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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!

Incorporating Analytics in Timekeeping Software

Incorporating Analytics in Timekeeping Software

Incorporating Analytics in Timekeeping

Timekeeping software is an essential part of running an effective and profitable business. The days of employees manually inputting data on time sheets or using paper time cards to log work hours are long gone. Enter digital timekeeping software, which HRMS calls the updated and streamlined version of old-school timekeeping methods. With each employee clocking or swiping into the system automatically each day, today’s timekeeping software is able to collect massive amounts of time and attendance-related employee data in real-time. This is where data analytics enters the picture.

Through the combination of digital time tracking software data and analytics software, any company can plan the deployment of its workforce, administer leave and scheduled time off while managing performance, and calculating payroll more accurately. While the data for all of this has always been there, the help of artificial intelligence (AI)-enabled data analytics tools, companies can work towards these tasks much more efficiently and thus, increase over-all profits.

Modern employee time keeping devices are powered by two of the fastest-growing technologies: artificial intelligence (AI) and data analytics. These two innovations have already made massive changes in the way several industries operate. In an extensive post by Maryville University on the outlook for data analytics graduates, they note that the top industries to take advantage of analytics by 2020 will be banking, manufacturing, federal/central government, and professional services. Not only that, since more than 5% of Americans are already working from home, you can already say AI- and data analytics-backed businesses are the future.

There’s no denying that digital timekeeping is the next logical step when it comes to fostering business growth no matter the size of the industry. Here at Hour Timesheet we understand how critical it is for employers to gain insights into how much time their employees spend on everyday tasks including breaking down billable hours and accounting for time by projects and tasks. This data lets them see the typical day of an employee, which can help streamline a company's workflow and create more achievable goals while immediately adding real-time analysis to assist with the ability to manage projects and estimate projects .

Good timekeeping software with an intuitive interface also allows managers to take care of employees’ interests allowing employees to track time daily, weekly or hourly online and in real-time. Popular software platforms like Intuit's QuickBooks desktop and online solutions like Hour Timesheet combine timekeeping with accounting software providing timesheet data to automatically sync between the two systems. Not only is it a more affordable way to manage a company’s invoicing and payroll, but it’s also a great way to keep track of an employee’s leave balance history. We recognize the importance of a timekeeping software like Hour Timesheet that can also track leave and work hours online and on a mobile time clock app. This is because it’s more accurate than the typical Excel spreadsheet. A cloud-hosted service time management provider such as Hour Timesheet allows workers to do their jobs remotely, without employers having to worry about tracking their work time, keeping tabs on leave and absence time, and making sure they’re working as efficiently as they would if they were in an office. Any dip in performance can be correlated to the data obtained from the employee timesheets.

Timekeeping software is a powerful tool that companies must use to improve their overall efficiency. It gives employees more control over the time they spend at work, and allows employers to accurately track how much time is spent on different projects. This allows the company to create a positive culture with an improved work/life balance.

Article solely for the use of hourtimesheet.com

Written by Alicia Clay

Indirect Cost Pools

You Can’t Manage What You Can’t Measure

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

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

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

Indirect Cost Pools

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

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

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

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

UNUSUAL INDIRECT-COST

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

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

Contract Type Matters

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

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

DEFENSE CONTRACT AUDIT AGENCY INFORMATION FOR CONTRACTORS

Making technology work for you

Making Technology Work For You

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

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

1. Highlight the Benefits

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

2. Find Your Champions

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

3. Provide Training

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

REASONS YOUR BUSINESS SHOULD EMBRACE TECHNOLOGY

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

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

HTS QuickBooks Online Marketplace Listing

HTS QuickBooks Desktop Marketplace Listing

HTS Android Download Link in Google Play

HTS iOP Download Link in Apple Store

FLSA Timekeeping Requirements

FLSA Timekeeping Requirements

Who does FLSA apply to?

One of the FLSA Timekeeping Requirements is that hourly employees must be paid at least the minimum wage and not less than one and one-half times their regular rates of pay for overtime hours worked.

What are the timekeeping recordkeeping requirements?

Every covered employer must keep certain records for each non-exempt worker. The department of labor requires accurate records. The following is a listing of the basic records that an employer must maintain:

  • Time and day of week when employee's workweek begins
  • Time worked each day
  • Total hours worked each workweek and pay period
  • Total daily or weekly straight-time hours
  • Total overtime hours for the workweek

What type of record should be retained?

Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records. Records on which wage computations are based should be retained for two years, i.e., time cards and piece work tickets, wage rate tables, work and time schedules, and records of additions to or deductions from wages.

What type of timekeeping is best?

Employers may use any timekeeping method they choose. For example, they may use a time clock, have a timekeeper keep track of employee's work hours, or tell their workers to write their own times on the records. Any timekeeping plan is acceptable as long as it is complete and accurate.

What about employees on irregular work schedules?

Many employees work on a fixed schedule from which they seldom vary. The employer may keep a record showing the exact schedule of daily and weekly hours and merely indicate that the worker did follow the schedule. When a worker is on a job for a longer or shorter period of time than the schedule shows, the employer must record the number of hours the worker actually worked, on an exception basis.

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Tired of Deltek Timesheets?

Okay is Not Okay

Is your firm using a Deltek timesheet software solution for tracking employee time? If so, are you "okay" with its features and functionality?

Stop settling for "okay"! it's time for something better. Hour Timesheet offers you a solution that helps you end the nightmares and headaches that accompany timesheet collection and payroll processing.

Q #1 Are you tired of reminding employees that timesheets are due each labor period?

how about a system that sends daily and weekly timesheet reminders to both employees and supervisors.

Q #2 Are you tired of employees charging to expired charge codes?

how about a system that restricts employees charging to ended charge codes

Q #3 Are you tired lingering unprocessed timesheets from previous timesheet periods?

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

Q #4 Are you tired of workarounds for employees working non-standard schedules?

how about a system that allows employees to open a timesheet with 8-days and is DCAA compliant?

Q #5 Are you tired of employees and supervisors not adhering to company policies?

how about a system that allows you to easily customize and adhere to company, state and contract policies.

Q #6 Are you tired of paying too much for time and attendance software?

how about a system that will provide a simple yet complex time and attendance software solution, while saving you money....guaranteed?

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

Resources

The importance of company polcies

Irregular Work Schedules

The New Standard American Workday

DCAA Compliant Time Tracking Software

What Makes Hour Timesheet

a DCAA Compliant Time Tracking Software Solution

DAILY EMAIL REMINDERS
1

DAILY EMAIL REMINDERS

Hour Timesheet will send daily email reminders to those employees who don't enter hours worked daily.

REASON REQUIRED
2

REASON REQUIRED

Employees who don't enter daily time entries can be prompted to enter a reason for the tardy entry. Hour Timesheet also requires the user to enter a reason for editing worked hours previously entered data on a timesheet.

CORRECTION TIMESHEET PROCESS
3

CORRECTION TIMESHEET PROCESS

Hour Timesheet includes a correction timesheet process providing alerts (emails) to supervisors and site admins when correction timesheets are created.

DETAILED AUDIT LOG
4

DETAILED AUDIT LOG

Hour Timesheet includes a real-time detailed employee timesheet audit trail that captures all entries, edits and corrections. The detailed audit trail captures an IP address and a time and date stamp of each entry made to the time card.

CUSTOM SETTINGS
5

CUSTOM SETTINGS

Hour Timesheet includes the option of having an 8-day timesheet for those hourly employee needing to track 9-10 hour days without charging to overtime.

Need some help with setting up your accounting software to integrate with your DCAA (Defense Contract Audit Agency) Compliant timekeeping Software Solution? Ask one of our many referral partners who have decades of experience with DCAA timekeeping requirements and timekeeping procedures and DCAA audit procedures.

Government contracting requires all hours to be tracked by both hourly and salaried employees. Hour Timesheet includes the ability for employees are able to track time again overhead, G&A, B&P as well as any other non-billable codes and billable labor cost.

Check out Hour Timesheet with full DCAA compliance and allow your employees to track time on the internet, mobile app or any remote device.

Check out our  DCAA Compliant Time Tracking Software Solution listing in the Apps for QuickBooks Desktop Marketplace website.

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

Start your 30-day free trail now.

Additional Resources

Can managers change employee timesheets?

Google Play Timekeeping App Listing

10 Signs You Need Web-Based Timekeeping Software

Web-based Timekeeping Software Top 10

Reasons YOU Need Hour Timesheet

top 10 reasons

  1. You spend more than 5 minutes each week tracking down missing employee timesheets
  2. You manually enter employee work hours into your 3rd party payroll software to track time even though you already have a web-based timekeeping software solution.
  3. Your employees have trouble with basic math and time management isn't on the top of their list.
  4. Your non-exempt employees track overtime manually
  5. Your employees bill rate varies from job to job
  6. Your workforce telecommutes and dreams of a free time tracking app
  7. You’ve been known to look for an employee only to remember 2 hours later that they took the day off.
  8. You have that questionable employee who is never around when need him
  9. Your tired of killing trees and wasting paper on printed timesheets
  10. You would rather go to the dentist then process payroll.

Our experts with over 20 years in the time tracking software industry experience are excited to hear from you.

We understand organizations aren't cut from the same mold, that's why Hour Timesheet lets business owners define your integration needs.

Hour Timesheet Payroll Integrations

  • QuickBooks
  • Paychex
  • ADP
  • Deltek

The Hour timesheet mobile app lets you connect with just about anyone, anywhere. Start tracking employee time for both billable hours and non-billable hours today. Come check out the best time tracker app in the marketplace. Sign up for our 30-days free plan for the simplest time entry software on the market.

Additional Resources

Green Business, Greener Pastures: Ways Business Owners are Helping the Environment While Saving Money

6 Reasons Why Going Paperless Benefits Your Business

 

"Absolutely the best web-based timekeeping software on the market today"

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

Start your 30-day free trail now.