fcservicesnetwork.com

What It Is

ICAT (Indirect Cost Allocation Tool) from ICAT Systems is a QuickBooks Desktop enhancement for government contractors. It is not a standalone general ledger system; instead, it adds indirect cost accounting, contract cost reporting, budgeting, provisional billing rates, and Incurred Cost Proposal capabilities on top of an existing QuickBooks general ledger, helping companies support accounting system requirements related to FAR, DFARS, and DCAA/SF1408.

Core Capabilities

From a functional perspective, ICAT’s focus is to productize government contract cost accounting workflows that often end up relying on Excel. It automatically calculates indirect rates such as fringe, overhead, G&A, and wrap rate, allocates indirect costs to contracts, CLINs, or Units, and produces reports including contract profit and loss, contract status, T&M, labor distribution, and Funding Backlog. The Advanced edition further supports automatic generation of Incurred Cost Proposals for FAR 52.216-7 scenarios, budgeting, budget vs. actual reporting, and provisional rate calculations. It also supports reporting for any date range, Excel export, and PDF printing.

Pricing and Trial

The product is licensed by annual subscription and by QuickBooks company file, with unlimited users across all editions. Basic costs $1,200/year, with a 50% first-year discount for new customers; Standard costs $2,400/year; and Advanced costs $3,600/year. A 30-day free trial is available with no credit card required, and the trial provides the full Standard Edition feature set. CPE online self-study training is also available, such as a 12 CPE course priced at $945.

Integrations, Deployment, and Support

ICAT currently primarily supports the Windows version of QuickBooks Desktop, including Premier Plus, Enterprise, and Accountant Desktop. It can be installed locally or used in a cloud-hosted QuickBooks Desktop environment. A QuickBooks Online version is still under development. For timekeeping systems, the materials state that any web-based timekeeping system that integrates with QuickBooks Desktop and meets DCAA internal control requirements can be used alongside it. Support resources include an FAQ, video tutorials, user guides, email support, standard software support, and optional consulting services.

Pros, Cons, and Best Fit

Its advantages are a clear positioning, relatively fast deployment, the ability to retain the QuickBooks ecosystem, and company-file-based pricing with unlimited users, making it cost-friendly for small government contractors. The downsides are its strong dependence on QuickBooks Desktop and its limited value for general businesses or non-U.S. government contracting scenarios; disclosure is also limited around security certifications, APIs, and role-based permissions. It is best suited for U.S. government contractors preparing for DCAA/SF1408 reviews, managing T&M or Cost-Type contracts, or needing to generate Incurred Cost Proposals.

Access from China and Alternatives

The source materials do not provide details on access from China, so network connectivity and payment methods are both unknown. Because the product is designed around U.S. FAR/DCAA regulations, companies in mainland China generally do not need to adopt it unless they are working on U.S. federal-related contracts. Domestic alternatives could include financial and project accounting systems such as Kingdee, Yonyou, and Chanjet, but whether they meet DCAA requirements would need to be evaluated separately.