--- title: Getting Ready for your First Encounter with DCAA description: Are you ready for your first encounter with DCAA? Contracting with the federal government & dealing with the Defense Contract Audit Agency can be stressful. But with preparation & planning, your company can turn the challenge of a DCAA audit into an opportunity to refine your systems & processes. --- [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 # Getting Ready for your First Encounter with DCAA [DCAA Audits](https://sql.sympaq.com/blog/topic/dcaa-audits), [Business Tips](https://sql.sympaq.com/blog/topic/business-tips) 06/18/2015 [G. Chris Brown](https://sql.sympaq.com/blog/author/cbrown) When you contract with the federal government, you will likely encounter the[Defense Contract Audit Agency](https://www.dcaa.mil/), but your experience doesn't have to be stressful. With preparation and planning, your company can turn the challenge of a[DCAA audit](https://www.sympaq.com/cost-accounting-resources/dcaa-audits/) into an opportunity to refine your systems and processes. Audits come in varying levels of complexity, with certain types being less involved than others. However complex an audit is, not being properly prepared for it can be potentially harmful to your company. **Enlist the help of a knowledgeable adviser** Perhaps the best thing you can do to prepare for a visit from the DCAA is to have a knowledgeable adviser by your side. Interacting with DCAA auditors can be confusing to accountants and non-accountants alike if you are unfamiliar with government audits. Government accounting rules are centered around the [Federal Acquisition Regulations (FAR)](https://sql.sympaq.com/blog/what-in-the-sam-hill-is-far-compliant-accounting-software)and Cost Accounting Standards (CAS) that are not used in conducting purely commercial business, so an experienced government accounting professional can help you navigate the terrain. **Understand the audit's scope and what is expected of you** Next, you need to be sure you understand what information the [DCAA auditors](https://sql.sympaq.com/blog/dont-be-a-child-how-to-deal-with-dcaa-auditors) will expect you to provide, as well as the scope of the audit being performed. These expectations will vary according to the type of audit you are undergoing. For example, the Accounting Systems Adequacy Audit, or Pre-award Survey, is a common type of DCAA audit for a contractor to undergo when in pursuit of flexibly priced contracts. For this particular type of audit, DCAA will be examining your processes and systems to determine whether your accounting software along with written policies and procedures are compliant for cost tracking and billing. Understanding what the auditors will be looking for will help you to anticipate their questions and have the required information ready. Related: [How to Pass your DCAA Pre-award Audit with SYMPAQ Cost Accounting Software \[Webinar\]](https://sql.sympaq.com/achieving-dcaa-compliance-with-sympaq-cost-accounting-solution-webinar-recording) Not only should you be prepared to provide information that is required, but you should also be able to distinguish between information requests and information requirements. This is where your advisor can help you to be compliant with requirements without having to hand over every piece of data your firm owns. **Become familiar with common types of audits** Understanding the type of audit you are facing will help you prepare more quickly. The two of the most common types of audits you will likely face include: **Pre-Award Audit:** As mentioned above, this type of audit examines your accounting systems, policies, and procedures. You can be sure you are equipped to handle this audit by ensuring that your cost accounting system complies with the SF1408. You can also ask yourself some questions, using your answers to gauge how prepared you are for the audit. For example, ask yourself whether your books follow GAAP and whether your indirect costs are segregated from your direct costs. Determine whether your timesheets, labor distribution detail and billing vouchers numbers all agree and reconcile. Never hand the auditor  data that has not been reconciled.  These types of self-inquiries performed now can help you prepare for similar questions from DCAA. **[Incurred Cost Audit](https://sql.sympaq.com/blog/dcaa-incurred-cost-submission):** This type of audit examines a contractor's costs in either final or interim form and expresses an opinion as to their validity. The auditors will be determining if these costs are reasonable, allocated properly to the contract, and were not prohibited (unallowable). DCAA has been looking even harder for unallowable costs and over-billings. Indirect rates that are used prior to establishing a final rate are generally referred to as provisional billing rates. Contractors may find it difficult to ascertain what their projected indirect rates will look like a year in advance, so new provisional rates and a retroactive rate agreement can be established with the auditors. Learning about the process and its expectations can greatly help you prepare. Seeking out such an adviser before [the audit letter arrives](https://sql.sympaq.com/blog/how-to-avoid-a-denial-letter-from-dcaa), and equipping yourself with knowledge about the requirements for the audit you face are smart ways to prepare for the challenges of a DCAA audit. **[![8 Steps to Take When Dealing with the DCAA](https://no-cache.hubspot.com/cta/default/2695973/329c6807-f651-4223-b24a-ae850237e87f.png)](https://cta-redirect.hubspot.com/cta/redirect/2695973/329c6807-f651-4223-b24a-ae850237e87f)** ### 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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