DCAA Audit Specialists — Northern Virginia

DCAA Audit & Government Contractor Compliance — Northern Virginia CPA Firm

A DCAA audit is a review by the Defense Contract Audit Agency of a government contractor's accounting system, indirect rates and incurred costs, usually on cost-reimbursement and time-and-materials contracts. Your Virtual CPA helps Northern Virginia contractors build DCAA-compliant accounting systems, prepare incurred cost submissions and apply FAR Part 31 cost principles before and during an audit.

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DCAA & Government Contractor Services

From accounting system setup to incurred cost submissions and DCAA audit representation, we handle every aspect of government contractor compliance.

Incurred Cost Submission (ICS)

Annual preparation and filing of incurred cost submissions for cost-type contractors. We compile all direct and indirect costs, compute final indirect rates, reconcile to your financial statements, and submit in the required format. Deadline: 6 months after fiscal year end.

DCAA Accounting System Setup

Configure your accounting system (QuickBooks, Deltek, Unanet, or others) to meet DCAA and DFARS 252.242-7006 requirements. Includes job costing setup, labor distribution, indirect cost pool design, and unallowable cost tracking.

Indirect Rate Development

Design and compute indirect rate structures: fringe benefit rate, overhead rate, G&A rate, and Facilities Capital Cost of Money (FCCM). Develop forward pricing rate proposals and establish Forward Pricing Rate Agreements (FPRAs).

DCAA Audit Preparation & Representation

Pre-audit review of your records before DCAA fieldwork. Represent your company during DCAA interviews, information requests, and floor checks. Draft responses to DCAA findings and draft audit reports.

FAR Part 31 Cost Allowability Review

Review claimed costs for FAR Part 31 allowability before submission. Identify and segregate unallowable costs (entertainment, certain marketing, interest, penalties) to prevent audit findings and potential cost disallowance.

Accounting System Audit Readiness

Pre-award accounting system assessment per DFARS 252.242-7006. Evaluate your system against all 18 DCAA criteria, identify deficiencies, and implement corrective actions before DCAA audits your system.

Serving the Northern Virginia Defense Corridor

Northern Virginia is home to the largest concentration of federal contractors in the United States. We specialize in serving this community.

Reston & Herndon

Defense tech, IT services, intelligence community contractors

Tysons & McLean

Federal consulting, management consulting, professional services

Chantilly & Centreville

Aerospace, systems integration, defense manufacturing

Ashburn & Sterling

Cloud services, cybersecurity, data center operations

Woodbridge & Manassas

Construction, facilities management, logistics contractors

Fairfax & Arlington

Federal agency support, IT, program management

Northern Virginia is home to over 17,000 defense contractors. Your Virtual CPA provides specialized DCAA compliance services to companies of all sizes — from small businesses on their first government contract to established contractors with multi-million dollar cost-type programs.

Related Services

Government Contractor Audit — Virginia

DCAA readiness, SF 1408 pre-award surveys, and incurred cost submissions for the NoVA govcon corridor.

Nonprofit Audit (2 CFR 200)

Single Audits for nonprofits with federal grant funding.

Attestation Services

AUPs, reviews, compilations, and SSAE 18 engagements.

Gov. Contractor Accounting

Ongoing bookkeeping and accounting with FAR Part 31 compliance.

Virtual CFO Services

Strategic financial oversight for growing contractors.

Audit, Review & Compilation

Full audit services overview.

Free consultation

Talk to a DCAA specialist about your situation.

DCAA Audit FAQs

Common questions from government contractors and their finance teams about DCAA compliance and audits.

A DCAA audit is an examination of a government contractor's financial records, accounting systems, and claimed costs by the Defense Contract Audit Agency. Required for contractors with cost-type federal contracts (cost-reimbursement, time-and-materials) to verify costs are allowable under FAR Part 31.

Any cost-type government contract triggers potential DCAA audit. The incurred cost submission (ICS) filed annually is subject to audit. New contractors may receive a pre-award accounting system audit. DCAA also conducts random floor checks on labor recording.

An annual report submitted within 6 months of fiscal year end documenting all direct and indirect costs under cost-type contracts. DCAA audits the ICS to verify claimed costs are allowable, allocable, and reasonable under FAR Part 31.

An accounting system that: separately records direct and indirect costs by contract, maintains daily timekeeping by project, identifies and excludes unallowable costs, and meets DFARS 252.242-7006 requirements. QuickBooks and Deltek can be configured for compliance.

FAR Part 31 unallowable costs include: entertainment, advertising/marketing (with exceptions), interest expense, charitable contributions, lobbying, penalties/fines, and executive compensation above certain thresholds. These cannot be charged to government contracts.

A DCAA review of a contractor's proposed indirect rates before contract award. DCAA verifies reasonableness and allowability of proposed rates to establish Forward Pricing Rate Agreements used in contract pricing negotiations.

A CPA firm can set up a DCAA-compliant accounting system, develop indirect rate structures, prepare your annual ICS, review claimed costs for FAR allowability, and represent you during DCAA audit fieldwork and respond to findings.

Yes. We specialize in serving government contractors in Reston, Herndon, Chantilly, Tysons, McLean, Ashburn, Woodbridge, Fairfax, and across Northern Virginia — the heart of the US defense contractor corridor.

DCAA Audit Coming? Let's Get You Ready.

Whether you're setting up a compliant accounting system, preparing your incurred cost submission, or facing an active DCAA audit, our team has the government contractor expertise you need.