Why Government Contract Businesses Avoid Payroll (And Why It Becomes a Problem)
Many government contract businesses start with contractor-heavy teams to stay flexible and avoid payroll complexity. But as the business grows, delayed payroll decisions and inconsistent labor tracking can distort financial reports, inflate perceived profitability, and make it harder to understand true project costs. This article explains why workforce structure is a financial decision and how clearer payroll, time tracking, and reporting systems help government contractors make better decisions as they scale.
FAR and CAS Guidelines for Government Contractors
A Practical guide to how FAR and CAS shape cost tracking, billing, and accounting systems. What Are FAR and CAS (and How Are They Different?) If you’re working on a federal government contract, FAR and CAS already influence how your accounting works, even if you’re not thinking about them directly. The Federal Acquisition Regulation (FAR) […]
Incurred Cost Proposal Guide for Government Contractors
What Is an Incurred Cost Proposal? An Incurred Cost Proposal (ICP) is an annual submission required from many government contractors that perform work under flexibly priced contracts. The proposal reports the contractor’s actual costs incurred during the fiscal year and is used to establish final indirect cost rates for that period. Throughout the year, contractors […]
Firm-Fixed Price (FFP) Accounting Guide for Government Contractors
What Is a Firm-Fixed Price Contract? A firm-fixed price (FFP) contract establishes a price for a defined scope of work when the contract is awarded. That price is not subject to adjustment based on the contractor’s cost experience during contract performance unless a formal contract modification changes the terms. Instead of reimbursing actual costs, the […]
CPFF Contract Accounting Guide for Government Contractors
What Makes CPFF Contract Accounting Different CPFF Contract Basics A Cost-Plus-Fixed-Fee (CPFF) contract is a cost-reimbursement contract in which the government reimburses allowable costs and pays a fixed fee negotiated at the start of the contract. The fee doesn’t change based on actual costs, though it can change if the scope of work changes. CPFF […]