As a small business, it is essential that you keep up with DOL and DCAA compliance. That means keeping your finances in order and ensuring that your employees are always set up to succeed. If you are unsure of how to remain DOL and DCAA compliant, then we are here to help. Here at Napoleon Machine, we know how important it is to follow the guidelines so you can stay in business, so we have some tips for tools and techniques that you can use to remain compliant.
What Is DOL and DCAA Compliance
The first step is understanding what these acronyms mean and why it is important that they are followed. Firstly, the DOL is the Department Of Labor, and they are around to ensure the welfare of all job seekers and wage earners in our country. The Defense Contract Audit Agency (DCAA) performs compliance audits for the DOL and that is the group that may come by to look at your operation and ensure that it is on the up and up. It may be possible that you are never audited by the DCAA, but it is important to be prepared just in case.
Since there are many moving parts in a business, you can better manage your time and leave room for audit prep by considering the creation of Limited Liability Companies (LLCs). The beauty of an LLC is that it requires less paperwork and more flexibility so you can focus on your more pressing tasks. If you are new to this topic, then consider hiring a formation service that can ensure that your company meets all state guidelines.
Standardize Your Accounting Processes
You will want to ensure financial compliance in the case that an audit takes place, so in order to prepare, you should begin to standardize your accounting processes so you are ready for the audit and so your company can run smoothly overall. That means organizing your invoices, tracking expenses, and double-checking the numbers. When you have order in your accounting, you’ll have greater efficiency, and you will be able to easily look at the numbers and expand your business when the time comes.
It is also important to choose the right software, especially when it comes to tracking your teams and paying them on time. The best way to simplify this process is to turn to software to keep you organized. A program like Xero or QuickBooks Time allows you to put the control into the employee’s hands as they can clock in and track their time via a mobile app and they can reach out to you if there is ever an issue or they need a correction. When your employees can do their part, it helps your organization stay financially compliant.
Show the Accuracy of Your Priced Proposals
When creating proposals, it is your job to create an accurate picture and use and prove any possible supporting data that helps to form your final decisions. If you are audited by the DCAA, then they will ask for the location of that supporting data, and if you cannot provide it, then you must give them the reason why. You should ensure that you have a good system for creating proposals that include a breakdown of labor hours, rates, and costs, all sorted by category. Be prepared to answer any questions you may get from DCAA ahead of time.
Make Modifications If Necessary
It is a good idea to stay well-informed on the DCAA audit processes and any changes that may come about. That way, you can monitor and modify your procedures as necessary so you are always in compliance. If you have questions, reach out to them online and get the answers you need so you are prepared for anything.
As you can see, it is essential that you are always on top of all financial issues at your company so you don’t get in hot water in the case of a DCAA audit. Consider the tips discussed here and do your own research so you can be adequately prepared. If you would like to learn more about the services offered by Napoleon Machine, then contact us at firstname.lastname@example.org.