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Ensure DCAA Compliance With The Proper Accounting Software For Government Contractors
The Defense Contract Audit Agency provides financial services for the department of defense. In particular, the DCAA performs contract audits on the proposals submitted to the federal government. The common misunderstanding is that the DCAA is a regulatory body that seeks to legislate the accounting software systems of government contractors. This is far from the truth. The reality is that the DCAA is providing financial services for the federal government and assisting the Department of Defense in the negotiation and settlement of contracts. Having DCAA compliant accounting software is more about the practices used to construct contracts and pricing than having to satisfy governmental regulations.
In the end, the DCAA is going to help determine which government contractors are going to be awarded federal projects. Having the right account software for government contractors and using the practices that the DCAA considers the most valid is the best way to ensure that a good bid is accepted.
Enterprise Resource Planning As DCAA Compliant Accounting Software
One of the main aspects that the DCAA wants to see is a traceability of documentation. DCAA compliant account software needs to move beyond normal accounting functions, such as the standard QuickBooks functions, and really integrate an ERP (enterprise resource planning) system. Enterprise resource planning is a fully integrated computer software system used to pull together, manage, and coordinate all the resources, information, and functions of a business.
Ultimately, ERP provides the traceability of documentation by using shared resources from an entire company to make all of the direct and indirect costs associated with a proposal to be transparent. This is a major stepping stone for DCAA compliant accounting software. The advantage over the typical accounting software suite is apparent when considering that proposals will now better aggregate all aspects of a proposal, and not just what the accountants are seeing. For example, Microsoft Dynamics systems are a total integration software package that makes for great accounting software for government contractors in addition to enterprise resource planning.
ERP System Benefits
The benefits of integrating enterprise resource planning software into account practices even go beyond mere compliance. Generating the information that the Defense Contract Audit Agency is looking for is also an excellent way to better understand your own company's situation. Interconnecting the front-end of a business with the finished deliverable is a boon by itself. Allowing communication between technologies, people, and departments greatly enhances productivity, reduces waste, and eliminates mistakes due to miscommunications.
ERP systems are about centralization of resources and companywide accessibility. Technology can create a bridge between design, manufacturing, and accounting. The entire revenue cycle can be laid out from invoicing all the way to cash receipts. The increased transparency that the DCAA is using as a criterion for bid selection will also make a company run more efficiently and generate better profits through cost reduction.
The top-down view of an entire company provided by an effective enterprise resource planning system is the key to DCAA compliant accounting software that will get contracts accepted by the DCAA. While providing that extra layer of transparency, government contractors are improving their own process by eliminating redundancy, waste, and removing barriers between departments. Better bids from better companies are the best way for a government contractor to grow their business.
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