Defense Contract Audit Agency (DCAA) Compliance is crucial for any company wanting to win government contracts. However, there is a misconception about how and what DCAA software is and how to make yours compliant.

The myth that software developers have to submit their solution to DCAA for approval before they can sell it to the public is simply not true. Software systems don’t get a gold star or appear on the DCAA ‘list of approved software systems’ because such a process or list does not exist. 

The truth is that your accounting system will be reviewed by DCAA, usually before they award you the contract, and throughout the entire engagement. During these reviews they will determine the adequacy and suitability of your accounting process for accumulating costs. These processes can be integrated and automated by your accounting system or they can be manual. What DCAA wants to see is do you have these processes in place and are they reliable? 

Having a compliant solution that sufficiently records cost, tracking, allocation, billing mechanisms and internal controls will provide DCAA auditors with a sense of confidence in the record keeping and capabilities of the contractor. As a result of their level of confidence in your records and system, it is likely that the review will be nothing more than a cursory audit. Additionally, a software provider who understands the auditing practices of the DCAA will help you create the processes you need in order to be compliant.

On the other hand, if your software solution and record keeping abilities lack consistency and neglect adequate reporting of required information, a much more thorough audit may ensue, costing your organization further time, money and stress.

The choices available on the market for ‘DCAA compliant software’ are minimal and cost exorbitant amounts of money. However, SystemLink recently announced our solution for government contractors, offering them a cost effective way to achieve DCAA compliance.

Sage Project and Job Costing, used with its core software application, Sage Accpac ERP, provides a compliant accounting backbone for every project managed. Using a compliant solution that records cost tracking, allocations, billing and manages internal controls will provide DCAA auditors confidence in the record keeping capabilities of the contractor.  That confidence can result in a smoother project from start to finish – the goal of any project. 

 “Our customers’ ability to effectively manage their business, reduce costs, and make stakeholders happy is critical,” stated David Beck, President of SystemLink.  “Ensuring DCAA Compliance plays an important role in achieving that goal so we’re pleased to bring our DCAA expertise and a suite of sophisticated, financial, operational and customer service solutions together.” 

For more information on our DCAA compliance solution, visit http://www.systemlinkonline.com/dcaa.php