Tag Archives: government audit

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Do you wonder about what is necessary for a small business to have an accounting system suitable for government work? We were faced with that question when we needed to set up our accounting system to allow us to work on government contracts. I had a head start because I had been a Government auditor for 10 years, but I faced new challenges when I had to set up my own accounting system versus working with accounting systems that were already in place. I want to share what I have learned and give you some resources for learning more about accounting for government contracts. First of all, the basics…a compliant government cost accounting system must: • Track all costs for any individual government contract • Accumulate actual direct costs by labor category and job/task • Accumulate actual indirect costs and allocate these costs using provisional, budgeted, or actual burden rates • … Continue reading

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