Remember, best practices. Also remember, future work may not be fixed prices. Therefore, if you’re in business awhile and go for a CPFF contract, the government would expect a functioning accounting system as a recurring contractor. Also, being able to demonstrate how you computed your rates for your FFP contract is normally required. In other words, an FFP contract is not freedom from adequacy.
This is myth #18 of our SBIR Accounting Myths blog series. George Moker is a CPA and an entrepreneur who brings a real approach to managing the accounting needs of your firm. George created this series of blog posts to his more than 30 years of small business and startup experience in an attempt challenge the myths about an adequate accounting system and its importance within your organization.
For more information on how we can help with your SBIR accounting needs, please visit us at www.mokercpa.com