How to Record CMMC Gap Analysis Costs
How to account for the initial consulting fees for CMMC readiness and identifying security control deficiencies.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cybersecurity Compliance Expense | Debit | 15,000.00 | - |
| Accrued Liabilities | Credit | - | 15,000.00 |
💡 Accountant's Note
CMMC gap analysis is a preliminary step to certification. These costs are generally treated as indirect G&A or overhead costs as they are necessary for maintaining the contractor's status as a qualified bidder for DoD work.
Practitioner & Systems Framework
💻 ERP Architecture
Post to an IT Compliance project code to track CMMC-specific spending for future rate projections.
⚠️ Audit Flags
Large one-time spikes in IT consulting expense; potential for DCAA to question the allocation if not applied consistently.
📄 Required Documentation
Consultant SOW, gap analysis report, and vendor invoice.
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Discussion & Community Questions
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