{"id":354,"date":"2020-12-22T17:11:13","date_gmt":"2020-12-22T22:11:13","guid":{"rendered":"https:\/\/www.diener.org\/?page_id=354"},"modified":"2025-03-24T15:27:13","modified_gmt":"2025-03-24T19:27:13","slug":"systems","status":"publish","type":"page","link":"https:\/\/www.diener.org\/gov-contract\/accounting\/systems\/","title":{"rendered":"Government Approved Accounting Systems"},"content":{"rendered":"

When your organization is considered for a government contract, it is issued a series of pre award surveys such as Standard Form (SF) 1408<\/a>. SF 1408 is an assessment that evaluates the design of your accounting system to determine if it is acceptable for a prospective contract. <\/p>\n

Updated on: 03\/24\/2025<\/strong><\/p>\n

There is no single accounting system that is officially approved by the federal government. Instead, contractors must demonstrate that their system meets the requirements outlined in SF 1408. The DCAA conducts audits to evaluate compliance, while the final determination of system adequacy is made by the Defense Contract Management Agency (DCMA) and the contracting officer. For government contractors, preparation is an important step in demonstrating that your accounting system satisfies the criteria listed on the SF 1408. <\/p>\n

Our certified public accountants (CPAs) assist in the selection of a DCAA compliant accounting system for your organization, as well as verify the required standards are met for any systems built in-house. You can find the SF 1408 checklist for a government approved accounting system by following the link using the button below.<\/p>\n

Download The SF 1408 Checklist<\/a><\/p>\n

What Are Government Approved Accounting Systems?<\/h2>\n

Government contractors must apply Generally Accepted Accounting Principles (GAAP), Federal Acquisition Regulations (FAR), and Cost Accounting Standards (CAS), as well as other government standards. The Defense Contract Audit Agency (DCAA) conducts audits to assess whether a contractor\u2019s accounting system complies with federal regulations, including FAR, DFARS, and Cost Accounting Standards (CAS). DCAA does not mandate the use of specific accounting software, but any system used must meet the criteria outlined in SF 1408 to be considered adequate for government contracts. <\/p>\n

To be a successful government contractor and continue acquiring contracts, businesses must be able to complete a DCAA audit. Government approved accounting systems allow you to track your financial records, bookkeeping, timekeeping, and other essential accounting needs while remaining in compliance with the DCAA.<\/p>\n

What Are The Requirements For DCAA Compliant Accounting?<\/h2>\n

There are several requirements that your organization will need to meet to remain DCAA compliant with your accounting system. Some key requirements include:<\/p>\n