Managing and Accounting Issues

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As an Accounting Manager, managing tough financial and accounting issues involved daily status updates on government contractors. Government contractors are currently facing key challenges in adjusting accounting methodologies with the pressures of the increasingly strict requirements of the Accounting government agency known as Defense Contract Audit Agency (DCAA) verse requirements of the commercial market. Concerns include being ready for unannounced audits, the need for attentiveness and competence in the information leveraging to expand a powerful accounting operation, and the demand to remain at the forefront of fitting technologies and accounting personnel aptitudes.
The truth about government contracting is the fact that standards are higher than for businesses in the commercial market. Yes, the government has cleaned up field systems over recent years, to demonstrate its efficiency in protecting taxpayer dollars. As a result, contractors now need to be vigilant and meticulously demonstrate compliance of accounting systems, procedures, policies, infrastructures. Accomplishing these systems is a constantly moving goal in the environment of ever-changing, more complex, and strict federal regulatory requirements.
Accounting for government agencies can overwhelm smaller businesses. The government is stressing small business accounting departments due to the fact, they have these requirements, however, they do not have an actual program available for government contractors to utilize. The DCAA is more interested in the compliance of the overall accounting system rather than what the actual software is being used such as PROCAS, Deltek, QuickBooks, and Sage because more that one is always needed.
I have personally worked with three businesses that could not handle the pressure of the constant nitpicking and finding staff to keep up was even more difficult. It all boils down to those who show remarkable skill for adaptability to newly enforced requirements that have a huge lead over the competition. The Financial Accounting Standards Board (FASB), with which government contractors must comply, includes the Federal Acquisition Regulations (FAR), the Cost Accounting Standards (CAS), and FAR agency supplements. These are the bibles of the federal government and they call for an advanced level of financial oversight and transparency. For example, many organizations or people are not aware of the federal government restricts compensation for executives to a maximum the government considers is “reasonable\”. Compensation above the ceiling is deemed “unallowable\”, this indicates that your organization is not permitted to charge an amount exceeding the limit to the contract or to recover such amounts under the contract. That is not a good situation to be in with a government contract if you want to stay a contract for the long run.
My time in accounting in a single day I personally encounter Accountability, Responsiveness, Responsibility, and Transparency, however, so do all the other government contractors every day!

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Managing and Accounting Issues. (2020, Sep 19). Retrieved from https://samploon.com/managing-and-accounting-issues/

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