KNOWING WHAT YOU DON’T KNOW IS THE FIRST STEP TOWARDS BEING A SUCCESSFUL GOVERNMENT CONTRACTOR – ACCOUNTING SYSTEM COMPLIANCE It has happened to all of us, something you didn’t know or didn’t think about turns into a big problem and you did not see it coming.  We all know hindsight is 20/20 but today we can talk about one area where we can get ahead, Accounting System Compliance. Here is a typical scenario for small business owners.  You are working a bid and see a check box that you don’t know how you should answer: The Government is asking you to describe whether or not your accou ..read more

Indirect rate structures for government contractors are used to allocate indirect costs across various contracts or projects. Indirect costs are expenses that are not directly attributable to a specific contract or project, but are necessary to support the overall business operations of the government contractor, such as rent, utilities, and administrative expenses. The indirect rate structure is typically composed of several indirect cost pools, which are categories of indirect costs that are allocated to contracts based on a predetermined allocation base. For example, the allocation base f ..read more

Government Contractors who pay employee bonuses benefit by following a few key principles outlined in the Federal Acquisition Regulation (FAR).  FAR compliance ensures that bonuses will be allowable and included in overhead rates.  Your company overhead rate can change significantly if your company fails to follow FAR guidelines. Bonus amounts paid to employees should be compliant with FAR 31.205-6(f) Bonuses and incentive compensation: (1) Bonuses, and incentive compensation are allowable provided the— (i) Awards are paid or accrued under an agreement entered into in good faith betw ..read more

KNOWING WHAT YOU DON’T KNOW IS THE FIRST STEP TOWARDS BEING A SUCCESSFUL GOVERNMENT CONTRACTOR – ACCOUNTING SYSTEM COMPLIANCE It has happened to all of us, something you didn’t know or didn’t think about turns into a big problem and you did not see it coming.  We all know hindsight is 20/20 but today we can talk about one area where we can get ahead, Accounting System Compliance. Here is a typical scenario for small business owners.  You are working a bid and see a check box that you don’t know how you should answer: The Government is asking you to describe whether or not your accou ..read more