A Guide to Accounting Software with SAP S/4HANA for Full Readiness and Reporting

Government contractors and aerospace and defense (A&D) firms would benefit significantly from unifying their financial and compliance operations. However, finding the best government accounting software that integrates seamlessly with SAP S/4HANA is challenging. There are many choices, but it’s important to discern the most suitable options available. 

The High Stakes of GovCon Accounting Compliance

Navigating the complex and stringent financial landscape relies on multiple key factors. Firms must meet rules like the Federal Acquisition Regulation, Cost Accounting Standards and the Defense Contract Audit Agency (DCAA). As a result, accounting software designed for government contracting (GovCon) benefits from integration with SAP S/4HANA, an enterprise resource planning (ERP) system.

Many organizations find it difficult to manage their complex accounting needs while using a powerful — but not purpose-built — ERP like SAP. However, noncompliance is nonnegotiable, considering the consequences. No one wants to face a failed audit, financial penalties or a contract loss. 

Why Native SAP S/4HANA Integration Is Important

Although SAP S/4HANA is a leading ERP for managing core business operations, it lacks the out-of-the-box functionality needed to meet specific GovCon accounting rules. Many accounting software options can fill the gap, but disconnected systems create data silos, complicate data entry, introduce reconciliation errors and lack real-time visibility. 

Firms need software that can meticulously track costs, generate compliant reports, manage projects and increase visibility into financials. Instead of adopting another disparate system, professionals should select ready-to-deploy solutions designed for SAP. Solutions that can integrate natively enable full readiness.

GovCon products that integrate directly with SAP provide a single source of truth, eliminating the need for tedious audit preparation and data entry. Organizations that unify their software solutions can streamline their workflows and enhance information accuracy, reducing fraud and noncompliance risks. 

The Criteria Used to Rank Top Software Solutions

Since government contracts have numerous rules and regulations, accounting software quality is of the utmost importance. The selection criteria should consider native integration capabilities, comprehensive GovCon compliance features, project life cycle management capabilities and overall value in an enterprise environment. 

How well financial software works with the ERP impacts data flow direction, speed and accuracy. Native integrations certified by SAP are ideal because they integrate seamlessly. Those relying on third-party application programming interfaces (APIs) or middleware are still effective, but they may be missing some features or not perform as well.

Compliance is crucial, so the top government accounting software with SAP S/4HANA integrations must ensure security and data privacy. Only the best programs meet all three key compliance standards — Federal Risk and Authorization Management Program (FedRAMP) Authorized or FedRAMP Ready,  follow Cost Accounting Standards, and are DCAA compliant. 

Beyond compliance and compatibility, these suites must meet companies’ practical needs. Incurred cost reporting, invoice processing and account reconciliation features are essential. Tools with robust artificial intelligence rank above those without. 

Top GovCon Accounting Solutions for SAP S/4HANA

Here are the best accounting software solutions for government contractors and A&D firms using SAP S/4HANA: 

• Cognitus

The global SAP-certified partner Cognitus helps organizations of all sizes scale and modernize their accounting processes by delivering a ready-to-deploy solution built within the core of SAP S/4HANA. It is purpose-built to embed GovCon functionalities directly into SAP. It provides a unified, secure environment for all financial data, eliminating the need for external software. 

Among government accounting software with SAP S/4HANA integrations, it is the most comprehensive and feature-rich. It enables SAP to support revenue recognition, forward pricing, lease accounting, incurred cost reporting, and earned value — all GovCon-compliant. The firm offers bespoke implementation to align ERP setup with contractor-specific requirements. 

• Deltek

Over 30,000 organizations trust Deltek globally, including around 84% of the top 25 government contractors and one of the world’s top defense contractors. G2 awarded it nearly 70 badges in fall 2025 alone. Its intelligent platform supports the entire project life cycle, from ERP and accounting to delivery and analysis. 

The top A&D contractors use Deltek because it reliably brings compliance, operational control and advanced project management to its cloud-based ERP and supporting tools. Products popular with A&D contractors include Costpoint and Vantagepoint. The software is particularly advantageous for A&D contractors who regularly navigate stringent government requirements while ensuring efficient delivery and visibility across their organizations.  

• FloQast

FloQast is a trusted solution that complements SAP by integrating with it to manage the month-end chaos that stems from disparate systems and stringent compliance requirements. It is designed for use alongside cloud and on-premise versions of SAP via a direct integration with your SAP ERP solution. It can automate accounting workflows in SAP and accelerate cycle times. 

This SAP-certified solution increases close data accuracy by 39%, reduces reconciliation time by 38%, decreases audit time by 23% and reduces discrepancies found by auditors by 20%. In total, firms save 27 hours monthly. The AI agents can automate 40% of close tasks — including reconciliation, data normalization and document retrieval — for further optimization.

• Stampli

Stampli’s accounts payable automation, which helps with managing peer-to-peer (P2P) workflows, utilizes AI to process invoices before they reach SAP. Out of 77 providers, this company was recognized as the leader in the G2 Grid for AP Automation software. Its NPS score of 78 is 10% higher than the industry average.  

This integration delivers bidirectional accounts payable information directly into SAP S/4HANA or ECC in real time — no firewall changes, middleware or custom development needed. Since it was built in-house, it supports all native ERP functionality and fields. Its AI “Billy” has 83 million hours of P2P experience, enabling customers to go live in weeks, not months. 

• Serrala

Serrala is an international solutions provider for inbound and outbound payments. Its cloud-native software seamlessly integrates with any ERP or within SAP, integrating disparate data flows to improve visibility and streamline operations. Its AI-powered finance automation features accelerate accounts receivable and payable applications. 

Procure to Pay enables invoice capture and processing. Users can make payments faster and more accurately with minimal fraud risk. The treasury management software lets them take control of cash flows, allowing for up to 100% cash visibility and 99% cash reconciliation. With the AI tools, they can reduce manual efforts by 85% and process invoices 90% faster. 

Comparing These Accounting Software At a Glance

Whether firms want to reduce manual processing needs, gain visibility into cash flows or streamline high-volume transactional billing, they need accounting software that integrates directly with their ERP. Tracking, allocating and managing project-specific expenses, budgets and revenue in real time supports compliance and reduces risk. 

Even among the best government accounting software for SAP S/4HANA, discrepancies exist. For example, like Stampli and Serrala, FloQast is not FedRAMP authorized or DCAA compliant. However, it is ISO 41001, ISO 27001, SOC 2 Type 2 and Data Privacy Framework compliant. 

Data flows also noticeably differ. For example, Stampli syncs master data every two hours and critical matching information in real time. Other solutions facilitate continuous exchanges. Moreover, some have bidirectional data flows, while others transfer data in one direction. Comparing these differences is crucial.

Business Needs and Budget Factors to Consider

There are many business needs and budget factors to consider when selecting software. The first is the integration method — whether the solution uses middleware or custom configurations. Some provide a prebuilt connector using standard business APIs, eliminating the need for third-party tools.

Will adopting one of these solutions make existing tools obsolete? If not, does the organization have the internal resources to manage complex integrations between disparate systems? Increasing the tech stack’s size can simplify workflows, but it also expands the attack surface and can complicate information technology management.

Compatibility impacts the speed of data flows. How critical is real-time data visibility for project management and the finance teams? While real-time visibility is not necessary for all facets of accounting, it is nonnegotiable for critical applications. A near-real-time sync is acceptable, but it is not ideal. 

Decision-makers should also determine whether the pricing framework aligns with their budget. Is the subscription paid monthly or yearly? Will contracts lock in rates? What is the total cost of ownership, including managing separate systems versus a unified one? Determining the firm’s needs and how each software handles these key considerations helps ensure a confident selection. 

Unifying Operations and Compliance With Software

For contractors running on SAP S/4HANA, the most efficient and future-proof path to compliance is not through a separate system, but through a solution that natively enhances their existing ERP. Unifying complex projects and company financials in one place can simplify compliance, streamline operations and help them nurture relationships. 

The best government accounting software that integrates with SAP S/4HANA bridges the gap between SAP’s platform and the unique demands of government contracting, creating a single system that drives success. Those interested in improving growth, reducing spend, increasing efficiency or accelerating audit preparation should get in touch with the solution providers.