Indirect Cost Pools

You Can’t Manage What You Can’t Measure

A key aspect of complying with government regulations is creating processes and utilizing software tools that allow your organization to be compliant. Because we all know you can't manage what you can't measure, it is important to understand the basic categories of your organization's indirect cost pools and to establish a mechanism to efficiently track employee time against these pools.

Direct costs are traceable to the production of a specific good or service. Labor and direct materials, which are used in creating a specific product or service, constitute most direct costs.

Indirect costs are those cost necessary to keep your business in operation. Indirect labor costs make the production of cost objects possible but aren't assigned to a specific product.

Indirect Cost Pools

Overhead - indirect costs incurred that are not direct costs, but that can be attributed to a specific revenue-generating project or job. Any indirect labor or expenses that can be attributed to a certain project can then be distributed across those projects based on the projects’ direct labor hours, direct labor costs, or direct material costs

Fringe costs - include employee related costs including payroll taxes, fringe benefits such as health insurance and compensated absences (vacation, holiday and sick time).

General and Administrative (G&A) Expenses. These are management, financial, and other expenses related to the general management and administration of the business. To be considered a G&A Expense, the expenditure must be incurred by, or allocated to, the general business unit. Examples of G&A Expense include:

Salary and other costs of the executive staff of the corporate or home office.
Salary and other costs of such staff services as legal, accounting, public relations, and financial offices
Selling and marketing expenses

UNUSUAL INDIRECT-COST

Two major types of indirect costs are accounted for in a very unique way in the government contracting environment.

IR&D consists of contractor research and development efforts not performed under contract or grant and not required for the preparation of a specific bid or proposal, either government or commercial. IR&D is funded and managed at the contractor’s discretion from contractor-controlled resources.
B&P is comprised of contractor efforts to prepare, submit, and support bids and proposals, either government or commercial, whether or not the bid is successful.

Contract Type Matters

To recognize the impact that changes in indirect cost rates have on both the contractor and the government, it is vital to understand the various types of contracts used in government work. In some cases, increases in indirect costs are totally or partially paid by the customer.

A cost-reimbursement contract is used when the cost of contract performance cannot be predicted with accuracy, such as in the development of weapons systems.
Cost-plus-fixed-fee (CPFF) contract, the contractor is reimbursed for his actual cost, subject to certain government requirements regarding allowability, plus a negotiated fixed fee.
A cost-plus-incentive-fee contract (CPIF) is a cost-reimbursement contract that provides for a fee that is adjusted by a formula according to the relationship of total allowable costs to target costs. The target cost, target fee, minimum and maximum fee, and the fee-adjustment formula are negotiated at the outset. The fee paid to the contractor is negotiated after contract performance and final actual costs are determined, using the formula and the minimum and maximum fees.

Additional Resources

DEFENSE CONTRACT AUDIT AGENCY INFORMATION FOR CONTRACTORS

Making technology work for you

Making Technology Work For You

Today’s technology moves so fast that it’s not easy to keep up with. It seems like new tools are surfacing every day to help business owners and entrepreneurs save time, money and boost productivity. New technology empowers business owners to achieve what they set out to do and allows them to be creative while maintaining a high level of productivity. Businesses that want to stay relevant know that they must incorporate new technologies into their company’s growth strategy.

The trick to making technology work for you and your team will depend on how it’s integrated. You can use these tips to help your employees to successfully embrace technology:

1. Highlight the Benefits

Technology can do so much to make our lives easier, but the process of learning new technology can still be daunting. To ensure team member buy-in, help them understand the decision to implement new technology. Identify the limitations or problems in the current tools or software. Help your users see how technology could solve these problems. Even though fear is normal in the face of change, we can’t let fear stop us from moving forward.

2. Find Your Champions

There are always employees who readily accept new technology. These are your champions! They can help convince reluctant coworkers where no one else can. Have them be available for questions and training to those who are slower to adopt. Some employees may not be convinced of the benefits of technology until they see someone else do it.

3. Provide Training

Training is critical to the successful adoption of new technology. You must ensure that team members of all levels of technological know-how have the access they need to learn at their own speed. Training can be looked at as a two-step process: You need training from external sources (free at Hour Timesheet), and then you need a core group of internal employees who are comfortable in the new system and can help others if needed.

REASONS YOUR BUSINESS SHOULD EMBRACE TECHNOLOGY

By embracing today’s new technology your company will reap the benefits that keep them ahead of their competitors who fail to embrace technology, including:

Staying connected
Encouraging timely and accurate input
Ability to monitor employee productivity
Improving manager productivity
Improving employee accountability
Access to advanced business reporting and analysis

Additional Links

HTS QuickBooks Online Marketplace Listing

HTS QuickBooks Desktop Marketplace Listing

HTS Android Download Link in Google Play

HTS iOP Download Link in Apple Store

Tired of Deltek Timesheets?

So you have been using your Deltek timekeeping system for some time now and you are fine with how it has been working for you....

Stop settling for "fine", it is time for a better solution that helps you end the needless timesheet day processing scramble and the endless timesheet headaches!

Are you tired of reminding employees that timesheets are due?

how about a system that sends daily reminder to both employees and supervisors.

Are you tired of your employees charging to expired project codes?

how about a system that restricts access to ended codes.

Are you tired of old timesheets remaining unprocessed in your Deltek timekeeping system?

how about a system that ensures all timesheets are accounted for when processing?

Are you tired of workarounds for employees on non-standard work schedules?

how about a system that allows for an 8-day timesheet and is DCAA and Labor Department compliant?

Are you tired of employees and supervisors not adhering to your timekeeping policies?

how about a system that allows you to easily customize to ensure adherence to company policies..from state to state..or even group to group?

Are you tired of paying too much for time and attendance software?

how about a system that will provide the best solution, while saving you money....guaranteed?

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Contact us today and if we can't show you in 5 minutes our solution is better than your current "fine" solution...we will give you 3 months free.

Resources

The importance of company polcies

Irregular Work Schedules

The New Standard American Workday

QuickBooks Integration Q&A

Common questions and answers for Hour Timesheet and QuickBooks Integration

Question 1. How does QuickBooks sync data with Hour Timesheet?

Answer. Hour Timesheet utilizes the Intuit Web Connector to sync company data with QuickBooks Desktop. While logged in to Hour Timesheet as an Admin you will click the Request for Import button. This will import your company data (selected by you) into your Hour Timesheet account.
03/25/2018

Question 2. What data does QuickBooks bring into Hour Timesheet?

Employees: The sync tool will import all “active” QuickBooks employees and vendors (optional) into your Hour Timesheet account. Only vendors that have a First and Last Name field value in QuickBooks will be imported.

Customers/Jobs The sync tool will import all “active” QuickBooks Customer and associated Jobs into your Hour Timesheet account.

Service Items The sync tool will import all “active” Service Items from QuickBooks into your Hour Timesheet account.

Classes The sync tool will import all “active” Classes from QuickBooks into your Hour Timesheet account.

Payroll Items The sync tool will import all “active” Payroll Items from QuickBooks into your Hour Timesheet account.

Question 3. How do I add a new data in Hour Timesheet (employees, customers, jobs, etc)?

Answer. New data will need to be entered into your QuickBooks company file first. Once the new data is entered, you can use the sync tool to import your additional information in Hour Timesheet.

Question 4. How will my employees receive their Hour Timesheet login credentials?

Answer. Hour Timesheet will send an email invitation to each employee with the link and login ID to the Hour Timesheet account included in the body of the email. Once the employee accesses the link, the employee will be prompted to create an initial password to login to Hour Timesheet.

Question 5. Can my employees track time against customers and jobs, service items, classes and payroll items?

Answer. Yes, your employees will be asked to select from a list of authorized charges. Employee authorized charges (EOC) are defined by the admin at the employee level. This feature enables the employees to only see EOC’s that are assigned to each user.

Question 6. How do I delete information in my Hour Timesheet account?

Answer. Once you mark the data (employee, customer, job, etc.) as inactive in QuickBooks, the data will be updated in your Hour Timesheet account upon performing the data sync.

Question 7. How does Hour Timesheet identify billable vs non-billable items on the timesheet?

Answer. By default, any EAC that includes a service item will be marked as billable time in QuickBooks. The user also can mark individual line items as billable or non-billable on the timesheet.

Question 8. Can employees add comments to a timesheets?

Answer. Yes, there is the ability to input general comments and daily comments in Hour Timesheet.

Question 9. I exported my employee's time into my company QuickBooks file, but now I need to make an adjustment to a timesheet. How do I do this?

Answer. Hour Timesheet does not allow processed timesheet data to be edited. Hour Timesheet will display a link on the timesheet that will allow the user to create a “corrected” copy of the timesheet. The detailed audit trail will show the log of all changes made to the revised timesheet.

Question 10. Can multiple supervisors approve a timesheet

Answer Yes. Hour Timesheet will allow for multiple supervisors to approve a timesheet.

Question 11. We have a daily requirement for our employees to enter timesheet data. Does your software include daily reminders?

Answer Hour Timesheet includes the option to turn on daily notifications to serve as reminders for those employees who forget to enter time daily.

Question 12. I track my employee leave balance info manually in an Excel spreadsheet because QuickBooks doesn’t include all of the options I need to track my employee leave. Can Hour Timesheet manage leave for my employees?

Answer - Hour Timesheet has a full-function leave management feature that will allow accrued and earned types of leave tracking.

Visit us in the marketplace

QuickBooks Online

QuickBooks Desktop

Additional Resources

QuickBooks Tutorials for Accountants

Attend a QuickBooks Training Class Near You

DCAA Compliant Timekeeping Key Requirements

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.

01. Company timekeeping procedures must be documented in a policy or procedure handbook provided to all employees. All key elements of an adequate time keeping system must be addressed.

02. Every employee must record all of his/her time daily. Recording hours worked in advance or days after the fact such as at the end of the week is not acceptable.

03. Time must be charged by day and by project or job code as well as by indirect accounts (overhead, G&A, B&P, etc).

04. All employees must record 100% of time worked on projects to the proper job codes.

05. Employees must record all indirect time not identifiable to a given project to proper indirect cost accounts (overhead, G&A, B&P, etc).

06. Employees must record all pto, vacation, sick, holiday and other leave time to the proper accounts.

07. All job codes that appear in the timekeeping system should be initiated by accounting or the system administrator. Project codes must be provided to employees authorized to work on a given project.

08. All timesheet entries must be the employee’s own. Time must be recorded based on work completed, irrespective of whether the time is billable or non-billable.

09. Under no circumstance may an employee work on one project and record time to a different project.

10. Under no circumstance may an employee work on indirect tasks and record time as direct costs to a project or vice versa.

11. Correction timesheet entries should be made by the employee. Correction timesheets are approved by the employee’s supervisor. Under unusual circumstances where the employee cannot make the changes to timesheets then accounting or the administrator may make such changes with the employee’s consent.

12. All employee timesheet data must be approved by the employee’s supervisor.

13. Employees should be provided documented DCAA compliance & timekeeping training whether by formal or informal means.

14. Timesheets must be maintained for a period of at least 2 years.

15. Monitoring of employee timekeeping compliance should be conducted by audit or floor checks randomly throughout the year.

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Additional Resources

Federal Acquisition Regulation Full Download

Federal Timekeeping Policies for Government Contractors (chron.com)

Record-keeping Requirements under the Fair Labor Standards Act

Top Timekeeping Tips

Top Employee Timekeeping Tips

Insight into how your employees spend time is critical. That's why employee timekeeping software tools make so much sense.

Knowing how much time your employees spend on overhead tasks, project, training, and unpaid leave is invaluable data for your business's future.

Employee timekeeping is not just for hourly employees

Nonexempt employees need to track hours for FLSA compliance but having salaried employees keep a timesheet is helpful too. Exception-based time tracking helps employers track attendance and improve the overall management of daily resources

Internal policies & approval workflows are the keys to a successful employee timekeeping software implementation.

Software tools are a dime-a-dozen, but it's how you use the software that defines your success. It's important to document your timekeeping policies and required approval workflows before you invest in a time & attendance tool.

Don't be afraid of internet-based employee timekeeping software tools.

A detailed timesheet audit trail will flag when a user inputs timesheet data into your system from anywhere but the office. The activity log shows the IP address as well as each entry into the user's timesheet with a non-editable time and date stamp.

Microsoft Excel is for spreadsheet data, not for employee timekeeping

Yes, you can keep your employees timesheet data in Excel but is that really efficient? Don't be afraid to use the tools available to your organization to make you more productive. Rely on the experts...not Excel.

BOTTOM LINE... it's just smart business.

Features such as daily timesheet reminders, employee leave management and time card approval processes make Hour Timesheet the perfect choice for your organizations's timekeeping software needs.

Visit us in the marketplace

QuickBooks Online

QuickBooks Desktop

Additional Resources

Measure Costs Right: Make the Right Decisions

How To Calculate And Track Overhead Costs

How do I Calculate Overhead Costs?

Advice for Successful Grant Management for Nonprofit Organizations

Managing grant funds....the weak link

Managing grant dollars is one of the weakest links in the grant process chain. Directors tend to have detailed and documented process of researching and developing grant proposals. But frequently, that is where the process stops. Unfortunately, the inability of nonprofits to manage grant funds is the single most important reason why a funder may not fund them in the second or third year.

Track and document everything

Most government grants require significant documentation of all expenditures related to grants. Grant giving organizations require recipients to submit detailed supporting documents before grant payments are made. A system that has the capacity to automatically generate grant reimbursement based on grant activity not only saves time but improves accuracy.

Understand indirect costs

Grants come with indirect costs. Understand whether operating funds for administrative burdens will be covered or if you need to dig up additional funding. Ask your team if your organization is prepared to reallocate its administrative budget to cover the cost and if so for how long. Cost allocation will allow your organization to share overhead expenses across different programs.

Know your stuff

Essential to successful grant management is an understanding of and adherence to the regulations covering grant management. Regulatory compliance starts with federal guides for Cost Principles and Auditing from the Office of Budget and Management which subsequently impacts state and other local government grants and sets models of best practices for foundation and other private grantors.

Coordinate Your Task List and Staying on Schedule

Being able to quickly see what is coming up or quickly see a high-level view is critical to keeping the process running smoothly. SaaS based solutions can be utilized to track important deadlines and send email reminders of deadlines when they are approaching. This can be a great time-saver for the person who is organizing all the elements of a grant proposal and responsible for the final submission.

Keep a checklist

Implementing systems, policies and practices are essential items to consider and implement for success with any type of grant management.

· Timekeeping system

· Accounting internal controls

· Cash Management that meets standards in the Cash Management Improvement Act

· Budget Controls

· Records Retention Policy

· Procurement system and internal controls

· Personnel System that complies with all laws and regulations

· Property Management System

· Travel policy

Try Now

Start your 30-day free trail

Additional Resources

Nonprofits and Labor Laws

Managing Nonprofit Employees

Breaking down your nonprofit's obligation to pay overtime

$3/user. NO setup Fees. NO support fees. NO contract.

Employee Leave Management

Leave Management Types

Earned Leave - Leave hours are earned based on the number of hours worked on the employee timesheet.

Accrued Leave - Leave hours are accrued based on the employee's hire date. Accrual options are weekly, bi-weekly, semi-monthly and monthly.

Employee Leave Management Benefits

Provide leave balance detail on employee timesheet.
System-managed carry-over values from year to year.
System managed ceiling for each type of leave

Employee Leave Management Features

Balance is reduced after timesheet is submitted at the end of each timesheet period.
User receives error message upon entering time that exceeds current balance.
User may be allowed to “go into the negative” if feature is configured.
System will stop accruing leave once limit “ceiling” is reached.
System will reset balance to “carry-over” value each year.
Balance will reflect manual adjustments (if any).

For more information on employee leave management, visit our leave management website page or visit us in the QuickBooks marketplace listing.

Additional Resources

Ten states and Washington D.C. currently require paid sick leave
The Family and Medical Leave Act

DCAA Compliant Timekeeping Software

Advice from the experts

Everything needs to be tracked

Time spent on overhead tasks, bid and proposals, training, leave (paid or unpaid) and yes, even uncompensated time

Timekeeping isn't just for hourly employees

All time worked should be tracked. Both salaried and hourly employees

Correction timesheets are okay

Budgets change, mistakes are made, people forget.. that's why a documented correction process is imperative.

Audit trails are the key

With the internet, all things are possible. Anywhere. Anytime. A detailed audit trail captures it all. The time, the place as well as the details.

Just saying it doesn't make it true

Any software can claim to be DCAA compliant but we don't just say it. We guarantee it. Our experts of 20+ years will make sure!

Having been in the industry for over 25 years, there are a number of key topics that continue to come up when talking with a customer about DCAA compliant time tracking software. One common theme I hear time and time again is centered around managing correction timesheets and enabling someone other than an employee to update a timesheet. There are many sources on the web and an unlimited number of resources that are waiting and willing to charge you for FAR training. Go ahead, do a little "google research" or just ask one of our many referral partners.

Additional Resources

Measure Costs Right: Make the Right Decisions

How To Calculate And Track Overhead Costs

How do I Calculate Overhead Costs?

Federal Acquisition Regulation Full Download

Federal Timekeeping Policies for Government Contractors (chron.com)

Record-keeping Requirements under the Fair Labor Standards Act

Top 5 Advantages of Using A QuickBooks Cloud Hosting Service Provider

QuickBooks cloud hosting services make sense for a small business today

INDUSTRY ACCEPTED PRACTICE

The practice of accessing your company QuickBooks data file using a 3^rd party service has finally been accepted as an alternative to the costly expense of building and maintaining IT infrastructure. “Hosting” QuickBooks desktop means that a hosting service installs and manages the QuickBooks software and the company data files on their own cloud-based servers. With a cloud/hosted solution, you gain access to your company file from any PC, Mac, iPad, or mobile device 24/7 by simultaneous users.

REMOTE ACCESS

As your business grows, more users will likely need access to the company QuickBooks data. Businesses with multiple locations or a mobile workforce find that centralized access to data allows users to function as though they were all in the same office. Being able to run the QuickBooks software and access company file via the Internet allows users to work in a single company file no matter where they may be working from.

ELIMINATES IT COSTS

By choosing the hosted/cloud option, you don’t incur any upfront hardware or software costs (other than the cost of QuickBooks). Instead, you pay the hosting company a monthly fee per user to take care of things for you. Most providers will manage the data, software updates, upgrades, and equipment, as well as provide first level technical support their clients.

BETTER USER EXPERIENCE

Users experience more efficient and effective collaboration with simultaneous access available to multiple users. Accounting professionals can work on client files seamlessly sharing data with the client even as the client may be working in the system.

SAFE & SECURE

Cloud/hosting service providers follow stringent security measures to ensure full safety for your QuickBooks data file. Most data centers provide 24/7 security and extreme care in disaster planning such as fire detection, backups, diesel generators and biometric security.

And of course...Hour Timesheet works great on your desktop or in the cloud. Come try our simple QuickBooks 1-click data sync today.

Top Providers:

Right Networks,
Swizznet,
Infinitely Virtual

Free Trial

$3/user with NO setup Fees, NO support fees and NO contract.

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