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Government Cloud Authors: Elizabeth White, Kevin Jackson, Pat Romanski, Jason Bloomberg, Liz McMillan

Related Topics: @CloudExpo, Government Cloud

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ERPGovCloud: Your Path to DCAA Compliance

So you won your first Government Contract… Congratulations!

So you won your first Government Contract… Congratulations!

Among the new issues you will need to consider, your accounting systems, both practices and technology, will need to pass muster with Defense Contract Audit Agency (DCAA) auditors. This will require a combination of internal processes and controls. Your accounting system will need to properly delineate direct and indirect costs, must properly pool indirect costs, and must properly handle unallowable costs.

It’s likely that you are currently using Quickbooks, the dominant player in small and medium enterprise (SME) accounting. You may need a new software solution. We have seen estimates that Quickbooks’ Chart of Accounts can be restructured to make DCAA compliance possible in about a week. However, you will also need to add a DCAA compliant Time Sheet system, and will probably need to add a third party reporting system like Qqube or similar, then invest the time to create the detailed reports you want for internal analysis, as well as the invoicing and other forms you will need to submit to the agency for which you are work. If you are successful, you will have created a custom, band-aid type system with multiple vendors, which creates complexity, increasing training costs, and the likelihood of errors. Consistent with the rest of the market, Intuit is making a hard sell of both users and ProAdvisors toward Quickbooks Online - but their own internal training ProAdvisor training resources advise that using QBO for time billing is not a good fit. QBO does not handle inventory well, either, which has spawned multiple inventory add-ons for QBO.

Instead of trying to take Quickbooks Desktop where it was never designed to go, consider a fully integrated accounting, timesheet, contract management, expense management, purchasing, CRM, and Human Resource system. If your company has the I.T. resources including the required database server capacity and licenses, self-hosting may be an option. For a lot of small to medium businesses who can’t or choose not to shoulder those infrastructure expenses, accounting software that runs against a cloud database is the best solution. Ideally, though, look for the option to switch from one deployment model to the other- that kind of agility will benefit your business. ERPGovCloud meets all the functional requirements listed above, including timesheet entry for employees and/or subcontractors, ADP and Paychex export, multiple pay classes per employee, and generation of complete government invoice packages, including forms 1034 and 1035.


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Kevin Jackson, founder of the GovCloud Network, is an independent technology and business consultant specializing in mission critical solutions. He has served in various senior management positions including VP & GM Cloud Services NJVC, Worldwide Sales Executive for IBM and VP Program Management Office at JP Morgan Chase. His formal education includes MSEE (Computer Engineering), MA National Security & Strategic Studies and a BS Aerospace Engineering. Jackson graduated from the United States Naval Academy in 1979 and retired from the US Navy earning specialties in Space Systems Engineering, Airborne Logistics and Airborne Command and Control. He also served with the National Reconnaissance Office, Operational Support Office, providing tactical support to Navy and Marine Corps forces worldwide. Kevin is the founder and author of “Cloud Musings”, a widely followed blog that focuses on the use of cloud computing by the Federal government. He is also the editor and founder of “Government Cloud Computing” electronic magazine, published at To set up an appointment CLICK HERE

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