The world of government contracting demands strict adherence to regulations and maintaining flawless accounting practices. For organizations operating under DCAA oversight, having the right accounting software may play a role in preserving contracting compliance and avoiding costly errors later on.
Many contractors are surprised to learn that despite its stringent accounting requirements, the DCAA does not have, provide, or endorse accounting software in conjunction with government contracting. This makes the right software choice for your organization even more critical.
Deltek Costpoint and QuickBooks Enterprise are two prominent players in this space, but which one is the better fit for your organization in 2025? While both solutions have their strengths, the distinct demands on government contractors, including detailed cost tracking, timekeeping, and reporting, make this decision far from straightforward.
Here’s what it really comes down to.
Reviewing Deltek Costpoint and QuickBooks Enterprise
Deltek Costpoint and QuickBooks Enterprise are two widely recognized accounting platforms, but they each serve distinct purposes and audiences. Designed for flexibility, QuickBooks Enterprise is a popular choice for small to medium-sized companies seeking accounting software.
Its popularity and appeal lies in its accessibility and adaptability, offering industry-specific customizations that cater to a broad range of business needs. These customizations are key for many contractors, allowing them to create processes that are specific to their contracts.
Deltek Costpoint comes preset with government contractors in mind to handle the many requirements of DCAA compliance and project-based accounting. Designed around government contract standards, it provides tools to simplify audit readiness, cost allocation, and timekeeping for organizations operating within federal regulations.
Important Features Comparison
- Accounting Features:
- QuickBooks offers essential accounting tools, such as general ledger management and accounts payable/receivable. For government contractors, it can be customized with DCAA-compliant add-ons.
- Deltek includes standard compliance features of audit trails, time tracking, and FAR/DCAA-aligned reporting out of the box.
- Project Management:
- QuickBooks allows third-party integrations for advanced project tracking. This works well for small to operations, but without CPA guidance, may introduce inefficiencies for complex projects.
- Deltek’s standard project management features include streamline budgeting, resource allocation, and cost forecasting.
- Scalability:
- QuickBooks is ideal for small to medium contractors or those new to government work.
- Deltek is designed for larger organizations managing multiple contracts and can scale alongside your business as it grows.
Ease of Use and Implementation
With its simple setup and intuitive navigation, QuickBooks Enterprise is highly regarded by users across the board. Many accounting professionals are already familiar with its structure, reducing the time needed for training and onboarding. This makes it an appealing choice for smaller organizations or those seeking a quick, accessible solution.- Deltek Costpoint, however, takes a different approach. While powerful, its advanced features may take more time to understand, particularly for those inexperienced with government contracting systems. But, Deltek offers customized training and dedicated support to help organizations get up to speed.
Comparing The Two: Although QuickBooks’ greater ease of use is a clear advantage, organizations with significant government contracting needs may find Deltek’s more comprehensive capabilities worth the additional investment in time and training.
Pricing and Cost Considerations
- QuickBooks Enterprise offers flexible pricing tiers that make it accessible to smaller organizations or those with limited contract portfolios. Its ability to be customized can ensure DCAA compliance across multiple agencies, but is most successful with third-party integrations, such as with CPAs with federal contracting expertise.
- Deltek Costpoincomes with higher upfront costs, reflecting its specialization in government contracting. For businesses managing multi-year contracts or larger portfolios, this can translate into substantial long-term savings. For those willing to invest in training, the compliance tools and advanced project accounting features may counter customizations.
Comparing The Two: When evaluating total cost of ownership, it’s important to consider the scalability of the solution. QuickBooks may offer short-term affordability, but Deltek’s pricing structure often becomes more cost-effective as organizations grow. The best choice will depend on contract sizes, business goals, and the level of compliance support required.
Reporting and Analytics
- QuickBooks offers customizable reporting features that are well-suited for small to medium-scale operations. Businesses can easily track important financial metrics, including revenue, expenses, and cash flow, thanks to its transparent reporting capabilities. Customization will allow it to create reports that meet specific government contract compliance standards.
- Deltek Costpoint provides advanced reporting and analytics and is designed to handle government contracts. Offering detailed insights into contract-specific compliance, project profitability, and resource utilization, these reports are made for audit requirements and assessing overall performance.
Comparing The Two: For contractors juggling multiple projects or preparing for audits, Deltek’s ability to deliver precise, actionable insights can save significant time and effort. Smaller businesses with less intricate needs may find QuickBooks’ reporting features efficient for their operations.
Support and Integration
QuickBooks Enterprise supports a wide range of integrations and third-party applications, making it adaptable to diverse business needs and requirements. To maintain DCAA compliance, CPA expertise cannot only bridge gaps, but fine tune requirements to meet agency specific or contract specific requirements.- Deltek Costpoint provides customer support with a focus on standard government contracting requirements. Its integration capabilities are designed to work seamlessly with tools commonly used by contractors, streamlining workflows, and reducing potential headaches.
Comparing The Two: Having access to customer support can make a significant difference, especially when compliance is on the line. Contractors managing complex projects may find Deltek’s better-focused assistance more reliable, while smaller businesses may appreciate the flexibility of QuickBooks’ broader app ecosystem, especially in conjunction with the customized processes of a specialized CPA firm.
What is The Right Software for Government Contractors?
Selecting the right accounting software often comes down to the size of a particular organization, the complexity of their contracts, and the broader long-term goals they may have.
Evaluating software options based on comparative data, contract scope and volume, operational requirements, and strategic objectives is merely the initial step in the decision-making process. The critical factor is in contractors’ candid assessment of their end-users’ capabilities and proficiencies. Sophisticated features, regardless of their cost, prove ineffective if not properly utilized.
Numerous contractors have found success by engaging CPA services to tailor software processes, resulting in optimized efficiency and cost-effectiveness. This approach, combined with the expertise and services of accounting professionals, ensures comprehensive DCAA compliance for both reporting and audit purposes.
Accounting Services for Government Contractors
While QuickBooks Enterprise provides enhanced accessibility and flexibility for small and medium operations, Deltek Costpoint offers specialized tools tailored to more complex, larger-scale needs. Each platform boasts unique strengths, but the crux of a successful implementation is in aligning your selection with your organization’s current requirements and long-term strategic objectives.
Diener & Associates excels in guiding government contractors towards informed decisions regarding their accounting systems and compliance strategies. Our expertise can be instrumental in navigating these choices and optimizing your business processes.
To learn how we can contribute to your organization’s ongoing success, we invite you to schedule a consultation through our online booking system or contact us directly at 1-(703)-386-7864.
Let us partner with you to ensure your accounting solutions are perfectly attuned to your business needs and future aspirations.