FLSA Timekeeping

FLSA Timekeeping Do’s and Don’ts

According to the Fair Labor Standards Act or FLSA, employers must keep accurate records of non-exempt hourly employees. This might seem like a straightforward process. However, it can become too complicated when, for example, your employees travel for work, punch-in early or leave late, or use mobile devices to remain connected to work after hours. The following is a brief overview of some of the do’s and don’ts to help you manage your timekeeping responsibilities.

Do:

1. Use a reliable timekeeping system.

You may choose to use a timekeeping method such as an hour timesheet app or something else, including time clocks, badge readers, timesheets. Yet FLSA timekeeping requirements stipulate it allows employees’ hours for uncertainty or inefficiency (to a maximum of 15 minutes).  You must apply the rounding policy fairly and can’t always round in favor of your company. Please note some states place limits on time rounding. Check all applicable laws before you start using this policy and consider your timekeeping system before applying a time rounding policy.

2. Any and all time worked must be recorded.

Whether it’s time spent checking phone messages, replying to texts, work emails, accessing the company network, or performing other work tasks, all of this considered compensable work time. That’s why non-exempt employees must understand what constitutes work. Then make an effort to report all time spent working outside of standard work hours according to FLSA timekeeping requirements. In a situation where employees can’t use your regular timekeeping system to record after-hours work, it is your responsibility to instruct them on how to promptly and correctly report these hours.

3. Reclassifying breaks as work time.

According to FLSA timekeeping requirements, all rest breaks must be paid if they are 20 minutes or less in duration. Thus, be careful not to let your employees punch out for breaks that last less than 20 minutes or less. Remember, it’s the break’s length, which determines whether payment is required, never the reason for the break.

4. Record training and travel time.

According to FLSA timekeeping requirements, you must compensate employees for any non-productive time in addition to time spent working. Non-productive time can be considered time spent traveling or in training. For instance, if one of your employees spends time traveling overnight for work, he or she must be paid for all time that cuts across their regular work hours, regardless of whether the travel occurs on their regular workday. As their employer, make sure you understand the rules on compensable training and can instruct employees on how to record their time correctly.

Don’t:

1. Never withhold pay if employees fail to submit or sign their timesheets.

According to FLSA timekeeping requirements, an employer must pay employees for all hours on the next regularly scheduled payday. Whether or not the employee has adequately followed the company’s timekeeping procedures.

2. Never withhold pay for unauthorized work time.

Employers may already have a policy in place that requires employees to get permission before working overtime. Yet, according to FLSA timekeeping requirements, employers must pay non-exempt employees for all time worked. That is irrespective of whether it was authorized in advance.  If this policy is not respected by the employees, the employer can introduce disciplinary action. But they can never withhold pay.

3. Do not make automatic deductions for meal periods.

As an employer, it’s in your best interest to require employees to clock out and back in from their meals. This can help ensure that they are paid for missed lunch breaks. It also accounts for instances when employees return from lunch late. Their time records will accurately reflect that they took a meal during the period in question and for how long.

4. Never neglect your recordkeeping responsibilities.

According to FLSA timekeeping requirements, employers must hold on to their time cards and other such records from which wage calculations are gathered for at least two years. Additionally, employers must keep payroll records, including hours worked each day and total hours worked each workweek, for a minimum of three years. These records are necessary for federal tax purposes and must be kept for a minimum of four years.

Hour Timesheet & FLSA Timekeeping Requirements

It sounds simple enough: stay on top of your timekeeping. But when you’re busy running a business, this can be easier said than done. You can quickly get busy, overwhelmed, and the next thing you know, you’ve fallen behind. That’s why it’s essential to develop policies and procedures to ensure that you keep accurate time records for all non-exempt employees. This way, you can ensure they’re being paid adequately for the time they’ve spent working.

time card calculator - hour timesheet timecard time tracking software

Top 5 Reasons You Need a Time Card Calculator

As the owner of a business you certainly understand one of the most tedious parts of running your organization is calculating timecards. When you think of all the things you have to do including creating and executing your marketing strategy, maintaining your inventory and simply ensuring the company operates smoothly, the last thing you feel like doing is calculating time cards. Besides who has time to do it? That’s why a time card calculator is so incredibly invaluable and where Hour Timesheet can help.

Hour Timesheet’s Time Card Calculators

At Hour Timesheet we have time card calculators that can alleviate the stress and strain of tracking employees’ hours. Our calculators accurately track and total timecard hours automatically. They can eliminate unwanted overtime with their programmable clock-in and out rules. Our calculators can be simply installed on your PC, Mac, Windows tablet or portable Smart device.

Saves Time & Money

The biggest advantage of using a time card calculator is that it saves time and money. Either you or your Human Resources Department will save both time and money collecting, calculating, correcting and processing employee timesheet. Instead thanks to the online calculator it will significantly reduce the time it takes to do this.  Using a calculator will enable employees to focus on their jobs at hands. They will no longer have to worry about tracking and recording the time they spend working each day, week or month and can dedicate their time on what they were hired to do-work!

Reduces the chance for errors

If you take a moment and think about the opportunity for errors when you’re recording and calculating employee hours, especially when factors such as overtime, and holidays are all factored into the equation you begin to realize how easy it is to make an error. Something as easy as a misplaced decimal can lead to a serious accounting error and a serious loss of income for an employee. Not to mention a problem for you! It goes without saying that time calculations for payroll must be accurate. Your employees depend on those results and you depend on them to ensure your business runs smoothly. Our time card calculator does the math for you automatically. Instead of having to manually using one, our time tracking calculator reduces human error and helps prevent any miscalculations. The result is that your employees get paid what they’re entitled to and you can rest assured it’s accurate.

Encourages Compliance

There are state and federal labor laws that were created to help control things like record keeping, overtime and wages. Yet, these can be difficult to track and keep up with, particularly if you’re using an outdated employee time and attendance system. Hour Timesheet’s timecard calculator can help your business adhere to these laws. It can even help owners and managers use break times and overtime options that are provided as an added feature to ensure they are staying compliant.

Discourages Time Theft

Time theft sounds harmless enough unfortunately it’s far more detrimental than one would think. First it comes in many forms including taking a longer coffee or lunch break than allotted. Or clocking-in a friend when they’re going to be late to work. Whether the action is intentional or not, it can cost you the business owner or manager a tremendous amount of money. At Hour Timesheet, by using our time card calculators in conjunctions with automated time and attendance systems, you can help stop time theft in its tracks.

Time Card Calculators – A Useful Tool for Business

There are some business owners or managers who argue that a time card calculator is a useful tool for their enterprise. At Hour Timesheet we say they are an essential item. A time tracking calculator is easy-to-use and improves the efficiency with which your business operates. Not only does it reduce errors, but it saves you time, money, increases compliance and discourages time theft. Who wouldn’t want a tool in their business arsenal that does that?

Time Keeping Software for Lawyers

When selecting timekeeping software for your law firm, it can be tough to know which specific features you need to keep your business running smoothly. In the past, timekeeping software for lawyers was tracked on paper timesheets. This was followed by an arduous back-and-forth exchange between a client and law firm. After weeks and multiple revisions, the billable time would be manually entered into the firm’s billing system. It wasn’t a very efficient process, but it was the only one available.

Even today, lawyers are repeatedly told to track time accurately; all billable activities should be recorded as soon as they occur. This wasn’t a realistic option given that many billable activities occur outside of the office until mobile time tracking. Then everything changed!

At Hour Timesheet, our solution is simple. We offer timekeeping software for lawyers that is quick and easy to use while helping increase your efficiency. Your billable hours are more accurate and your payroll integration is smoother thanks to us, Hour Timesheet.

Mobile

Whether you’re driving to your client’s office or walking down the block to join them for a meeting, having mobile access to your office software makes things less stressful. Hour Timesheet offers timekeeping software for lawyers through our timesheet app. These mobile time-tracking tools make it possible to track your time and enter them simultaneously. Thereby ensuring that you capture—and charge for—all of your billable time. Hour Timesheet’s mobile app is a real-time project management app that includes employee scheduling, a time clock app, and easy-to-use timesheet software. The app will allow you to:

  • Track billable hours
  • Track employee time at work and home (remote)
  • Track time against overhead and G&A
  • Track employee locations

Highly Accurate

Hour Timesheet has a strong industry-wide reputation for providing its legal clients with an accurate paperless audit log for all time and timesheet edits. This will include everything from a detailed activity log, including username, IP address, time, date stamp, hours worked, and paid time off entries. Privacy settings will also give you the ability to limit employees only to see charge codes they are authorized to use.

By adhering to strict tracking guidelines, you’ll maintain a good relationship with agencies you want to work with in the future. There will be no delayed payments to your company, and you’re more likely to get future contracts. You’re also more likely to have transparent operations within the company overall.

It’s crucial to keep and maintain transparent, straightforward timesheets for each employee, timesheets that document their working hours.

Seamless Integrations

Hour Timesheet timekeeping software enjoys plenty of payroll integrations with QuickBooks, Deltek, ADP, Paychex, and Insperity. With just a few clicks, it can keep track of your billable and non-billable hours. The era of charging errors, lost timesheets, the shock of overtime, and manual entry mistakes are gone. Thanks to payroll integrations, these types of errors are a thing of the past. Simple payroll integration is critical to the smooth operation of your legal business. Hour Timesheet will let you export your information directly to your chosen payroll software with a simple click.

Time Keeping Software for Lawyers

The once tedious task of keeping track of your time using pen and paper is a thing of the past. Now lawyers can use timekeeping software from their computers and download an app to their mobile phone. They can seamlessly integrate payroll software such as QuickBooks or Paychex to track billable and non-billable hours. Additionally, Hour Timesheet is DCAA compliant, providing its legal clients with the necessary audit log. Hour Timesheet is the timekeeping software designed with lawyers in mind. Contact us to learn more.

Non-Profit Time Keeping

At first glance, Hour Timesheet’s app looks like a simple and straightforward timekeeping application perfect for the non-profit industry. However, if you take a closer look, you’ll notice this online timekeeper can do considerably more, including improve efficiency, increase employee morale, and save your organization money. The following is a closer look.

  1. Improved Efficiency

Hour Timesheet’s online timekeeper will increase your non-profit’s internal efficiency. Our app offers features timekeeping tools that itemize a task and indicate how long it took an employee to perform a particular task the last time. This can provide you with a much better idea of the time it will require to complete each step, allowing you to produce a more accurate schedule going forward.

It is these same time tracking features that will allow you to evenly distribute tasks for a larger project between staff within your non-profit. This is to ensure that no employee within your organization is overwhelmed by too heavy a workload while others do not have any work.

2. Increased Employee Morale

Online time tracking software can tremendously increase employee participation and morale at work in several different ways. With electronic timekeeping, employees don’t have to concern themselves about whether or not they’re in line with the organization’s goals or stress about which tasks to focus on. The more organized a workplace is, the happier a place it is to work.

With the records of all your employees’ daily tasks through your online timekeeping software, it becomes much easier to recognize and celebrate all of their accomplishments. The more employees feel appreciated, the more likely they are to stay with your organization, thereby boosting your non-profit’s employee retention and saving you both time and money.

Online timekeeping also provides an opportunity for employees to provide feedback from larger projects right down to daily tasks. Some of your team members might feel frustrated if they don’t feel they’ve been given enough time for a specific job. This is their forum to express their frustrations, so make sure to listen.

3. Cost-Effectiveness

Nowhere is the statement ‘time is money’ more evident than when using timekeeping software, such as Hour Timesheet. Yes, you have to make money to spend money, but often to save money, you have to eliminate or reduce spending. That’s where time tracking spending can help by showing you how to reduce overhead costs. Staffing makes up the most substantial portion of most non-profit organizations’ budgets. Online timesheet apps can help save money by reducing the time spent manually entering timesheet information, as well as creating task lists and creating schedules.

Timekeeping apps can also help predict staffing overages or shortages for your organization. If you’re understaffed, your employees will have too much work, and certain responsibilities will fall through the cracks. On the other hand, if you’re overstaffed, employee time is not being used efficiently, and you’re wasting valuable money.

Without accurate timekeeping, there is very little chance of remaining within a budget. They go hand in hand. Timesheets give you an honest reflection of the time required to complete a project. In turn, this gives you an accurate estimate of the total cost of any project, program, or endeavor you take on.

Non-Profit Time Keeping

Similar to all businesses, your non-profit organization will change as it grows through its lifespan. As you manage and adapt to its changing needs, you’ll notice that it will be increasingly hard to handle all of the operations on your own. That’s where Hour Timesheet can help. Together we can provide you with a solid foundation from which you can successfully build your organization.

Hour Timesheet Time and Attendance Software

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

How to Set-Up your Hour Timesheet Account

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

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

Your Hour Timesheet Options

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

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

Hour Timesheet Time and Attendance Software

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

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

Hour Timesheet Leave Management

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

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

Hour Timesheet Mobile Access

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

Hour Timesheet Time Clock Integration

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

Hour Time Sheet Plans & Pricing

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

Standard Plan

$3 Per User

  • Job Tracking
  • Alerts
  • Reports
  • Web Clock
  • Mobile App
  • Manager Approvals
  • DCAA Compliance
  • Payroll Integration

Enterprise Plan

$4 Per User

  • Job Tracking
  • Alerts
  • Reports
  • Web Clock
  • Mobile App
  • Manager Approvals
  • DCAA Compliance
  • Payroll Integration
  • Leave Request
  • Employee Leave Management
  • Time Clock Integration

Hour Timesheet

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

Timesheets and Health and Safety

Timesheets and Health and Safety - Understanding how they affect each other

In any work environment, maintaining a healthy standard can be quite challenging. Even trickier is managing office politics that keep emerging on a daily basis. While politics and disagreements are the perfect recipes for office disputes and disagreements, they can easily be dealt with by the use of a timesheet.

But how can timesheets help in promoting a healthy and safe working environment? It’s important to first consider the health and safety requirements in any working environment. Apart from injuries, issues such as disputes concerning financial differences and any other personal issues can be a big health challenge in a working place.

It’s for this reason that timesheets are of utter importance in managing such issues. How can they be used in managing health and safety? How do they relate? Read along to find out more.

Timesheets Improve Workers Productivity

Perhaps the best asset that any workplace can have is productive employees. Let’s face it, once you have employees who are motivated and energetic about what they do, you will ultimately have a productive business. This will translate to more output or profits at the end of the day.

Timesheets go a long way in ensuring that you have a healthy and productive workforce. A timesheet will track employees’ working hours from the time they step in to when they sign out. Even better, the timesheet will determine whether or not an employee completed the assigned task on the stipulated time.

Such system in a workplace goes a long way to tune the workers’ mindset in a healthy way. An employee will become more organized in meeting the required standards and deadlines of assigned tasks. This way, the timesheet will ensure that the employee is more productive in a healthy and safe way.

Timesheets Ensure Accurate Invoicing

As mentioned before, timesheets are important in the workplace, not because of health and safety hazards such as injuries, but mainly for promoting psychological health and safety of both the employer and employees.

If you are an employer, you can attest to the fact that one of the most difficult things to deal with is employee remuneration. If you don’t have an effective system in place, you can easily lose track of employee remuneration in relation to performance. In such a scenario, one sure thing is that; you are going to lose money and your working environment will be less safe and healthy.

So, how can you use timesheets to solve all this? One of the biggest advantages of a timesheet is that it’s able to track an employee’s working hours. This makes the process of invoicing quite easy and accurate. With timesheets in place, you will manage to avoid any workplace politics involving remuneration and eventually have a positive, healthy and safer work environment.

Enhanced Decision-making Process

As a proprietor or CEO of any business, you are tasked with making informed decisions on almost every matter. Your employees will be looking up to you to make critical decisions that dictate the way they work, get paid and overall health and safety decisions. These decisions can make or break a business. So how can you successfully make an informed decision on critical matters to do with health and safety?

Well, one of the ways is by using a timesheet. When your entire business is running on a timesheet, you can easily keep track of all activities undertaken by your employees. Although the tasks done by your employees may seem minute, they ultimately play an important role in your decision making process.

A timesheet will present you an accurate picture of how employees perform in your business. With such knowledge at your fingertips, you can easily make an informed decision that will ultimately improve their health and safety standards. This way, you will save a lot of time and money to investigate on issues that affect the performance, health and safety of your business. A timesheet and health and safety management system will provide you this information, thus enhancing your decision making process.

Timesheets, Health and Safety: In a Nutshell

For any business to make a profit, all its employees should be highly motivated while working in a healthy and safe environment. However, in order to run a successful working environment that is also safe and healthy to your employees, you will need the help of a formidable timesheet. This will go a long way in providing you with all the information you require to make your working arena healthy and safe.

Written by Guest Post

Holly Shaw

 

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Measuring Labor Cost and How it Relates to Increased Productivity

Measuring Labor Cost and How it Relates to Increased Productivity

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.

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

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

Labor Types

Types of Labor

Unskilled and Semi-skilled Labor - Unskilled laborers may lack 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. If you rely on a contractors to get the job done, sometimes you do need to know when they are working and track how many hours they’ve put in. 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 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.

Defining Productivity

Productivity is the amount of goods and services that the labor force creates.  It's measured by how much is 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 productivity because it increases their profit. High productivity creates a competitive advantage.

Productivity

Eliminating Calculation Errors increases productivity

When you process accurate time cards, you are better able to forecast your labor costs and plan your job cost more effectively. Keeping Excel spreadsheets or pen-and-paper time sheets is definitely no longer the best way to manage your staff. With an intuitive cloud-based time tracking tool (like ours) 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.

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 manage project and job cost, it also allows you to forecast your 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. It’s 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

What is a Leave Management System

What is a Leave Management System?

Leave Management Systems

A Leave management system is the process used to handle any kind of time off request and to track time that employees are away from work.

Leave management is one of the simplest yet crucial HR activities that often consumes a significant portion of the HR team’s time. To succeed as an organization, having a reliable leave management system is important.

Benefits of Automating Employee Leave

Leave management software can provide basic guidelines for establishing extended leave policies. The software can automatically keep track of the amount of time that employees are out of work and can report that information as needed or required.

  • Eliminating Excessive Paper Work – It is quite common to find organizations, managing employee leaves across a series of spreadsheets or even using partially paper-based systems. Therefore, accurately tracking and recording employee time off become a real hassle.
  • FLSA Compliance –  In cases such as employee’s persistent short term absence or long term illness, it is imperative that employee benefit compliances is adhered to.
  • Tracking leave pattern – It is very essential to track employee leave patterns to monitor the amount of paid leave, sick leaves and holiday patterns within your organization. .

Features Available in Automated Leave Management Systems

  • Management and tracking of leave requests
  • Management and tracking of leave on employee timesheet
  • Online Approvals
  • Leave balance and history access on timesheet
  • Leave integration with payroll
  • Detailed reports
  • History of leaves rejected, approved and requested

Research has shown that poor leave management practices may negatively affect employee performance. It can also affect employee morale and therefore impact project deliverables.

Job Costing & Hour Timesheet

What is cost accounting? What are its objectives?

Are you finding it difficult to manage your expenses? You might be well aware that to run a business successfully, it is important to know to control your expenses. For this purpose, it’s important you keep a record of all your operating costs. This is where cost accounting comes into the picture. If you are wondering, how cost accounting is beneficial for your business, then you need to continue reading.

Modern methods of cost accounting first emerged in the manufacturing industries, though its advantages helped it spread quickly to other sectors. For many firms, cost accounting helps create and measure business strategy in a more organic way.

Cost accounting is distinct and separate from general financial accounting, which is regulated by generally accepted accounting principles (GAAP) and is critical for creating financial statements. Instead, cost accounting aims to report, analyze and lead to the improvement of inter-business cost control and efficiency. Cost accounting is a system of operational analysis for management.

Cost Accounting Defined

Cost Accountancy is the process of accounting for cost. It begins with the recording of expenditure and ends with the preparation of statistical data. Cost Accounting is a formal mechanism of ascertaining and controlling the costs of products or services.

It is thus helpful to the management in decision making which also requires the costing information. However, if a firm keeps cost and financial accounts separately then their reconciliation is also necessary so as to verify the accuracy of both sets of accounts.

Cost accounting is also used for control purposes and guidance to management. It involves the ascertainment of the cost of every job, order, product, process or service.

Objectives of Cost Accounting

  1. Determination of Cost
  2. Basis for fixing selling prices
  3. Cost Control
  4. Cost Reduction
  5. Identifies and eliminates wastes like material, expenses, equipment, tools and so forth.
  6. Ensures optimum utilization of resources
  7. To correctly analyze the cost of both the process and operations.
  8. Determination of the profitability of each of the products and help management in the maximization of these profits.
  9. Help in the preparation of budgets and implementation of budgetary control.
  10. Aid management in the formulation and implementation of incentive bonus plans on the basis of productivity and cost savings.

Functions of Cost Accounting

  1. Bookkeeping - Bookkeeping involves recording of cost according to pre-arranged or predetermined classification.
  2. Cost Control - The cost control is exercised through cost collection, cost analysis, cost presentation and cost interpretation.
  3. Cost Analysis - Cost Analysis deals with determination of different relationship between cost and various determinants of costs.
  4. Cost Comparison - The cost of alternative products, activities, methods or areas is compared in the field of production or distribution.
  5. Cost Planning - Cost planning involves the accounting of all costs in the records in a proper manner.
  6. Cost Finding - Cost finding is the measurement or estimation of different products, departments or other segments of the company’s operations.

Summary

In every business, pre-planning your business strategy is crucial. Without a proper idea of the financial state of the organization, the business strategy is incomplete. When you are aware of the costs, you know where the profit margin is lacking. It becomes easier to eliminate the extra cost being incurred and make a better business finance strategy. Also, cost accounting helps you to keep an eye on the increasing costs. If the cost of raw materials is increasing annually, then it allows companies to decide a future course of action to reduce or control the increasing costs. For this purpose, a firm may consider approaching other vendors or decide to manufacture the raw materials themselves. Accordingly, the management can decide on future strategies for the company.

Let Hour Timesheet help you with capturing your job cost today. Try free for 30-days. No credit card required.

QuickBooks Timesheet & DCAA Compliance

Looking for specific QuickBooks timesheet features & DCAA compliance?

What type of firm needs time tracking software?

Most employers who hire hourly employees need to know the number of hours each employee has worked so that payroll can be calculated properly. Government contractors have have a different set of rules and are required to track time, both hours for exempt and non-exempt employees. Even organizations who only hire salaried employees have a need to track projects or tasks for successful project management. That's why finding the right time and attendance software is critical to your bottom line.

features are key

What to look for when evaluating timekeeping software.

When researching tools, make sure the software that you are evaluating includes the following:

  • daily reminders
  • job tracking
  • online approvals
  • detailed audit trail
  • correction time sheet workflow
  • mobile access (iOS and Google Play)
  • web clock
  • integration with your accounting system (QuickBooks Online & QuickBooks Desktop)
  • knowledge of government contracting and how federal governments contract audit agency dcaa regulations

Work smarter…. not harder.

Are you wasting time and money on the following?

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

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

View QuickBooks Online Marketplace Apps here

View QuickBooks Desktop Marketplace Apps here

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

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