QuickBooks Government Contracting: A Simplified Guide

Government contracts demand precision when it comes to managing accounting and timekeeping. Employees often use QuickBooks government contracting to help with accounting. However, the program needs help to meet strict DCAA compliance requirements. That’s where Hour Timesheet comes in. We know the challenges government contractors face and have developed a solution to streamline your QuickBooks workflow.

Hour Timesheet helps you achieve DCAA compliance, letting you focus on securing and delivering government contracts.

The Basics of QuickBooks for Government Contractors

QuickBooks is a popular accounting choice for good reason. It offers many benefits for businesses of all sizes. Let’s take a closer look at how QuickBooks can be used for government contract work, including its strengths and areas where it might need extra support.

Benefits of QuickBooks

QuickBooks is known for its intuitive design, making it relatively easy to learn and get started with. The software has basic tools to track income and expenses, which is a crucial part of managing government contract billing. QuickBooks can connect with payroll and other systems, making it easier to manage your financial information.

Limitations of QuickBooks

Despite its benefits, QuickBooks has limitations for government contractors, namely its lack of specialized timekeeping and reporting features necessary for full DCAA compliance. Moreover, government contracts often demand complex job-based cost tracking, which can be difficult to configure and manage accurately within QuickBooks.

QuickBooks + Hour Timesheet Integration

While QuickBooks is a helpful tool, Hour Timesheet adds the specialized features government contractors need for success. Together, they create a smoother and more accurate process for managing your contracts.

Hour Timesheet strengthens QuickBooks with DCAA-compliant timekeeping, advanced job costing, and payroll integration. This duo helps government contractors focus on delivering results, knowing their financial tracking and compliance needs are met.

How Hour Timesheet Simplifies QuickBooks Government Contracting

QuickBooks has a solid foundation, but government contractors need Hour Timesheet to streamline contract management and achieve DCAA compliance. Let’s see how Hour Timesheet enhances QuickBooks, boosting accuracy and efficiency in critical areas.

DCAA Compliant Timekeeping with QuickBooks

Hour Timesheet strengthens QuickBooks by providing features for DCAA timekeeping standards. Employees can track their time against specific government contracts and job codes.

Additionally, the program streamlines DCAA compliance with customizable approval workflows, clear audit trails, and easy generation of compliance-ready reports. This integration makes timekeeping and DCAA reporting easier for government contractors.

Advanced Job Costing for Government Contracts

Hour Timesheet makes government contract job costing manageable. The platform lets you track time and expenses against each project, job, and task. This detailed information is necessary for budgeting, invoicing, and understanding the profitability of your government contracts.

Seamless QuickBooks and Payroll Integration

Hour Timesheet has a smooth flow of financial data between QuickBooks and your preferred payroll systems. Approved time entries and relevant job cost information transfer automatically, eliminating manual data entry and minimizing errors. The program saves government contractors time and keeps the accuracy of their financial records, from time tracking to payroll and billing.

Key Features of Hour Timesheet

Government Contract-Focused Time Tracking

Managing time accurately against government contracts is important for billing and DCAA compliance. Hour Timesheet allows employees to log hours against specific contracts, work breakdown structures (WBS), and individual tasks. The software enforces DCAA-approved descriptions for activities, providing accurate documentation.

Additionally, you can define customizable approval workflows that match your organization and contract needs. This provides oversight of time entries before payroll processing.

Finally, Hour Timesheet maintains detailed audit trails for all time entries, demonstrating accountability and facilitating DCAA audits.

GPS Location Tracking for Government Projects

For government projects requiring on-site verification of work, Hour Timesheet’s optional GPS location tracking adds another layer of accountability. Employees can use the mobile app to clock in and out at project locations. This data can then be used to validate work performed and strengthen your DCAA compliance posture.

Leave Management for Government Contracts

Hour Timesheet streamlines leave management in the context of government contracts. The program automatically keeps track of how much leave employees earn and use. This makes it easy to create accurate reports and make sure you’re following the rules of each government contract.

Customizable Reports for Government Contracting Insights

Hour Timesheet gives you reports designed especially for government contractors. Create the reports needed for DCAA audits, see how profitable each project is, and figure out the best way to use your team across different contracts.

DCAA Compliance Expertise Built-In

Hour Timesheet helps you stay compliant with DCAA regulations. It has built-in features that guide you towards correct timekeeping practices. Plus, it connects seamlessly with QuickBooks, ensuring your financial records are accurate and aligned. Our team understands the ins and outs of DCAA requirements, so you can have confidence that your processes are correct.

Additional Benefits of Hour Timesheet for Government Contractors

Beyond core features, Hour Timesheet offers a user-friendly interface that minimizes training time. Your team can start working quickly, saving you time and money on training. It simplifies complicated timekeeping tasks for a smoother workflow.

Hour Timesheet’s mobile app also lets on-site employees track time and submit leave requests right from the field. Most importantly, the program helps you avoid those costly errors that can derail government contract billing and compliance.

Why Choose Hour Timesheet for QuickBooks Government Contracting

Hour Timesheet is the ideal complement to QuickBooks for government contract management. It’s built with a deep understanding of DCAA compliance, helping you with audits. Furthermore, our team caters to the needs of government contractors. Hour Timesheet also integrates with other leading accounting solutions to accommodate your organization’s setup.

Try Hour Timesheet Today

Hour Timesheet simplifies QuickBooks for government contracting. The program saves contractors time, reduces errors, and ensures compliance. Experience the benefits firsthand with a free trial and streamline your QuickBooks government contracting processes.

Making QuickBooks DCAA Compliance Easy for Businesses

DCAA compliance QuickBooks can transform the challenges of government contracting into opportunities for success. We’ll delve into the essential strategies to streamline accounting processes, maintain accurate financial records, and ensure compliance with DCAA regulations. By the end, you will be equipped to navigate DCAA audits effortlessly.

Customizing QuickBooks for DCAA Compliance

Tailoring QuickBooks to meet the stringent requirements of the Defense Contract Audit Agency (DCAA) may initially seem challenging. However, with the right adjustments, QuickBooks can become your most valuable asset in government contracting.

QuickBooks supports the proper segregation of direct and indirect costs, which is necessary for DCAA compliance. This means you can identify and accumulate direct costs by contract. Additionally, QuickBooks’ customizable features make operating under general ledger control easy.

To integrate these powerful capabilities, it is essential to use a DCAA compliant timekeeping system like Hour Timesheet alongside QuickBooks. This ensures that your labor distribution complies with federal mandates and guarantees accurate accounting for every dollar billed to the government.

With Hour Timesheet, you can effortlessly track and allocate labor costs, ensuring complete adherence to DCAA regulations.

Segregating Costs with Precision

When managing government contracts, it’s important to separate direct and indirect expenses accurately. QuickBooks offers detailed categorization options for precise accounting. By creating personalized categories within your financial structure, you can easily identify charges related to contract deliverables versus overhead expenses. This satisfies auditors and provides a clear financial picture for decision-making.

Enhancing Labor Distribution Tracking

Efficient labor distribution tracking is essential for meeting contract obligations and compliance. Integrating Hour Timesheet with QuickBooks simplifies the process of recording transactions accurately and on time.

By adopting this approach, you protect your budget and prepare effectively for audits. Expenses are associated directly with contract goals or tasks, ensuring accurate reporting.

Hour Timesheet’s Role in Achieving DCAA Compliance QuickBooks

Integrating Hour Timesheet with QuickBooks simplifies the process of achieving DCAA compliance. This combination makes tracking work hours easier and effectively manages financial targets, making it the preferred choice for government projects.

Streamlining Time Tracking for Government Contracts

The Defense Contract Audit Agency (DCAA) sets rigorous standards for timekeeping, and Hour Timesheet excels in this area. With its extensive experience in labor distribution management, Hour Timesheet supports recording transactions on the correct date and helps identify costs by contract line item.

This tool reduces manual entry errors and ensures accurate tracking of every minute worked across all projects. It integrates with QuickBooks, enabling the distinction between direct and indirect costs and establishing a reliable foundation for effortless DCAA audits.

In essence, by using Hour Timesheet alongside your existing QuickBooks setup, you equip your business to effortlessly meet DCAA requirements. The result is a more efficient operation that takes on government contracts without concerns about compliance or failed audits.

Achieve a Successful DCAA Audit with QuickBooks and Hour Timesheet

Excluding Unallowable Costs Effectively

One of the key strategies for passing a DCAA audit involves identifying and excluding expenses that aren’t allowed under federal guidelines. QuickBooks, when used correctly, helps pinpoint these costs by contract line item. This ensures that only allowable expenses are charged to government contracts.

This process helps support progress payment requests and avoid audit red flags. Integrating QuickBooks with Hour Timesheet simplifies time tracking for specific projects or tasks and aligns financial reporting with DCAA standards.

Maintaining Accurate Financial Reporting

The integrity of your financial data is non-negotiable in the eyes of the Defense Contract Audit Agency (DCAA). By ensuring precise entry and maintenance of accounting records in QuickBooks, you establish a solid foundation for compliant government contract accounting systems.

To enhance adherence to regulations, Hour Timesheet provides nuanced labor distribution capabilities, empowering you to effectively manage cost targets. It also helps maintain ledger control by accurately recording transactions on the appropriate dates, which becomes important as your business expands into more complex contracting opportunities.

Streamline QuickBooks DCAA Compliance with Hour Timesheet

After reading through this guide, DCAA compliance QuickBooks should be a smooth and effortless process for you. By customizing your setup, you’ll be able to track every penny accurately, ensuring precise records of direct and indirect costs while maintaining a tight ledger.

Don’t forget that Hour Timesheet acts as your turbocharge toward achieving full compliance by simplifying time tracking for government contracts.

Take action now and leverage the power of QuickBooks and Hour Timesheet to achieve DCAA compliance effortlessly. Start streamlining your government contract processes today.

Guide to Making QuickBooks DCAA Compliant for Contractors

In government contracting, businesses and contractors face challenges to ensure their accounting software meets the necessary standards. Among those hurdles is making QuickBooks DCAA compliant, which poses a significant obstacle for many small businesses and government contractors.

Fortunately, we’re here to guide you through the essentials of DCAA compliance and explain its importance in securing government contracts. We’ll also find out how QuickBooks synergizes with DCAA requirements and introduce Hour Timesheet—a tool that seamlessly integrates with QuickBooks to streamline timekeeping practices and enhance compliance.

What is DCAA Compliance?

DCAA compliance goes beyond a mere formality. It demands that your accounting system meets rigorous standards when it comes to handling government contracts. The primary objective is to meticulously track every dollar spent and earned throughout the contract.

To achieve DCAA compliance, it is essential to establish policies for key areas such as timekeeping, job costing, and the segregation of direct and indirect costs. The Defense Contract Audit Agency (DCAA) serves as the overseeing authority, ensuring that contract awardees responsibly utilize taxpayer dollars.

In essence, achieving DCAA compliance demonstrates your trustworthiness in handling federal funds—a requirement in government contracting.

The Importance of Meeting DCAA Requirements

Meeting DCAA requirements holds immense importance. Non-compliance results in penalties or missed opportunities for lucrative contracts. Compliance establishes your business as credible and reliable.

Achieving compliance demonstrates your effective financial management system’s capability to track project costs meticulously. This level of accuracy satisfies auditors and enhances your understanding of financial flow, enabling more prudent expenditure.

By making QuickBooks DCAA compliant, you position your business for success in government contracting and showcase your commitment to responsible financial practices.

Foundational Elements of a Compliant Accounting System

To make your accounting system DCAA compliant, there are key elements you need to consider. It’s essential to have accurate timekeeping mechanisms, such as Hour Timesheet, to track labor hours effectively.

Additionally, you should separate direct costs from indirect costs and keep detailed records. QuickBooks software can greatly assist in streamlining your operations and ensuring accuracy.

Integrating Hour Timesheet with QuickBooks for Enhanced DCAA Compliance

Streamlining Timekeeping Practices

Streamlining simplifies daily time entry and ensures precise tracking, meeting the rigorous standards set by the Defense Contract Audit Agency (DCAA). By adopting compliant timekeeping practices, you can confidently handle unexpected DCAA audits.

Experience a range of key benefits with Hour Timesheet. Not only does it offer ease of use, but it also ensures compliance with SF1408 Pre-Award Survey standards. With its features designed to enhance QuickBooks’ efficiency for DCAA compliance, it’s like having a reliable 24/7 expert by your side.

Enhancing Reporting Capabilities

Detailed reports provide comprehensive insights that fully prepare you for DCAA audits. Having precise records readily available is essential for aligning your accounting practices with the demands of government contract accounting systems. These reports empower small businesses to stay competitive in the world of government contracting.

Setting up QuickBooks Online for DCAA Compliance

Achieving DCAA compliance in QuickBooks Online requires careful attention to detail. The setup process involves customizing job costing features and accurately tracking both direct and indirect costs. This ensures that all financial transactions are documented per DCAA guidelines.

To begin, it is important to configure your accounting software with a focus on labor distribution. This allows for the separation of expenses into categories of direct costs (such as materials) and indirect costs (such as overhead). Each expense should be accurately classified to ensure proper categorization.

Being prepared for a DCAA audit entails having detailed documentation readily available. This includes maintaining daily time entries by employees, which can be easily managed using tools like Hour Timesheet.

Additionally, cost reports that break down project expenditures against budgets are essential. By implementing these practices, you can confidently respond to audit requests.

Streamline Your QuickBooks for DCAA Compliance Today

So, making QuickBooks DCAA compliant isn’t as simple as it seems. Here is some key information to remember.

Integrating Hour Timesheet into your workflow will streamline timekeeping and ensure compliance, keeping audits at bay. Additionally, setting up QuickBooks Online correctly is important for precise tracking of direct and indirect costs.

Remember to start with simple steps, maintain organization, and keep accurate records. Take the next step towards DCAA compliance in QuickBooks and unlock the potential for success in government contracting. Contact us today to get started.

Guide to DCAA Approved Compliance QuickBooks for Businesses

In government contracting, businesses must achieve DCAA approved compliance QuickBooks to meet regulations and maintain financial integrity. We’ll guide you through configuring QuickBooks to align with DCAA standards. By implementing customizable time-tracking features and leveraging job costing capabilities, you can exceed DCAA requirements.

DCAA Compliance and Its Importance for QuickBooks Users

Familiarizing yourself with the intricacies of DCAA requirements can save your small business from potential headaches. Navigating QuickBooks to meet these guidelines is essential for anyone involved in government contracting.

What is DCAA Compliance?

The Defense Contract Audit Agency (DCAA) sets strict rules for responsible spending of taxpayer dollars. To secure Department of Defense (DoD) contracts, businesses must track every penny meticulously. Simply skimming through your books won’t suffice; you need a deep understanding of the DCAA’s complex criteria to stay compliant.

The Role of QuickBooks in Meeting DCAA Requirements

QuickBooks Online provides a powerful platform that, when properly adjusted, can assist you in meeting the strict requirements of the Defense Contract Audit Agency (DCAA). It is essential to adhere to these regulations to avoid audit problems and ensure the success of your government contracting business.

How to Make QuickBooks DCAA Compliant

QuickBooks Online offers a powerful platform that, with the right adjustments, can help you meet the stringent requirements of the Defense Contract Audit Agency (DCAA). It’s important to follow these regulations to avoid audit problems and ensure the success of your government contracting business.

Customizable Time-Tracking Feature

To meet DCAA standards, accurate labor recording is non-negotiable. Luckily, QuickBooks Online offers customizable time-tracking features that allow you to closely monitor the time workers spend on specific assignments or projects. This feature ensures meticulous record-keeping and accurate tracking of every minute worked on government contracts.

Precise documentation is an important aspect of successful adherence to DCAA guidelines, and these time-tracking capabilities support that need.

Job Costing Capabilities in QuickBooks Online

The job costing function in QuickBooks Online tracks expenses and revenue associated with each contract or project. This feature helps you separate direct costs (charged directly to a project) from indirect costs (like overhead), as required by the DCAA.

By improving audit efficiency, this feature simplifies compliance and provides a better understanding of the financial health of your projects. It enables you to make informed decisions and implement smarter growth strategies based on accurate and comprehensive financial insights.

Hour Timesheet Integration with QuickBooks for Enhanced Compliance

Integrating Hour Timesheet with QuickBooks simplifies the process of compliance, especially for businesses handling government contracts. Adhering to DCAA standards is a must, and Hour Timesheet provides essential features for labor distribution and tracking indirect costs, ensuring compliance every step of the way.

Simplifying Labor Distribution

Labor distribution can be a complex puzzle, but Hour Timesheet makes it manageable. It categorizes direct and indirect costs effortlessly, keeping your finances organized and accurate. This streamlined process is necessary during DCAA audits, as auditors closely examine how well you track expenses for each project or contract objective. Any misstep can result in penalties or even the loss of future contracts.

With the integration of Hour Timesheet, you can rest assured that all time entries are meticulously recorded. This provides peace of mind that your daily timekeeping and invoice generation align perfectly with DCAA requirements and other government regulations.

Key Features of a Compliant Accounting System According to the DCAA

The DCAA has strict rules for accounting systems used by government contractors. These rules require accurate and transparent handling of financial matters. One important rule is the separation of direct and indirect costs. This means businesses must clearly distinguish between expenses directly tied to specific contracts and those supporting overall business operations.

An approved accounting system must also be good at identifying and keeping track of direct costs for each contract. This accuracy is important for creating invoices that reflect the true expenses of each project, ensuring fair billing practices with the government.

It’s also important to have strong control over the general ledger, which is the foundation for monitoring all financial activities. This builds confidence in your company’s financial operations.

To navigate the complex DCAA regulations, solutions like QuickBooks have evolved with specialized features to promote compliance. QuickBooks offers customizable timekeeping, which is essential for keeping accurate records, and job costing capabilities to help manage both direct and indirect costs effectively.

By combining software like Hour Timesheet with tools like QuickBooks, businesses can streamline the task of tracking project expenses by allocating labor accurately. This integration not only makes it easier to meet complex regulations but also improves the ability to provide detailed documentation during audits.

Streamline Your Government Contracting with DCAA Approved Compliance QuickBooks

Simplify your government contracting with DCAA approved compliance QuickBooks. It’s the key to feeling confident in your financial management. You’ve learned how important it is to accurately track time and costs, ensuring every dollar is accounted for.

Ready to take the next step? Explore Hour Timesheet integration. This handy tool makes it easy to distribute labor costs, simplifying your accounting process.

Don’t forget that separating costs is not just a good practice, it’s crucial. QuickBooks is here to help you keep track of direct and indirect expenses, ensuring transparency.

Start today. With the right setup and tools like QuickBooks Online and Hour Timesheet, being prepared for audits becomes second nature. Use these insights to create impeccable documentation that can withstand any scrutiny.

Alternatives to QuickBooks Time

For the accountant or bookkeeper who needs reliable DCAA Compliant Timekeeping Software, the decision can be overwhelming. With so many options on the market, it can be difficult to decide which software is the right fit for your business. QuickBooks Time is one of the more popular solutions, but it may not be the best option for you. This article will explore the alternatives to QuickBooks Time and explain why Hour Timesheet is the better choice.

Hour Timesheet is a full DCAA compliant time and attendance software that is designed to provide a comprehensive solution to time tracking and FAR compliance. This article will provide an in-depth look at the features of Hour Timesheet and compare them to the features of QuickBooks Time. We will also discuss the advantages of using Hour Timesheet over QuickBooks Time, and why it is the best solution for your business. Read on to learn more about the alternatives to QuickBooks Time and why Hour Timesheet should be your timekeeping software of choice.

Why Consider Alternatives to QuickBooks Time?

QuickBooks Time is a great tool for tracking employee time and scheduling, but it does not meet all of the requirements to be DCAA compliant. While QuickBooks Time offers features such as time tracking, payroll integration, and mobile app access, it lacks certain features that are necessary for DCAA compliance.

QuickBooks Time does not provide detailed audit trails.
QuickBooks Time does not offer the ability to restrict charge codes to employees.
QuickBooks Time does not include strong security protocols to protect sensitive employee data from unauthorized access or tampering.
Finally, customer support is another area where QuickBooks Time could use improvement, some common issues reported include:
- Resolution delays
- Inconsistency in support quality
- Long wait times

Features and Benefits of Hour Timesheet

Hour Timesheet offers a variety of features and benefits that make it the superior choice for accountants and bookkeepers.

DCAA Compliance

DCAA compliance is crucial for businesses and contractors planning to bid for government contracts or those working on existing government projects. Comprehensive DCAA compliance makes it clear that the business has all the necessary documented procedures and policies in place, ensuring those procedures are fully adhered to and proves the business meets the nuanced requirements of the DCAA. Hour Timesheet is a full DCAA compliant time and attendance software that meets all the requirements of FAR, CAS, and GAAP. The software also includes features such as electronic timesheets, timesheet approval systems, balance tracking, billable project calculations, integration with accounting software programs, reporting and analytics capabilities, etc., making it an ideal solution for businesses looking to achieve DCAA compliance.

Cost Efficiency

Cost efficiency is an essential part of any business, and accountants and bookkeepers play a crucial role in achieving this goal. Cost accounting helps businesses identify areas where expenses can be reduced or better managed, ultimately improving the efficiency of operations. Cost accounting also provides valuable and relevant cost information to different levels of management to aid their decision-making process. Hour Timesheet makes it easy to track time spent on tasks, projects, and clients, helping businesses identify costly areas and devise strategies to reduce them. The software also offers an approval system for timesheets which ensures accuracy and compliance with labor laws. All these features help businesses make informed decisions that lead to increased profitability.

Ease of Use

Ease of use in timesheet software is a critical factor for accountants and bookkeepers, as it directly impacts their productivity and the overall efficiency of their work. Hour Timesheet offers a user-friendly interface that simplifies the process of tracking and recording employee working hours. This, in turn, streamlines payroll processes, enhances productivity, and provides valuable insights into employee performance and project profitability.

The software also eliminates manual data entry errors through its integration with other business tools like project management software, payroll systems, or employee scheduling platforms. Finally, Hour Timesheet provides comprehensive training and ongoing support to ensure employees are well-versed in using the time reporting system. All these features make Hour Timesheet an ideal solution for businesses looking for an easy-to-use alternative to QuickBooks Time.

Superior Customer Support

Superior customer support is essential for accountants and bookkeepers, as it not only helps them in retaining clients but also in building long-lasting professional relationships, improving their reputation, and increasing their revenue. Customer support in the accounting and bookkeeping industry encompasses several aspects, such as effective communication, proactive service offerings, leveraging technology, and delivering timely services.

Hour Timesheet offers superior customer support that sets it apart from its competitors. The software provides a dedicated team of professionals with expertise in the accounting and bookkeeping sector who can help users understand the system’s features and resolve any issues quickly. The software also offers regular updates that keep users informed on the latest developments in the industry, helping them stay ahead of the competition. Finally, Hour Timesheet offers an intuitive user interface that makes onboarding new employees much easier. All these features make Hour Timesheet an ideal choice for businesses looking for superior customer support.

Conclusion

Accountants and bookkeepers need reliable software to manage their time tracking and timesheet management tasks. QuickBooks Time is one of the more popular solutions on the market, but there are alternatives that offer a more comprehensive set of features tailored to specific accounting and bookkeeping needs. Hour Timesheet is a full DCAA compliant time and attendance software that provides a comprehensive solution for these tasks. It offers features such as cost efficiency, enhanced decision-making, superior customer support, integration with other business tools, electronic timesheets, reporting capabilities, etc., making it the ideal choice for businesses looking for an alternative to QuickBooks Time.

Start your free trial of Hour Timesheet today!

The Keys Understanding DCAA Compliance

The term ‘DCAA compliance’ when referring to your timekeeping procedures is often just thrown around. But what is DCAA compliance, and what does it mean for your business? If you don’t understand what that means, Keep reading this blog post for assistance for keys to understanding DCAA Compliant Timekeeping

What Is the DCAA?

What does DCAA stand for? 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. Its purpose is to review all contracts with outside vendors and suppliers to ensure that taxpayer money is being spent in the most appropriate manner. With approximately 7,500 contractors being reviewed and audited every year, the agency’s responsibilities are substantial making Understanding DCAA Compliance critical for government contractors.

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.

For companies seeking government contracts, adhering to the DCAA requirements is imperative. Those that are found to be noncompliant with the agency’s standards run the risk of being hit with significant penalties. These run the gamut from termination of contracts to fines to prison time depending on the severity of the infractions. One of the most severe consequences of noncompliance is debarment, which means the contractor in question is no longer allowed to be considered for future federal contracts.

What Is an Audit and How does it Relate to Understanding DCAA Compliance?

Audits and reviews are the primary method the DCAA uses to determine whether or not a contractor is complying with the appropriate standards. What is a DCAA review? These typically examine a wide range of items, including direct costs, indirect cost pools, allowable costs and more.

There are a wide range of audits that a contractor may be subjected to, depending on the nature of the standards being looked at and the possible infraction. For example, audits may include:

Pre-award surveys — These reviews are conducted primarily to determine whether or not the contractor’s accounting system is up to DCAA standards. They typically involve the contractor demonstrating the system for an auditor.
Forward pricing — Under this type of audit, the DCAA evaluates the contractor’s estimate of the project’s cost. They are usually performed before the contract is awarded.
Incurred costs — These audits determine how accurate a contractor’s annual allowable cost representations are. This is performed after the awarding of the contract to ensure what the contractor has estimated the costs to be is truly what was quoted.

Keys to Understanding DCAA Compliance

Referring to Federal Acquisition Regulation and Cost Accounting Standards, respectively, FAR and CAS are rule sets used by the DCAA to establish its standards. FAR represents the guidelines for government procurement and is used by all federal agencies whenever purchasing goods or services. On the other hand, CAS refers to the rules used to establish consistency for government contractors’ cost accounting practices. This includes outlining how charges to contracts can be made and exactly what can be charged to them. Both of these frameworks inform and influence the DCAA regulations. Keys to Understanding DCAA Compliance are below.

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

The employee handbook must address all critical elements of an adequate timekeeping system. Companies must provide all employees with an up-to-date policy or procedure handbook 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 and alerts to ensure employee 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. All employees must record 100% of the time worked.

Whether working on a government contract or commercial work, all time worked must be accounted for. With the Hour Timesheet mobile app the employees and 1099’s can add time from anywhere, whether they’re working from home or the office.

4. Employees must record all indirect time not identifiable to a given project to proper indirect cost accounts (Overhead, G&A, B&P, R&D, 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.

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

Hour Timesheet allows for leave tracking any kind

6. The system administrator(s) should initiate all job codes that appear in the timekeeping system.

Charge codes must be provided to employees authorized to work on a given project.

7. All timesheet entries must be recorded by the employee.

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.

8. Employees must charge to the appropriate project

Whenever the employee completes work or tasks, they must charge it accurately and directly to that project. 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.

9. Employees may not work on indirect tasks and record time as direct costs

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.

10. The employee is required to initiate all correction timesheet entries.

The employee must record all corrected timesheet data that includes a detailed audit trail. An audit trail is critical to remaining DCAA compliant.

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 the HTS administrator may make such changes with the employee’s consent. The DCAA may analyze each entry on an employee’s timesheet. 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 un-editable audit log that proper documentation. This activity log will include all of all the additions, deletions, approvals, and modifications made to your employees’ timesheets.

11. 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.

12. All employees should be provided documented timekeeping training.

The company’s employee handbook or new-hire orientation program typically includes this training. Either way the employee should become familiar with the company’s timekeeping policy before they begin working.

13. In order to be DCAA compliant, the company must retain timesheet data for at least two years.

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

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

Unfortunately, not knowing the keys to understand DCAA timekeeping compliance is one of the primary reasons 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.

We Can Help

What is DCAA accounting, and how can you ensure your organization is in compliance? Choosing Hour Timesheet’s solutions for your timekeeping provides you with a DCAA-compliant answer that is easy for you and your employees to use. Our simple, real-time time-tracking platform gives you the tools and resources needed to stay compliant and prepared for any audits that might come your way. To learn more about our software the Keys to Understanding DCAA Compliance and what it can do for you, reach out and speak with one of our representatives today.

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Is QuickBooks a DCAA Approved Accounting System?

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, but often, the question arises; Is QuickBooks a DCAA Approved Accounting System?. 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? And Is QuickBooks a DCAA Approved Accounting System?

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. Integrating Hour Timesheet’s DCAA-compliant timesheet with QuickBooks will be invaluable in pursuing this kind of opportunity.

Is QuickBooks DCAA Compliant?

Yes, QuickBooks can be set up to be DCAA compliant, but it doesn’t automatically meet DCAA standards and requires additional configuration to be compliant. Certain elements of the software do meet the standards, including the ability to properly segregate direct costs from indirect costs. This can be accomplished by using the software’s reporting features to separate costs by project as well as items versus expenses. When searching for DCAA-compliant accounting software, QuickBooks also operates under general ledger control, which is required under the standards. Another example of how the platform conforms with DCAA standards is its support of separating preproduction costs in a number of ways.

On the other hand, as a DCAA-compliant accounting system, QuickBooks as it is distributed falls short in a number of ways. For instance, it does not automatically calculate indirect rates per your company’s rate structure. It also fails to offer time tracking capabilities required to identify employees’ work according to intermediate or final cost objectives. Satisfying these and other requirements calls for expert configuration of the platform as well as integration with time tracking software that provides additional functionality. These are areas in which Hour Timesheet’s solutions can be of exceptional benefit to your enterprise. We provide you with the expertise necessary to make the most of your QuickBooks setup and ensure you are making QuickBooks 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 QuickBooks 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.

Is QuickBooks a DCAA Approved Accounting System? Let Hour Timesheet 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. Call Us Today! We can introduce you to our extensive list of experienced partners and answer the million dollar question…Is QuickBooks a DCAA Approved Accounting System?

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QuickBooks Time Tracking Integration

If you and your employees are sick of manually tracking timesheets, job costing, payroll, leave tracking, mobile time tracking and location tracking while staying DCAA-compliant and FAR-compliant, Hour Timesheet is here for you with time tracking for QuickBooks.

Hour Timesheet has created the ideal timekeeping software compatible with QuickBooks. You can integrate all your data with QuickBooks Online or QuickBooks Desktop with just a click, which removes the hassle of manual entry on either side.

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QuickBooks Time Tracking Integration

Hour Timesheet is all about saving you time, so you can spend that precious resource in more productive ways than tracking what you’re doing with it. As a timesheet software that integrates with QuickBooks, everything is simplified, automated, and easy for you and your employees to use without a lot of extra training.

Even better, our support team can help every step of the way. Because it is DCAA-Compliant and FAR-compliant, our software can help you maintain regulatory compliance so you can focus more on providing excellent customer service. You won’t have to track these things manually with our software:

Clocking in and out
Location tracking
Job costing
Time off requests
Billable and non-billable hours
Remote work time
Travel time
3rd-party approvals
Payroll integration
Time used on various projects

Hour Timesheet’s QuickBooks time tracking integration is easy for all your employees to use, whether they are full-time, part-time or contract workers. This way, you can keep up with a demanding project schedule in multiple locations without worrying about time lost.

Timesheet Software Compatible With QuickBooks

As work changes and becomes a mix of mobile, remote and in-office work, companies need a flexible, accurate and simple way to track, account for, and analyze time and attendance and payroll data. That’s why we created time tracking software that integrates with QuickBooks.

Hour Timesheet gives you the power to do that and more, with expert customer support that makes integrating with QuickBooks a snap. Our customer support team is well versed in the needs of government contractors bidding on projects that require DCAA compliance, which makes us unique in the world of time and attendance software.

Our software empowers companies big and small with accuracy, fewer headaches, and broader insight into their time and payroll data. Plus, the smooth integration with QuickBooks gives you more ways to analyze your data, reduce waste and more effectively get the job done.

In addition to integrating with QuickBooks, our software also integrates with other applications, including Paychex, ADP, and more. Start tracking time the easy way, with no hidden fees, no contract and excellent customer support.

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

QuickBooks Online

What is DCAA Compliant Accounting Software?

Refer to DCAA compliance explained for more information.

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.

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?

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.

Integrated Billing with QuickBooks for your 1099s

Even before the rise of the pandemic, contractors were a growing part of the U.S. labor force. In 2018 contractors made up 20% of the labor market, with a prediction that contract workers could make up half of the American workforce within a decade. Tracking 1099 timesheet data with simple QuickBooks Integration is simple with Hour Timesheet

What Is A Contractor?

Contractors are professionals who provide skills or services to companies for a set period. They may be employed for a set number of hours, a specific time frame, or the duration of a project. Unlike full-time employees, companies have no payroll tax obligations, with no responsibility for the employer to offer benefits or even provide supplies to independent contractors. They can be self-employed and work independently or run their own limited company.

Why Are Companies Hesitant to Hire Contractors?

Employees and contractors are paid differently.

Contractors or 1099s (known to the IRS) are treated as accounts payable in QuickBooks. In this system, a Bill has to be created and paid for each 1099 in the company file for each billing period. This can create tremendous work and be an extremely burdensome process if a company employs many contractors or vendors. But thanks to a new feature offered by Hour Timesheet, this type of heavy data entry is a thing of the past.

What Features Does Hour Timesheet Offer?

The Hour Timesheet software integrates with QuickBooks, and enables the contractor to input time against customers and jobs on their timesheet. When the data is exported to QuickBooks, the Bill for the contractor’s expense is already complete. It’s that simple and straightforward. Gone are the days of creating a Bill and paying it manually with each contractor and vendor.

Also, QuickBooks recommends that you set up your contractors as vendors. This way, QuickBooks can track all their related payments. Therefore, when you, their employer, need to complete their 1099, you’ve already got their information together in one place.

How Can This Help Businesses?

The answer is simple: it can save time! A company’s accountant does not have to enter each Bill for their vendor expenses manually. And with the current trend being corporations moving away from employees and moving towards 1099s for their workforce, Hour Timesheet’s software becomes even more valuable. It will prove to be a tremendous asset for businesses’ accounting workflow process as they move into this post-COVID contractor work environment. Integrated Billing with QuickBooks for your 1099s makes invoicing your clients simple with Hour Timesheet.

Is Hour Timesheet’s 1099 Integrated Billing Feature DCAA Compliant?

Nothing has changed concerning time tracking. Every employee, including contractors, must track their hours to remain DCAA compliant. Hour Timesheet’s software makes it easier for companies to choose vendors for their project needs because they’ll be able to track their hours and then bill them efficiently.

For more information on how you can access Hour Timesheet’s integrated billing feature for contractors, contact us here.

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