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Common Accounting Mistakes: Government Edition - Issue #7 Accounting for Fixed Price vs Cost Contracts

SMBAccountant

This requires a detailed job costing within an accounting system for which many contractors are not prepared. These oversight bodies are not typically concerned with a contractor’s accounting system during a phase I award because of the fixed price. This type of contract requires detailed tracking of costs.

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Understanding Cash vs. Accrual Accounting

Withum

Moreover, cash basis accounting is not compliant with Generally Accepted Accounting Principles (GAAP), as established by the Financial Accounting Standards Board (FASB). GAAP mandates the use of accrual accounting, meaning businesses relying solely on cash basis accounting may face compliance issues.

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Financial Audit Preparation Steps: Expert Tips for An External Audit Process 

Withum

Focus on GAAP Compliance Review your accounting policies to ensure they align with Generally Accepted Accounting Principles (GAAP). Build a timeline that aligns with your reporting deadlines. Let’s Chat The post Financial Audit Preparation Steps: Expert Tips for An External Audit Process appeared first on Withum.

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Common Accounting Mistakes: Government Edition – Issue #3 Policies and Procedures

SMBAccountant

Accounting policies and procedures can reach into almost every department, area, or responsibility, so they need to be communicated and monitored often. If there is ever an audit by DCAA of the accounting system or any portion of it, the policies and procedures will be reviewed.

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Case Study: Enhancing Financial Processes for Growth and Audit Readiness

Withum

Revenue recognition guidance: Withum guided the client on how revenue should be recognized under their new usage-based billing model, ensuring compliance with generally accepted accounting principles (GAAP). Cash flow reporting: The client requested a detailed statement of cash flows, including consolidated reports for their U.S.

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A Comprehensive Guide to Building an Optimal Accounting System

Basis 365

In the complex world of business, a robust accounting system supports the foundation of financial clarity and control. Whether you're a small startup or a seasoned enterprise, building an optimal accounting system requires careful planning, strategic technology integration, and unwavering commitment to financial discipline.

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Contractor Business Systems Series: Part 1 — The Ins and Outs of Government Contractor Accounting System Requirements

Cherry Bekaert

If significant system deficiencies are identified and not corrected, the DoD can impose substantial consequences, such as withholding a percentage of payment or deeming a contractor ineligible to submit bids. Table of Contents: What Are the Requirements for an Adequate Accounting System?