The Defense Contract Audit Agency provides financial services for the Department of Defense. In particular, the DCAA performs contract audits on the proposals to the federal government. The common misconception is that the DCAA is a regulatory body that seeks to legislate the accounting software systems of government contractors. This is far from the truth. The fact is that the DCAA is providing financial services to the federal government and assist the Department of Defense in the negotiations and settlement agreements. Having DCAA compliant accounting software is more about the practices that build contracts and pricing than having to comply with governmental regulations.
In the end, DCAA is going to determine which government contractors are going to be awarded the federal project. Having the right account software for government contractors and use practices DCAA considers most effective is the best way to ensure that a bid is accepted.
Enterprise Resource Planning As DCAA Compliant Accounting Software
One of the major factors that DCAA wants to see the traceability data. DCAA compliant invoice software needs to go beyond the normal accounting, such as standard QuickBooks function, and effectively integrate ERP (Enterprise Resource Planning) system. Enterprise resource planning is a fully integrated computer software system used to assemble, manage and coordinate all the resources, information and functions in business.
Ultimately, ERP provides traceability data using the shared resources of an entire company to make all of the direct and indirect costs associated with the proposal to be transparent. This is a major stepping stone for DCAA compliant accounting software. The advantage over a typical accounting software suite is apparent when considering proposals will now better aggregate all aspects of the proposal, and not just what the auditors are seeing. For example, Microsoft Dynamics system total integration software package that makes for great accounting software for government contractors as well as enterprise resource planning.
ERP System Benefits
The benefits of an integrated enterprise resource planning software into practice even go beyond mere compliance. Create the information that the Defense Contract Audit Agency is looking for is also a great way to better understand the situation of your own company. Interconnecting front-end business the finished delivered the blessing by itself. Allow interaction between technology, people and departments greatly increases productivity, reduces waste, and eliminate mistakes due to miscommunications.
ERP systems are the centralization of resources and companywide access. Technology can create a bridge between design, production and accounting. The entire revenue cycle can be set by billing all the way to the cash receipts. Increased transparency DCAA be used as a criterion for the award will also make the company run more efficiently and generate better profits by cutting costs.
The top of the whole company provides effective enterprise resource planning system is the key to DCAA compliant software that will get contracts agreed DCAA. But providing that extra layer of transparency, the government contractors improve their own process by eliminating redundancy, waste and removing barriers between departments. Better offers from better companies are the best way for government contractors to grow their business.