--- title: What is required for a DCAA Acceptable Accounting System? description: The long-standing myth of an official, Government-authorized list of DCAA-approved accounting software packages just doesn't seem to want to go away. Learn about the requirements that make an accounting system 'accepted' by DCAA. image: https://sql.sympaq.com/hubfs/349.jpg --- [Contact: 800-437-8151](tel:18004378151) [Help Desk](https://aldebaron.assist.com/portal) [![DCAA Compliant Accounting System | SYMPAQ](https://sql.sympaq.com/hubfs/crop-trans-logo.png "Government Contract Cost Accounting")Project Cost Accounting Software for Government Contractors](https://www.sympaq.com/) - [PRODUCTS](https://www.sympaq.com/) - [SYMPAQ Accounting](https://www.sympaq.com/sympaq-sql/) - [SYMPAQ Time & Expense](https://www.sympaq.com/sympaq-etx/) - [SYMPAQ DEMOS](https://www.sympaq.com/demos/) - [PRICING](https://www.sympaq.com/sympaq-pricing/) - [SERVICES](https://www.sympaq.com/services/) - [AUDITS](https://www.sympaq.com/dcaa-audits/) - [DCAA Audits](https://www.sympaq.com/dcaa-audits/) - [Single Audits](https://www.sympaq.com/a-133-audits/) - [RESOURCES](https://www.sympaq.com/#) - [Events / Webinars](https://www.sympaq.com/events-schedule/) - [SYMPAQ Demos](https://www.sympaq.com/demos/) - [Useful Links](https://www.sympaq.com/useful-links/) - [BLOG](https://sql.sympaq.com/blog) [![REQUEST DEMO](https://no-cache.hubspot.com/cta/default/2695973/fa292e59-f01d-4acf-b907-53fc989efa07.png)](https://cta-redirect.hubspot.com/cta/redirect/2695973/fa292e59-f01d-4acf-b907-53fc989efa07) [![DCAA Compliant Accounting System | SYMPAQ](https://sql.sympaq.com/hubfs/crop-trans-logo.png "Government Contract Cost Accounting")Project Cost Accounting Software for Government Contractors](https://www.sympaq.com/) - [PRODUCTS](https://www.sympaq.com/) - [SYMPAQ Accounting](https://www.sympaq.com/sympaq-sql/) - [SYMPAQ Time & Expense](https://www.sympaq.com/sympaq-etx/) - [SYMPAQ DEMOS](https://www.sympaq.com/demos/) - [PRICING](https://www.sympaq.com/sympaq-pricing/) - [SERVICES](https://www.sympaq.com/services/) - [AUDITS](https://www.sympaq.com/dcaa-audits/) - [DCAA Audits](https://www.sympaq.com/dcaa-audits/) - [Single Audits](https://www.sympaq.com/a-133-audits/) - [RESOURCES](https://www.sympaq.com/#) - [Events / Webinars](https://www.sympaq.com/events-schedule/) - [SYMPAQ Demos](https://www.sympaq.com/demos/) - [Useful Links](https://www.sympaq.com/useful-links/) - [BLOG](https://sql.sympaq.com/blog) [![REQUEST DEMO](https://no-cache.hubspot.com/cta/default/2695973/fa292e59-f01d-4acf-b907-53fc989efa07.png)](https://cta-redirect.hubspot.com/cta/redirect/2695973/fa292e59-f01d-4acf-b907-53fc989efa07) [![DCAA Compliant Accounting System | SYMPAQ](https://sql.sympaq.com/hubfs/crop-trans-logo.png "Government Contract Cost Accounting")Project Cost Accounting Software for Government Contractors](https://www.sympaq.com/) menu close close - PRODUCTS - [SYMPAQ Accounting](https://www.sympaq.com/sympaq-sql/) - [SYMPAQ Time & Expense](https://www.sympaq.com/sympaq-etx/) - [SYMPAQ DEMOS](https://www.sympaq.com/demos/) - [PRICING](https://www.sympaq.com/sympaq-pricing/) - [SERVICES](https://www.sympaq.com/services/) - RESOURCES - [Events / Webinars](https://www.sympaq.com/events-schedule/) - [Useful Links](https://www.sympaq.com/useful-links/) - [BLOG](https://sql.sympaq.com/blog) ## Blog ### Subscribe to our Blog # What is required for a DCAA Acceptable Accounting System? [Accounting Software](https://sql.sympaq.com/blog/topic/accounting-software), [Business Tips](https://sql.sympaq.com/blog/topic/business-tips), [DCAA](https://sql.sympaq.com/blog/topic/dcaa) 10/23/2020 [G. Chris Brown](https://sql.sympaq.com/blog/author/cbrown) ![349](https://sql.sympaq.com/hs-fs/hubfs/349.jpg?width=246&name=349.jpg)The long-standing myth of an official, Government authorized list of commercial-off-the-shelf accounting software packages that have been reviewed and "approved" by the DCAA just doesn't seem to want to go away. This is a cringe-worthy question I have been asked way too frequently over the years with regard to SYMPAQ. That said, there is indeed such a thing as an "acceptable" accounting system that results from the positive outcome of an independent review of a contractor's business systems. According to [DFARS 252.242.7006](https://www.law.cornell.edu/cfr/text/48/252.242-7006), Accounting System Administration, "An acceptable accounting system means a system that complies with the system criteria to provide reasonable assurance that:" 1. applicable laws and regulations are complied with, 2. the accounting system and cost data are reliable, 3. risk misallocations and mischarges are minimized, and 4. contract allocations and charges are consistent with billing procedures. There is much more to the acceptance equation than just your software or related information technology. [Internal controls](https://sql.sympaq.com/blog/your-internal-controls-speed-bumps-guardrails-and-stop-signs) along with written policies and procedures must be in good order and demonstrable to get past the scrutiny of an auditor. Acceptance of your accounting system starts with you being prepared, and what better way to prepare than to educate yourself about what you can expect before the audit takes place by becoming familiar with auditor guidelines? ### **Achieving acceptance by conducting a demo of your accounting system** In December 2019, the DCAA published a rewrite of Chapter 5 "Audit of Contract Compliance with Defense Federal Acquisition Regulation for Contract Business Systems and Subsystems" in its CAM ([Contract Audit Manual](https://www.dcaa.mil/Guidance/CAM-Contract-Audit-Manual/)). In this chapter, a section entitled "Understanding of the Contractor's Business Systems" provides several new audit criteria for determining the acceptability of a contractor's accounting system. A new twist to the audit process is the requirement for a prospective contractor to provide a demonstration of its accounting system as directed. To wit - Request that contractor personnel provide walk-throughs of the various system processes and then system demonstrations. The auditor should: 1.  Request that contractor personnel first provide walk-throughs of the various system processes and then system demonstrations after the entrance conference for compliance with the DFARS business system criteria. 2. Request that the contractor explain significant selected aspects of the business system in the demonstration to help confirm the auditor's understanding. 3. Trace one or more transactions through the business system from initiation through the various processing steps to inclusion in related cost estimates, reports, or billings on Government contracts. 4. Observe actual processing activities and examine related documents to validate the understanding of the system. As you might gather from the above, acceptance has nothing to do with DCAA rubber stamping the brand of accounting software you are using. It has always and will continue to come down to your accounting system's ability to comply with the regulations. Specifically, this applies “to audits of each of the contractor's business systems and subsystems that are used to **propose, charge, or bill** significant costs to Government contracts.” When you are able to demonstrate that your accounting system meets the DCAA's audit criteria for compliance "with the applicable DFARS business systems criteria and the [Pre-Award Accounting System FAR SF 1408](https://sql.sympaq.com/blog/a-quick-guide-to-sf-1408)requirements" you will most likely achieve the goal of acceptance. And your contracting officer will be informed that you have in operation an "adequate" or "acceptable" system for accumulating and billing costs on flexibly priced contracts, but never will this be as a result of having a particular software system in place that has been "approved" based on a particular brand name. .   **Want to learn more about DCAA-Compliant Cost Accounting Software?** **[![ACCESS THE RECORDING](https://no-cache.hubspot.com/cta/default/2695973/7e531210-0fcc-4b01-a7e1-832552cc2796.png)](https://cta-redirect.hubspot.com/cta/redirect/2695973/7e531210-0fcc-4b01-a7e1-832552cc2796)** ### Recent Blogs February, 07 2025 ## [Strong Headwinds Ahead for Federal Government Contractors in 2025](https://sql.sympaq.com/blog/5-challenges-federal-government-contracting-0) [Government Contractor](https://sql.sympaq.com/blog/topic/government-contractor) [Accounting Software](https://sql.sympaq.com/blog/topic/accounting-software) [SYMPAQ Benefits](https://sql.sympaq.com/blog/topic/sympaq-benefits) [Business Tips](https://sql.sympaq.com/blog/topic/business-tips) [Headwinds](https://sql.sympaq.com/blog/topic/headwinds) Poised to bid on contracts with the Federal Government? you will likely encounter challenges with procurement regulations and bureaucracy.[ Read the Blog](https://sql.sympaq.com/blog/5-challenges-federal-government-contracting-0) 0 Comments [Click here to read/write comments](https://sql.sympaq.com/blog/5-challenges-federal-government-contracting-0#comments-listing) January, 10 2025 ## [End of Year Tax Form Filing Has Never Been Easier!](https://sql.sympaq.com/blog/end-of-year-tax-form-filing-has-never-been-easier) [tax](https://sql.sympaq.com/blog/topic/tax) [2024](https://sql.sympaq.com/blog/topic/2024) As we learned last year when the paper filing threshold dropped from 250 for each tax form to 10 tax forms in aggregate (i.e., 1099-NEC plus 1099-Misc plus W2), one should no longer be contemplating t\[...\][ Read the Blog](https://sql.sympaq.com/blog/end-of-year-tax-form-filing-has-never-been-easier) 0 Comments [Click here to read/write comments](https://sql.sympaq.com/blog/end-of-year-tax-form-filing-has-never-been-easier#comments-listing) December, 04 2024 ## [Another Year, Another End-of-Year Update](https://sql.sympaq.com/blog/2024-year-end-of-year-update) [2024](https://sql.sympaq.com/blog/topic/2024) One thing we've learned over the years as a software publisher is that unless you are planning on sunsetting a legacy application, you are never "done" with development.[ Read the Blog](https://sql.sympaq.com/blog/2024-year-end-of-year-update) 0 Comments [Click here to read/write comments](https://sql.sympaq.com/blog/2024-year-end-of-year-update#comments-listing) ![](https://sql.sympaq.com/hs-fs/hubfs/crop-trans-logo.png?width=200&name=crop-trans-logo.png) We are focused on delivering reliable cost accounting, timekeeping and expense reporting solutions to labor-intensive federal government contractors and not-for-profit organizations in search of fully compliant, standards-based, project accounting software. ### Get In Touch [contact@sympaq.com](mailto:contact@sympaq.com) Local phone:[(301) 670-0858](tel:3016700858) Fax: (301) 840-1591 15839 Crabbs Branch Way, Rockville, MD 20855. [Privacy Policy](https://www.sympaq.com/privacy-policy/) [Cookie Policy](https://www.sympaq.com/cookie-policy/) [Terms & Conditions](https://www.sympaq.com/terms-and-conditions/) ### Subscribe to Our Blog Get the latest business resources on the market delivered to your inbox. Copyright © 2023 Aldebaron, Inc. All rights reserved. Website by [IMGdigitalAgency.com](https://www.imgdigitalagency.com/) [![](https://sql.sympaq.com/hubfs/blue-seal-bbb.png)](https://www.bbb.org/us/md/rockville/profile/computer-software-developers/sympaq-0241-236013238#sealclick) ![](https://px.ads.linkedin.com/collect/?pid=1997524&fmt=gif) × ### Speak to a Specialist Find out how SYMPAQ makes DCAA compliance a breeze. Fill out the form below to speak with a SYMPAQ team member. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "G. 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