Category Archives for DCAA Compliance

DCAA Compliance & time and attendance software

Adequate DCAA compliant timekeeping practices are critical to securing a contract award. Often deficient DCAA compliance & timekeeping is the reason contractors fail the audits. Below are the key requirements and best practices for DCAA compliance. Web-based timekeeping systems are acceptable provided the key requirements are followed.

DCAA Compliant Timekeeping Software for Remote Employees

Dog is sleeping while his owner is working from home

Time Tracking Software For Remote Employees

One of the biggest impacts the COVID-19 pandemic has had on the world has been the way it has changed the workplace. Once an extremely rare arrangement reserved for specialists or a perk used by forward-thinking tech startups, remote work suddenly became the norm for millions of professionals around the world. Although the benefits have made themselves apparent as the business world adapted — greater flexibility, fewer work-life balance issues, higher employee satisfaction — this paradigm shift also brought with it some challenges.

For example, industries that depend on keeping meticulous records of the hours each employee works per client were left questioning how they could continue to do this with their workforces decentralized. Having team members working in so many different locations made it more difficult to make an accurate report. The issue was compounded for firms that hold government contracts, as the need for transparent and precise recordkeeping is even more crucial.

Fortunately, Hour Timesheet has a ready-made solution for this new status quo. Our powerful and versatile time tracking software for remote employees ensures that every individual’s hours can be tracked down to the last minute no matter where they are.

How Our Software Can Help

When you choose our solution for remote employee time tracking, you gain access to a wealth of features designed to streamline this process. First, it eliminates the need to enter data by hand on a spreadsheet or similar system. This cuts down on the time each employee spends on mind-numbing busywork and removes the risk of human error and oversights.

Also, managers and supervisors gain exceptional visibility into how well their teams are utilizing their resources. From the main dashboard, they can see exactly what everyone is doing and how long it’s taking them. With the reports our software generates, clients also can have a complete accounting of your hours, giving them peace of mind and preventing conflicts or misunderstandings.

Our software also syncs with the corresponding mobile app, which enables workers to enter their information from virtually anywhere they have Internet access. The details are shared within the system instantly, providing immediate status updates anytime anyone clocks in or out through the system. All leave requests also can be handled through the app, so employees working remotely can easily ask for PTO.

Perhaps most important for firms working with the public sector, our solution is completely DCAA compliant. This means it creates reports that can withstand the most intense scrutiny from government audits. Our software ensures that your company will always be in compliance, helping you earn more contracts and grow.

When you choose our platform, you’ll also take advantage of no-contract, pay-as-you-go pricing that includes free setup, support and training. You’ll never pay a penalty for leaving if you’re no longer using its benefits. If you’re ready to learn more about how our software can help you manage your remote workforce, get in touch with us today to schedule a live demo or begin your free trial.

Schedule Live Demo

DCAA Compliant Timekeeping Software for Consultants

The Importance Of DCAA Compliant Time Tracking Software For Consultants

Consultants need to project an air of professionalism and expertise at all times, especially when working for the government. After all, how can you expect your clients to trust you to offer sound advice and guidance if you can’t manage your own business? One of the most crucial aspects of this is proper time management.

Keeping track of the hours you spend working for your clients down to the last minute is essential, but the old-fashioned methods of doing so can leave a lot to be desired. Spreadsheets and other traditional techniques create room for human error and often involve hours of tedious, mind-numbing work.

Hour Timesheet offers a comprehensive time tracking software for consultants that eliminates many of the potential hang-ups that could impact your operations and reputation. Our DCAA-compliant platform means you’ll always be on top of your timekeeping and satisfy even government clients. Keep reading to find out more about what our time tracking for consultants can do for your office.

Why Time Tracking Matters So Much for You

As a consultant serving the public sector, the expectations are high. You need to be as transparent and forthcoming as possible because taxpayer dollars are being spent on your services. If you can’t provide an accurate and dependable accounting of all billable hours, you run the risk of losing out on the contracts you need to stay afloat. If agencies have any reason to doubt your ability to get the job done or your honesty, they will find someone else.

Not only that, but keeping accurate records of the time you spend on each contract is crucial for determining which ones are worth it for you. Using our timesheet software for consultants will show you at a glance which clients are delivering the most return on your investment of time and effort.

How Our Software Helps You

When you see the wide range of features included in our time tracking app for consultants, it’s easy to see the benefits it can bring to your operations. As a DCAA-compliant solution, you can rest assured that it will meet even the most stringent standards of accounting time and attendance. You’ll be ready for any and all audits your government clients may throw at you.

Keeping track of hours is simple and easy, with the ability for your team to update their time from virtually anywhere through their smartphones or other devices. You’ll be able to see everything spelled out for you and any other interested parties. We also provide you with the ability to generate extremely accurate job cost projections, enabling you to give estimates that will be as close to the final bill as possible.

Consulting means selling your ability to keep all the bases covered at every moment. Being able to provide detailed and precise reporting of everything you’ve been doing for your client base is crucial for building trust and winning new business. Hour Timesheet delivers a solution that allows you to focus on doing what you do best while also satisfying all your requirements. If you want to learn more about our software or get started with a free trial, get in touch with us today.

Start Free Trial

DCAA Compliant Timekeeping Software for Contractors

Why DCAA Compliant Time Tracking Software For Contractors Is A Must-Have

Contractors who work for the government know how critical it is to manage time effectively.
Without proper management of everyone’s hours, costs can balloon out of control quickly,
hurting the chances of gaining additional contracts in the future. Although it’s absolutely
essential to keep tabs on time spent, tracking hours by hand can be a laborious process in its
own right.
Fortunately, Hour Timesheet offers a fast and easy solution in the form of our time tracking
software for contractors. This DCAA-compliant platform is the most powerful tool found
anywhere, streamlining the process and preventing human error. Read on to learn

Why Time Tracking Is So Important

Working for the government means you have a responsibility to taxpayers. Your business must
report all work done on each project accurately and with complete transparency to ensure
public funds are being spent as prudently as possible. Without clear and accurate reporting,
there’s a real possibility that you could lose out on future contracts with the same agency
because your company will be viewed as a risk.
On top of those concerns, you also want to make sure that any contract you accept will be
worth your time and efforts. That’s really only possible if you have a complete and
comprehensive understanding of how much time you’re actually spending on each assignment.
Using time tracking for contractors means you can see at a glance which jobs took up most of
your resources and help you determine whether or not you have the bandwidth to take on
more at the moment.

How Hour Timesheet’s Solutions Can Help You

Our contractor time tracking app is fully equipped with a wide range of features to help you
bring your timekeeping under control. Perhaps most importantly, our platform is completely

DCAA compliant, meaning you will be prepared for any surprise audits from the government
that come your way. Our software meets all the most stringent requirements for time and
attendance accounting, ensuring you will be covered.
In addition to the robust time-tracking tools found within our solution, we also provide you
with accurate job cost projections. All you need to do is enter the bill and pay rate details for
each employee’s job code, and it will automatically generate reports that enable more precise
estimates for clients. You also have the ability to manage employee leave more effectively and
track employees’ locations in real time. The compatible mobile app also gives your workers the
flexibility to update their hours from their smart devices virtually anywhere they are.
Although the expectations are high for you as a government contractor, you don’t have to
stress about your time tracking. Hour Timesheet provides you with a full-featured software
solution that makes the entire process as simple for you as it can be. If you’d like to learn more
about what we can do for you or are ready to get started with a free trial, reach out and get in
touch with one of our representatives today.

Start Your Free Trial

How a QuickBooks ProAdvisor Can Help With DCAA Compliance

For any business, today, having good bookkeeping and accounting records in place is very important. This is particularly true for organizations that do business with the Department of Defense (DoD) and may be subject to a DCAA compliance audit. For those that are looking for support with this, working with a QuickBooks ProAdvisor can be a great option. These advisors can offer a range of services to help your business and remain in DCAA compliance.

What is a QuickBooks ProAdvisor?

QuickBooks continues to be one of the most popular accounting programs for businesses of all sizes. For those that would like to start using this program, finding a way to convert from existing accounting programs and integrate it into their business is very important. A QuickBooks Online ProAdvisor can help with this. They can offer a range of services to help you integrate your existing accounting program into QuickBooks and ensure you are getting as much out of it as possible.

What is DCAA Compliant Timekeeping?

The Department of Defense is a major organization that does business with many vendors across the world. Generally, they will provide payment for services that will include costs that you have incurred. This can include hours worked by yourself and other employees with your team. The process of DCAA compliant timekeeping involves properly tracking hours and accruing them to the right project while retaining all necessary records.

How Can a QuickBooks ProAdvisor Help?

If you are trying to improve your DCAA accounting practices, working with a QuickBooks ProAdvisor is a good idea. These professionals can offer various services that will ensure your accounting practices are up and running properly. This can include upgrading your accounting program to ensure you have a DCAA-approved accounting system that will properly account for your DCAA-related hours and all records are properly kept.

When Should Someone Hire a QuickBooks ProAdvisor?

There are various situations when hiring a QuickBooks ProAdvisor will be a good idea for your business. One situation will come if you start to enter into contracts with the DoD or other governmental agencies. The QuickBooks Advisor will help by giving you the support you need to establish your accounting processes to ensure they are DCAA compliant. Even if you are not entering into these contracts, a QuickBooks ProAdvisor can still be helpful as they can help you establish QuickBooks and integrate it into your business while ensuring you are using it as well as possible.
Hiring a QuickBooks ProAdvisor for your DCAA compliance needs can be a great idea. These services can help ensure that your accounting processes are up and running properly and that you are complying with any DCAA requirements. When you need to find a QuickBooks ProAdvisor and are looking for this support, working with Hour Timesheet is a great option. This company can offer various services with QuickBooks and other record-keeping needs to keep your company organized and efficient.

Learn More

How to Get Ready for a DCAA Audit

Both theDepartment of Defense (DoD) and NASA are very significant parts of the overall United States government. As this part of the government handles some very important tasks, they are required to outsource a lot of work each year to independent companies that will enter into contracts. As part of any contract, you will be required to allow for audits to be completed by the Defense Contract Audit Agency (DCAA). There is a lot that should be understood about what is involved in a DCAA audit and how you can ensure your company properly follows all DCAA compliance requirements.

What Triggers a DCAA Audit?

The DCAA contract audits can take place from time to time for any business. There are various factors that can trigger an audit to take place. Many of the times, you will go through a routine audit process that is completed based on a random draw. You may also be selected for an audit if you have not gone through one in several years or are in a new contract. The DCAA may also select your organization for these audits if there are any inconsistencies or red flags in the materials that have been presented.

What Do They Look for in a DCAA Audit?

There are various forms of audits that the DCAA can test, which can vary based on the types of services and cost structure of your business. Some of the most common forms of DCAA audits include forward pricing, incurred cost, and compensation and benefits audits. These cost-reimbursement contracts for compensation and materials continue to be among the most common.

During these audits, the DCAA will look to validate the information you have submitted as part of a reimbursement. This can include making sure that you have proper invoices and payroll records set forth. Generally, the DCAA will ensure that you have the proper equipment and software in place to comply with these types of contracts before the contract even begins. Hour Timesheet offers a variety of services that can help ensure you are properly documenting this information and are prepared for the upcoming audit.

How to Prepare for a DCAA Audit

Going through a DCAA audit can be a stressful experience. However, these types of audits do not need to be stressful for government contractors.Eventually, they can even feel quite routine and the use of products and services offered by Hour Timesheet can be helpful as well. There are various tips that can help you properly prepare for these audits.

Keep Current Books and Records

One of the best ways that you can prepare for these audits is to ensure that you are always ready for them to walk in. This part of the process should include making sure that your books and records are updated in real-time, that you spend the time necessary to double-check reports before sending them out, and that you have a process in place to gather information and reports when needed for an audit. Luckily, Hour Timesheet’s time tracking software integrates directly with both the QuickBooks and ADP systems, which makes payroll and accounting processes much easier.

Audit Yourself

When you want to make sure that you are prepared for one of these audits, another great tip to follow is to audit yourself and your company from time to time. Anyone that has gone through a DCAA audit will know what they are looking for. Establishing a regular internal audit process to copy this process will benefit your organization in several ways. A proper internal audit of your records will ensure your books and records are in good order, that your team members are prepared, and that you will receive good results when the time comes. To make it even easier, use a DCAA compliance checklist, and keep track of areas where you excel, and where you can improve.

Ultimately, all government contractors should be prepared for an audit at all times. While this can seem like a stressful experience to go through, those that are prepared will have received much better overall results. If you are preparing for an audit, reach out to Hour Timesheet today to learn more about how we can help ensure you are prepared and organized.

Guide to Incurred Cost Submissions

Obtaining a contract with the Department of Defense (DoD) can be a great win for any business. When you do have a contract with the DoD, you can typically expect that it will be long-lasting and provide you with a good revenue stream. As part of signing any DoD contract, you will need to fully understand your requirements for seeking reimbursement for costs. Part of this can include knowing how to follow the proper protocol for incurred cost submissions.

Why Do You Need to Submit Incurred Costs?

The DoD frequently has contracts with companies that will provide a reimbursement for costs incurred by the company. This can include wages, benefit allocations, material and inventory costs, and other expenses related to providing the product or service. Due to the size of the DoD, they frequently partner with the Defense Contract Audit Agency (DCAA) for routine and targeted audits. These audits will seek to ensure that the incurred costs were filed properly and accurately. This is why companies who work on government contracts must ensure that all processes remain DCAA compliant, in the case that an audit is performed.

What Are Examples Of Incurred Costs?

When you are going to submit an incurred cost report, it is important to know what costs are frequently included. In general, incurred costs should be any costs that were necessary for you to provide the DoD with the agreed products or services. These can include direct costs such as labor, benefits, and materials. It can also include indirect costs such as allocation of overhead spending, security, and administration. The programs offered by Hour Timesheet can help you better understand what your incurred costs are, by making it easier for employees and contractors to track the proper time. Plus, Hour Timesheet integrates directly with QuickBooks and ADP, to make payroll and accounting processes more efficient.

Who Is Required To Submit An Incurred Cost Submission?

An incurred cost submission is generally required for any vendor that performs services for the DoD. There are carve-outs for this requirement that could change your requirement based on the type of contract that you have in place. Most of the time, you will need to have these reports sent in by June 30 following the end of the prior fiscal year.

What Needs To Be Included In The Submission?

The purpose of the submission is to ensure that you are reimbursed for any costs that you incurred for providing the service to the DoD. You should always include all direct costs and provide any information that you have to support your expenses. This typically will largely include receipts from inventory suppliers as well as payroll registers. The products and services offered by Hour Timesheet can help make it easier to keep records and stay DCAA compliant while ensuring the right information is included in your cost submission.

There are also going to be indirect costs that can be harder to allocate. For these, it is important to list all of your indirect costs and also complete any supporting schedules that are needed to validate the costs you incurred as well as the fair amount to have reimbursed for the DoD.

What Happens If I Am Audited By The DCAA?

The DCAA frequently audits vendors. These can be random, targeted, or completed on vendors that have not gone through the process in a while. A large part of the process for a DCAA audit will aim to verify that the internal cost submissions were fair and accurate. To ensure that you are prepared, you should always keep your records and supporting schedules handy so you are able to answer any questions that can arise. Completing your own internal audits can also help with overall preparation. If you’re not sure your company meets DCAA compliance requirements, Hour Timesheet offers resources to help.

Ultimately, having a contract with the Department of Defense can be a great deal for any business. While there are a lot of opportunities to grow with the DoD, the contracts can be complicated and often require that you send in an incurred cost submission at least once per year. This will be a large factor in determining the revenue you receive as part of the contract. When you need help with your incurred cost submissions or any other support with your DoD contract, contact Hour Timesheet to learn how we can help your company with DCAA compliance.

DCAA Compliance With QuickBooks Software

When you are in the business of federal government contracts, DCAA compliance is non-negotiable. DCAA stands for the Defense Contract Audit Agency. QuickBooks provides an accounting package that is well suited for small to mid-sized businesses looking for DCAA compliance. QuickBooks offers two options and several different versions depending on your unique business requirements. QuickBooks offers both a desktop solution and an online tool, and either can be set up to be DCAA/Federal Acquisition Regulation (FAR) Compliant, especially with our DCAA compliance checklist. The keys are Job Costing and Labor Distribution.

DCAA Contracts

Potential government contractors who wish to bid on certain types of contracts should know that although the contracts vary, there is a difference between direct costs and indirect costs.

A direct cost is a cost that can be tied directly to the production of goods or services. A direct cost may be variable. An example of a direct cost is labor cost or manufacturing supplies.
Indirect cost allocations include overhead expenses such as rent and insurances and general expenses like accounting department costs. Indirect costs are harder to pin down and harder to allocate to a specific project or item. Using a timesheet tracking application in conjunction with an accounting package like Quickbooks, you can better control the indirect cost allocations, particularly for general and administrative expenses, to the correct cost objective.
One type of DCAA contract is called a cost reimbursable contract, where the direct cost and a percentage of the indirect costs are paid. This type of contract requires the accounting system approval under FAR subpart 16.3.

What is QuickBooks?

QuickBooks is an accounting software solution that allows for integration across multiple platforms to make payroll quick and easy. They have two main products that make their service worthwhile.

QuickBooks Desktop

This interface of web-based time tracking software and payroll makes QuickBooks Desktop an ideal tool for DCAA Compliance. We base this on our experience with hundreds of clients over several decades. Furthermore, the QuickBooks Desktop integrated payroll module permits the charging of time directly to the General Ledger. This includes Customer, Job, and Service Items, which are immensely beneficial.

QuickBooks Online

QuickBooks Online is a cloud-based solution that is not, at the outset, designed to meet the FAR and DCAA requirements and has some limitations. The good news is that there are ways to make the QuickBooks Online system meet all the government’s requirements without too much effort.

What is DCAA Compliant Accounting Software?

DCAA-compliant accounting software is software that meets DCAA requirements. Your chosen accounting package – in this case, QuickBooks is set up to meet the requirements. Timekeeping and the allocation of costs are of particular importance. Consequently, QuickBooks Time Tracking software integration is an essential aspect of DCAA compliance.

Refer to DCAA compliance explained for more information.

Any accounting package set up to meet compliance requirements will be subject to strict internal controls to ensure financial integrity. One of these internal controls should be an internal accounting system audit regularly. There should also be regular checks on a monthly basis to see that all the income and expenditures balance.

The Benefits of Being DCAA Compliant for Small Businesses

If you are DCAA compliant, you may be one step closer to securing funding from the federal government programs SBIR and STTR. These programs gear towards supporting innovation and technology in small businesses. QuickBooks with Hour Timesheet will be invaluable in pursuing this kind of opportunity.

Is QuickBooks DCAA Compliant?

Yes, QuickBooks can be set up to be DCAA compliant. There are three areas to consider:

Chart of Accounts establishment
Flow of transactions
Cost and Computations

It’s important to note that one should always bear Generally Accepted Accounting Principles (GAAP) in mind when analyzing your accounting system.

Even if you understand all the regulations, it is still best to refer to the DCAA compliance checklist. Where possible, seek professional assistance! Be ready to implement policies and procedures that need to be applied consistently across your business.

Keys to Compliance

Employee time tracking posted daily with required explanations for edits and record locking.
Printable timesheet reports.
Policies & Procedures oriented toward FAR Compliance Criteria found in DCAA’s SF-1408 pre-award audit checklist.
Consistently applied labor dollar distribution accommodating uncompensated OT for salary exempt personnel.
Indirect Cost Pools and the ability to compute and forecast Indirect Rates applied to Direct Costs under Cost Reimbursable Awards.
Progress billing + Cumulative dollar values reported against award ceilings tied to cost proposals.
Identification and segregation of Unallowable Costs as defined per FAR 31.205.

This isn’t a comprehensive list, but it gives a good idea of what to expect. One of the best ways to help navigate DCAA compliance with timekeeping and accounting systems is to partner with a company that has a demonstrated knowledge of government contracts. It can also be helpful to review multiple services and look for important features in DCAA compliant time tracking systems.

What Happens if You Fail a DCAA Audit?

You may lose your contract or face a suspension of payment. Be assiduously aware of remaining compliant. Floor checks are routine, and timekeeping records are an essential part of your compliance. A floor check is the DCAA’s way of verifying your employees.

One way to help ensure you pass your DCAA audit is to get any requested information to your auditors quickly. This can speed up your audit, and help ensure the DCAA auditor has all the information they need. In order to do this, it’s best practice to keep excellent records and track every process and transaction. Hour Timesheet allows businesses to keep these kinds of records, in a convenient, cloud-based place.

We Can Help

Hour Timesheet isn’t just a timekeeping software provider for government contracts looking to pass a DCAA audit. We also partner with dozens of CPA firms and consultants who can assist you with the entire life cycle of getting a DCAA-approved accounting system. Give us a call today! We can introduce you to our extensive list of experienced partners.

DCAA Compliance Checklist for Time Tracking

QuickBooks and ADP Timesheet Payroll Integration

3 Solutions Working Together – If you use ADP as your payroll provider and do your invoicing in QuickBooks, you’re in luck. Hour Timesheet’s 5-star reviewed software integrates with both solutions. This time tracking software gives you everything you need to track time & attendance, create invoices, and do payroll in minutes without having to key in data.

Hour Timesheet includes a feature-rich time and attendance solution and mobile functionality that is geared for small businesses. Our SaaS solutions give your organization affordable, easy-to-use web-based solutions. Plus, our timekeeping software is fully DCAA compliant. Our professional services are designed to help your time tracking and accounting stay organized and prepared in the event of a DCAA audit.

Main Features & Benefits of Hour Timesheet Payroll Integration

Mobile App (iOS and Android) –Hour Timesheet offers mobile time tracking in the Hour Timesheet Mobile App. As a result, integrating with ADP Workforce or another payroll provider is even easier.

Managing Employee Leave – Manage leave balances, track leave or time off requests, and more directly in Hour Timesheet’s software. All data is stored and tracked, and easily transferable between platforms.

Manage Overtime Hours- Aside from tracking regular hours and job performance, the time tracking software complies with all DOL overtime regulations.

Job Costing – Track and manage job costs, labor costs, and other information directly on the platform. You can view employee profiles, job codes, and other payroll processes.

Quick Access to Time Cards – Hour Timesheet is a SaaS solution, so employee timesheets are stored safely. To-the-second, real-time data is ready and available on the cloud whenever you need it. Hour Timesheet makes extra efforts to ensure all employee time entries are accurate, on time, and employee attendance can improve.

Daily Time Entry Reminders – Hour Timesheet uses daily reminders and notifications to ensure all employees are tracking time as they’re doing it, rather than after the fact.

Location Tracking – Available on the Hour Timesheet mobile app, managers can keep track of employee location when working at home or off-site.

Quick Payroll Processing – With Hour Timesheet and ADP Platform integration, you eliminate the double-entry of data and ensure that your staff is paid accurately and on time.

Time To Eliminate Data Entry For Good – The QuickBooks “one-click” sync imports employee data and customer/job data into Hour Timesheet for quick employee profile setup. No more manual data entry for every new job or contract.

Decades of Experience At Your Fingertips

The 25 years of experience you get by choosing Hour Timesheet means that you’ll have experienced, knowledgeable customer service at your fingertips. We’re always ready and eager to help you troubleshoot your way through any problem or figure out new ways we can help your business succeed! Even if you’re not a government contractor looking to achieve DCAA compliance and prepare for DCAA audits, Hour Timesheet can help your business save time. If you’re unsure, request a demo today to see what Hour Timesheet can do for your business.

Detailed Audit Trail
Daily Timesheet Reminders
Correction Timesheet Workflow
Required Reason for late or edited entries
Supervisor Approvals

Already have Hour Timesheet?

support@hourtimesheet.com

Want Help With Your Integration?

If you’d like help getting the ADP or QuickBooks Time Tracking integration setup, we’ve got you covered. We’ll be right there with you via phone, email, or screen-sharing session to make sure you are successful. Call us anytime at 832.942.9556.

Learn More

Hour Timesheet Software Meets DCAA Compliance Regulations for SBIR & STTR Programs

Imagine securing the necessary funding so your research and development could finally become a product? It’s possible thanks to the federal government programs SBIR and STTR and Hour Timesheet. Together SBIR and SBTTR are responsible for bringing some of the most innovative technologies to market. These new technologies have the potential for commercialization in the international market. Without a DCAA compliant time tracking software, this opportunity wouldn’t exist. Hour Timesheet offers such a software, and helps these companies qualify for the programs to present their ideas.

What are the SBIR and STTR programs?

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs encourage participation in federal research. They present American-owned businesses the opportunity to research and develop new ideas, with the potential for commercialization. The SBIR and STTR programs have developed an awards-based program that presents funding opportunities to small businesses. The research institutions encourage these businesses to explore their technological innovation potential. The program then challenges them to provide the necessary incentive to profit from its marketing. The goal is to inspire high-tech innovation, by including small business in the country’s research and development industry. The entrepreneurial spirit to meet specific research and development needs will seep the country.

What does DCAA compliant timekeeping mean?

‘DCAA’ is an acronym and stands for the “Defense Contract Audit Agency”. It is the government agency responsible for the auditing of the department of defense and its contractors. Other government agencies often bring in a DCAA auditor to provide financial and accounting services. Specifically, in the event they need help with their auditing procedures.

This is precisely what happens with the SBIR and STTR programs fund. The programs aware small businesses with the money necessary to move from Phase I (Concept Development Level) to Phase II (Prototype level). Then, the federal government requests an audit of all participating small businesses. They undergo a DCAA pre-award “survey,” otherwise known as DCAA audits.

In the first phase, Federal agencies usually expect small businesses to have a basic time tracking system in place. This is because the Phase I awards are relatively small. In Phase II, there is more money at stake. There is approximately $1 million per award as opposed to $150,000 in Phase I. The contracting officers need to be confident you’ve accurately estimated your incurred costs and indirect rate. They also want to ensure you can accurately differentiate indirect from direct costs in your accounting systems. This is why Hour Timesheet offers a DCAA compliant time tracking software, that is easy to use and understand.

How does Hour Timesheet meet DCAA compliance requirements for the SBIR and STTR programs?

1. Detailed audit trails for any companies working with government programs.

It’s one thing to say that your timekeeping software is DCAA compliant, but it’s another to explain what that means. At Hour Timesheet, our audit trail lists a detailed activity log of every contractor’s activity. It includes their username, IP address, time, and date stamp of all the entries made to the timesheet. This helps capture both hours worked and paid-time-off entries.

2. The software sends automated daily reminders. This keeps employees accountable to tracking their hours on time, and with DCAA regulations.

DCAA compliance states that employees must enter and track time daily. Hour Timesheet will send employees who forget to do this an automatic daily reminder. It’s quick and easy to set up and can be a great tool. Specifically, this works well for those who sometimes let their day “get away from themselves.”

3. Tracking indirect (non-billable) time acquired while working in these programs.

Employees must track all hours in a DCAA compliant time keeping system. This ensures that all hours are precise, and meet DCAA requirements. Hour Timesheet allows users to track direct costs, indirect costs, and unallowable costs entries within the timesheet. Assign non-billable codes to users, including overhead, labor costs, business development, and others.

4. Multiple supervisor signatures required for any time entries.

According to regulations, each timesheet requires two signatures. One from the employee and the second must come from the supervisor. Hour Timesheet allows for signatures at both of those levels on each time entry.

5. Authorization is required for any charges when working on government contracts or programs.

Hour Timesheet allows managers to limit visibility on certain charge codes. They can hide codes from employees who aren’t authorized on that project. This feature is accessible to both full-time employees and timesheet information for government contractors.

6. DCAA compliance requires a reason to be provided for any late time entries.

Hour Timesheet requires a reason entry when there is no daily time entries. The program will prompt employees to enter a reason for the late entry. Hour Timesheet also requires the user to enter a reason for editing previously, inputted data on a timesheet.

Hour Timesheet DCAA Compliance Software and the SBIR & STTR Programs

The federally funded STTR program & SBIR program are both an excellent way to fund ideas and inventions. Directed at small business in the United States, it allows for the spread of new ideas. These businesses may never have the opportunity to market otherwise due to business concerns. These programs allow for companies with technical merit to enter the national arena. The programs give small businesses an opportunity with a big commercial potential for their innovations. Part of that process is ensuring their business remains DCAA compliant. These are very competitive programs, and that is where Hour Timesheet can help. We provide a DCAA Compliant timesheet software that meets the all DCAA timekeeping requirements. We’re here to help American innovation move forward.

← Older Posts