depend on having a reliable accounting system. Proposals submitted for government contract are required to be DCAA compliant because the DCAA may request certain data related to the proposal. This can be data about labor schedules and overhead rates, as well as the accounting system behind the way in which these schedules and labor rates were ascertained.Having this information at hand when requested can mean the difference between gaining or losing a contract. An expense reporting system with audit is just the solution for managing data to support your proposal projects.
CONCLUSION:
Having this information at hand when requested can mean the difference between gaining or losing a contract. The DATABASICS Expense Report Audit is just the solution for managing data to support your proposal projects.
DATABASICS helps federal contractors navigate through these complex regulations with a robust solution specifically developed for the federal government and state agencies.
For more information, contact us or call (800) 599-0434.
DATABASICS provides cloud-based, next generation Expense Reporting, P-Card Management, Timesheet & Leave Management Management, and Invoice Processing automation. Specializing in meeting the most rigorous requirements, DATABASICS offers the highest level of service to its customers around the world.
DATABASICS is relied upon by leading organizations representing all the major sectors of the global economy: financial services, healthcare, manufacturing, research, retail, engineering, non-profits/NGOs, technology, federal contractors, and other sectors.
Connect with DATABASICS: LinkedIn, Twitter, and YouTube. DATABASICS is headquartered in Reston, VA.
