Allowable vs Unallowable Expenses
Time Stamps:
00:00-00:19 Intro
00:20-02:02 Determining allowability based on what is in your contract
02:03-02:52 Importance of accurately tracking unallowable costs in your chart of accounts
02:53-03:00 Outro
Understanding the FAR 31.2 Clause can be complex, but it’s crucial for government contractors to navigate allowable and unallowable costs effectively.
In this video, we break down the basics and provide practical tips on how to determine if an expense is permissible under your contract.
Here’s what we’ll cover:
✔️ The importance of assessing whether an expense is reasonable and necessary for your contract
✔️ Common unallowable expenses like alcohol, first-class travel, and company-wide marketing
✔️ Why it’s essential to read your contract thoroughly and track unallowable expenses in your chart of accounts
Whether you're new to government contracting or looking to refine your accounting practices, this video will guide you through the key considerations to ensure compliance and avoid costly mistakes.
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#GovernmentContracting #FAR31 #CostAccounting #GovernmentCompliance #ContractManagement