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Need more time to complete your SBIR/STTR project? A no-cost extension may give you additional time; but it doesn't mean...
10/21/2026

Need more time to complete your SBIR/STTR project? A no-cost extension may give you additional time; but it doesn't mean additional funding.

For SBIR/STTR companies, research delays, staffing changes, technical challenges, or unexpected project developments can sometimes make it difficult to complete the work within the original award period.

A no-cost extension may allow additional time to complete approved project activities, subject to the award's terms and applicable agency requirements.

However, before requesting an extension, it's important to understand the financial position of the award and whether the remaining funds can realistically support the work that still needs to be completed.

In our latest article, we discuss important financial records SBIR/STTR awardees should review, including:

✔ Budget-to-actual reports and remaining award balances
✔ Payroll, labor distribution, and projected staffing costs
✔ Outstanding consultant and subcontractor commitments
✔ Unpaid invoices and anticipated project expenses
✔ Indirect costs and applicable rate calculations
✔ Grant drawdowns, reimbursements, and accounting reconciliations
✔ Supporting documentation for costs already charged to the award
✔ Cash flow projections for the proposed extension period

A no-cost extension provides additional time; not an increase in the approved funding amount.

Before moving forward, awardees should evaluate whether their remaining budget, financial commitments, and accounting records support the proposed extension period.

Taking the time to review these details can help organizations make better financial decisions, identify potential funding gaps, and maintain stronger oversight as the project continues.

Learn more about this topic: https://www.wittscpa.com/blogs/no-cost-extensions-for-sbir-sttr-awards--financial-records-to-review-first-o3Eo

Research and development rarely follow a perfectly predictable timeline. An SBIR/STTR company may encounter delays in prototype development, equipment procurement, laboratory testing, technical...

Working with a subawardee on an SBIR/STTR project doesn't mean transferring all the financial responsibility to them.For...
10/20/2026

Working with a subawardee on an SBIR/STTR project doesn't mean transferring all the financial responsibility to them.

For SBIR/STTR prime awardees, collaborating with universities, research institutions, and other organizations can bring valuable expertise to a federally funded project.

However, managing those relationships involves more than issuing a subaward agreement and processing invoices.

Prime awardees generally have responsibilities for overseeing subaward activities, monitoring financial performance, and maintaining appropriate documentation to support costs charged to the federal award.

In our latest article, we discuss important financial considerations for SBIR/STTR subaward monitoring, including:

✔ Establishing clear financial terms, budgets, and reporting expectations
✔ Reviewing subawardee invoices and supporting documentation
✔ Monitoring expenditures against approved subaward budgets
✔ Understanding allowable costs and applicable funding restrictions
✔ Tracking subaward payments and reconciling them with accounting records
✔ Maintaining appropriate financial oversight and internal controls
✔ Identifying potential discrepancies and addressing issues promptly
✔ Preparing documentation to support reporting, reviews, and audit readiness

Subaward monitoring isn't simply about making sure your research partners get paid. It's about maintaining financial accountability across the entire federally funded project.

A well-structured monitoring process can help prime awardees strengthen financial oversight, identify potential issues earlier, and maintain better visibility into how federal funds are being used by their research partners.

As SBIR/STTR projects grow in complexity, having clear procedures for managing subaward relationships becomes an increasingly important part of responsible award management.

Learn more about this topic: https://www.wittscpa.com/blogs/sbir-sttr-subaward-monitoring--financial-responsibilities-for-prime-awardees-AmyF

Winning an SBIR/STTR award often creates opportunities to collaborate with universities, research institutions, laboratories, and specialized technical partners. These partnerships can bring...

Just because federal grant funds are available doesn't mean they're ready to be drawn.For SBIR/STTR companies and other ...
10/19/2026

Just because federal grant funds are available doesn't mean they're ready to be drawn.

For SBIR/STTR companies and other federal grant recipients, managing drawdowns requires more than monitoring the remaining award balance.

Funds must be requested in accordance with applicable award requirements, supported by appropriate financial records, and aligned with allowable expenditures and immediate cash needs.

Without proper oversight, companies risk drawing more funding than permitted or needed, creating reconciliation discrepancies, reporting complications, and potential compliance concerns.

In our latest article, we discuss practical steps federal awardees can take to reduce the risk of overdrawing grant funds, including:

✔ Understanding award-specific drawdown requirements and funding limitations
✔ Reviewing allowable project expenditures before requesting funds
✔ Reconciling drawdowns with accounting records and supporting documentation
✔ Monitoring spending against the approved award budget
✔ Coordinating payroll, vendor payments, and other project cash needs
✔ Establishing internal review and approval procedures for fund requests
✔ Identifying and correcting drawdown discrepancies promptly
✔ Maintaining accurate records for financial reporting and audit readiness

Managing federal funding responsibly isn't just about tracking how much money remains. It's about understanding when funds can be requested, what supports each drawdown, and how those amounts reconcile with actual award activity.

A consistent drawdown and reconciliation process can help federally funded businesses maintain stronger financial controls, improve cash management, and reduce compliance risks throughout the award lifecycle.

Learn more about this topic: https://www.wittscpa.com/blogs/how-to-avoid-overdrawing-federal-grant-funds-n6m7

Federal grant funds should not be treated like general operating cash. For SBIR/STTR awardees and other federally funded companies, drawdowns need to be tied to supported award costs, immediate...

Receiving an SBIR/STTR award is a major milestone. But before project spending begins, is your accounting system ready t...
10/16/2026

Receiving an SBIR/STTR award is a major milestone. But before project spending begins, is your accounting system ready to support it?

For federally funded startups, the transition from winning an award to managing it comes with important financial responsibilities.

Hiring employees, purchasing equipment, engaging consultants, and beginning research activities can happen quickly. Without the right accounting processes in place, companies may face cost classification issues, incomplete documentation, and reporting challenges later in the award.

A strong financial foundation should be established before the first project expense is recorded.

In our latest article, we discuss essential accounting steps SBIR/STTR companies should consider before spending begins, including:

✔ Reviewing award terms, funding limitations, and the approved budget
✔ Establishing project codes and award-specific cost tracking
✔ Setting up payroll and employee timekeeping procedures
✔ Separating direct, indirect, and unallowable costs
✔ Reviewing indirect rates and cost allocation methods
✔ Organizing consultant and subcontractor agreements
✔ Establishing invoicing or grant drawdown procedures
✔ Creating documentation and record retention processes
✔ Implementing budget-to-actual monitoring and regular reconciliations

Winning federal funding is one milestone. Building the financial infrastructure to manage it successfully is the next.

Taking these steps early can help SBIR/STTR companies maintain stronger financial controls, support compliance requirements, and focus on delivering the research and innovation their awards were intended to fund.

Learn more about this topic: https://www.wittscpa.com/blogs/sbir-sttr-award-setup-checklist--accounting-steps-to-take-before-spending-begins-z5my

Receiving an SBIR/STTR award is a major milestone. Months of proposal development, technical planning, and budget preparation have led to a funding opportunity that can move your innovation forward...

You won the SBIR/STTR award. Before you start spending, is your accounting system ready?The period between receiving an ...
10/01/2026

You won the SBIR/STTR award. Before you start spending, is your accounting system ready?

The period between receiving an award and beginning project work is an important opportunity to establish the financial processes that will support the project from day one.

Waiting until expenses are already being incurred can lead to misclassified costs, incomplete documentation, timekeeping issues, and difficult reconciliations later.

In our latest article, we walk through important accounting steps SBIR/STTR companies should consider before award spending begins, including:

✔ Reviewing the award terms, approved budget, and period of performance
✔ Setting up project-level cost tracking in the accounting system
✔ Establishing timekeeping and labor distribution procedures
✔ Separating direct, indirect, and unallowable costs
✔ Confirming indirect rates and cost allocation methods
✔ Setting up payroll, consultant, and subcontractor tracking
✔ Establishing billing or drawdown procedures
✔ Organizing supporting documentation and record retention
✔ Creating a process for budget-to-actual monitoring and regular reconciliations

The first accounting decisions you make after receiving an award can affect how easily you manage that funding throughout the entire project.

Setting up the right processes before spending begins can give your team better financial visibility, stronger documentation, and a more reliable foundation for reporting, compliance, and future awards.

Learn more about this topic: https://www.wittscpa.com/blogs/sbir-sttr-award-setup-checklist--accounting-steps-to-take-before-spending-begins

Receiving an SBIR/STTR award notice is exciting. It means the company is moving from proposal planning to funded work. But before the first payroll run, vendor purchase, consultant invoice,...

Being ready to pursue federal funding involves more than having a strong technical idea and a compelling proposal.Your f...
09/30/2026

Being ready to pursue federal funding involves more than having a strong technical idea and a compelling proposal.

Your financial infrastructure needs to be ready, too.

For SBIR/STTR applicants, government contractors, and other organizations pursuing federal awards, a funding readiness assessment can help identify accounting and compliance gaps before they become problems during proposal review, pre-award evaluation, or award performance.

So, what should a thorough readiness assessment actually examine?

In our latest article, we discuss key areas to review, including:

✔ Accounting system structure and project-level cost tracking
✔ Timekeeping and labor distribution procedures
✔ Direct and indirect cost classification
✔ Indirect rate methodology and cost pools
✔ Identification of unallowable costs
✔ Financial policies and internal controls
✔ Budget and cost proposal readiness
✔ Billing, invoicing, and grant drawdown processes
✔ Supporting documentation and record retention
✔ Reporting and overall post-award preparedness

Federal funding readiness isn't just about whether you can win an award. It's about whether your organization is prepared to manage that funding responsibly once you receive it.

Identifying gaps early gives you time to strengthen your systems, processes, and documentation before the demands of an active federal award begin.

Learn more about this topic: https://www.wittscpa.com/blogs/what-a-federal-funding-readiness-assessment-should-include

Federal funding can create major growth opportunities for small businesses, research-driven startups, and SBIR/STTR applicants. But before pursuing or accepting a federal grant or contract, the...

A financial policies and procedures manual shouldn’t be something you create just to check a compliance box. It should e...
09/29/2026

A financial policies and procedures manual shouldn’t be something you create just to check a compliance box. It should explain how your company actually manages federal funding.

For SBIR/STTR companies, documented procedures can help turn federal requirements into consistent day-to-day financial practicese; specially as the organization adds employees, consultants, subcontractors, and additional awards.

Your team should know how costs are classified, approved, recorded, supported, and ultimately charged to a federal project.

In our latest article, we discuss important areas an SBIR/STTR financial policies and procedures manual should address, including:

✔ Timekeeping and labor distribution
✔ Direct and indirect cost classification
✔ Identification and treatment of unallowable costs
✔ Purchasing and expense approval procedures
✔ Consultant and subcontractor costs
✔ Billing and federal fund drawdowns
✔ Financial reconciliations and reporting
✔ Supporting documentation and record retention
✔ Award closeout procedures

The value of a policies and procedures manual is not simply having one; it’s having documented processes that your organization actually follows.

As federal funding grows, clear procedures can help create consistency across the organization, strengthen internal controls, support better documentation, and provide a stronger foundation for managing future awards.

Learn more about this topic: https://www.wittscpa.com/blogs/what-should-be-in-an-sbir-sttr-financial-policies-and-procedures-manual-

An SBIR/STTR financial policies and procedures manual may sound like an administrative document. But for a federally funded company, it can be one of the most important tools for accounting system...

Moving toward SBIR/STTR Phase II? Your accounting system should be ready before the award arrives.Phase II can bring sig...
09/28/2026

Moving toward SBIR/STTR Phase II? Your accounting system should be ready before the award arrives.

Phase II can bring significantly more funding, a longer performance period, additional employees and subcontractors, and greater financial responsibility.

Accounting processes that may have been manageable during Phase I can quickly become difficult to maintain as the project grows.

Before Phase II begins, founders should take a close look at whether their financial infrastructure is prepared to support the next stage of federal funding.

In our latest article, we discuss key areas to review, including:

✔ Project-level cost tracking
✔ Timekeeping and labor distribution
✔ Direct and indirect cost segregation
✔ Indirect rate development and support
✔ Identification of unallowable costs
✔ Billing and reimbursement documentation
✔ Financial records and supporting documentation
✔ Accounting system readiness for increased federal funding

Phase II accounting readiness isn't something to address after the funding arrives.

Strengthening these processes beforehand can help your company move into the next phase with better financial visibility, stronger documentation, and an accounting system designed to support federal requirements as the business grows.

Learn more about this topic: https://www.wittscpa.com/blogs/sbir-sttr-phase-ii-accounting-readiness--what-founders-should-fix-before-the-award

Phase II is a major step for an SBIR/STTR company. The award is usually larger. The technical work is more complex. The team may need to hire, manage consultants, work with subcontractors, purchase...

Federal grant funds should be drawn based on actual, supportable project needs; not simply because the funding is availa...
09/15/2026

Federal grant funds should be drawn based on actual, supportable project needs; not simply because the funding is available.

For SBIR/STTR companies and other federal grant recipients, managing drawdowns carefully is an important part of responsible award management.

When the amount drawn exceeds allowable expenditures or immediate cash needs, awardees can create reconciliation issues, reporting discrepancies, and potential compliance concerns that may need to be corrected later.

Strong financial controls can help prevent those problems before they occur.

In our latest article, we discuss:

✔ Aligning grant drawdowns with actual allowable expenditures
✔ Reconciling drawdowns to the accounting system regularly
✔ Reviewing payroll, vendor, subcontractor, and other project costs before requesting funds
✔ Using budget-to-actual reporting to monitor available funding
✔ Maintaining documentation supporting each drawdown
✔ Identifying and correcting discrepancies promptly
✔ Building internal review and approval procedures around federal fund requests

Access to federal funding doesn't mean the entire award amount should be treated as available operating cash.

Each draw should be connected to the award, supported by appropriate financial records, and consistent with the applicable funding requirements.

A disciplined drawdown and reconciliation process can help awardees maintain better control of federal funds throughout the life of the project.

Learn more about this topic: https://www.wittscpa.com/blogs/how-to-avoid-overdrawing-federal-grant-funds

Federal grant drawdowns can feel straightforward. The award is approved. Funds are available in the payment system. The company has payroll, vendors, consultants, subcontractors, and project costs...

Strong financial management for an SBIR/STTR award shouldn’t depend on everyone remembering how things are supposed to b...
09/10/2026

Strong financial management for an SBIR/STTR award shouldn’t depend on everyone remembering how things are supposed to be done.

As federally funded companies grow, documented financial policies and procedures can help turn compliance requirements into consistent, repeatable practices across the organization.

A well-designed manual gives employees and management clear guidance on how federal award costs should be recorded, reviewed, approved, and supported; from timekeeping and payroll to purchasing and indirect costs.

In our latest article, we discuss key areas an SBIR/STTR financial policies and procedures manual should address, including:

✔ Timekeeping and labor distribution
✔ Direct vs. indirect cost classification
✔ Unallowable cost identification and treatment
✔ Payroll and labor cost documentation
✔ Purchasing, expenses, and approval procedures
✔ Subcontractor and consultant costs
✔ Indirect rate calculations and allocations
✔ Project-level cost tracking and reconciliations
✔ Record retention and supporting documentation
✔ Financial reporting and internal controls

The goal isn’t to create a manual that simply sits in a folder.

Your policies should reflect how your organization actually operates and provide a framework your team can consistently follow as federal funding and compliance responsibilities grow.

Putting those procedures in place early can help create stronger financial controls, clearer documentation, and a more scalable accounting environment for future awards.

Learn more about this topic: https://www.wittscpa.com/blogs/what-to-include-in-an-sbir-sttr-financial-policies-and-procedures-manual

An SBIR/STTR award does not just require good bookkeeping. It requires consistent financial procedures. A company may have accounting software, payroll records, project codes, and a budget...

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