Step 1: Chart of Accounts (preview)

FREE DOWNLOAD:

Quickbooks version of the Govcon Chart of Accounts

Excel version of the Govcon Chart of Accounts

MEETS THE FOLLOWING DCAA REQUIREMENTS:

  • Proper segregation of direct costs from indirect costs
  • Accounting system is in accordance with GAAP
  • Accumulation of costs under general ledger control
  • Exclusion from costs not allowable under FAR 31

SYNOPSIS:

The chart of accounts is the foundation on which you will build your DCAA compliant accounting system.  Like building a house on a weak foundation, your accounting system will not stand up to a DCAA audit without a strong chart of accounts.

The chart of accounts is simply a list of general ledger accounts, grouped by their function within the accounting system.  Each general ledger account will hold individual transactions based on the type of account.  Govcon Accountants has developed a standard chart of accounts that will pass DCAA audits and is designed for use with Quickbooks.  Our chart of accounts will allow for easy computation of your indirect rates with a simple excel template.

The chart of accounts is a listing of general ledger accounts organized by account type.  In a typical chart of accounts, you will find a balance sheet section with assets and liabilities, an equity section, and an expense section.  The chart of accounts utilized in government contracting has some similarities to the typical chart of accounts utilized by commercial enterprises, and the balance sheet and equity sections are nearly the same, but the similarity ends there.

The expense section is very different in government contracting when compared to the expense section of a commercial enterprise.  In the expense section of a government contractor’s chart of accounts, you will find that the expense accounts are further divided into standard subsets such as direct costs, fringe benefits, overhead, facilities, general and administrative (G&A), and unallowable expenses.  These subsets are utilized to represent cost of sales, intermediate and final indirect expense pools, allocation bases, and expenses segregated from the government contracting business.  These subsets are standard to the industry of government contracting and are universally recognized by industry accountants and DCAA auditors alike.

Variations and customization is permitted, as long as the chart of accounts meets DCAA requirements.  Before implementing a significant variation from our standard chart of accounts, you may want to consult with an expert before your DCAA system audit.

How to import the Govcon Chart of Accounts

Step 1: Download the Quickbooks version of the Govcon Chart of Accounts.

  • Compatible with the 2014 or later version of Quickbooks (either Pro, Premier or Enterprise).
  • Upgrade to 2014 or later, if necessary.  We only support the two most recent versions of Quickbooks.
  • Not compatible with Quickbooks Online.
  • Review the excel version first, before importing the Quickbooks version (download here).
  • After reviewing the excel version, download the Quickbooks version (download here).
  • Potential import errors: If your existing account numbers match any of the same account numbers being imported, you'll need to remove those account number in your existing file first.  Otherwise, the import may crash.  Check both active and inactive accounts.

Step 2: Make a backup copy of your Quickbooks file

  • Before importing the chart of accounts, back up your Quickbooks file.
  • Navigate on the top drop-down menu to File/Backup Company.

Step 3: Import the Govcon Chart of Accounts

  • Navigate on the top drop-down menu to . . .

(To continue reading the full article, click here . . .) 

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