Using QuickBooks to Accurately Report GSA Industrial Funding Fee
Are you a government contractor using QuickBooks? Do you struggle with tracking GSA’s Industrial Funding Fee (IFF)? QuickBooks is not set up to track GSA’s IFF. However, features within the system can assist in making this task painless.
Let’s first define what GSA’s IFF is. GSA’s Industrial Funding Fee (IFF) is a fee paid by government contractors to the GSA to cover GSA’s cost of operating the Federal Supply Schedules program. The fee equals .75% of your total GSA sales (government sales made through a GSA Schedule Contract) and it is paid every quarter to GSA. There are two processes that can be used to accurately report the IFF to GSA.
The first method is to create a report, but building reports within QuickBooks can be difficult. Once the report is developed, reporting the IFF can take a few minutes. First, we will look at the method that works for a government contractor reporting on an accrual method under the GSA Schedule Contract. This method is straightforward but requires updating the report every time a new contract is awarded. Go to Reports→ Sales by customers’ → Customize Reports → Filters → Name → Select Multiple Names and then select the names of the customers you need to report the IFF on. Finally, you will want to memorize the report and update it with new customers when new contracts are awarded.
The second method is not as difficult and has worked very well for my company, Winvale, a reseller of IT solutions to federal, state and local governments. We report our IFF on the cash receipts basis (you are allowed to use this methodunder the accrual method of reporting). We useour Profit and Loss statement, change it to a cash basis by quarter and export this report to Excel. Once the report is exported to Excel, we take advantage of the pivot table function and create pivot tables by name and SIN category and we are done!
These reports will work for many of the government contracts but not all. If you are dealing with a cost reimbursable contract, DCAA requires your accounting system to be compliant with their guidelines found on their website during the pre-award stage of the contract. While QuickBooks alone is not DCAA compliant, together with integrated time capture and reporting tools, it can be DCAA compliant. Intuit does not offer any products to make QuickBooks DCAA compliant. However, there are some third party tools and resources available on the internet that can be researched and explored to determine best appropriate tool to make QuickBooks DCAA compliant.
If you are diligent and put in the necessary effort, you may find that your QuickBooks can be adapted for all types of government contracts.