Defense, Aerospace & Government Contracting

How to Record SBIR Research Subcontracts

Records the recognition of research expenses performed by a subcontractor under an SBIR Phase II contract.

Account NameTypeDebit ($)Credit ($)
Direct SBIR Project CostsDebit25,000.00-
Accrued Subcontractor LiabilitiesCredit-25,000.00

💡 Accountant's Note

SBIR Phase II programs often require specific research tasks to be outsourced. These are recorded as direct costs to the government project.

Practitioner & Systems Framework

💻 ERP Architecture

Link subcontractor invoice to the specific SBIR project code.

⚠️ Audit Flags

Compliance with the percentage of work performed by the small business concern.

📄 Required Documentation

Subcontractor technical report and validated invoice.

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Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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