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DCAA Compliance With QuickBooks Software

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

DCAA Compliance Checklist for Time Tracking

Government contract work can be lucrative and fascinating work. Navigating the government contract process can be very tricky. It’s important to stay up to date on Defense Contract Audit Agency (DCAA) compliance regulations. It’s also critical to ensure you meet DCAA timekeeping requirements if you want to work with any federal government organization. Hour Timesheet does our best to explain DCAA compliance and we offer a product that is always up to date with regulations. The DCAA will run a pre-award audit in order to award any government contracts. You should prepare for this audit and create a list of compliance regulations for the DCAA.

What is DCAA compliance?

The DCAA was established in the 1960s to normalize the government’s contract auditing process, and to ensure the American taxpayer was getting good value for its money.

Initially, the DCAA was originally overseeing military and intelligence contracts for the U.S. Department of Defense. Later, it oversaw many other kinds of labor and service contracts that the federal government signs with commercial suppliers.

If and when you win a government contract, the DCAA timesheet compliance rules will apply to everyone in your company. Regardless of the size of your organization, this can be a big task with many training implications. It’s worth your while to make DCAA compliant time tracking as straightforward as possible. Do your research ahead of time, and try to create a DCAA compliance checklist.

Suppose the DCAA were ever to audit you. In that case, they would check three main areas to see if you comply: how accounts are established, the flow of transactions in accounting systems, and the computations derived from them.

Ready to try out Hour Timesheet’s DCAA compliant timesheet software?

1. How Accounts are Established

A DCAA Compliant Chart of Accounts

You will need to separate which financial transactions are direct, indirect, and unallowable. The DCAA will also examine your Chart of Accounts to ensure you’re adhering to the Generally Accepted Accounting Principles (GAAP). Having Accounts Payable, Prepaid Expenses, and Unearned Revenue will indicate that you’re accounting for cost and revenue on an accrual basis.

2. The Flow of Transactions in Accounting System

Trial Balance

Hour Timesheet will allow you to print a Trial Balance that summarizes your accounts’ debits and credit balances. The latter will reveal details such as the opening balance, transactions, transfers, and closing balance. The former will summarize the debits and credit balances on each of your accounts.

General Ledger Detail

The general ledger detail within the Hour Timesheet software will be able to provide you with the beginning balances for each government contract over a limited period.

3. Cost & Computations

The DCAA will audit processes used for allocating revenue and costs to projects, in addition to the way you calculate indirect rates. Many companies use QuickBooks for most of their accounting, and Hour Timesheet makes sure this doesn’t have to change. We can help make your QuickBooks DCAA complaint, ensuring it follows the rules laid out so far, and the following rules about computing revenue and expenses.

Loss & Profit by Job

An essential requirement highlighted in the pre-award survey is your accounting system’s ability to accumulate costs by project. Loss & Profit by Job reports gives assurance that this can be done accurately when they agree with the standard Profit & Loss statements. Hour Timesheet also integrates directly with ADP and QuickBooks. This will help lessen manual data entry across platforms.

Labor Distribution Report

Labor distribution is the process of allocating and measuring labor costs both direct and indirect to the total time recorded on timesheets. Hour Timesheet allows you to directly tie both direct and indirect hours to the accounts within your accounting system. DCAA needs to see that labor costs are equally distributed among customers, both government and commercial. They want to know that no one is favored or has received a cost subsidy.

Contract Backlog Report

This type of summary allows you to see the percentage of work completed. It also shows the remaining cost to complete each job in your backlog. This type of report indicates how much money is left on a contract, as well as potential contract overrun. It also shows if there are corrective actions required as a result.

Direct Vs Indirect Labor Tracking

Contract employees must consistently track both direct and indirect costs. A direct cost is identifiable to one and only one cost objective. It is normally required or necessary for contract performance. Cost objective is a regulatory term that can include a contract, a project, a task, a contract line item.

To be compliant, government contractors must accumulate costs into indirect cost pools. This can be things such as a bid and proposal or an independent research and development project. Hour Timesheet allows a contractor to track time and keep track of all accumulated costs. This is all costs related to hours worked, such as direct costs, any unallowable costs, or indirect costs. Indirect costs are all costs that are not identifiable or incurred for the benefit of one cost objective.

There are many tasks involved in preparing for DCAA auditors to analyze your accounting functions. It can be helpful to create a compliance checklist for government contracting work. Especially if you’re business is receiving government funding, such as through the SBIR and STTR programs. It’s vital that the companies participating remain DCAA compliant in order to receive their funding.

Overall, it’s important to maintain audit trails and detailed reports for all employee timesheets and time accounting. Also, make sure to always use a DCAA compliant time entry.

Hour Timesheet and DCAA Compliance Resources

Achieving DCAA audit compliance takes effort, time, and specialist knowledge. Even if you understand the regulations, you’ll also need to arrange your Chart of Accounts and configure Hour Timesheet accordingly. Having a DCAA timecard audit checklist can help you achieve DCAA compliant timekeeping, without all of the confusion. Even better, choosing a timekeeping system with DCAA-compliant features will help you in the long run.

Contact us today for a free, no commitment, 30-day trial of our software. With our years of experience, we can help you avoid potential DCAA compliance issues before an audit begins.

ADP Timesheet Integration

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?

Contact us today to connect your account to ADP.

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.

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SBIR & STTR Timetracking

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.

DCAA Compliance Explained

DCAA Compliance Explained

The term ‘DCAA compliance’ when referring to your timekeeping procedures is often just thrown around. If you don’t understand what that means or how to verify that you are, Hour Timesheet can help.

Simply put, DCAA stands for Defense Contract Audit Agency. This is the federal government agency responsible for conducting DCAA audits of the Department of Defense (DoD) contracts. As imagined, the DoD is very strict about its rules and regulations surrounding DCAA compliance and timekeeping. The DoD will award government contracts to businesses that use web-based timekeeping if they meet all requirements. If a company follows all of the following DCAA timekeeping requirements, they are likely to get a government contract.

1. The company must document all timekeeping procedures in a policy or procedure handbook provided to all employees.

They must address all critical elements of an adequate timekeeping system. Companies must provide all employees with an updated policy or procedure booklet regarding time entry procedures.

2. Every employee must record all of his/her time daily.

Attempting to track time worked in advance or days after the fact is not acceptable. Hour Timesheet comes equipped with reminders to all users to ensure their time is entered daily. This means that no matter the size of the company, Hour Timesheet is equipped for every employee to track time. This DCAA timekeeping feature is especially useful for any companies participating in SBIR and STTR programs. They may be smaller businesses, but they must ensure they remain DCAA compliant to qualify for their funding.

3. Employees must charge time by the day and by project or job code and indirect cost accounts (overhead, G&A, B&P, etc.).

This is known as cost accounting. This is the formal mechanism of determining and controlling products or services’ costs. The primary objective of cost accounting is to determine the fair and accurate market value of an item. Then to understand the basis for fixing its selling price. From there, you need to determine what factors affect its cost control and, at the same time, its price reduction.

How can cost accounting be used?

Once you’ve determined this, you can identify and eliminate wastes such as materials, expenses, equipment, tools, and other items. Next, ask how to optimize the utilization of resources. Then correctly analyze the direct cost of both the process and operations. Once that is complete, determine the profitability of the product and help manage the maximization of these profits. Don’t forget to assist in the preparation of budgets and implement budgetary control. And finally, aid management in the formulation and implementation of an incentive bonus plan based on productivity and cost objectives.

4. All employees must record 100% of the time worked.

This is true on all projects to the proper job codes, whether working on a government contract or commercial work. The beauty with the Hour Timesheet mobile app is employees can add time from anywhere, whether they’re working from home or the office. This allows many government contractors to get their jobs done more efficiently.

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

One example of an indirect cost is overhead. This usually includes the indirect costs involved in support operations or direct production. These costs are directly related to a project or projects. However, they cannot be allocated to one specific contract. This is because they overlap across many different projects.

What are some contracting overhead costs that a company should track?

Overhead costs can vary greatly. They may include the depreciation of equipment used on multiple projects. It could also include supplies, and quality assurance shared across multiple contracts. Overhead can also include costs like indirect labor costs and training. Government contractors cannot track any unallowable costs as indirect costs. Government agencies are prohibited by law to reimburse for any unallowable costs.

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

The good news is, with Hour Timesheet software, tracking any kind of leave time such as this is very easy and keeps you DCAA compliant.

7. The system administrator or accounting department should initiate all job codes that appear in the timekeeping system.

Project codes must be provided to employees authorized to work on a given project. Many companies use codes as opposed to the contract number to simplify the charging process for employees. To follow DCAA compliance, every charge must directly relate to a specific contract and a task within that contract.

8. All timesheet entries must be the employee’s own.

An employee must record their time based on work completed. They should track all time entries, irrespective of whether the time is billable or non-billable. This must happen daily. Additionally, under no circumstances is a manager or supervisor allowed to record their employees’ time unless there is an extreme situation. Employees should follow these timekeeping requirements at all times, in any circumstance. This will make payroll procedures easier for the manager, and much more accurate.

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

Whenever the employee completes work or tasks, they must charge it accurately and directly to that project. They require this to avoid falsely overcharging one project and undercharging another. Hour Timesheet can be setup to restrict which codes an employee can charge their time; therefore, an employee cannot charge to a project they have not been assigned.

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

An indirect task is work that is not explicitly tied to a project. To remain DCAA, compliant employees must never charge the time it takes to complete these tasks to any project. This would violate DCAA compliance and regulations, and would not fall under DCAA compliant time keeping.

11. The employee should make all correction timesheet entries.

The employee must record all corrected timesheet data in a detailed audit trail. An audit trail is critical to remaining DCAA compliant. If and when the DCAA decides to inspect your business (and they always will at some point), they will look over every time card entry.

The employee’s supervisor must approve every correction time entry in a detailed report, in the event of a DCAA audit.

In the 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. The DCAA will analyze every entry from your employees with a fine-tooth comb. Thanks to your detailed audit trail, the DCAA will see who edited a time card after it was submitted. They will also be able to see when the changes were made, and why. Hour Timesheet creates an uneditable audit log that will provide a locked record. This will include all of all the additions, deletions, approvals, and modifications made to your employees’ timesheets.

12. The employee’s supervisor must approve all employee timesheet data.

Each timesheet requires two signatures, in order to comply with DCAA compliance regulations. Hour Timesheet allows for online signatures at both the employee and manager levels. This allows managers to regulate any uncompensated overtime or leave management requests.

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

The company’s new employee handbook or new-hire orientation program typically includes this training. Either way the employee is familiar with the company’s timekeeping training before they begin working full-time hours.

14. In order to be DCAA compliant, the company must maintain timesheets for at least two years.

That means the company must be keep their files in a secure and easily accessible location. Should the DCAA or any government agency require you to produce copies of them, they should be available. Hour Timesheet keeps the timesheets indefinitely for all employees, current, and past.

15. The company must conduct audit or floor checks randomly throughout the year to monitor employee timekeeping compliance.

Unfortunately, DCAA timekeeping compliance is the reason government contractors fail an audit. Hour Timesheet can help. We have the employee and contractor time tracking experience to ensure total compliance. Sign up for Hour Timesheet today and work with an experienced implementation rep to review your account for total compliance. All for FREE.

Hour Timesheet Time and Attendance Software

There wasn't an ideal employee time card app on the market until 2016 when Hour Timesheet arrived. Our product is a straightforward time tracking software specifically designed to allow your workforce to get the job done while you, their employer, continue to operate the business successfully.

How to Set-Up your Hour Timesheet Account

  1. It begins by clicking on the sign-up link. There you’ll be prompted to enter your URL, select your settings, and the software will do the rest.
  2. Connect to payroll. Log in to your payroll (ADP, Paychex, Deltek, Insperity, QuickBooks)
  3. Invite Users. Send real-time invites to your employees and contractors.

Our smart wizard will do all of the behind-the-scenes work to ensure you’re set-up, and all your information is correct.

Your Hour Timesheet Options

Hour Timesheet time card app offers many
different features our small business clients can benefit from to suit their
specific needs, including:

  • payroll integration
  • job costing
  • compliance enforcement
  • employee scheduling
  • attendance management
  • email alerts

Hour Timesheet Time and Attendance Software

What was once a traditionally a constant juggle of managing overtime, employee attendance, and, most importantly, the project cost is now straightforward thanks to Hour Timesheet time card app. Our system has a 1-click interface with Paychex, ADP, Insperity, QuickBooks, Deltek, and many other software programs, bringing them all seamlessly together.

Hour Timesheet is DCAA Compliant, which means it includes a detailed audit trail, manager approvals, daily timesheet reminders, and many more options. We even offer an 8-day timesheet option.

Hour Timesheet Leave Management

If leave management is appropriately done, employee time-off requests are handled fairly and accurately so that they get the benefits they're entitled to and that businesses can continue to operate smoothly.

Hour Timesheet’s employee time card app does just that. It provides all staff complete access to their leave history (accruals, carry-overs, etc.) and requests at a glance. The era of having to go through the human resources department to find out how much holiday time they’ve accrued is over. Our time card app is easy to use.  It is a fully automated service designed to track and manage employees' paid time-off, vacation, sick days, or other types of personal leave.

Hour Timesheet Mobile Access

Hour Timesheet’s mobile time card app gives you information on your employees in real-time.  It can improve accuracy, reduce error, increase your business’s efficiency and bottom line. Our mobile time card app offers unprecedented efficiency.

Hour Timesheet Time Clock Integration

Hour Timesheet’s time card app can be integrated if tracking, collecting, and managing attendance and time is simply too challenging for your workforce. Hour Timesheet will work in tandem with you to find a solution. We can provide Biometric, HID Prox, and Bar Code Readers to ensure the time card app is easy to use. That is a welcome addition, not an intimidating factor to your workforce.

Hour Time Sheet Plans & Pricing

Hour Timesheet offers four different plans and pricing. All of our plans provide free training, support, and set-up. All of our plans are month-to-month, otherwise known as pay-as-you-go.

Month-to-Month Per User Pricing

$8 Per User/Monthly. No additional fees.

Alerts

DCAA Compliance

Job Tracking

Leave Management/ Leave Request

Manager Approvals

Mobile App

Payroll Integration

Reports

Web Clock

Hour Timesheet

Hour Timesheet offers a simple and straightforward employee time card app for small businesses. As a smaller-sized company ourselves, we understand the need for accurate time tracking and employee management, while allowing your business and workforce to grow. For more information or questions, please do not hesitate to contact us at (832)779-5658.

Measuring Labor Cost and How it Relates to Increased Productivity Overtime

People provide their labor to businesses in exchange for wages, and they trade their unpaid leisure time for paid work time to make a living and to be able to purchase goods and services. Businesses, in turn, use this labor to produce goods and services demanded by consumers. Employers often use measuring labor cost in order to relate it back to the rate of production.

Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

Second Factor of Production: Labor – Labor is the effort that people contribute to the production of goods and services. Your people are the most important assets in your business. They are also the assets that change most often and require the greatest amount of nurturing and development in order to deliver expected results. Effective workforce optimization depends on the right blend of training, performance standards, technology, and motivation.

Labor Types

Types of Labor to Measure

Unskilled and Semi-skilled Labor Unskilled laborers may lack the basic skills necessary for satisfactory workplace performance. This means someone in your organization must train them, supervise them closely or provide extensive on-the-job training to ensure work is performed as specified.

Salary & Hourly (Wage Employees) – Salaried and hourly wage labor are those employees whose compensation is in exchange for work done. Do you have an accurate picture of which projects or clients are getting the lion’s share of your employees’ hours? Not likely, unless you’re tracking in real-time to see where you’re getting bogged down, where you’re getting the most bang for your buck, and where you might need to allocate more resources.

Contract Labor  – Independent contractors, on-demand or self-employed workers, and freelancers are individuals who do work for you but are not your official employees. For businesses that rely on contractors, it’s important to know when they are working. Employers must track how many labor hours their contractors have put in, especially when these are government contracts. The DCAA has specific rules in place in order to pass an audit on any government contracting jobs. But even for non-government contracts, there are several reasons you might want to track how long, when, or even where your virtual team is working:

  • If you pay them by the hour, tracking contractor hours ensures you aren’t overpaying.
  • If you have contractors who bill by the hour, they need to know their billable labor hours to invoice accurately.
  • Knowing how contractors worked on a project helps you better estimate job costs so you can bid more accurately for similar jobs in the future.
  • In the case of government contractors, time tracking is required to meet DCAA compliance, among other regulations. Ensuring proper DCAA regulation accounting and time tracking compliance can prevent future issues in the case of an audit.

Defining Productivity In Relation To Labor Cost Percentage

Productivity is the number of goods and services that the labor force creates. Buisnesses measure productivity by how much gets produced by a certain amount of labor and a fixed amount of capital. The more they create, the higher their productivity. Companies seek ways to boost worker productivity because it increases their profit. High productivity creates a competitive advantage.

Productivity

Eliminating Calculation Errors Increases Productivity – When you process accurate time cards, you are better able to forecast your spends on labor and plan your job cost more effectively. Keeping Excel spreadsheets or pen-and-paper timesheets is definitely no longer the best way to manage your staff. With an intuitive cloud-based time tracking tool (like Hour Timesheet) you are able to manage employee and contractor job cost and absenteeism on the go when needed and create and process error-free payroll every time. You can then effectively perform an analysis of labor cost and a productivity analysis. You will see that that production cost goes down as you start to see productivity growth overall.

Understanding Data & Analytics Increases Productivity – Business analysis is an important part of running any company. Taking a look at your business resources and keeping good records of your employee time not only allows you to manage project and job costs, but it also allows you to forecast your unit labor costs better for future work.

Being able to pull up your labor data and analyze it to forecast real-time labor costs gives you a great starting point for planning and optimizing your budget.

Improving punctuality makes a difference, and having a way to monitor employee attendance habits keeps your team honest. It also provides a great way to perform employee reviews and audits. Having clear attendance data at your disposal allows you to plan better as well.


Bottom Line

Productivity doesn’t just increase your efficiency. If you do it right, it can also increase your income. True productivity isn’t about getting more things done. True production is about getting the right things done. More income for you means more charity for others, new jobs for others, and new products and services for others.

Let Hour Timesheet help your origination track your labor force and your productivity today

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Features To Look For In DCAA Compliant Time Tracking Software

Government contractors that are hoping to get awarded projects from the government have to comply with the regulations set in place by the DCAA. The Defense Contract Audit Agency outlines exactly how businesses should be tracking their time and documenting accounting when working on a government project. The DCAA will audit companies, and ensure they are following these guidelines. The DCAA compliant timekeeping procedures can be tricky to navigate, which is why Hour Timesheet has compiled a DCAA compliance checklist. This makes it easy to prepare for an audit, and make sure your company is in line with DCAA regulations.

DCAA Compliance and Time Tracking

Let’s say you’re looking for a long-term solution to DCAA compliance. Time tracking is a big part of many businesses, and adding in DCAA compliance makes the process lengthy and tiresome. Luckily, companies like Hour Timesheet exist to make it easy for businesses. You don’t have to worry if your time tracking meets DCAA requirements, because we’ve already done it for you. Even if you’re already using QuickBooks, and you’re just looking for some extra help – Hour Timesheet can integrate directly with QuickBooks.

What type of firm needs time tracking software? Most employers who hire hourly employees need to know the number of hours each employee has worked so that payroll can be calculated properly. Government contractors have a different set of rules and are required to track time, both hours for exempt and non-exempt employees. They also have certain rules in place involving tracking indirect costs, such as labor costs. Even organizations that only hire salaried employees have a need to track projects or tasks for successful project management. That’s why finding the right time and attendance software is critical to your bottom line.

What to Look for When Evaluating a DCAA Compliant Timekeeping Software? When researching tools, it’s important to make sure the software that you are evaluating meets certain criteria. Whether you’re an organization with salaried employees, or government contractors hoping to win a government contract, it’s important to partner with companies you can trust. Here are some things to look for when searching for a timekeeping system: 

Reminders to Track Time Daily

It’s common for employees and contractors to forget to track time, which can cause a lot of issues for DCAA audit trails. Hour Timesheet offers daily reminders to track time and ensure it’s getting done accurately. 

Online Approvals

Whether it’s approvals for time log edits or approvals for charge codes, it’s important to have a timekeeping system that allows approvals online. 

Mobile Access (iOS and Google Play)

Managers can access Hour Timesheet from any computer, or through the mobile app, and submit approvals online. 

Detailed Audit Log and Audit Trail

Whenever the DCAA performs an audit on your company, they’re going to want to see records of everything. The best practice when hoping to win future contracts is to keep detailed records and trails of all time, labor, and cost history. This will make it easier for you and the DCAA when the time comes for an audit. 

Real-Time Location Tracking

Government contractors often perform work offsite and on the location of clients or at work sites. This can make time tracking difficult when managers are unsure where workers actually are. Hour Timesheet offers real-time, accurate location tracking so that your records can be as accurate as possible. 

Integration with Accounting Software (QuickBooks Online & QuickBooks Desktop)

This is arguably one of the most important features in time tracking software. The DCAA not only wants to audit the company’s timekeeping requirements, but they also want to do an accounting system audit and ensure those records are accurate. By connecting your timekeeping software to your accounting system, such as QuickBooks, you’re making this process seamless. The DCAA will look at things like labor distribution, cost objectives, indirect costs and direct costs, and uncompensated overtime. Everything needs to be tracked to ensure proper DCAA compliance with QuickBooks

Knowledge of Government Contracting

At Hour Timesheet, we believe the most important thing to look for in a timekeeping system is a demonstrated knowledge about the DCAA system. Without this knowledge, the software may not be able to provide what it promises. It’s important to work with a company that has an in-depth understanding of how the federal government awards contracts, audits companies and enforces DCAA regulations. 

Work Smarter, Not Harder

Some other features that can be very beneficial in a timekeeping system include an online web clock, correction timesheet workflows, and online job tracking. These make it easier for everyone involved to do their job. 


Are you wasting time and money on the following?

  1. Correcting math errors on hours worked and other time entry activities
  2. Tracking down late or missing weekly timesheets
  3. Manually entering employee time worked into your accounting and/or payroll file

If you answered yes to any of the questions above, it’s time to let today’s technology work for you. Intuit and QuickBooks have a marketplace where 3rd party vendors who offer time tracking are listed. Only companies that pass strict guidelines and follow Intuit’s partner policies are listed on these sites.

View QuickBooks Online Marketplace Apps here

View QuickBooks Desktop Marketplace Apps here

Hour Timesheet was created for you; with your origination in mind. We have created a simplified solution that captures your complex situations and makes DCAA compliance easy. Give us a try FREE for 30 days. No credit card is required. Our experts with over 20 years of industry experience are waiting to hear from you now. Hour Timesheet includes a QuickBooks timesheet import sync that makes your payroll process a snap!

Hour Timesheet can be a perfect tool that will integrate & sync with your QuickBooks Desktop Hosting keeping an eye on your reminders, daily tasks, etc. Learn more about add-ons like Office 365 E3 suite for improving your team collaboration.

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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:

  1. Staying connected
  2. Encouraging timely and accurate input
  3. Ability to monitor employee productivity
  4. Improving manager productivity
  5. Improving employee accountability
  6. Access to advanced business reporting and analysis
Additional Links

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