GOVERNMENT CONRACT ACCOUNTING | Riverside, San Diego & Nationwide

Government Contract Accounting & DCAA Compliance

Department of Defense contractors must comply with strict financial and regulatory requirements overseen by the Defense Contract Audit Agency (DCAA). These requirements include adherence to the Federal Acquisition Regulation (FAR), Defense Federal Acquisition Regulation Supplement (DFARS), Cost Accounting Standards (CAS), Generally Accepted Accounting Principles (GAAP), and other federal guidelines. Contractors may undergo various reviews such as accounting system evaluations, cost and pricing proposals, indirect rate submissions, and incurred cost audits.

At ABUAN CPA CORP., we help small service‑based government contractors stay organized, compliant, and audit‑ready. Our services include:

Setting up government contract accounting systems
Small‑business bookkeeping tailored to federal contract requirements
Budgeting and forecasting revenue, costs, and indirect rates
Fractional CFO/Controller support
Preparing and submitting Incurred Cost Proposals (ICE)
Assistance with indirect rate structures and cost allocation

We support government contractors in Riverside County—including Temecula, Murrieta, Moreno Valley, Corona, Perris, Hemet, and Menifee—and San Diego County areas such as San Diego, Chula Vista, Escondido, Oceanside, and Carlsbad. We also provide nationwide virtual support for small businesses working with federal agencies.

Contact us today to discuss your government contract accounting needs and ensure your systems are aligned with federal requirements.

Government Contract Accounting System Setup

Need professional assistance setting up a government contract accounting system that aligns with FAR and DFARS requirements? We provide support tailored for small service‑based government contractors, including:

Setting up a government contract accounting system and drafting supporting policies and procedures
Designing a Chart of Accounts that properly segregates direct, indirect, and unallowable costs
Integrating timekeeping, payroll, and billing systems, along with related policies and procedures
Developing indirect cost pools aligned with federal cost principles
Preparing for the Pre‑Award Survey (Standard Form 1408)

Our goal is to help small contractors establish clear, compliant accounting structures that support federal contracting requirements.

Specialized Bookkeeping for Federal Contractors

Need professional assistance to perform specialized bookkeeping? Save money and time from hiring a whole accounting department. We offer services to:

record every direct expense to final cost objectives (contracts or projects)
record every indirect expense to the indirect cost pools and segregate allowable and unallowable costs per FAR 31.
ensure that labor hours are recorded daily and distributed to appropriate projects or indirect cost pools.
monitor indirect rates monthly to ensure that contractor is recovering appropriate indirect costs
manage complex invoicing through Wide Area Workflow (WAWF)

Forecast and
Budget

Need professional assistance with your forecasting and budgeting? With proper forecasting and budgeting, we offer services in preparing forecast and budget to:

prevent underbidding: without a forecast, you risk underestimating your cost which lead to losses
maintain competitiveness: forecast ensures all costs are covered and prevent high proposed rates that prices you out of solicitation
negotiate "provisional billing rates" and "forward pricing rates" based on forecast.
avoid shortfalls: identify cash flow gaps to plan for financing or operational adjustments
manage growth: ensure your company has the financial resources to take on larger or more complex contracts.

Let us assist you in forecasting and budgeting.

Incurred Cost Proposal Preparation

Extracting data from the accounting system and importing them into the Incurred Cost Electronic model can be daunting, and ensuring that the calculations are accurate can be overwhelming. DCAA will return your incurred cost proposal if they determined it to have significant deficiencies during its adequacy review and may be flagged as high risk for audit. Also delay in submitting your incurred cost proposal by June 30 following the end of the calendar year or 6 months after the end of your fiscal year could result in applying "decrement factors" that could to less than what you anticipate to bill the government. Let our professional team prepare accurate incurred cost proposal in a timely manner.

Fractional CFO/Controller Support

Do you already have a bookkeeper but need a high-level oversight? We offers fractional or outsourced CFO/Controller services to:

perform monthly compliance checks,
reconcile job cost ledger to the general ledger,
prepare accounting books and records for audit readiness for pre-award surveys, post-award accounting system audit, or incurred cost audits performed by Defense Contract Audit Agency (DCAA)
analyze financial statements
calculate provisional billing rates and indirect rates for forward pricing cost proposals (cost-type, fixed-type, Time & Material (T&M) contracts)