What is a virtual CPA?

A virtual CPA provides the same services as a traditional CPA firm — tax preparation, bookkeeping, audits, financial planning — but delivers them remotely using secure cloud technology. You get expert-level service without visiting a physical office.

How much do virtual CPA services cost?

Pricing depends on the complexity of your financial situation and the services you need. We provide transparent fee estimates during your initial consultation. Virtual CPA firms typically have lower overhead than traditional firms, which translates to more competitive rates.

Do I need an audit for my nonprofit?

Many states require nonprofits to have an independent audit once they exceed certain revenue thresholds, often $500,000-$750,000. Grant-making organizations and government agencies frequently require audited financial statements. We can help determine your specific audit requirements.

What is the difference between an S-Corp and an LLC for tax purposes?

An LLC provides liability protection and pass-through taxation by default. An S-Corp election can provide additional tax savings by allowing owners to split income between salary (subject to payroll taxes) and distributions (not subject to payroll taxes). The right choice depends on your income level, business structure, and state tax laws.

What does a virtual CFO do?

A virtual CFO (fractional CFO) provides high-level financial strategy and oversight on a part-time basis — budgeting, forecasting, cash flow management, financial analysis, KPI reporting, and strategic financial planning. You get C-suite financial leadership without the full-time cost.

Can you help if I'm behind on bookkeeping or taxes?

Yes. We offer catch-up bookkeeping services to bring your books current and can help resolve back tax issues including IRS notices, unfiled returns, and payment plans.

What accounting software do you work with?

We work with QuickBooks Online, Xero, FreshBooks, Wave, and other major cloud accounting platforms. We can also help you select and set up the best software for your business.

How do I prepare for tax season?

Organize financial records throughout the year, keep receipts for business expenses, track mileage and home office usage, make quarterly estimated tax payments, and schedule a year-end tax planning session before December 31.

What is DCAA compliant accounting?

DCAA (Defense Contract Audit Agency) compliant accounting is a system that meets federal government requirements for contractors. It includes proper timekeeping, job cost accounting, indirect cost allocation, and specific internal controls required for government contract work.

Do I need a CPA or a bookkeeper?

Bookkeepers handle day-to-day recording of financial transactions. CPAs handle higher-level work — tax planning and preparation, audits, financial analysis, and strategic advice. Many businesses need both. Our firm provides both services so you have one team managing everything.

What's the difference between an audit, review, and compilation?

An audit provides the highest level of assurance through independent verification of financial statements. A review provides limited assurance through analytical procedures and inquiries. A compilation presents financial information in statement format without assurance. The right choice depends on your stakeholders' requirements.

Do you serve businesses outside the DMV area?

Yes. While our primary service area is Washington DC, Maryland, and Virginia, we serve clients nationwide through our 100% virtual model. Our cloud-based systems allow us to work with businesses anywhere in the United States.

Who needs a Forward Pricing Rate Proposal?

Any contractor that regularly bids on cost-type or T&M contracts benefits from an FPRA. Contractors with $15M+ in annual cost-type billings are most likely to be targeted for forward pricing audits.

What's the difference between an FPRA and an FPRR?

An FPRA is an agreed-upon bilateral agreement. An FPRR is DCAA's unilateral recommendation when the parties can't agree. PCOs may use either when evaluating proposals.

How long does an FPRA negotiation take?

FPRA negotiations typically take 3-9 months. Complex or contentious negotiations can take longer. It is best to initiate the process 6-12 months before a major contract is expected.

What happens if I bid without an FPRA?

Without an FPRA, each individual proposal must include a rate proposal that may be separately audited. This slows contract awards and increases administrative burden for both the contractor and the government.

Can indirect rates be too low?

Yes. Contractors sometimes propose artificially low rates to win contracts, creating a "buy-in" problem where actual costs exceed billings. DCAA scrutinizes rates that deviate significantly from historical actuals.

What is a cost volume in a proposal?

The cost volume is the section of a government contract proposal that details estimated costs using proposed indirect rates. DCAA may audit the cost volume before contract award on larger contracts.

Are forward pricing rates used for fixed-price contracts?

No. Fixed-price contracts do not reimburse costs — the price is set at award. Forward pricing rates are only relevant for cost-reimbursable and T&M contracts.

DCAA Forward Pricing — Northern Virginia & DC Specialists

DCAA Forward Pricing Rate Proposal (FPRP) Support — Northern Virginia & DC

Defensible indirect cost rate proposals for government contractors bidding on cost-type and T&M contracts. We build the FPRP, support the DCAA audit, and negotiate the FPRA — so you can focus on winning contracts.

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What is a DCAA forward pricing rate proposal and why does it matter?

A Forward Pricing Rate Proposal (FPRP) establishes a government contractor's projected indirect cost rates for future contract bids. DCAA audits the proposal under FAR 42.1701 and establishes Forward Pricing Rate Agreements (FPRAs) or Recommendations (FPRRs) that both parties use in contract negotiations. Approved rates give contractors a competitive advantage, reduce bid risk, and speed up contract negotiations — critical for winning multi-year contracts in the competitive Northern Virginia GovCon market.

Forward Pricing Problems We Solve

Bidding on a large CPFF contract but your rates are based on outdated actuals — risk of losing money if indirect costs have increased

PCO is questioning your proposed rates on every contract — no FPRA means rate negotiations delay every award

Competitor has an FPRA and closes contracts faster than you — your lack of pre-negotiated rates is a competitive disadvantage

Rate proposal built on weak methodology — DCAA flagged it and now you're in a prolonged negotiation

Key Terms

Forward Pricing Rate Agreement (FPRA): A written agreement between the government and contractor establishing specific indirect cost rates for a defined future period. FPRAs streamline contract negotiations and reduce the need for rate audits on individual proposals.

Forward Pricing Rate Recommendation (FPRR): DCAA's unilateral recommendation of indirect cost rates when the contractor and government cannot reach agreement on an FPRA. Used by PCOs as a negotiation baseline.

Forward Pricing Rate Services

From historical rate analysis through FPRA negotiation — everything you need to enter contract negotiations with defensible, DCAA-accepted rates.

Rate Trend Analysis

Review of 3 years of incurred cost data to identify trends, outliers, and the trajectory of your indirect cost rates. Foundation for all forward projections.

Forward Pricing Rate Proposal Preparation

Complete FPRP preparation using DCAA-accepted methodology — statistical trend analysis, budget-based projections, or a defensible hybrid approach. All supporting schedules included.

DCAA Audit Support and Negotiation

CPA representation during the DCAA forward pricing audit. We respond to information requests, defend our methodology, and work toward FPRA agreement.

FPRA Application and Negotiation Support

Support the formal FPRA negotiation with the cognizant Administrative Contracting Officer (ACO). We document positions, respond to counterproposals, and help close the agreement.

Rate Sensitivity Analysis for Bid Pricing

Before submitting a major proposal, understand how rate changes affect your bid price and profitability. Scenario modeling for best-case, base-case, and stress-case rate assumptions.

Incurred Cost vs Forward Pricing Rate Audit — Key Differences

Feature	Incurred Cost Audit (ICP)	Forward Pricing Rate Audit (FPRP)
Timing	Historical — after costs incurred	Prospective — before contracts awarded
Purpose	Final cost settlement	Establish rates for future bids
FAR reference	FAR 52.216-7	FAR 42.1701
DCAA report	Incurred cost audit report	FPRA or FPRR
Risk if wrong	Repayment of disallowed costs	Under/overestimating costs in bids; rate disputes
Frequency	Annual	As needed; typically every 1-3 years or before major bids

FPRP Engagement Process — 4 Steps

Historical Rate Analysis

Review 3 years of incurred cost data to identify trends and outliers in your direct and indirect cost pools. This is the empirical foundation DCAA expects.

Projection Methodology

Build defensible forward rate projections using DCAA-accepted methods (statistical trend, budget-based, or hybrid). Document assumptions clearly — DCAA will scrutinize every one.

FPRP Package Preparation

Prepare the complete proposal with all supporting schedules in the format DCAA requires. Clear documentation reduces audit time and positions you for faster FPRA agreement.

Audit Support and FPRA Negotiation

Respond to DCAA data requests; negotiate the FPRA with the cognizant Administrative Contracting Officer (ACO). We represent your rate positions and help close the agreement.

Northern Virginia GovCon Market

Northern Virginia is the most competitive government contracting market in the United States. Having a current FPRA is a material competitive advantage when bidding against established primes in Tysons, Reston, Herndon, and Chantilly. Contractors without pre-negotiated rates face rate audits on every cost-type proposal — adding weeks to award timelines that their FPRA-holding competitors don't face. Your Virtual CPA helps Northern Virginia GovCons build the rate infrastructure to compete at the highest level.

Related Services

Government Contractor Audit

Full DCAA compliance services overview.

DCAA Incurred Cost Audit

Annual ICP preparation and audit defense.

SOC 2 Audit

Security controls attestation for tech companies.

Attestation Services

SOC 1, SOC 2, and other SSAE 18 engagements.

Virtual CFO Services

Strategic financial oversight for growing GovCons.

Book a Consultation

Talk to a DCAA specialist about your rate proposal.

Forward Pricing Rate FAQs

Common questions from Northern Virginia and DC government contractors about FPRPs and FPRAs.

Ready to Establish Your Forward Pricing Rates?

An FPRA is a strategic asset in the GovCon market — it closes contracts faster, reduces proposal risk, and signals financial sophistication to PCOs. Let's build yours.

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Serving government contractors in Reston, Herndon, Chantilly, Tysons, McLean, Rockville, Bethesda, and across Northern Virginia and DC.