QuickBooks vs Costpoint Celerity™
Finding Compliance in the SMB Marketplace
Is QuickBooks DCAA Compliant?
Out of the box, QuickBooks has many issues that prevent it from being DCAA compliant. There are many that will say that with additional manual processes and 3rd Party Software it can be made DCAA Compliant. That just means more costs and time.
QuickBooks was never designed to be a DCAA compliant ERP system and debasing it to function as one is certainly not the best solution for Government Contractors.
The problem is there are still many small to mid-sized firms using simple, low-cost, generic accounting solutions like QuickBooks due to the intimidating nature of a system upgrade. Yet the underlying truth is that by using solutions that are not designed specifically to meet government requirements, contractors run the risk of system disapproval, ineligibility for new awards, costly and time-consuming audits and suspended payments until deficiencies are corrected. As well as facing unpredictable costs for third-party supplemental services to achieve compliance.
Hurdles to Overcome for a Compliant Accounting System
A project-based system is absolutely essential for any sort of project or service-based business. But a generic system, even one that’s project-based, isn’t enough in a federal contracting environment. You need a system that is purpose-built for the government contracting environment.
- Separate costs from indirect costs
- Create a separate ledger for every direct cost transaction
- Employee timekeeping organized by date AND project
- AP reports must be compared or reconciled each accounting period
- Allocate costs by job and track comparisons between job cost systems and the GL
- Accrual based accounting system that meets GAAP requirements
- Capture pre-contract costs separately
- Maintain indirect cost pools
- Track costs by contract line item
- Monthly reporting for direct and indirect costs
- Record and report reliable historical accounting data
- Unallowable costs must be recorded and reported in accordance with FAR 31.201-6
Where Do We Go From Here?
Having been in the industry for 30 years, we have consistently seen businesses struggle with this conundrum of trying to make a generic accounting system, like QuickBooks, work due to the difficulty of finding an accounting solution that fits their budget and their requirements–
Which is why we created a platform specifically designed for the small to mid-sized contractor needing to upgrade their system. We’ve taken Costpoint, the industry’s leading project-based ERP explicitly engineered for Government Contractors, and implemented an extensive pre-populated environment for a powerful, fast, flexible, and compliant out-of-the-box solution called – Costpoint Celerity™.
Developed using real-world experience, Costpoint Celerity™ was created by taking substantive concerns and designing a solution to alleviate them:
In the end the truth is that QuickBooks is a convenient tool for companies getting off the ground and trying to keep costs low, but down the road it simply lacks the tools and power necessary to keep up with your demands as you grow. At CRI we understand the hurdle of upgrading but refuse to let our clients be held back by deficient systems. Our investment in Costpoint Celerity™ proves our commitment to finding a solution for organizations of every size, need and budget. Let us work with you to alleviate your concerns and find the result that lets you thrive.