I am in the process of starting my own SDVOSB consulting company. Do you have a suggestion for a low cost accounting software that would pass a DCMA audit?

I hope that, before you delve into the arcane world of DCMA auditing, that you have: incorporated, gotten your D&B number, registered with CCR, registered as a SDVOSB at Vetbiz.gov. Next, you should probably know that in the early days of your SDVOSB, you will probably not have a contract that subjects you to a DCMA/DCAA audit unless your company is blessed by the Gods. That said, I would go the following website of Intuit, the owners of Quickbooks and investigate ICAT. The website is marketplace.intuit.com/AppID-2827-Overview.aspx and the description is: ICAT installs into QuickBooks, computes indirect rates, and allocates indirect costs to contracts. For a new QuickBooks company, ICAT automatically loads the chart of accounts, and configures indirect cost pools and bases for computing rates. For existing QuickBooks companies, cost pools and bases can be easily configured to work with your existing chart of accounts. Many government contractors have successfully implemented ICAT. Using ICAT, contractors have passed their DCAA accounting system review; qualifying them for Cost-Plus-Fixed-Fee type contracts. ICAT provides the functionality for computing indirect rates and allocating indirect costs to contracts a critical requirement for determining the Governments obligation for reimbursing costs to the contractor. ICAT enabled these contractors to continue using their QuickBooks accounting system rather than implementing much more costly systems. ICAT is a must have for Government Contractors using QuickBooks. Key Features: -Calculates Indirect Rates. -Produces an Indirect Rate Report showing pool components, base components, and indirect costs allocated to each base component. -Allocates Indirect Costs to Jobs -Produces Contract Cost Reports showing direct costs and allocated indirect costs by job. -Can produce an Incurred Cost Submission Worksheet -Reports can be run using actual rates or billing rates. -Provides templates for automatic set-up of chart-of-accounts, indirect cost pools and rate calculations. -Choose among many templates for your indirect rate model or custom design your own. -Includes transaction search feature to easily identify any direct cost transaction not assigned to a job. -Consistent with the requirements of the Federal Acquisition Regulation Part 31.2. Good luck. Jos -- this post was edited to remove a commercial link

I do have a cage code, D&B number, etc to be registered for government contracting. Thank you for the information on the accounting system. I'm currently putting together an hourly rate for a commercial T&M type contract for technical/engineering support. When establishing indirect or overhead rates what are some of the indirect costs that should be considered? I believe I have most everything covered, but just would like to hear from someone else who may have know something I've overlooked.

When putting together what is called a 'loaded hourly rate,' you should, of course, add to your base rate the cost of fringe which can be up to 40% depending on your package. Next, you add to that either your 'indirect rate' or a combination of 'overhead' plus 'G&A (General & Administrative). Overhead plus G&A should probably add up to about 50% if all of your contract money comes from government contracts. And, then there is the final add-on of the profit fee which is governed by the 'usual fee charged to the government' - an amount that generally tops at 7.5%. Jos A. Rivera, J.D. President & CEO Rivera, Sierra & Company, Inc.