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Before getting started with ICAT, youll need to make sure your QuickBooks chart of accounts is properly configured for government contracting. In this video, well review how to set up your chart of accounts to calculate indirect rates, allocate indirect costs, and generate reports within ICAT. Your chart of accounts should be organized to reflect your indirect cost allocation policy. This policy defines your indirect rate structure, including your indirect cost pools. If you dont have an indirect cost allocation policy, Examples of common indirect rate structures are available in the ICAT User Guide. ICAT identifies your cost pools according to the account hierarchy in your QuickBooks chart of accounts. ICAT recognizes any Cost of Goods Sold or Expense type account that sits at the root level of the parent account sub account hierarchy as a cost pool. Each cost pool in your cost allocation policy, whether it is a direct, an indirect, or an unallowable cost pool, must be identifie