Contract Finance

Joint ventures in government contracting need their own accounting systems, bank accounts, and cost structures from day one. A CPA-managed guide to setting up JV books, handling intercompany costs, and satisfying both DCAA and SBA requirements.

Holding a GSA Schedule creates accounting obligations beyond standard government contracting. Quarterly IFF payments, sales reporting, Transactional Data Reporting compliance, and Trade Agreements Act verification all require specific chart of accounts modifications and tracking systems most schedule holders build reactively.

Government-furnished property creates accounting obligations most contractors overlook until the closeout audit. FAR Part 45 requires property records, physical inventories, disposition plans, and loss reporting from the day the government ships the first item. A CPA-managed guide to getting the books right.

The government pays interest when it pays late. Most contractors never claim it. The Prompt Payment Act gives contractors an automatic right to interest penalties on overdue invoices, but invoice errors and missed deadlines leave millions uncollected every year.

DOGE terminated over 13,000 federal contracts in 2025, according to federal procurement tracking data. The contract cancellation itself is rarely what kills a small GovCon firm. The indirect rate spiral that follows is.

Prime contractors bear full responsibility for subcontractor accounting compliance on government contracts. DCAA audits the prime’s subcontract management system, cost tracking, consent documentation, and flow-down clauses. One weak subcontractor creates questioned costs across the entire contract.

The Service Contract Act (41 U.S.C. 6701-6707) requires government service contractors to pay prevailing wages and fringe benefits on contracts over $2,500. Violations trigger back pay, contract termination, and three-year debarment. This guide covers wage determinations, fringe benefit calculations, record-keeping rules, and how SCA differs from Davis-Bacon.

A government contract cost proposal is more than a pricing spreadsheet. It is a certified financial document built from your accounting system and governed by FAR 15.408 Table 15-2. Getting a single cost element wrong does not lose you points on a scoring rubric. It triggers a DCAA audit of your entire rate structure.

Government contract closeout takes 6 to 36 months depending on contract type. The FAR 4.804 timeline, quick-closeout procedures, and final indirect rate settlement process determine how fast you receive final payment and release retained funds.

Over 10,000 federal contracts have been terminated since early 2025. If a termination for convenience notice hits your inbox, the accounting decisions you make in the first 30 days determine how much money you recover.