07/22/2026
Is it allocable?
Is it allowable?
Is it direct or indirect?
If you're subject to FAR Part 31, your bookkeeping needs to be able to answer these three questions for every expense at your business.
For small businesses, establishing an accounting system that can handle this added complexity is a challenge.
QuickBooks Online can be used.
Use your Chart of Accounts as you normally would.
Use the Class function to map each indirect cost to an indirect cost pool.
Use the Projects function to allocate direct costs to a specific contract.