A fast-growing government defense contractor specializing in cost-plus contracts over $50 million was preparing for acquisition by a strategic buyer. However, their financial structure was not compliant with DCAA (Defense Contract Audit Agency) requirements—an immediate barrier to due diligence and a significant risk to the transaction. Their general ledger lacked proper segregation, cost allocation structure, and compliant classification methods. Complicating matters further, years of historical transactions needed to be reclassified to align with strict DCAA standards.
FinSource was brought in to rapidly restructure the company’s accounting foundation. Our team conducted a full general ledger rebuild—mapping, correcting, and reclassifying past activity to match DCAA rules for direct versus indirect costs, allowable versus unallowable charges, labor categories, overhead pools, and cost-plus reporting standards. This required both deep technical expertise and a precise, audit-ready approach.
“FinSource accomplished what we thought was impossible—rebuilding a fully DCAA-compliant ledger across years of historical transactions under an extremely tight timeline. Their precision and expertise gave our leadership and our buyer total confidence heading into the acquisition. The success of our transaction is directly tied to the quality of their work.”
– Eric, Defense Contractor CFO
FinSource completed the project quickly and thoroughly, delivering a fully compliant, clean, and defensible accounting system. The reconstructed ledger met DCAA audit expectations, eliminated historical inconsistencies, and provided a transparent financial picture that could withstand investor and regulatory scrutiny.
As a result, the company entered acquisition due diligence with confidence. The improved financial clarity, compliance, and documentation directly supported the successful completion of the transaction—a transformative win for the organization.