Defense Contract Audit Agency (DCAA) for Small Businesses All government contractors, including small businesses, must comply with specific accounting practices. The task of validating compliance is handled by the Defense Contract Audit Agency (DCAA). The Defense Contract Audit Agency (DCAA) is responsible for providing audit services and financial advice to all Department of Defense (DoD) acquisition officials to assist them in achieving fair and reasonable Corp_Pro? is a DCAA compliant, web-based enterprise management system - hosted online with no start-up costs, installation fees or servers to maintain. Software alone is not audited for DCAA compliance or certified, nor approved as DCAA compliant. However, Unanet software has been reviewed by DCAA auditors at more than one thousand customer sites and, along with the customer policies and procedures, approved as supporting DCAA requirements. Neither the DCAA nor any other federal agency endorses software products. However, smaller companies can pass that nail-biting DCAA Accounting System Review. A key aspect of complying with government regulations is creating business systems that are compliant with the Defense Contract Audit Agency (DCAA), which performs contract audits for both the Defense Department and many other agencies. Both manual and electronic timekeeping systems are acceptable provided the key requirements are followed. The timekeeping system or procedures must be documented in a timekeeping policy or procedure provided to all employees. Conducting "mock audits" where we put on our "audit hats" and perform abbreviated audits you can expect DCAA to perform Evaluation of selected elements of systems such as internal controls, adequacy of written policies, indirect costs rates, etc. passing a DCAA audit is a good record-keeping system that is customizable to your business type and has all the features that meets the DCAA requirements. The investment in good DCAA-compliant software will There is, in fact, no such thing as a "DCAA approved" system, nor does DCAA certify your system. There are simply systems that are compliant with FAR & DCAA requirements, and compliant accounting software that is designed to pass the accounting system audit. Many timekeeping companies offer expensive and complicated packages and software that claim to be DCAA compliant, but that really only complicate the day-to-day tracking, management and reporting it takes to protect against audits in the real world. Or perhaps vendors compared the features of their product to DCAA audit guidance (see DCAA Contract Audit Manual 5-909.2) on what to look for in an electronic timekeeping system and were able to self-assess the sufficiency of their product. Or perhaps vendors compared the features of their product to DCAA audit guidance (see DCAA Contract Audit Manual 5-909.2) on what to look for in an electronic timekeeping system and were able to self-assess the sufficiency of their product. The DCAA may audit your Purchasing System. QuickBooks has a good purchasing module that can handle any purchases, not just inventory. Each approved vendor or subcontract purchase should be entered as a Purchase Order against specific contracts. The accounting department would then process vendor invoices against approved purchase orders. DCAA & DCMA Audits. The Defense Contract Audit Agency (DCAA) provides audit and financial advisory services to the Department of Defense (DOD) and other federal entities responsibl