Comprehensive Guide Offers Key Insights for
Navigating Cost Accounting and Regulatory Requirements.
COLUMBIA, Md., June 18,
2024 /PRNewswire/ -- PROCAS, a leading provider
of financial solutions for government contractors, today announced
the release of a new white paper: "Developing a Chart of Accounts
for Federal Contracting Compliance: Requirements and
Recommendations" written by Jim
Wesloh, Founder and President of PROCAS.
Access the white paper here.
This comprehensive guide for developing a Defense Contract Audit
Agency (DCAA) compliant chart of accounts is now available for
download and offers valuable insights into how the requirements of
the Federal Acquisition Regulation (FAR) affects the development of
a government contractor's chart of accounts. Key topics
include:
Financial Statement Presentation: Government contractor
accounting systems are required to be operated consistent with
Generally Accepted Accounting Principles (GAAP).
Direct Costs and Indirect Costs: Direct costs that are
identifiable with a specific project are segregated from indirect
costs that are not identifiable with a specific project.
Indirect Cost Pools: Indirect costs need to be accumulated in
logical cost groupings such as fringe benefits, facilities
expenses, overhead, general and administrative (G&A), bid and
proposal (B&P) internal research and development (IR&D),
material handling, and subcontract administration.
Elements of Costs: Direct costs are broken down into elements
of costs such as labor, consultants, subcontractors, materials, and
travel for proposals and invoicing as well as for the accounting
system.
Unallowable Costs: Certain costs, such as interest
expense, lobbying, and entertainment are not reimbursable on
government contracts and need to be segregated as unallowable
costs.
The white paper works through these topics in detail to develop
a complete chart of accounts that can be used by businesses engaged
in federal contracting. A sample chart of accounts is also
available for download
"In the complex and ever-changing landscape of federal
contracting, maintaining compliance while optimizing financial
performance is paramount," said Wesloh. "This white paper aims to
provide contractors with the essential knowledge and practical
tools to set up the core accounting system structure to help
navigate these challenges effectively."
About PROCAS
PROCAS has been a market leader in
project accounting for government contractors for over 25 years.
With its unparalleled expertise and innovative, customer-focused
solutions, PROCAS remains committed to helping contractors
seamlessly navigate the complexities of government contracting. To
learn more about PROCAS visit
the Web and LinkedIn.
All product and company names may be
trademarks or registered trademarks of their respective holders.
Use of them does not imply any affiliation with or endorsement by
them.
Media Contact:
Gary
Bird
FortyThree, Inc.
831.888.9011
PROCAS@43pr.com
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SOURCE PROCAS