Government contracts come with a different set of rules. We set up compliant accounting systems from the start so you're ready when the auditors show up.
If you're working on a federal, state, or local government contract, your accounting needs to do things that regular bookkeeping doesn't cover. This is what we handle for our GovCon clients.
We work with government contractors across the Dallas-Fort Worth area and the rest of the U.S. This service is built for businesses dealing with situations like these.
You need a compliant system before you can start billing. We build it right from day one so nothing comes back to bite you later.
A DCAA audit is coming and you're not confident your books are ready. We've been on the auditor side. We know what they look for.
You're not sure how to calculate your fringe, overhead, or G&A rates. Or they were set up once and nobody's looked at them since. We can sort it out.
Multiple contracts running, timekeeping requirements to meet, and cost allowability questions coming up regularly. You need someone who gets this world.
Texas has one of the largest concentrations of government contractors in the country. In the DFW metro alone, thousands of businesses work on federal, state, and local contracts. The compliance requirements are the same whether you're a one-person shop or a 50-person team.
The problem is that most accountants haven't dealt with DCAA. They know debits and credits, but they don't know the difference between an allowable and unallowable cost. They don't know how to structure indirect rates or what an incurred cost submission looks like.
That gap is where businesses get into trouble. A system that works fine for a regular business can fail a DCAA audit. And once that happens, costs get questioned, reimbursements get delayed, and future contract eligibility can be affected.
We set things up correctly from the start so none of that happens. Lubna's background includes contracting with the Colorado Office of the State Auditor, so she's seen the process from the other side of the table.
1. Compliance assessment. We look at your current setup and compare it against DCAA and FAR requirements. If you don't have a system yet, we start from zero.
2. System build or remediation. We configure your accounting in QuickBooks Online with proper cost pools, job tracking, indirect rate structures, and timekeeping. Everything gets documented.
3. Ongoing compliance support. We monitor your indirect rates, review cost allocations, help with timekeeping questions, and keep your books audit-ready month to month.
DCAA stands for Defense Contract Audit Agency. They audit government contractors to make sure costs are tracked and reported properly. Being "DCAA compliant" basically means your books are set up the way they expect: how you track costs, how you do timekeeping, how your indirect rates are structured. If you have a federal contract, this applies to you.
Yes. It's not the software that matters, it's how it's configured. When the chart of accounts, classes, projects, and cost tracking are set up the right way, QBO works fine. You don't need to buy expensive government accounting software to get started.
Think of it this way: you have costs that go directly to a contract (labor, materials) and costs that support everything but don't belong to any one contract (rent, admin, insurance). Indirect rates are how you spread those shared costs across your contracts fairly. There are usually three buckets: fringe, overhead, and G&A. Getting these wrong is one of the most common audit findings we see.
The government has rules about what you can and can't charge to a contract. Things like office rent, employee salaries, and work-related travel are usually fine. Things like happy hours, lobbying, and fines are not. Your accounting system has to separate these automatically so the wrong costs don't end up on a contract. If they do, that's where audits go sideways.
Honestly, the best way is to not have to "get ready." If your system is built right from the start, you're always audit-ready. But if you're playing catch-up: make sure your timekeeping is solid, your indirect rates are documented, your costs are properly split between direct and indirect, and your books are reconciled. If any of that sounds unfamiliar, that's what we help with.
Not always to the same degree, but a lot of state and local contracts follow similar rules. And even when they don't strictly require DCAA compliance, having a properly structured system means you're covered if you ever bid on federal work later. Better to build it right once than redo it.
We've been on the auditor side. Let us take a look at what you have.
Book an Intro CallWe'll tell you where the gaps are.
Dallas-Fort Worth, Texas and surrounding communities.
Also serving clients virtually across the U.S.
© 2026 FC-IT. All rights reserved.