If you might be planning to have the U.S. Government as a shopper, you have to to have your accounting techniques arrange so you may deal with their accounting necessities. Regardless of whether or not you might be participating in a plain vanilla contract or an SBIR grant, you can be required to barter fringe profit charges, overhead charges, and basic and administrative charges.
Fringe advantages charges embrace
- Compensated Absences, corresponding to Vacation, Holidays, and Sick Leave;
- Medical Programs, corresponding to Health and Dental Insurance;
- Retirement, such because the Defined Contribution Portion of your Retirement Plan and Plan Service Fees;
- Long-term Disability Coverage;
- Worker’s Compensation Coverage; and
- Employee Wellness, corresponding to Fitness Club Membership and Other Wellness Programs
Overhead covers direct and oblique assist of the workers whose time is being billed to the Government. This consists of objects like
- Rent (solely for the house that these workers use);
- Depreciation of their furnishings and gear;
- Utilities (based mostly on the house allotment for these workers); and
- Supplies that these workers share, corresponding to workplace provides.
General and administration covers different prices which are essential for the corporate to carry out on this contract, together with:
- Management (and their related fringe, direct, and oblique prices)
- Legal prices
- State and Federal taxes
- Marketing to the Government prices
- Accounting
Note, nonetheless, that they’ve in depth laws overlaying was just isn’t thought of an allowable price (see the FAR part 31.205 – Selected Costs [http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/31.htm#P268_51249] to get a particular description as to what’s allowable and what just isn’t.
Once you’ve gotten negotiated these charges, you can be required to again them up yearly utilizing an oblique price mannequin to point out that you’re matching your negotiated charges. This mannequin is topic to audit.
Although you may work out what wants to enter these calculations, it’s going to take a very long time to learn all of the laws. If you imagine that you just wish to win Government contracts, you could assume forward or rent a marketing consultant to help you with the method.