Joseph Kamara CPA

Every dollar you spend is either direct or indirect under federal rules. Classify one wrong and it inflates your rates, draws DCAA findings, and puts your billing at risk.

Over 10,000 federal contracts have been terminated since early 2025. If the notice lands, the accounting decisions you make in the first 30 days decide how much you recover.

CMMC costs are recoverable or absorbed depending entirely on how you book them. Misclassify a single cost pool and a recoverable investment becomes a questioned cost finding.

The Revolutionary FAR Overhaul took effect 1 February 2026 with 37 class deviations reshaping cost accounting, indirect rates and compliance documentation. Here are the accounting actions each one demands.

DCAA expects specific written accounting policies in place before the first audit, not after. The nine they look for, what each has to contain, and what a deficiency looks like.

Year-end close is not a bookkeeping exercise. It is the first phase of your incurred cost submission. Every entry from December to February decides whether that filing survives DCAA.

The FY2026 NDAA raises full CAS coverage from $50M to $100M and TINA from $2.5M to $10M. Mid-size contractors have a narrow window before the June 2026 date.

Eight monthly reports show whether your indirect rates are drifting and whether the books would survive DCAA. The KPIs inside each, and the warning signs that appear first.

DCAA floor checks now reach remote and hybrid staff by phone and video. You need documented work-at-home policies, trained staff and timekeeping built for it.

QuickBooks works for early-stage government contractors, but growth creates gaps it was never designed to fill. Eight warning signs signal the need for purpose-built GovCon software.