Here’s a look back at the top stories and crucial tips for DCAA compliance in 2025, alongside how NetSuite users have adapted, and how Daston can position your firm for an even stronger 2026.
Top DCAA Compliance Stories of 2025
1. Increased Focus on Real-Time Data and Analytics: DCAA’s push for greater transparency and efficiency continued in 2025, with auditors increasingly demanding access to real-time data and sophisticated analytics. Contractors who could quickly provide auditable data, often directly from their ERP systems, found themselves in a much better position. This trend emphasized the need for integrated systems that can capture, process, and report financial and project data seamlessly.
2. Cybersecurity Maturity Model Certification (CMMC) 2.0 Implementation Progress: While not directly DCAA compliance, CMMC 2.0 continued its phased implementation, significantly impacting government contractors’ handling of Controlled Unclassified Information (CUI). The interconnectedness of IT systems with financial data means that robust cybersecurity postures are now intrinsically linked to overall compliance. A breach could not only jeopardize sensitive data but also cast doubt on the integrity of financial records.
Resource: For the latest updates on CMMC, always refer to the official CMMC Accreditation Body (The Cyber AB) website.
3. Evolution of Indirect Cost Rate Submission and Scrutiny: The submission and subsequent audit of indirect cost rates remained a critical area of focus. DCAA continued to refine its approach, often zeroing in on the reasonableness and allocability of costs, particularly in a remote work environment. Contractors experienced increased scrutiny on how shared services and general and administrative expenses were being distributed across various contracts.
Resource: The DCAA publishes various pamphlets and guidance. For an overview of indirect costs, see the DCAA’s Understanding Indirect Costs booklet.
4. Data Integrity and Audit Trail Verification: With more contractors moving to cloud-based ERPs like NetSuite, DCAA emphasized the importance of maintaining strong internal controls and verifiable audit trails. Auditors are looking for systems that prevent unauthorized modifications, track all changes, and provide a clear history of transactions, from initiation to completion.
NetSuite ERP Strategies & Tips for Government Contractors in 2026
1. NetSuite’s Enhanced Project Accounting for Government Contracts: In 2025, NetSuite has refined its project accounting capabilities to better serve the complex needs of GovCon. These updates focus on granular cost tracking, automated revenue recognition (essential for ASC 606 compliance), and real-time profitability analysis.
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- The Tip: Regularly review your project setup, billing rules, and revenue policies to ensure you are maximizing the latest automation features.
- How Daston Assists: As a specialized partner, Daston helps you bridge the gap between “standard” NetSuite and “GovCon-ready” NetSuite. We configure your Work Breakdown Structure (WBS) to align perfectly with contract requirements, ensuring that indirect cost allocations and revenue recognition schedules are automated and error-free.
2. Leveraging NetSuite’s Advanced Audit Trails and Reporting: With DCAA scrutiny reaching new heights in 2025, NetSuite’s inherent audit trail functionality has become a critical asset. The ability to drill down into the “who, what, and when” of every transaction provides the transparency necessary to pass rigorous audits.
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- The Tip: Customize saved searches to proactively monitor compliance indicators and train your team to generate audit reports before the auditor even asks.
- How Daston Assists: Daston provides Audit-Readiness Assessments. We don’t just show you where the data is; we help you build custom “Audit Dashboards” that aggregate DCAA-required data into a single view. Our team ensures your system permissions (RBAC) are configured to satisfy separation of duties, a common focal point for government auditors.
3. Integrating Time and Expense Management within NetSuite: Managing labor costs remains the most sensitive area for government contractors. Integrated timekeeping within NetSuite eliminates the data silos that often lead to “unallowable” cost errors and manual entry discrepancies.
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- The Tip: Implement strict approval workflows and enforce company travel and expense policies directly within the NetSuite mobile or web interface.
- How Daston Assists: Daston streamlines the integration of specialized timekeeping tools or optimizes NetSuite’s native modules to ensure DCAA-compliant labor floor checks. We help you automate the “Total Time Accounting” process, ensuring that every hour is accounted for and correctly distributed across direct and indirect cost pools.
Daston: Your Partner for 2026 DCAA Compliance and NetSuite Optimization
As we look ahead to 2026, the demands on government contractors will only continue to grow. Daston is uniquely positioned to help your firm not just meet, but exceed your DCAA compliance goals and maximize your NetSuite ERP investment.
How Daston Helps You Exceed Your 2026 Goals:
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- NetSuite Implementation & Optimization for DCAA: Daston specializes in configuring NetSuite to meet the stringent requirements of DCAA. This includes setting up robust project accounting, indirect cost pools, timekeeping, expense management, and detailed reporting structures that provide the audit trails DCAA demands. We ensure your system is not just functional, but auditable.
- Proactive Compliance Consulting: Our team understands the nuances of FAR, DFARS, and CAS. We don’t just react to audits; we help you build proactive strategies to maintain compliance year-round. This includes pre-audit readiness assessments, internal control reviews, and assistance with indirect cost rate proposals.
- CMMC Preparedness within NetSuite: Recognizing the intersection of cybersecurity and financial compliance, Daston can guide you in leveraging NetSuite’s security features and integrating with other systems to bolster your CMMC posture, safeguarding both your data and your contracts.
- Training and Support: A well-configured system is only as good as the people using it. Daston provides comprehensive training to ensure your team understands how to properly use NetSuite for DCAA compliance, fostering a culture of adherence and accuracy.
- Ongoing System Health Checks and Updates: The regulatory landscape changes, and so does NetSuite. Daston offers ongoing support and system health checks to ensure your NetSuite instance remains optimized, compliant, and leverages the latest features for your benefit.
- Data Migration Expertise: Whether you’re moving from a legacy system or optimizing your current NetSuite instance, Daston has the expertise to ensure a smooth, data-integrity-focused migration process, minimizing disruption and maximizing the value of your data.
In the complex world of government contracting, having a trusted partner like Daston means you can focus on your core mission while we ensure your financial systems and compliance strategies are robust and future-proof. Let’s make 2026 your most compliant and successful year yet.