Cybersecurity & Hardware Tech Accounting in San Diego
Contract-level accounting, billing that matches each agreement, and the timekeeping and cost discipline government customers expect.
Cybersecurity, reverse engineering and hardware companies often serve two very different customers at once. Commercial clients buy assessments, products and subscriptions on ordinary terms, while government agencies and prime contractors issue firm-fixed-price, time-and-materials and cost-reimbursable contracts, each with its own billing rules and documentation expectations. Add inventory of components and test equipment, internal research that may never ship, and long sales cycles, and the books need far more structure than a standard chart of accounts provides, and far more care than a generalist bookkeeper usually brings.
Skyward runs accounting for technology firms across San Diego County, from our office in Escondido. We set up QuickBooks Online with contracts, projects and classes that separate direct work from indirect costs, close every month on schedule, and deliver contract profitability and cash reports in Excel or Power BI. Sensitive documents are exchanged through a secure Karbon portal rather than email attachments, and we keep access limited to the named people on your engagement team, which matters when your customers ask how their data is handled.
Technical talent is scarce and expensive, and the HR side of a security-focused firm calls for discretion. Engineers may hold clearances, contracts may restrict who can work on what, and personnel files often contain information that should be seen by as few people as possible. Our HR team handles onboarding, policies, classification and records with access deliberately restricted, while clearance processing stays with your security officer. Engagements run on a fixed monthly fee, so finance is predictable even when contract awards are not.
Services we typically run
- Outsourced Accounting
- Internal Controls
- Accounting Systems & Software
- Fractional CFO
- Outsourced HR
What we handle
The realitiesof your sector.
01
Billing each contract type correctly
A fixed-price milestone, a time-and-materials task order and a cost-reimbursable effort are each invoiced differently, and mistakes delay payment from agencies that do not rush. We set each contract up in QuickBooks Online with its own billing basis, rates and ceilings, prepare invoices from approved hours and costs, and track funded value remaining so you see a ceiling coming before you work past it.
02
Timekeeping discipline across direct and indirect work
Government customers expect time recorded daily, charged to the correct contract or indirect account, and corrected only with a documented reason. We help you put that discipline in place with clear charge codes, written timekeeping procedures and regular review of timesheets against payroll. We do not certify systems as compliant, but we build the habits and records that a government review looks for.
03
Indirect cost pools and unallowable costs
Cost-reimbursable and time-and-materials work depends on knowing your fringe, overhead and general and administrative costs. We structure the chart of accounts so these pools are captured cleanly, segregate costs that are typically unallowable on government work, such as entertainment and certain marketing, and calculate actual rates monthly. You can then price proposals from your real numbers rather than an old estimate.
04
Components, inventory and test equipment
Hardware firms buy boards, components and devices for products, for customer projects and for their own lab, and each belongs in a different place in the books. We track inventory and cost of goods sold for product sales, charge project materials to the right contract, and capitalize lab equipment as fixed assets. Regular counts and reconciliations keep the inventory figures on your balance sheet believable.
05
Separating internal R&D from customer-funded work
Internally funded research, customer-funded development and ordinary engineering support can look identical on a timesheet. We set up separate projects and charge codes so internal R&D labor, materials and contractor costs are captured on their own. That gives leadership a clear view of what research is costing and gives your CPA organized data for any research credit study they prepare.
FAQ
Questions,answered plainly.
Is QuickBooks Online suitable for a small government contractor?
It can be for many small firms, provided it is configured with contract-level projects, a chart of accounts that separates direct and indirect costs, and disciplined timekeeping feeding in. As contract volume and cost-reimbursable work grow, some firms move to dedicated government contracting software. We help you judge when that point arrives and manage the transition if it does.
Can you make our accounting DCAA compliant?
We cannot certify that any system is compliant; that determination is made by the government during its own reviews. What we do is set up the practices those reviews examine: contract-level cost tracking, segregated unallowable costs, documented indirect rate calculations and consistent timekeeping procedures. Your CPA or a government contracting specialist can then assess readiness from a well-organized starting point.
How do you calculate fringe, overhead and G&A rates?
We group costs into the pools your firm uses, define the allocation base for each, typically direct labor or total cost input, and calculate actual rates every month from closed books. Comparing actual rates to the rates in your proposals shows whether contracts are recovering their share of overhead, and gives you defensible figures for the next bid.
How do you handle HR records for employees with security clearances?
Personnel records are kept with access limited to the people who need it, and documents move through a secure portal rather than email. Clearance sponsorship, investigations and reporting remain with your facility security officer. Our HR team handles the ordinary employment side, such as onboarding, policies, classification and terminations, with that sensitivity in mind.
What does accounting for a tech or defense firm cost with Skyward?
Skyward charges a fixed monthly fee based on scope, for example the number of active contracts, billing complexity and whether HR is included. There is a six-month initial commitment, then the engagement continues month-to-month. Contact us for a quote based on your mix of commercial and government work.
Services
Built forcybersecurity, reverse engineering & hardware tech.
- Finance
Outsourced Accounting
A full accounting department without the overhead: classifications, reconciliations, AP and AR support, month-end close and reporting, delivered by one steady team for a fixed monthly fee.
- Finance
Internal Controls
Segregation of duties for small teams, approval workflows, reconciliation discipline, documented close procedures and fraud-risk reduction that keep your books audit-ready.
- Strategy
Accounting Systems & Software
QuickBooks Online setup, migration and clean-up, workflow automation, a secure Karbon client portal and Excel, Power Query and Power BI tools that cut manual work.
- Strategy
Fractional CFO
Strategic finance without a full-time salary: cash-flow forecasting, budgets, KPIs, board and lender reporting, pricing analysis and a finance function built to scale.
- People
Outsourced HR
Comprehensive oversight of HR practices, policies and procedures: onboarding, compliant terminations, contractor classification under AB5, payroll support and audit-ready records.
Ready to take yourbusiness Skyward?
Tell us where your finance and HR operations stand today. We'll map out what fixed-fee support would look like — usually live within about a week.