Kline & Company

Establish or improve an accounting system that supports federal contract cost tracking, reporting, and DCAA compliance.

Helps federal contractors prepare well-supported, compliant cost and pricing proposals and negotiate government contracts with experienced guidance.

Get support preparing accurate, timely, and supported incurred cost submissions, with assistance responding to DCAA questions.

Get experienced guidance, audit representation, and preparation to help navigate DCAA audits and address audit findings.

Outsource government contract accounting and tax work to experienced specialists so your team can focus on bidding and performing contracts.

Helps businesses manage tax obligations, plan strategically, address multistate tax issues, and pursue profit improvement with experienced tax support.

DCAA Accounting System Setup

Kline & Company establishes accounting systems for federal contractors and reviews existing systems to help meet DCAA requirements and applicable FAR and DFARS criteria. Setup may include a chart of accounts that separates direct and indirect costs, a labor distribution system, accounts for unallowable expenses, and tools to track contract costs and profitability. The service can also include accounting policies and procedures, internal controls, management and program reporting, and training. New systems typically use a combination of QuickBooks and Excel spreadsheets.

• Establish A DCAA-Ready Accounting System
  Provides federal contractors with a new accounting system configured for government contract accounting requirements, using a combination of QuickBooks and Excel spreadsheets as its typical basis.
• Organize Contract Costs
  Structures accounting categories to separate direct and indirect costs, identify unallowable costs, and organize contract or job costs for accounting and reporting.
• Track And Allocate Labor
  Supports recording employee time by contract and distributing labor to appropriate cost objectives, including direct and indirect labor.
• Identify And Exclude Unallowable Costs
  Helps contractors distinguish unallowable expenses in their accounting records and keep those costs out of government contract billings and claims.
• Track Contract Costs And Profitability
  Makes contract-level cost information available to help contractors monitor the costs and profitability of their contracts or jobs.
• Document Accounting Procedures
  Gives contractors documented procedures to guide accounting practices and support consistent operation of the accounting system.
• Improve Existing Accounting Systems
  Identifies needed changes to an existing accounting system and related processes or procedures, with recommendations intended to reduce non-compliance risk and support timely management and program reporting.
• Allocate Indirect Costs Consistently
  Helps organize indirect cost pools and apply a consistent allocation method to contracts, supporting cost accumulation and reporting.
• Strengthen Accounting System Controls
  Helps establish controls and review practices that support compliance with the contractor's accounting policies, procedures, and accounting practices.
• Provide Timely Contract Reports
  Makes timely management and program reporting available to help contractors monitor their business and use reliable cost information for operational decisions.
• Train Staff On The System
  Helps contractor staff learn to use the established accounting system and build familiarity with federal contract cost principles.
• Support Contract Billing
  Provides cost information to support progress payment billings, monitor costs charged to government contracts, and compare costs with contract limitations.

DCAA Cost & Pricing Proposal Support

Kline & Company’s former DCAA auditors and government contract accountants help federal contractors develop cost and pricing proposals. The team reviews solicitation requirements, calculates indirect rates, prepares proposals and supporting documentation, advises on profit or fee, and assists with contract negotiations. For major or multi-year efforts, it also helps prepare forward pricing rates. Services include Basis of Estimate development, proposal compliance reviews, FAR Part 31 cost analysis, cost realism support, and internal reviews to help contractors submit well-supported proposals that meet solicitation and applicable requirements.

• Prepare Detailed Government Contract Proposals
  The team supports proposal preparation with detailed financial requirements and supporting cost information tailored to the solicitation.
• Calculate Indirect Rates For Proposals
  Indirect rate calculations provide proposal support for the rates applied to contract costs, including the related pool and allocation-base computations.
• Review Proposals Against Applicable Requirements
  Compliance reviews and cost analysis help identify whether proposal information follows solicitation instructions and applicable FAR requirements and is adequately supported.
• Align Proposals With Solicitation Requirements
  Reviewing the solicitation before proposal development helps contractors understand the requirements their cost and pricing proposal needs to address.
• Document The Rationale Behind Proposed Costs
  A developed Basis of Estimate supports the proposed values with their underlying rationale, methods, assumptions, and source information.
• Prepare Rates For Major Contract Efforts
  Forward pricing rate support is available for major or multi-year efforts, helping contractors develop rates for those proposal needs.
• Support Government Contract Negotiations
  Contractors can work with the team on negotiations following development of their cost proposal.
• Inform Proposed Profit Or Fee
  Guidance on profit or fee helps contractors formulate that part of their proposal and prepare for negotiation.
• Prepare For Proposal Audits
  Proposal audit preparation and responses help contractors address DCAA review of their cost proposals.

DCAA Incurred Cost Submissions (ICE)

Kline & Company prepares Incurred Cost Submissions for federal contractors using the DCAA-developed ICE program, and can assist with preparation or review contractor-prepared submissions for adequacy. The service includes assembling required financial schedules, reconciling accounting and payroll records, calculating indirect cost rates, and identifying material discrepancies. The team also answers questions from DCAA related to the submission.

• Prepare ICE Submissions
  Have the submission prepared using the DCAA-developed ICE program and supported by the financial schedules required for the government filing.
• Compile Contract Cost Schedules
  Present cumulative direct and indirect contract costs in schedules prepared from job cost ledger and general ledger information.
• Reconcile Claimed Direct Costs
  Connect claimed direct costs to general ledger information to support the amounts included in the submission.
• Calculate Indirect Cost Rates
  Calculate the indirect cost rates required for the incurred cost submission and its final indirect rate determination.
• Review Submission Adequacy
  Get a review of a company-prepared submission for adequacy before it is submitted to the government.
• Compare Costs With Billings
  Compare actual costs with billings to include this review in the submission preparation process.
• Reconcile Payroll And Labor
  Reconcile payroll reports with labor distribution information as part of preparing the financial data for the submission.
• Answer DCAA Questions
  Get assistance addressing DCAA questions about the incurred cost submission.
• Prepare Contract Briefs
  Prepare and maintain contract briefs as part of organizing contract information for the submission.
• Identify Material Discrepancies
  Receive a list of material discrepancies identified during preparation of the incurred cost submission.
• Assemble Contract And Subcontract Lists
  Include assembled information about subcontractors and closed contracts in the submission preparation.

DCAA Audit Support

Kline & Company provides federal contractors with complete representation or behind-the-scenes support during DCAA audits. Its team of former DCAA auditors and government contract accountants guides clients through accounting system adequacy, pre-award, contract proposal, incurred cost, and claims audits, as well as financial capability assessments performed by DCMA. The team communicates with DCAA during the audit and prepares responses to audit reports that explain areas of disagreement. For contractors not yet being audited, Kline & Company offers mock audits using DCAA audit programs to identify system weaknesses likely to be found during an audit.

• Navigate Audits With Experienced Support
  Contractors can choose complete representation or behind-the-scenes assistance across several types of government audit and assessment.
• Prepare Records And Teams For Audits
  Structured preparation helps contractors understand audit requests and have relevant documentation and knowledgeable personnel available.
• Respond To Audit Findings
  The team helps contractors present their position by preparing a response that identifies disputed areas and explains the reasons for disagreement.
• Draw On Former Auditor Experience
  The team's prior DCAA audit experience and government contract accounting knowledge inform its guidance throughout the audit process.
• Coordinate Directly With DCAA
  Kline & Company communicates with DCAA during the audit, helping clients navigate the audit process with support from government accounting specialists.
• Identify Weaknesses Before An Audit
  A mock audit gives contractors an opportunity to find likely system weaknesses before an actual DCAA audit.

DCAA outsourced accounting services

Kline & Company provides customized outsourced accounting and tax services for federal government contractors. The team maintains accounting records, tracks contract costs, prepares government contract billings and required reports, reconciles payroll and bank accounts, and supports communication with DCMA, DCAA, and contracting officers. Services can include monthly bookkeeping and financial reporting, indirect cost rate tracking, budgeting, audit assistance, tax return preparation, and other accounting needs tailored to each client. Kline can also supplement an existing accounting team.

Category: Accounting Services

• Track Contract Costs And Rates
  Monitor cumulative contract costs, reconcile labor distributions, and track indirect cost rates to support government contract accounting.
• Prepare Government Contract Billings
  Receive support preparing and recording contract billings, including billings for CPFF contracts.
• Prepare Required Financial Reports
  Obtain project financial results and support for required government reporting, including preparation of Incurred Cost Submissions.
• Tailor Support To Your Needs
  Choose accounting services based on your business needs, including support that supplements an existing internal accounting team.
• Prepare For And Navigate Audits
  Get assistance preparing for DCAA audits and support during the audit process, including representation by the team.
• Maintain Accurate Financial Records
  Keep accounting records current through invoice recording, bank reconciliations, and tracking of receivables and payables.
• Prepare Business And Individual Returns
  Receive business tax return preparation as well as personal return preparation for business owners and executives.
• Coordinate Government Communications
  Have Kline communicate with DCMA, DCAA, and contracting officers on financial reporting matters.
• Coordinate Payroll And Labor Records
  Coordinate with the payroll provider on arising issues and reconcile payroll information with labor distribution records.
• Support Accounting And Timekeeping Systems
  Receive support for accounting software and guidance on timekeeping and labor compliance, including support for QuickBooks and Unanet.
• Develop Written Accounting Procedures
  Receive assistance with written accounting policies and procedures as part of government contractor accounting support.
• Plan Budgets And Forecast Finances
  Use budgeting and financial forecasting support as part of a customized outsourced accounting engagement.
• Maintain Contract Documentation
  Keep copies of contracts and contract modifications maintained as part of the accounting support.

Tax Services for Businesses

Kline & Company provides tax planning and compliance services for businesses, including closely held businesses. Services include business tax planning and deferral strategies, profit enhancement planning, federal, state, and local tax return preparation, sales and use tax support, multistate tax guidance, entity structuring advice, and representation before tax authorities. The firm also supports state tax audits and reviews prepared returns for accuracy.

• Plan Tax Obligations Strategically
  Business tax planning and deferral strategies help clients consider their tax obligations as part of their business objectives.
• Prepare Business Tax Returns
  Tax professionals prepare business returns across federal, state, and local filing requirements.
• Improve Profit Potential
  Profit enhancement planning helps businesses pursue improved profitability as part of their tax and business planning.
• Address Complex Tax Jurisdictions
  Support with sales and use tax, multistate issues, and filing requirements helps businesses navigate tax matters across multiple jurisdictions.
• Represent You In Tax Matters
  Representation before tax authorities and support during state audits gives clients professional assistance with tax matters and audit proceedings.
• Review Returns Before Submission
  A second tax professional reviews prepared returns for accuracy before they are submitted.
• Evaluate Business Entity Structures
  Businesses can receive advice on a range of entity structures, from sole proprietorships and LLCs to partnerships and corporations.
• Apply Current Tax Law Knowledge
  Continuously updated tax software and expertise in changing state tax laws support tax preparation and compliance work.
• Receive Prompt Personal Responses
  A same-business-day call-back goal and attentive service help clients get a timely response to their inquiries.