Solvability Dcaa Compliance How Far Can You Go With Quick Books Pro

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DCAA Compliant Quick Books

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Solvability Dcaa Compliance How Far Can You Go With Quick Books Pro

  1. 1. Jenny Clark Solvability, Inc. 688 Discovery Drive Huntsville, AL 35806 www.solvability.com 256-971-2728
  2. 2. <ul><li>Timesheet Rules </li></ul><ul><li>DCAA Compliant Chart of Accounts </li></ul><ul><li>Tracking of Contract Costs & Billing – cumulative </li></ul><ul><li>Indirect Rate Calculations & Tracking </li></ul>
  3. 3. QuickBooks Excel
  4. 4. <ul><li>Follows Generally Accepted Accounting Principles (GAAP) </li></ul><ul><li>Clear and separate identification of direct and indirect costs </li></ul><ul><li>Ability to track cumulative costs by contract </li></ul><ul><li>Indirect costs applied consistently </li></ul><ul><li>Under General Ledger Control </li></ul><ul><li>Uses Timesheets to track and identify labor by employee and charge number and tied to payroll </li></ul><ul><li>Update books monthly </li></ul><ul><li>Unallowable costs not charged through to contracts </li></ul><ul><li>Track by contract line items when required </li></ul><ul><li>Production costs don’t include pre-production costs </li></ul><ul><li>Tracking of Contract Costs against Contract Value </li></ul><ul><li>Billings can be traced back to details in accounting system </li></ul><ul><li>Accounting data reliable for pricing </li></ul><ul><li>Accounting system operational or planned </li></ul>
  5. 5. <ul><li>Accounting under General Ledger Control </li></ul><ul><ul><li>Numbered Chart of Accounts </li></ul></ul><ul><ul><li>Direct and Indirect Costs separated by General Ledger account numbers </li></ul></ul><ul><ul><li>Indirect Costs in GL indicate Indirect pools </li></ul></ul><ul><ul><ul><li>Fringe </li></ul></ul></ul><ul><ul><ul><li>Overhead </li></ul></ul></ul><ul><ul><ul><li>G&A </li></ul></ul></ul><ul><ul><li>Unallowable Costs in separate GL accounts </li></ul></ul>
  6. 6. <ul><li>Using other Quick Books Features </li></ul><ul><ul><li>Time Tracking </li></ul></ul><ul><ul><li>Customers: Jobs for Contracts & Line Items </li></ul></ul><ul><ul><li>Service Items for Labor Category Billing </li></ul></ul><ul><ul><li>Item list for billing direct costs </li></ul></ul><ul><ul><li>Payroll Items used to map payroll labor costs to genera ledger account numbers </li></ul></ul><ul><ul><ul><li>Direct Labor </li></ul></ul></ul><ul><ul><ul><li>Overhead Labor </li></ul></ul></ul><ul><ul><ul><li>G&A Labor </li></ul></ul></ul><ul><ul><ul><li>Holiday, Sick, Vacation </li></ul></ul></ul>
  7. 7. <ul><li>Time by Job, Time by Name </li></ul><ul><li>Invoicing – add Time and Costs </li></ul><ul><li>Unbilled Items Listing </li></ul>
  8. 8. <ul><li>Accrual Basis versus Cash Basis </li></ul><ul><ul><li>Quick Books not really accrual basis </li></ul></ul><ul><li>Transaction Date controls reporting </li></ul><ul><ul><li>Use Enter Bills to control periods </li></ul></ul><ul><ul><li>Labor expensed using Paycheck date </li></ul></ul><ul><ul><li>Revenue is based on Invoice Date </li></ul></ul><ul><ul><li>Special entries required to force accrual basis </li></ul></ul><ul><li>Set Controls over change of data </li></ul><ul><ul><li>Setting closing dates each period </li></ul></ul><ul><ul><li>Limit access & ability to edit </li></ul></ul><ul><ul><li>Archive backup copy monthly </li></ul></ul>
  9. 9. <ul><li>Spreadsheet Sprawl </li></ul><ul><ul><li>Separate reporting systems built around Quick Book </li></ul></ul><ul><li>Setting up Controls </li></ul><ul><ul><li>Changes in Excel need to be changed in Quick Books </li></ul></ul><ul><ul><li>Don’t add items to bills and put in QB later </li></ul></ul><ul><li>If you have Cost Plus Contracts </li></ul><ul><ul><li>Computing indirect rates and tracking rate variances </li></ul></ul><ul><ul><li>Will you have the detail for Incurred Cost? </li></ul></ul>
  10. 10. <ul><li>So easy that anyone can do it </li></ul><ul><ul><li>Non-accountants running system </li></ul></ul><ul><ul><li>Don’t understand that reporting not reliable enough </li></ul></ul><ul><ul><li>Reporting system built around Quick Books </li></ul></ul><ul><ul><li>Process less defined </li></ul></ul><ul><ul><li>Corrections may not be reflected in Quick Books </li></ul></ul>
  11. 11. <ul><li>Loading Quick Books “Industry Standard” Chart of Accounts </li></ul><ul><li>Unallowables not separated – Meals & Entertainment </li></ul><ul><li>Misunderstanding of direct costs, capital expenses </li></ul><ul><li>Not set up to capture labor details so difficult to trace billing back to source in GL </li></ul><ul><li>Cannot see Profitability by job </li></ul>
  12. 12. <ul><li>DCAA Compliance Accounting Systems Plans and Assessments </li></ul><ul><li>Accounting Software </li></ul><ul><ul><li>Implementation </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Support </li></ul></ul><ul><li>Deltek GCS Premier </li></ul><ul><li>Quick Books customized for DCAA Compliance </li></ul>

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