DCAA-Compliant Accounting System Setup for Government Contractors

Struggling to navigate the maze of DCAA requirements before you bid? Passing a DCAA pre-award accounting system audit—especially the SF1408 survey—is critical to winning government contracts. At A.L. Schmidt CPA, we break down the complexity and configure your accounting system so you can move forward with confidence, not guesswork.

Our team translates DCAA jargon into practical steps, tailoring your existing software (like QuickBooks, Deltek Costpoint, or Unanet) to meet every standard. We’ve helped dozens of contractors—from first-time bidders to seasoned defense suppliers—ace their pre-award audit and secure valuable contracts.

What Makes an Accounting System “DCAA Compliant”?

To win certain government contracts, you’ll need an “adequate” accounting system as defined by the DCAA’s SF1408 checklist. This means:

  • Proper job cost tracking by contract/task
  • Segregation of direct vs. indirect costs
  • Accurate timekeeping and labor distribution
  • Exclusion of unallowable costs
  • Reliable indirect rate calculation
  • Policies and procedures that match DCAA expectations


If your current setup falls short in any area, your contract award can be delayed—or lost entirely.

Our DCAA Accounting System Setup Services

A.L. Schmidt CPA delivers:

  • Comprehensive gap analysis vs. SF1408 requirements
  • Step-by-step remediation—no “one size fits all” fixes
  • Configuration of QuickBooks, PROCAS, Unanet, and more
  • Chart of accounts and timekeeping design
  • Policy/procedure templates and training
  • Hands-on support through the audit (including document prep and Q&A coaching)


Most clients keep their existing accounting software. We adapt it for DCAA, so you avoid unnecessary expenses and get audit-ready—fast.

Why Invest in DCAA-Compliant Setup Now?

Bidding on a cost-reimbursable or flexibly priced government contract? You must pass a DCAA pre-award audit (SF1408) to proceed. With a compliant system, you:

  • Qualify for more contracts and funding
  • Avoid contract delays and added scrutiny
  • Prevent costly audit findings and paybacks
  • Gain peace of mind—no last-minute fire drills
Person using calculator and pen, working on paper at a desk with phone and keyboard.

DCAA Accounting

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  • Does DCAA approve specific accounting software?

    No. DCAA doesn’t “approve” any software—compliance depends on how your system is configured and the policies you follow. We can help make tools like QuickBooks or Deltek compliant.

  • What is the SF1408 pre-award survey?

    It’s a checklist DCAA uses to assess if your accounting system is adequate before you’re awarded a cost-reimbursable contract. Key areas include cost tracking, timekeeping, and unallowable cost controls.

  • What are the must-have features of a DCAA-compliant system?

    You need job cost ledgers, labor timekeeping, segregation of unallowable costs, consistent indirect rate calculations, and written policies covering each SF1408 point.

  • Can you help if my current system is not compliant?

    Absolutely. We start with a gap analysis, then guide you through every fix—software setup, policies, and even training staff to avoid mistakes.

  • How long does it take to become DCAA-compliant?

    Most upgrades are completed in weeks—not months. Timeline depends on your current system’s complexity, but we move quickly to meet bid deadlines.

Ready to Get DCAA Audit-Ready?

Don’t let compliance uncertainty hold back your next bid. With A.L. Schmidt CPA, you get specialized, senior-level expertise—no “junior staff” handoffs.