All About Government Contractor Accounting

The largest company in the world is the United States government, which signs more than 11 million contracts every year. About 95% of those contracts are given to small and medium sized businesses to encourage job creation and economic success. The four basic contract types awarded by the government are: fixed price, time and materials, cost plus, and indefinite quantity/indefinite delivery.
he Defense Contract Audit Agency (DCAA) is the largest audit agency within the government. They are tasked with auditing federal contracts. The DCAA reviews the accounting practices and accounting of government contractors, including prime contractors and subcontractors. The most common DCAA audits are accounting system reviews, cost proposals, incurred costs, and labor floor checks. Popular accounting software includes Deltek, Jamis, and Quickbooks. DCAA is a global organization with offices throughout the US, Asia, Pacific, and Europe.
To learn more, please check the below infographic:
government-contractor-accounting
Infographic source: http://kduncan.com/government-contractor-accounting-infographic/

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