For government contractors operating under federal contracts, DCAA compliance isn’t just a regulatory requirement—it’s essential for business survival. The choice between time tracking solutions can make the difference between passing audits with confidence and facing costly compliance failures. While both Hour Timesheet and QuickBooks Time offer time tracking capabilities, their approaches to DCAA compliance couldn’t be more different.
Hour Timesheet provides a purpose-built solution specifically designed from the ground up for DCAA requirements. Every feature, workflow, and reporting function has been crafted with government contractor compliance in mind. In contrast, QuickBooks Time operates as a general business time tracking tool that requires significant third-party integrations, extensive customization, and ongoing maintenance to achieve even basic DCAA compliance.
Key DCAA Requirements Comparison
The Defense Contract Audit Agency has strict requirements for daily time entry that form the foundation of compliant timekeeping. These requirements demand that all employees working on government contracts record their time daily, with no advance entries or retroactive time logging allowed beyond the same business day.
✅ Daily Time Entry Requirements
Hour Timesheet:
Built-in daily time tracking reminders and alerts
Prevents time entry in advance or days after the fact
Automated notifications to ensure daily compliance
Real-time validation of daily time entry
QuickBooks Time:
Basic time tracking capabilities
Requires manual processes to enforce daily entry
No built-in DCAA-specific compliance alerts
Relies on manager oversight for daily entry compliance
✅ Audit Trail & Change Tracking
When DCAA auditors review your timekeeping system, they’re looking for comprehensive audit trails that document every change, modification, and approval in your time tracking process. The ability to demonstrate who changed what, when they changed it, and why the change was necessary can determine whether you pass or fail an audit.
Hour Timesheet:
Detailed audit trails for all time entries and modifications
Automatic reason code prompts for time changes
Complete history of all edits with timestamps
Built-for-purpose audit reporting
QuickBooks Time:
Basic edit history available
Limited audit trail functionality
Requires third-party solutions for comprehensive audit trails
Manual processes needed for change documentation
✅ Supervisor Approval Process
DCAA compliance requires robust supervisor approval processes that ensure all time entries are reviewed and approved by authorized personnel before being used for billing purposes. The complexity of government contracts often demands multiple levels of approval, with different supervisors responsible for different aspects of project oversight.
Hour Timesheet:
Multi-level supervisor approval workflows
Manager approval tracking and reporting
Automated approval notifications and reminders
Complete approval audit trail
QuickBooks Time:
Basic approval functionality
Limited workflow customization
Requires additional configuration for DCAA compliance
Less robust approval reporting
✅ Cost Allocation & Job Costing
Accurate cost allocation lies at the heart of DCAA compliance, as government contracts require precise tracking of labor hours to specific projects, tasks, and contract line items. The ability to demonstrate that billed hours directly correspond to work performed on specific contracts is fundamental to maintaining contractor eligibility.
Hour Timesheet:
Direct integration with authorized charge codes
Automated cost allocation to projects/contracts
DCAA-compliant labor distribution
Real-time project cost tracking
QuickBooks Time:
Basic project time tracking
Requires QuickBooks Online/Desktop integration
Manual setup required for proper cost allocation
Limited DCAA-specific cost reporting
Implementation & Setup
The speed at which you can achieve DCAA compliance directly impacts your ability to bid on and perform government contracts. Extended implementation periods can delay contract start dates and increase overall project costs.
Hour Timesheet
Setup Time: Minimal – designed for DCAA out-of-the-box
Configuration: Pre-configured DCAA compliance features
Training: Streamlined for government contractors
Maintenance: Automatic updates maintain compliance
QuickBooks Time
Setup Time: Extensive – requires significant customization
Configuration: Manual DCAA compliance setup needed
Training: General time tracking + compliance training required
Maintenance: Ongoing compliance monitoring required
Reporting & Documentation
DCAA audits require extensive documentation and reporting that demonstrates compliance with federal acquisition regulations. The quality and accessibility of this documentation often determines audit outcomes.
Hour Timesheet
Advantages:
DCAA-specific reporting templates
Automated compliance reports
Audit-ready documentation
Integration with payroll for labor distribution
QuickBooks Time
Limitations:
Generic reporting requires customization
Additional tools needed for DCAA reporting
Manual report generation for audits
Limited compliance-specific documentation
Integration Capabilities
Modern government contractors require time tracking systems that integrate seamlessly with their existing accounting, payroll, and project management tools. The quality of these integrations can significantly impact operational efficiency and compliance accuracy.
Hour Timesheet
Direct QuickBooks Desktop & Online integration
Payroll system connectivity
Mobile app with offline capability
API for custom integrations
QuickBooks Time
Native QuickBooks integration
Limited third-party DCAA compliance tools
Requires additional software for full compliance
May need GovBooks or similar add-ons
Pricing Considerations
Understanding the true cost of DCAA compliance requires looking beyond initial subscription fees to include implementation, training, maintenance, and ongoing compliance monitoring expenses.
Hour Timesheet
All DCAA compliance features included
No additional compliance modules required
Transparent pricing for government contractors
Cost-effective for compliance requirements
QuickBooks Time
Base subscription + additional compliance tools
Third-party integration costs
Potential consulting fees for setup
Hidden costs for full DCAA compliance
Making the Right Choice
Government contractors requiring immediate DCAA compliance will find Hour Timesheet’s purpose-built approach significantly more efficient than attempting to adapt a general business tool. Organizations that need automated compliance monitoring, minimal implementation time, and dedicated government contracting support will benefit from
Hour Timesheet’s specialized focus
Government contractor requiring immediate DCAA compliance
Need purpose-built compliance features
Want minimal implementation time
Require dedicated government contracting support
Need automated compliance monitoring
Seeking lower total cost of ownership for compliance
QuickBooks Time limitations:
Not DCAA compliant out-of-the-box
Requires significant additional investment
Complex setup and maintenance
Generic solution not optimized for government contractors
Key Take-Aways
- “Built for DCAA, not adapted for it” – Hour Timesheet was designed specifically for government contractor compliance requirements
- “Compliance confidence from day one” – Immediate DCAA compliance without complex setup or third-party add-ons
- “Lower total cost of compliance” – Avoid hidden costs of making QuickBooks Time DCAA compliant
- “Audit-ready automatically” – Built-in audit trails, reporting, and documentation that auditors expect
