ACCOUNTING FOR SBIR/STTR GRANTS
We understand the SBIR/STTR awardees; their needs, and the requirements they face. Our primary goal is to help the Phase I award winners maximize their ability to win a Phase II award and then help the Phase II awardees by performing numerous tasks such as operating DCAA compliant accounting systems. This allows the award winners to concentrate on their award and what makes them money while we focus on the SBIR accounting system requirements. We do this by helping control costs by providing just-in-time services and as-needed basis, so that you will hit the ground running in Phase II.
We recommend that the SBIR/STTR award winners start developing the foundation for a compliant Federal Government/DCAA accounting system during Phase I of the program (please note that there are no official "DCAA Approved Accounting Systems, only DCAA compliant accounting systems out of the box or made compliant with add-ons). Many small businesses are ineligible for award because they do not have an adequate accounting system. This means installing an accounting system that will be capable in the future of doing all the things that are required by the government in a FAR part 31 compliant accounting system that will be required in Phase II. The foundation includes:
• Structuring the unique accounting system needs required by FAR Part 31 including the chart of accounts, timekeeping, vouchering and job cost reporting systems
• Working with management to create “allowable” policies and procedures
• Providing a check and balance on the accounting function by reconciling the checkbook; reconciling the labor distributed through the general ledger to the outside payroll service reports; and periodically testing transactions to ensure that the system is functioning properly and costs are properly recorded as direct, indirect or unallowable
• Budgeting and tracking actual indirect expenses vs. provisional rates
• Monitoring job cost reporting and alerting management of the need to manage projects more closely as significant changes occur, or the project funding and period of performance concludes
• Administration of contracts and grants including preparation of FSRs
• Preparing the annual incurred cost submission and the incurred cost audit and negotiating the indirect cost rates
