The Defense Federal Acquisition Regulation Supplement (DFARS) oversees the purchasing of goods and services made by the Department of Defense (DOD). DFARS compliance is essential if your organization works directly with the government. If you do not have certified public accountants (CPAs) to assist you with DFARS compliance, then you may find keeping up with the numerous regulations to be incredibly difficult. Diener & Associates has a team of outsourced accountants that are ready and able to help you with your organization’s DFARS compliance requirements.
What is DFARS Compliance?
The Defense Federal Acquisition Regulation Supplement is a set of regulations enforced by the Department of Defense. DFARS specifically includes cybersecurity regulations that are imposed on contractors that work directly with the government. It serves as an extension of the Federal Acquisition Regulation (FAR), which handles all contracts between the U.S. government and external contractors and organizations. DFARS compliance refers to following the regulations set forth by the DOD and FAR as they relate to defense-based contracts.
What Are the Requirements for DFARS Compliance?
The primary concern of DFARS is the security of the DOD’s contracts and interactions with contractors. If a contractor’s accounting system is breached, it could have a significantly detrimental impact. Therefore, the primary requirement for DFARS compliance is the ability to provide a secure accounting system that safeguards all privileged information between the government agency and the contractor. The second major requirement for DFARS compliance is the prompt reporting of any issues that may arise. This should include coordination with the DOD if anything were to occur that would compromise security, such as a breach in the accounting system.
How Can Diener & Associates Assist with DFARS Compliance?
Diener & Associates has a team of experienced CPAs that are well-informed and educated on DFARS regulations and what is necessary to remain compliant. Our DFARS compliance services involve reviewing your organization’s current work processes and accounting systems to identify risks that would penalize your organization. We then administer improvements to help your business gain compliance and implement a more secure, government-approved accounting system to confirm that you are able to procure government contracts in which the DOD is involved.
The Risks of Not Remaining DFARS Compliant
DFARS compliance is essential for government contractors that have obtained defense-based contracts. If you are not able to abide by the regulations, then your business may be at risk of not being eligible for contracts involving the DOD, which may risk previously contracted as well as future funding. Your organization may also not be compensated for the full amount of money defined in your contract if it fails to comply with DFARS during the contract. Working with a professional CPA who understands DFARS compliance and the requirements surrounding DOD contracts can prevent this from happening.
Speak with Diener & Associates for More Information
When you trust Diener & Associates for your organization, you ensure that you are able to identify areas where you may need to adjust your business processes or financial bookkeeping to adhere to the DFARS regulations. To learn more about DFARS compliance for your organization, reach out to our team by phone at 703.386.7864 or schedule a consultation online today.