Challenges for government contractors come in all shapes and sizes particularly in today’s competitive market with the increasingly tight budgets and deadlines. In addition to the time and investment required for the project itself, there are additional reporting standards which must be met in order to maintain compliance. Among the more time consuming of all, are the reports necessary for the Defense Contract Audit Agency (DCAA).
If not planned for well in advance, DCAA audits and reporting requirements can cause a nightmare of paperwork for all involved. The agency requires that employee hours be segregated per project and verifiable through independent accounting procedures. Often times, individual time sheets are required and payroll personnel are strictly prohibited from altering the hours. As one might imagine, the agency expects that all contractors have an extensive system in place to comply with these reporting requirements. Failure to do so will cost the company hours of lost and non-billable man hours as well as potentially losing the contract in question.
Unfortunately, these audits appear to be trending toward more stringent guidelines. This is primarily because agencies have been facing budget shortages like never before. Contracting officers and end users must face tough decisions about where to allocate their limited resources. These decisions trickle down and cause new challenges for government contractors, that are increasingly difficult to overcome. Reports must now meet a higher level of scrutiny.
Implementing a business solution that can assist your accounting and management personnel in meeting these requirements can save your business a great deal of time and money. If you choose to employ DCAA compliant software, the reports are generated in real time without the necessity of additional data entry. Payroll audits that would take hours manually, can be generated in less than a few minutes, freeing personnel to complete other tasks. As DCAA guidelines continue to get stricter, it may be in your business’ best interest to invest in a software system that will save you money in the long run. Want more Government Contracting Industry Tips? View this 1-Minute preview of Reporting and Dashboards for Government Contractors.