For many SBIR/STTR companies, winning a research award is only the beginning.

 

A technology that began with Phase I feasibility research may advance through Phase II development, attract interest from federal agencies, and eventually create opportunities for government contracts.

 

A Department of Defense customer may want to acquire the technology. Another federal agency may need additional research and development services. A government prime contractor may offer a subcontracting opportunity. An SBIR/STTR company may also pursue contracts unrelated to its original research award.

 

These opportunities can represent an important transition from early-stage innovation to sustainable federal contracting.

 

But they can also introduce financial requirements that differ significantly from those associated with the company's previous funding.

 

A business that successfully managed an SBIR grant may not automatically have the accounting system, indirect rate structure, billing procedures, or cash flow controls needed for a cost-reimbursable government contract.

 

The accounting foundation that supported early research funding may need to become more sophisticated before the company accepts its first federal contract.

 

At Peter Witts CPA PC, we help SBIR/STTR awardees and emerging government contractors prepare for this transition by strengthening accounting systems, cost proposals, indirect rates, timekeeping, contract invoicing, and financial management.

 

Why the Transition From SBIR/STTR Funding to Federal Contracting Matters

 

SBIR/STTR funding helps small businesses advance innovative research and development.

 

Federal contracts can create opportunities to perform additional research, deliver technical services, produce products, or support government missions.

 

However, contract performance introduces obligations that depend on the specific acquisition arrangement.

 

These may include:

• Contract-specific cost tracking

• Direct and indirect cost classification

• Timekeeping and labor distribution

• Indirect rate calculations

• Cost proposal support

• Accounting system adequacy

• Contract invoicing

• Funding limitation monitoring

• Subcontractor oversight

• Cash flow management

• Record retention

• Government financial reviews

Not every contract requires the same accounting procedures.

 

A firm-fixed-price contract may place substantial financial risk on the contractor without requiring reimbursement based on actual incurred costs.

 

A cost-reimbursable contract generally requires a much stronger ability to identify, accumulate, and support allowable contract costs.

 

Understanding these differences is one of the first steps toward federal contract readiness.

 

Step 1: Understand the Type of Contract You Are Pursuing

 

Before evaluating accounting software or preparing an indirect rate proposal, determine what type of federal contract the company expects to perform.

 

Contract type affects financial risk, billing requirements, accounting expectations, and cash flow.

 

Two important categories are firm-fixed-price and cost-reimbursable contracts.

 

Firm-Fixed-Price Contracts

 

Under a firm-fixed-price contract, the government agrees to pay a specified price for the required work, subject to the contract's payment and adjustment provisions.

 

The contractor generally bears the financial consequences if actual performance costs exceed the amount anticipated when pricing the contract.

 

FAR 16.202-1 explains that the contract price is not adjusted based on the contractor's actual cost experience.

 

For example, suppose a company receives a $500,000 firm-fixed-price contract to deliver a technical system.

 

If the company completes the work for $420,000, the difference may contribute to its profit after accounting for all applicable costs.

 

If performance costs rise to $550,000, the company may face a loss unless an authorized contract adjustment applies.

 

This makes accurate pricing, project budgeting, and cost monitoring particularly important.

 

Cost-Reimbursable Contracts

 

A cost-reimbursable contract provides for reimbursement of allowable incurred costs, subject to the contract's terms, funding limitations, and applicable cost principles.

 

FAR 16.301 addresses this contract category.

 

These contracts generally establish an estimated cost and funding ceiling.

 

The contractor must be able to determine which costs belong to the contract and whether they are properly supported.

 

Depending on the arrangement, the contractor may also receive an applicable fee.

 

Fixed-Price Versus Cost-Reimbursable Contracts

 

Area	Firm-Fixed-Price	Cost-Reimbursable
Payment basis	Contract price and applicable payment terms	Allowable incurred costs, subject to contract terms
Cost overrun risk	Generally borne by contractor	Governed by funding limits and contract provisions
Accounting focus	Cost control and profitability	Contract cost accumulation and allowability
Billing support	Depends on milestones, deliveries, and contract clauses	Generally requires detailed incurred-cost support
Indirect rates	Important for pricing and profitability	Often essential for billing and cost recovery
Accounting system adequacy	Depends on applicable contract requirements	Adequate cost accounting system required before award
Cash flow	Depends on negotiated payment structure	Depends on allowable cost billing and payment timing

 

The company should evaluate the specific solicitation and contract clauses rather than assume that every government contract operates the same way.

 

Step 2: Determine Whether Your Accounting System Is Adequate

 

A basic bookkeeping system may support payroll, bank reconciliations, and tax preparation.

 

That does not necessarily mean it can support federal contract accounting.

 

For cost-reimbursable contracts, accounting system adequacy becomes particularly important.

 

FAR 16.301-3 requires a contractor's accounting system to be adequate for determining costs applicable to the contract or order before the government awards a cost-reimbursement contract.

 

This means companies should evaluate their accounting capabilities before pursuing these opportunities.

 

What an Adequate System Should Support

 

Depending on the contract requirements, the system should be capable of:

• Separating direct costs from indirect costs

• Accumulating direct costs by contract

• Identifying costs by accounting period

• Maintaining general ledger control

• Supporting appropriate indirect cost allocations

• Identifying and excluding unallowable costs

• Recording labor by cost objective

• Reconciling labor distribution to payroll

• Producing reliable contract cost reports

• Supporting billings and financial reviews

The company should also maintain accounting policies and procedures that explain how these controls operate.

 

Accounting system adequacy is about the capability and design of the system—not simply the accounting software the company purchases.

 

Step 3: Understand When DCAA May Become Involved

 

The Defense Contract Audit Agency, or DCAA, performs contract audit services for the Department of Defense and certain other federal organizations.

 

For contractors pursuing applicable cost-reimbursable awards or certain contract financing arrangements, DCAA may become involved in evaluating accounting system design or supporting cost and billing reviews.

 

However, DCAA does not automatically review every company that receives an SBIR/STTR award or wins a federal contract.

 

The potential involvement depends on the contract, agency, acquisition requirements, and government audit responsibilities.

 

What Is a DCAA Pre-Award Accounting System Survey?

 

A pre-award accounting system survey evaluates whether the contractor's accounting system is designed to meet relevant requirements.

 

DCAA uses the SF 1408 criteria and associated pre-award accounting system adequacy guidance when conducting applicable surveys.

 

The review may consider whether the contractor can:

• Segregate direct and indirect costs

• Accumulate direct costs by contract

• Allocate indirect costs logically and consistently

• Identify unallowable costs

• Maintain a functioning timekeeping system

• Distribute labor costs appropriately

• Reconcile labor records to payroll

• Produce supporting contract cost information

A company does not need to have years of federal contract experience to prepare for a pre-award system survey.

 

It does, however, need to establish a system capable of meeting the applicable requirements.

 

Avoid the Term "DCAA-Certified Accounting Software"

 

DCAA does not issue universal certifications for commercial accounting software.

 

A software package marketed as government-contracting-friendly does not, by itself, establish that a company's accounting system is adequate.

 

The system must be properly configured and supported by suitable accounting practices and internal controls.

 

Step 4: Establish Contract-Level Cost Tracking

 

One of the most important changes when entering federal contracting is the need to accumulate costs by contract.

 

A company may previously have tracked all research activity within one broad R&D category.

 

That approach may not support detailed contract financial reporting.

 

Before the first contract begins, establish separate project or contract codes.

 

For example:

 

Project Code	Activity
DOD-CON-001	DoD research contract
NASA-CON-002	NASA technical services
NIH-GRANT-003	NIH SBIR grant
COMM-004	Commercial customer project
IRD-005	Internal R&D
ADMIN-006	General operations

 

Illustrative project coding structure.

 

The accounting system should distinguish contract costs from other federal awards, customer work, internal development, and general business activity.

 

Why Contract-Level Tracking Matters

 

Contract-level accounting helps the company determine:

• How much has been spent on each contract

• Whether costs remain within budget

• How much has been billed

• What remains unbilled

• Whether funding limitations are approaching

• How labor and indirect costs are distributed

• Whether the contract is financially sustainable

These records also provide the foundation for contract invoices and financial reviews.

 

Step 5: Review the Chart of Accounts

 

A chart of accounts designed primarily for tax preparation may not provide enough detail for government contracts.

 

The company should evaluate whether its accounts can support:

• Direct labor

• Indirect labor

• Fringe benefits

• Materials and supplies

• Consultants

• Subcontracts

• Travel

• Equipment

• Other direct costs

• Overhead

• General and administrative expenses

• Unallowable costs

• Internal R&D

• Commercial activity

The accounting system should use the chart of accounts and project coding together.

 

The account identifies the type of cost.

 

The project or contract code identifies which activity benefited.

 

This structure helps produce contract-specific reports without making the chart unnecessarily complicated.

 

Step 6: Strengthen Timekeeping Before Contract Performance Begins

 

Timekeeping is one of the most important elements of government contract accounting.

 

Employees may work on more than one contract, grant, internal research project, or commercial customer engagement.

 

The company needs records showing how employee effort is distributed among these activities.

 

A practical timekeeping process should document:

• Employee name

• Date worked

• Hours worked

• Contract or project code

• Direct contract work

• Indirect work

• Non-contract activity

• Employee certification

• Supervisor review

• Documented corrections

For applicable contract accounting system evaluations, DCAA expects timekeeping procedures capable of identifying employee labor by cost objective.

 

Why Timekeeping Matters Beyond Compliance

 

Timekeeping can help a company evaluate whether its original labor estimates remain realistic.

 

For example, if a fixed-price contract requires more engineering hours than anticipated, management needs to recognize the problem before the contract becomes unprofitable.

 

Under a cost-reimbursable contract, reliable timekeeping is essential for supporting labor costs assigned to the contract.

 

In both cases, timekeeping improves financial visibility.

 

Step 7: Connect Payroll to Labor Distribution

 

Payroll records identify employee compensation.

 

Timekeeping identifies the work performed.

 

Labor distribution connects those records by assigning compensation to the appropriate cost objectives.

 

For example, suppose an engineer receives $5,000 in gross wages during a pay period.

 

Their supported activity records show:

 

Activity	Allocated Compensation
Federal Contract A	$3,000
Federal Contract B	$1,000
Internal R&D	$500
General Administration	$500
Total	$5,000

 

llustrative example using a supported compensation allocation method.

 

The company's labor distribution report should reconcile to payroll and the general ledger.

 

This helps establish that direct contract labor costs reflect actual employee activity.

 

It also supports overhead allocation, budget monitoring, and contract cost reporting.

 

For SBIR/STTR companies where founders perform both technical and administrative duties, this distinction can be especially important.

 

Step 8: Review Your Indirect Rate Structure

 

Indirect costs are an important part of federal contract pricing and cost recovery.

 

These costs support multiple projects or general business operations rather than one contract exclusively.

 

Depending on the company, indirect costs may include:

• Employee fringe benefits

• Shared technical supervision

• Facilities

• Business insurance

• Accounting

• Payroll administration

• General management

• Shared software

• Other overhead and administrative expenses

The company should determine whether its existing indirect cost structure is appropriate for the contracts it plans to pursue.

 

Fringe, Overhead, and G&A

 

Some companies maintain separate pools for fringe benefits, overhead, and general and administrative expenses.

 

Others use a simpler structure.

 

The correct methodology depends on the company's operations and applicable accounting requirements.

 

A rate used in an earlier SBIR/STTR proposal should not automatically be reused for a new federal contract without review.

 

Changes in staffing, commercial activity, facilities, subcontracting, and administrative costs may affect the appropriate calculations.

 

Step 9: Understand How Indirect Rates Affect Contract Pricing

 

Indirect rates affect how companies estimate the total cost of performing a contract.

 

A proposal that includes only direct labor, materials, and consultants may underestimate the actual resources required.

 

Consider the following simplified example:

 

Estimated Cost Component	Amount
Direct labor	$200,000
Fringe benefits	$50,000
Overhead	$100,000
Other direct costs	$60,000
G&A	$40,000
Estimated total cost	$450,000

 

Illustrative amounts only. The figures do not establish actual indirect rates, allocation bases, or proposed fee.

 

A contractor that overlooks significant indirect expenses may submit a price that does not adequately support performance.

 

This is especially important for firm-fixed-price work, where the contractor generally bears the risk of unexpected cost increases.

 

For cost-reimbursable contracts, indirect rates also affect allowable cost reimbursement and billing calculations.

 

Step 10: Prepare for Provisional Billing Rates

 

Some cost-reimbursable contracts use provisional indirect billing rates during performance.

 

These rates allow the contractor to bill indirect costs on an interim basis before final annual rates are estab lished.

 

The company may need to maintain:

• Estimated indirect cost pools

• Allocation bases

• Current-year budgets

• Historical actual costs

• Rate calculation schedules

• Billing support

• Actual rate comparisons

As more financial information becomes available, provisional rates may need adjustment through the applicable process.

 

Understand Final Indirect Cost Rate Requirements

 

For contracts containing FAR 52.216-7, the clause generally requires submission of an adequate final indirect cost rate proposal within six months after the end of the contractor's fiscal year, subject to its terms and permitted extensions.

 

These submissions must be based on actual cost experience and supported by adequate records.

 

Not every contract contains this clause.

 

Companies should evaluate their specific contract requirements rather than assume that all federal contracts require annual incurred cost submissions.

 

Step 11: Understand Federal Contract Invoicing

 

Federal contract invoicing can differ substantially from grant drawdowns.

 

Under a grant, a recipient may request funds through an authorized payment system based on applicable cash management and reimbursement rules.

 

Under a contract, invoices or vouchers are governed by the specific contract's payment terms.

 

Fixed-Price Contract Invoicing

 

Firm-fixed-price contracts may involve payment tied to:

• Deliverables

• Accepted products or services

• Contract line items

• Performance milestones

• Other contract payment provisions

For these arrangements, the contractor needs to understand when payment becomes due and what documentation must accompany the invoice.

 

Cost-Reimbursable Contract Invoicing

 

Cost-reimbursable contracts generally require more detailed cost support.

 

This may include:

• Direct labor

• Payroll records

• Labor distribution

• Materials and supplies

• Travel

• Subcontractor costs

• Other direct costs

• Indirect costs

• Applicable billing rates

• General ledger detail

FAR 52.216-7 addresses allowable cost reimbursement and invoicing for contracts containing that clause.

 

The contractor should establish the appropriate billing process before submitting its first invoice.

 

Step 12: Establish Invoice Reconciliation Procedures

 

Contract invoices should reconcile to underlying accounting records.

 

A monthly review may compare:

• Costs incurred

• Costs eligible for billing

• Invoices submitted

• Payments received

• Unbilled costs

• Previously billed amounts

• Contract funding

• Indirect cost adjustments

• Credits and refunds

For example, the accounting system should help explain why $80,000 in contract costs were recorded while only $65,000 was invoiced.

 

Possible reasons may include billing timing, contractual restrictions, unallowable costs, adjustments, or incomplete support.

 

The difference should be understood rather than ignored.

 

This is particularly important when preparing cost-based invoices or responding to payment questions.

 

Step 13: Review Contract Funding and Cost Limitations

 

Federal contracts may establish funding ceilings, cost limitations, or other financial restrictions.

 

A contractor should not assume that all costs incurred during performance will automatically be reimbursed.

 

For applicable cost-type contracts, the company must monitor costs and funding against relevant contract clauses.

 

This may include obligations under limitation-of-cost or limitation-of-funds provisions.

 

The accounting system should support timely reporting of financial status.

 

Why Funding Monitoring Matters

 

If management discovers a potential overrun only after substantial additional costs have been incurred, the company may face unreimbursed expenses.

 

Monthly financial reviews should therefore monitor:

• Contract value

• Funded amount

• Actual costs

• Commitments

• Forecasted costs to complete

• Remaining funding

• Expected indirect costs

• Required notifications

This helps leadership identify potential issues before reaching contract limits.

 

Step 14: Prepare for Contract Cash Flow Requirements

 

Federal contract growth can increase working capital needs.

 

A company may need to pay employees, purchase materials, hire subcontractors, and maintain operations before receiving payment.

 

The timing depends on the contract's billing and financing provisions.

 

Before accepting a contract, forecast:

• Payroll requirements

• Vendor payments

• Subcontractor commitments

• Equipment purchases

• Indirect expenses

• Invoice submission timing

• Expected government payments

• Available working capital

Fixed-Price Cash Flow Risk

 

Under a firm-fixed-price contract, a company may incur substantial costs before reaching a billable milestone.

 

This can create cash pressure even when the contract is expected to be profitable.

 

Cost-Reimbursable Cash Flow Risk

 

Under a cost-reimbursable contract, payment may depend on properly supported invoices and contractual billing procedures.

 

Incomplete cost records or billing errors may delay payment.

 

In both cases, financial planning should begin before work starts.

 

Step 15: Prepare for Subcontractor and Vendor Oversight

 

As government contracts become larger, companies may rely on specialized vendors and subcontractors.

 

The accounting team should maintain:

• Executed agreements

• Approved scope of work

• Authorized funding

• Applicable flow-down clauses

• Deliverable requirements

• Invoice support

• Payment records

• Change documentation

• Closeout records

Subcontractor costs should be tracked separately and charged to the appropriate contract or cost objective.

 

The company should also establish procedures for evaluating changes in scope, pricing, and funding.

 

These controls help prevent unexpected obligations and unsupported contract costs.

 

Step 16: Establish Written Accounting Policies and Procedures

 

An accounting system is more reliable when staff follow consistent procedures.

 

Before federal contract performance begins, document how the company handles:

• Contract setup

• Project codes

• Direct costs

• Indirect costs

• Unallowable costs

• Timekeeping

• Labor distribution

• Payroll

• Purchasing

• Expense approvals

• Subcontracts

• Indirect rate calculations

• Contract invoicing

• Cost transfers

• Monthly reconciliations

• Record retention

The policies should reflect the company's actual operations.

 

Procedures that exist only on paper but are not followed consistently provide limited value.

 

Step 17: Build a Monthly Contract Financial Review

 

A monthly contract review helps leadership monitor both compliance and profitability.

 

The review should include:

• Contract costs incurred

• Labor spending

• Indirect costs

• Budget-to-actual performance

• Invoices submitted

• Payments received

• Unbilled amounts

• Subcontractor costs

• Contract funding remaining

• Forecasted costs to complete

• Cash flow

• Documentation gaps

For fixed-price contracts, management should monitor whether actual performance costs are eroding expected profit.

 

For cost-reimbursable contracts, management should evaluate cost allowability, billing support, rate treatment, and funding limitations.

 

These reviews should be consistent with the requirements of each contract.

 

Example: How Contract Type Changes Financial Planning

 

Consider an SBIR/STTR company evaluating a $600,000 federal R&D opportunity.

 

The same technical project could create different financial concerns depending on the contract arrangement.

 

Scenario A: Firm-Fixed-Price

 

The company agrees to deliver specified research and technical outputs for $600,000.

 

Its internal cost estimate is $510,000.

 

Item	Amount
Contract price	$600,000
Estimated performance cost	$510,000
Expected margin before other adjustments	$90,000

 

If actual performance costs increase to $580,000, the expected margin falls significantly.

 

The company must control costs and manage the timing of payments.

 

Scenario B: Cost-Reimbursable

 

The company performs under a cost-reimbursable arrangement with an authorized estimated cost and applicable funding ceiling.

 

Payment depends on the actual allowable costs incurred and the contract's reimbursement terms.

 

The company must maintain records supporting:

• Labor charges

• Materials and supplies

• Subcontractor costs

• Indirect rates

• Invoices or vouchers

• Funding limitations

A cost-reimbursable contract does not guarantee reimbursement of all spending.

 

Costs must meet the applicable requirements, and the contractor must operate within the agreement's terms.

 

Both scenarios are illustrative. Actual payment, fee, and funding arrangements depend on the contract.

 

Common Mistakes SBIR/STTR Companies Make When Entering Federal Contracting

 

Several recurring issues can make the transition more difficult.

 

Assuming Grant Accounting and Contract Accounting Are Identical

 

The applicable accounting, payment, and compliance requirements may differ substantially.

 

Pursuing Cost-Reimbursable Work Without Reviewing Accounting System Adequacy

 

The company may need to demonstrate that its system can accumulate and support contract costs before award.

 

Using Indirect Rates From Old Proposals

 

Outdated rates may no longer reflect the company's current costs and operations.

 

Maintaining Informal Timekeeping

 

Employees and founders may work across several activities without adequate labor documentation.

 

Failing to Reconcile Payroll and Labor Distribution

 

Payroll costs may not be traceable to the contracts that benefited.

 

Underestimating Fixed-Price Risk

 

A profitable-looking contract may become financially difficult if performance costs exceed estimates.

 

Failing to Understand Contract Billing Requirements

 

Incorrect or incomplete invoices can delay payment.

 

Ignoring Cash Flow Timing

 

Even a well-priced contract can place pressure on working capital.

 

Not Monitoring Contract Funding

 

Costs may approach contractual limits before leadership recognizes the problem.

 

Treating Accounting System Readiness as a Last-Minute Task

 

System changes become more difficult when contract performance has already begun.

 

Federal Contract Readiness Checklist for SBIR/STTR Companies

 

Before pursuing or accepting your first federal contract, review the following:

• The expected contract type has been identified.

• Contract payment terms have been reviewed.

• Accounting system adequacy requirements are understood.

• A contract-specific project code can be established.

• Direct costs can be accumulated by contract.

• Direct and indirect costs are separated.

• Unallowable costs can be identified.

• The chart of accounts supports government contract reporting.

• Timekeeping procedures are documented and operational.

• Labor distribution reconciles to payroll.

• Labor costs reconcile to the general ledger.

• Indirect rate pools and bases have been reviewed.

• Proposal rates are supported.

• Provisional billing rate requirements have been evaluated.

• Invoicing and voucher procedures are established.

• Contract funding and cost ceilings can be monitored.

• Subcontractor oversight procedures are in place.

• Contract cash flow has been forecast.

• Written accounting procedures are maintained.

• Monthly financial review responsibilities are assigned.

• Documentation is organized for potential government review.

If several items remain incomplete, the company may benefit from a federal contract accounting readiness assessment before submitting its next proposal.

 

Frequently Asked Questions About Federal Contracting After SBIR/STTR

 

Can an SBIR/STTR Company Win a Federal Contract After Its Research Award?

 

Yes.

 

SBIR/STTR companies may pursue federal contracts, including opportunities related to their research and other requirements for which they qualify.

 

The transition involves evaluating both the technical requirements and the financial obligations of the proposed contract.

 

Do All Federal Contracts Require DCAA Approval?

 

No.

 

Not every federal contract requires a DCAA pre-award accounting system survey.

 

The requirements depend on the contract type, acquisition circumstances, and applicable government oversight.

 

Is an Adequate Accounting System Required for Cost-Reimbursable Contracts?

 

Yes.

 

FAR 16.301-3 requires an adequate accounting system for determining costs applicable to a cost-reimbursement contract before award.

 

The exact review process can depend on the acquisition and agency.

 

Do Fixed-Price Contractors Need Timekeeping?

 

Timekeeping is not universally required in the same way for every firm-fixed-price contract.

 

However, timekeeping may still be required by specific clauses or needed to support other federal work, co st accounting, internal profitability monitoring, and employee labor allocations.

 

Can an SBIR/STTR Company Use Its Existing Accounting Software?

 

Possibly.

 

The company's software may be suitable if it can be configured to support the required contract accounting and reporting processes.

 

Adequacy depends on the system's capabilities, design, records, and controls—not the software brand alone.

 

What Is the Difference Between a Proposal Indirect Rate and a Billing Rate?

 

A proposal rate is used to estimate indirect costs when developing pricing or a budget.

 

A provisional billing rate may be used to calculate interim indirect cost reimbursements under applicable contracts.

 

Final indirect cost rates may later be established based on actual costs, as required by the contract.

 

Does a Cost-Reimbursable Contract Guarantee Profit?

 

No.

 

Only allowable costs may be reimbursed under the contract's terms, and any applicable fee is governed by the agreement.

 

Funding limits and performance obligations still apply.

 

When Should a Company Prepare for DCAA-Related Accounting Requirements?

 

Before pursuing an opportunity that may require accounting system adequacy or cost-based billing.

 

Preparing before award gives the company more time to identify gaps in cost tracking, timekeeping, indirect rates, and documentation.

 

Final Thoughts: Federal Contract Growth Requires Financial Readiness

 

The transition from SBIR/STTR funding to federal contracting can create significant opportunities for research-driven businesses.

 

But a successful transition requires more than strong technology and a competitive proposal.

 

Companies need accounting systems capable of supporting the requirements of the contracts they pursue.

 

That may mean establishing contract-level cost tracking, strengthening timekeeping and labor distribution, reviewing indirect rates, preparing for accounting system surveys, improving invoice support, and forecasting cash flow more carefully.

 

For firm-fixed-price contracts, accurate pricing and cost control help protect profitability.

 

For cost-reimbursable contracts, an adequate accounting system and reliable documentation are essential to supporting cost recovery.

 

At Peter Witts CPA PC, we help emerging government contractors navigate these financial requirements from proposal planning through contract performance.

 

With decades of government contract accounting experience and the perspective of a former DCAA auditor, our team helps busin esses establish stronger accounting structures and prepare for the financial responsibilities of federal contract growth.

 

Need Help Preparing for Federal Contract Growth?

 

If your SBIR/STTR company is preparing to pursue its first federal contract, now is the time to review whether your accounting system can support the next stage of growth.

 

Peter Witts CPA PC can help evaluate your accounting system design, contract cost tracking, indirect rate structure, timekeeping, labor distribution, cost proposal support, invoicing procedures, and cash flow planning.

 

Whether your company is considering a fixed-price contract, preparing for cost-reimbursable work, or anticipating a pre-award accounting system review, our team can help identify gaps and strengthen your financial readiness.

 

Prepare for Federal Contract Growth

 

Schedule a consultation with Peter Witts CPA PC to build the accounting foundation needed to pursue and perform federal contracts with greater confidence.