If you own an EHS business, you know how crucial maintaining DCAA and DOL compliance can be for success.
Your relationships with these two federal institutions can make up the bread and butter of your EHS organization and ensure that you get the contracts your business needs without running into issues that could jeopardize your finances or reputation. Luckily, there are several online resources and tools to help with compliance and many are included in this guide.
DCAA Tools, Checklists, and Tips
This is a two-part guide, but first, let’s focus on what you need to be DCAA compliant. To break down this often confusing process, you can read through these questions and answers.
What does my business need to be compliant with DCAA requirements?
This comprehensive checklist comes straight from the DCAA, or Defense Contract Audit Agency, and tells you everything that contractors, businesses, and contracting officials need to know. Some key components auditors will look for include the following:
A checklist that assesses the adequacy of cost or pricing data.
Implementation of EZ-Quant, which are necessary statistical applications.
Maintenance of an adequate and accurate accounting system.
How can I be sure that my accounting system is adequate and accurate?
After reading through the list above, you may be curious about the accounting requirements. Implementing accurate and efficient accounting systems is not only beneficial in terms of DCAA but can also be useful for avoiding DOL issues, which will be covered later.
If you need to manage a crew and time cards, as one relevant example, utilizing time-tracking software is a proven way to help meet DCAA standards. With high-quality software, you can maximize accountability, keep accurate records, and better estimate costs associated with projects — all of which can be helpful for maintaining DCAA compliance.
You may also want to hire a bookkeeper to ensure all your financials are accurate and up-to-date. If you don’t want to bring someone on full-time, explore job boards to find reliable bookkeeping candidates. Bookkeeping services pricing typically ranges between $11 and $25 per hour, but you can expect to pay considerably more based on their skill set, experience, and expertise.
DOL Information and Tools for Businesses
Compliance with DCAA and the DOL can go hand-in-hand for many small businesses. That’s because accurate accounting and time tracking can be important for both, but preventing DOL problems within your business can also involve other best practices and tools.
Are there specific tools that can aid my business with DOL compliance?
Much like with DCAA compliance, you can find plenty of resource lists and tool recommendations for keeping your business DOL compliant. Many of these are also official government websites and checklists and relying on official sources is highly critical.
You can use these online tools to get answers to your most pressing DOL questions, address any overtime or minimum wage issues and determine requirements for employee benefits.
Health insurance is a commonly searched benefit, and there are also helpful checklists available online that will aid business owners in selecting the right provider for their employee plans.
Why should business owners care so much about DOL compliance?
You know that maintaining DCAA compliance can be the difference between securing or losing lucrative government contracts. Yet, you may not be sure what the penalties are for a small business that fails to maintain compliance with DOL requirements and restrictions?
In the last few years, the DOL has stiffened fines and penalties for a variety of violations. Here is a breakdown of some of the increased financial costs of not complying with DOL rules:
Fines for OSHAct violations increased from a maximum of $12,934 to $13,260.
Willful violation of overtime or wage requirements rose from $1,964 to $2,014.
At first glimpse, these may not seem like outlandish penalties but violations involving multiple employees and multiple instances can add up quickly. This is why accurate reporting and compliance are so vital for businesses. Plus you’ll be better prepared for a potential audit.
DCAA and DOL compliance can make or break your EHS business. Or any small business for that matter. Instead of risking it all by figuring things out solo, you should arm yourself with software, tools, and online resources that will help you avoid guesswork and potential issues.
The team at AJM Associates is dedicated to developing innovative solutions and achieving cost-effective solutions for your business. Call (248) 778-6070 to request a quote.
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Guest Blogger: Nicole Rubin - InsureAbilities • www.insureabilities.com