What does GAR mean in GENERAL

GAR is a billing rate used by government contractors and other organizations to calculate the costs of accounting services. It is a predetermined rate that includes the direct and indirect costs associated with providing accounting services, such as salaries, benefits, and overhead expenses.

GAR is typically determined by conducting a time and motion study to estimate the number of hours required to perform specific accounting tasks. The estimated hours are then multiplied by the hourly labor rates and benefits of the accounting staff, and then an appropriate overhead rate is added.

Using GAR offers several advantages, including:

• Consistency: GAR ensures that all accounting services are billed at a consistent rate, regardless of the specific task or the individual performing the work.
• Transparency: GAR provides transparency into the costs of accounting services, allowing clients to understand the basis for the billing rates.
• Simplicity: GAR simplifies the billing process by eliminating the need to track and bill for each individual task performed.

GAR typically includes direct and indirect expenses such as:

• Salaries and benefits of accounting staff
• Office rent and utilities
• Equipment and software expenses
• Training and continuing education costs
• Insurance and other overhead expenses

GAR differs from other billing methods, such as hourly billing or fixed-fee billing, in that it is a predetermined rate that covers all accounting services provided. Hourly billing charges clients for each hour worked, while fixed-fee billing charges a set amount for a specific project or service.