About M2 CPA
Twelve years auditing for the government. Now working for contractors.
M2 CPA is a CPA-led firm serving federal contractors and growing businesses nationwide. The practice is built on something unusual in this field: direct experience running the audits our clients are preparing for.
- CPA (active)
- 100+ DoD contractors audited
- Executive MBA
- 12 years inside DCAA
- Remote, nationwide
M2 CPA at a glance
M2 CPA, LLC is a US CPA firm for companies that do business with the Department of Defense and other federal agencies, and for small businesses that want their tax and accounting handled properly. It is led by Alexander Mungov, CPA, a former DCAA Supervisory Auditor who later ran government compliance inside a venture-backed defense technology company.
Most clients are small and mid-size contractors and subcontractors, new entrants on their first cost-type award, venture-backed defense technology companies, and non-US companies holding US defense subcontracts. We work remotely with clients across the US and abroad, in English and Bulgarian.
Our rates are published. Government contract accounting starts at $800 a month, other government contract work is $160 an hour with a fixed fee quoted wherever the scope allows, and small business plans start at $159 a month plus QuickBooks at Intuit’s price. See pricing.
Why we built this practice
Small government contractors get poor advice, and usually not because anyone is careless. It is because most of the people advising them have only ever seen federal compliance from one side. They can quote the regulation. They cannot tell you how an auditor will read your timekeeping records, which questions actually decide a pre-award survey, or what turns a routine data request into a finding.
We can, because we did that job for twelve years.
M2 CPA exists to give small and mid-size contractors the kind of compliance and financial support that large primes take for granted, at a scale that makes sense for a company with twenty employees rather than two thousand. Alongside that we serve ordinary small businesses with tax planning and accounting, which remains a meaningful part of what we do.
Background
Alexander Mungov, CPA
Founder and principal. Twelve years with the Defense Contract Audit Agency, followed by two years running government compliance inside Shield AI.
Senior Auditor
Complex audit assignments under Generally Accepted Government Auditing Standards, FAR, DFARS, and Cost Accounting Standards. Incurred cost, forward pricing, and business system work across contractors of every size.
Senior Auditor
Seven months in Kabul auditing terminations and claims as the war drew down, on construction and base support contractors including some of the largest names in the field. Floor checks and records reviews across bases most people have never heard of, moving location to location with a security detail.
Senior Auditor
Led audit teams on complex, high-visibility assignments. Supported the contracting community in negotiations with US and foreign contractors, and participated in ASBCA litigation matters involving terminations and requests for equitable adjustment.
Supervisory Auditor
Supervised a team of six auditors covering major defense contractors: forward pricing proposals, business system compliance, incurred cost, and mandatory annual audit requirements. Reviewed audit programs, workpapers, and draft reports.
Government Accounting Manager, then Senior Manager, Government Compliance
Built and ran the FAR, DFARS and CAS compliance program from the contractor side, and served as controller for Heron Systems, the Shield AI segment that held the cost-type contracts, with work across Shield AI and Martin UAV. Primary liaison with DCAA and DCMA. Prepared forward pricing rate proposals, provisional billing rates, incurred cost submissions and Disclosure Statements, and developed cost and price proposals for RFP solicitations. Worked the purchasing and material management systems, commercial item determinations, stock compensation allowability and ASC 606 revenue recognition on cost-type work, and supported the annual financial statement audit.
Founder and Principal
Serving federal contractors and small businesses nationwide.
Certified Public Accountant (active). Executive MBA, University of Wyoming. B.S. Accounting & Finance, University of Colorado. Prior service with DCAA is described for professional background only and does not imply any endorsement by DCAA or the Department of Defense.
Experience
What that background covers
How we work
Your accountant is probably already using AI. Where it stops, what it is never allowed to do, and why that shows up in the price.
How to choose a CPA firm for government contracting
The six questions to ask, what disqualifies a firm, what it should cost, and when you don’t need a specialist.
Accounting systems and system reviews
Built for the SF 1408 and post-award reviews he used to perform and later supervised.
Incurred cost and indirect rates
Final rate proposals, provisional billing rates and forward pricing rates, prepared by someone who has audited all three.
Proposals and certified cost or pricing data
Cost volumes that hold up in a DCAA or DCMA review, with disclosure done right under the Truthful Cost or Pricing Data Act.
Purchasing, MMAS and other business systems
Business system audits at DCAA, then running the purchasing and material systems from inside a contractor.
Commercial items and OTAs
For venture-backed and dual-use companies that want to stay commercial, and for the FAR follow-on contract when it comes.
Terminations, REAs and claims
Terminations and claims audited in Kabul, and ASBCA litigation support from Wiesbaden. Now prepared for the contractor.
Non-US defense contractors
Four years auditing US and foreign contractors across Europe. Help for companies whose books are IFRS and whose prime expects FAR.
Monthly accounting, GAAP and revenue recognition
Running the books for contractors, including ASC 606 on cost-type work and support for the annual financial statement audit.
How we work
We tell you what we actually think
If your exposure is smaller than you fear, we will say so. If a strategy will not survive audit, we will say that too, before you pay for it rather than after.
Scope is defined, not open-ended
Fixed fees against a written scope wherever the work allows it. You should not be afraid to call your accountant because the meter is running.
Documentation is a deliverable
Policies, procedures, and workpapers are produced as part of the work, not reconstructed when an auditor asks. This is the single most common reason otherwise sound contractors get findings.
We build your capability, not dependency
We train your people to run what we build. A good outcome is a client who needs less of us each year.
Let’s talk about your situation
Whether it is a blocked award, an audit notification, or a tax bill that felt too high, the first conversation costs you nothing and usually clarifies a great deal.