SBIR/STTR Accounting & Compliance Latest Insights

Successfully managing an SBIR or STTR award requires a strong understanding of federal compliance standards, project cost accounting, and audit preparedness. Transitioning from operating on spreadsheets to a federally funded awardee introduces a new level of financial rigor — one that demands systems, documentation, and procedures designed to meet government expectations.

In this session, Eva Garland Consulting (EGC) CEO & Founder, Eva Garland, Ph.D., and Vice President of Accounting & Compliance, Jeremy Hinckley, CPA, MBA, provide practical insights into the key financial and compliance requirements for new SBIR/STTR awardees. Drawing on EGC’s experience helping thousands of innovators secure and manage over $2 billion in non-dilutive funding, they outline best practices to help businesses establish compliant accounting systems, prepare for audits, and maximize their grant funding to advance technology development.

Through this discussion and Q&A, attendees will gain actionable guidance on:

• Understanding the financial and reporting responsibilities of SBIR/STTR awardees
• Setting up compliant project cost accounting and timekeeping systems
• Avoiding common pitfalls such as double-charging or unallowable costs
• Preparing for audits and maintaining proper documentation
• Developing internal policies and procedures to strengthen financial controls

• GAAP alone isn’t enough. Your accounting system must be configured to allocate costs between direct project costs, indirect costs, and unallowable costs.
• Timekeeping is non-negotiable. If you expect to be reimbursed for a cost from the government, you must be able to substantiate it.
• Policies matter as much as the numbers. The government expects written policies on timekeeping, allocation methods, and expense approvals, among other things.
• Indirect costs can make or break your budget. Understand your rate early and budget your spending accordingly to avoid leaving money on the table or triggering disallowed charges.
• Changes may need approval. Budget reallocation, new subcontractors, or personnel changes? These often require pre-approval.