Companies providing services to Department of Defense agencies need to comply with Defense Contract Audit Agency (DCAA) standards for management policies, financial systems, accounting reliability, cost reasonableness and more. DCAA-compliant accounting is critical, but many organizations struggle with staying on top of the requirements—and they risk failing a DCAA audit.
The DCAA calls for detailed labor and cost center tracking with precise and extensive reporting, complete with audit trails for all changes, specific supervisor approvals, the list goes on. Putting the systems, procedures and internal controls in place to ensure an audit-friendly environment is a massive undertaking. But with the right tools, it doesn’t need to be stressful. Here are the keys to implementing a solution that ensures your business is DCAA audit-ready:
When you think about manual processes, do the words time-consuming, error-prone and cumbersome come to mind? None of these will push you toward DCAA compliance. Yet, if you automate the process of capturing and reporting contract-specific data—and are able to easily provide critical supporting documentation for DCAA audits—you’ll be several steps ahead. The types of calculations that are currently taking up valuable time can easily be inputted into intuitive expense and timesheet programs. A streamlined workday means means less tedious work for payroll administrators and more time to concentrate on strategic projects.
A specialized technology solution is only as good as it’s capability. Yours needs to be customized for the way you work—and to fit seamlessly with your existing accounting or ERP systems. What programs or system modules do you use? What does your expense and time-off approval processes look like today? Do your employees and contract workers stay productive on mobile devices? At the end of the day, your team (not to mention your workers who interface with your technology) needs to focus on what they do best. And that doesn’t include managing backend IT issues. The most successful expense report and time-tracking tools will be configured for the perfect fit—even offer you added features you only dreamed of, like mobile accessibility.
There’s no way around it: your solution needs to employ a variety of security technologies and procedures to protect your information from unauthorized access, use, or disclosure. You need to know that your data is always backed-up, available and accessible both from the web and mobile devices. And when you use a cloud-based solution, your information is safe—and there when you need it.
What it Means to You & Your Team
If manual processes are slowing down your day-to-day organizational accounting activities, they’re making it even more difficult to manage DCAA compliance. DCAA-compliant expense report and time tracking solutions like those provided by Nexonia make it easy and convenient to manage timesheets online. You'll be able track billable hours by project or customer, log vacation time off and sick days, and calculate time for payroll. And the best part? Your business expenses and time sheets are audit-friendly.Learn more from an experienced Product Education Specialist