Tag Archives: Government Contract

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Can you look at your company’s costs and tell which costs are direct or indirect? If you can’t, understanding the difference between direct and indirect costs is a critical first step in your plan to get a compliant and approved cost accounting system for Government Contracting. As I mentioned in my previous blog post “What you should know about having an ‘approved’ accounting system for government contracting”,  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 … We need to track all the costs for each individual government contract. To do this, I use a General Ledger and a Subsidiary Job Cost Ledger that I manually link to the General Ledger. I record all our company’s costs in the General Ledger and track all the costs for each individual contract … Continue reading

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