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.

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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.

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.

Managing Indirect Rates with Hour Timesheet

As a government contractor, managing your indirect rates is of utmost importance if you want to bid on government contracts. However, keeping track of indirect rates can be a daunting task, especially for small businesses without sophisticated accounting systems. In this blog post, we will dive into how Hour Timesheet can help small businesses manage their indirect rates efficiently and stay in compliance with DCAA regulations.

What Are Indirect Rates?

Indirect rates are those expenses that cannot be directly attributed to a specific project, such as overhead costs like rent, utilities, and fringe benefits. Tracking and monitoring these indirect rates is necessary to ensure that your company is not overcharging the government and, ultimately, maintaining compliance with DCAA regulations.

Moreover, maintaining optimal indirect rates can help your business stand out in the crowded government contracting space. Companies with low indirect rates have a competitive edge over those with higher rates when it comes to bidding on government contracts.

Types of Indirect Rates

Fringe Benefits: This category includes costs related to employee benefits, such as health insurance, retirement contributions, and paid time off. Examples of costs in this bucket are:

Health and dental insurance premiums
Life insurance premiums
Retirement plan contributions (e.g., 401k matching)
Vacation, sick leave, and holiday pay

Overhead: Overhead costs are associated with the general operations and administration of a company but are not directly tied to a specific contract or project. Examples of overhead costs include:

Office rent and utilities
Office supplies and equipment
Depreciation on office furniture and equipment
Salaries and wages for support staff (e.g., administrative assistants, human resources personnel)

General and Administrative (G&A): These costs are related to the overall management and administration of a company. G&A costs are often incurred at the corporate level and cannot be directly linked to a specific contract or project. Examples of G&A costs are:

Executive salaries and bonuses
Legal and accounting fees
Marketing and business development expenses
Corporate insurance premiums

How Does Hour Timesheet help with managing indirect rates?

Hour Timesheet is a cloud-based time tracking software that allows employees and contractors to track hours worked in real-time. With Hour Timesheet, businesses can analyze and aggregate the total billable hours, allowing visibility of the entire workload and all costs incurred, including indirect costs.

Hour Timesheet makes it easy to manage indirect rates by automatically calculating the total billable hours and integrating with your internal cost accounting and other financial systems. With Hour Timesheet, businesses can input and track all indirect costs incurred, providing immediate visibility into indirect cost rates by project and company, making calculations for future submissions more manageable.

Conclusion

Hour Timesheet provides government contractors with a powerful tool to manage their indirect rates and ensure compliance with DCAA regulations. The software makes it easy to track indirect expenses, integrate with other financial systems, and calculate indirect rates for each project and company-wide. With Hour Timesheet, businesses can stay on top of their indirect rates, remain competitive in the government contracting space, and avoid costly compliance issues.

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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 Compliant Timesheet Integration with QuickBooks and ADP

3 Solutions Working Together – If you use ADP as your payroll provider and do your invoicing in QuickBooks, you’re in luck. The Hour Timesheet integration with QuickBooks and ADP is simple and fully DCAA Compliant. 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, Hour Timesheet integration with QuickBooks and ADP is easier than ever.

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

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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 DCAA compliant, 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.

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

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

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

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.)

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

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

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.

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.

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

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

Unfortunately, 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.

Hour Timesheet Time and Attendance Software

Introducing Hour Timesheet: The perfect employee time card app for your business. Experience streamlined time tracking software that empowers your workforce while ensuring seamless business operations.

Options

And Features

Payroll integration

Gusto, Paychex, ADP and QuickBooks

Job Costing

Capture Bill Rates and Pay Rates

DCAA Compliance

Meets all DCAA timekeeping requirements

Leave Management

Manage PTO, Sick, Vacation and other custom leave categories for employees

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.

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.

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.

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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.

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.

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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