If you are wondering what a Defense Contract Auditing Agency (DCAA) contract is you are not the only one. There is often confusion about what the DCAA does. The DCAA does not create contracts; the DCAA Audits government contracts to ensure that contractors are able to meet the government accounting requirements.
The DCAA ensures that the contractor’s accounting system is able to separate accounting functions like timekeeping, accounts payable, payroll and others. They also ensure that policies and procedures concerning separate accounting functions are in place. Additionally, the DCAA makes sure budget controls have been established along with interim and final contract costs are prepared. It is items such as this the DCAA address, not the creation of contracts. You will certainly become aware of the goals and procedures of the DCAA if your company is considered for a bid. Under these circumstances, the DCAA will look into your accounting system during a DCAA Accounting System Review where they do many more checks than the aforementioned items.
To get through this process consider the following two actions: hire a DCAA consultant that can get you prepared in every area to become a government contractor and using a DCAA compliant accounting system. A good DCAA consultant will be able to suggest a good DCAA compliant software program that will get you through the DCAA Accounting System Review and have program it to the proper necessities.