M2 CPA
The CPA firm that used to audit government contractors.
M2 CPA is led by a former DCAA supervisory auditor with 12 years inside the agency and more than 100 defense contractors examined, followed by two years running government compliance inside a defense technology company. We know how your audit will be worked, because we used to work it.
- 12 years inside DCAA
- 100+ DoD contractors audited
- CPA led
- QuickBooks, Costpoint, SAP & NetSuite
- Remote, nationwide
How We Help
Three ways we work with clients
Most clients arrive with one specific problem: an award that is blocked, an audit that just landed, or a tax bill that felt too high. Many stay for the financial leadership that follows.
Government contract accounting
DCAA compliance for federal contractors and subcontractors, from system setup through audit representation.
- DCAA-compliant accounting systems
- SF 1408 pre-award surveys
- Incurred cost submissions
- Indirect and forward pricing rates
- Cost proposals and pricing support
- DCAA and DCMA audit representation
- Terminations, REAs and claims
Fractional CFO
Senior financial leadership for companies past a bookkeeper but not yet supporting a full-time CFO.
- Monthly close and financial reporting
- Cash flow forecasting
- Budgeting and operating plans
- Pricing and true contract margin
- Bank, board and investor reporting
- Systems, controls and process
- Growth and transaction support
Small business tax
Proactive tax planning for owner-operated businesses, plus the bookkeeping that makes planning possible.
- Tax planning during the year
- S corporation election analysis
- Reasonable compensation studies
- Business and personal returns
- Monthly bookkeeping and payroll
- Entity selection and formation
- IRS notices and representation
One firm, one engagement. We are CPA and Enrolled Agent led, so compliance work, financial leadership, and tax can all sit together rather than being split across three providers who never speak to each other.
Why Us
We have sat on both sides of the table
Most firms advising on DCAA compliance have only ever seen it from the contractor’s chair. That matters when the question is not what the regulation says, but how an auditor will actually apply it to you.
Inside the agency
Twelve years with the Defense Contract Audit Agency across the Denver, European, and Afghanistan branch offices, finishing as a Supervisory Auditor leading a team of six.
Contractors audited
Forward pricing proposals, business system reviews, incurred cost audits, and mandatory annual requirements across DoD contractors from small businesses to major primes.
Inside a contractor
Senior Manager of Government Compliance at a defense technology company, serving as the primary DCAA and DCMA liaison and building the FAR, DFARS, and CAS program from the inside.
Alexander Mungov, CPA. Executive MBA, University of Wyoming. B.S. Accounting & Finance, University of Colorado. Prior service with DCAA is described for professional background only and does not imply any endorsement by DCAA or the Department of Defense.
Common Starting Points
Where clients usually find us
An award is blocked
You are in line for a cost-reimbursable or T&M contract and the contracting officer wants your accounting system reviewed before award. You need to pass, and you need to pass on schedule.
An audit just landed
DCAA or DCMA has issued a notification and a data request. What happens in the next few weeks determines how wide the audit gets and what it finds.
A submission is due
Your incurred cost submission is due six months after fiscal year end, or you are behind on prior years and need to get current before rates get set unilaterally.
The numbers stopped answering questions
You cannot tell which contracts actually make money, cash is tight in a way the P&L does not explain, and nobody owns the financial function.
How We Work
A defined path, not an open-ended retainer
Start with a review
We assess where you actually stand against the criteria that will be applied to you, and put it in writing. You get the findings memo whether or not you continue with us.
Get a prioritized plan
Costed, dated, and separated into what has to be fixed before your next award and what can reasonably wait.
We do the work
Build, document, and train. Documentation is a deliverable, because an undocumented system fails audit even when the numbers are right.
We stay for the hard part
Ongoing operation, the annual submissions, and standing in the room when the auditor arrives.
Questions
Frequently asked
Do you work with contractors outside your state?
Yes. We work with federal contractors nationwide and engagements are fully remote. Federal compliance requirements do not change by state.
Can QuickBooks work for a government contractor?
Yes, with deliberate configuration. QuickBooks is not DCAA compliant out of the box, but it can be made adequate for most small contractors. We also work in Deltek Costpoint, and we have no incentive to sell you software you do not need.
We are small. Are we too small for you?
Probably not. Small contractors are who this practice is built for, particularly those bidding their first cost-type or T&M award. We will tell you honestly if the work you need does not justify the cost.
We just got an audit notification. Can you help on short notice?
Often yes, and it is a common way clients start with us. Tell us the audit type, the notification date, and what has been requested, and we will tell you honestly what is achievable in the time available.
Do you still do regular tax and bookkeeping?
Yes. Bookkeeping, payroll, business formation, and business and individual tax remain part of what we do, for federal contractors and for businesses with no government work at all.
Start with a conversation
Tell us your contract types, your accounting system, and what is coming due. We will tell you where you stand before you commit to anything.
