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DCAA Compliance With QuickBooks Software

DCAA Compliance With QuickBooks Software

When you are in the business of federal government contracts, DCAA compliance is non-negotiable. DCAA stands for the Defense Contract Audit Agency. QuickBooks provides an accounting package that is well suited for small to mid-sized businesses looking for DCAA compliance. QuickBooks offers two options and several different versions depending on your unique business requirements. QuickBooks offers both a desktop solution and an online tool, and either can be set up to be DCAA/Federal Acquisition Regulation (FAR) Compliant, especially with our DCAA compliance checklist. The keys are Job Costing and Labor Distribution. 

DCAA Contracts

Potential government contractors who wish to bid on certain types of contracts should know that although the contracts vary, there is a difference between direct costs and indirect costs.

  • A direct cost is a cost that can be tied directly to the production of goods or services. A direct cost may be variable. An example of a direct cost is labor cost or manufacturing supplies.
  • Indirect cost allocations include overhead expenses such as rent and insurances and general expenses like accounting department costs. Indirect costs are harder to pin down and harder to allocate to a specific project or item. Using a timesheet tracking application in conjunction with an accounting package like Quickbooks, you can better control the indirect cost allocations, particularly for general and administrative expenses, to the correct cost objective.
  • One type of DCAA contract is called a cost reimbursable contract, where the direct cost and a percentage of the indirect costs are paid. This type of contract requires the accounting system approval under FAR subpart 16.3.

What is QuickBooks?

QuickBooks is an accounting software solution that allows for integration across multiple platforms to make payroll quick and easy. They have two main products that make their service worthwhile.

QuickBooks Desktop

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. QuickBooks with Hour Timesheet will be invaluable in pursuing this kind of opportunity.

Is QuickBooks DCAA Compliant?

Yes, QuickBooks can be set up to be DCAA compliant. There are three areas to consider:

  • Chart of Accounts establishment
  • Flow of transactions
  • Cost and Computations

It’s important to note that one should always bear Generally Accepted Accounting Principles (GAAP) in mind when analyzing your accounting system.

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 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.

We Can Help

Hour Timesheet isn’t just a timekeeping software provider for government contracts looking to pass a DCAA audit. We also partner with dozens of CPA firms and consultants who can assist you with the entire life cycle of getting a DCAA-approved accounting system. Give us a call today! We can introduce you to our extensive list of experienced partners.

ADP Timesheet Integration

QuickBooks and ADP Timesheet Payroll Integration

3 Solutions Working Together – If you use ADP as your payroll provider and do your invoicing in QuickBooks, you’re in luck. Hour Timesheet’s 5-star reviewed software integrates with both solutions. 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, integrating with ADP Workforce or another payroll provider is even easier.

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

Already have Hour Timesheet?

Contact us today to connect your account to ADP.

support@hourtimesheet.com

Want Help With Your Integration?

If you’d like help getting the ADP or QuickBooks Time Tracking integration setup, we’ve got you covered. We’ll be right there with you via phone, email, or screen-sharing session to make sure you are successful. Call us anytime at 832.942.9556.

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DCAA Compliance Explained

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.

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, 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.

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.

Deltek Timekeeping

A DCAA Compliant Alternative to Deltek Timekeeping

When a business undertakes a government contract, part of the agreement is for their timekeeping and accounting procedures to comply with the Defense Contract Audit Agency (DCAA).  DCAA-compliant contracts require daily time tracking, precise records, detailed reporting, and specific manager approvals, all for DCAA audit purposes. Ensuring DCAA compliance can be a lengthy and confusing process if not using the right tools.

There are expensive and not-so-user-friendly software programs such as Deltek that don't deliver some of the features that other products such as Hour Timesheet do. The following are some of the reasons an increasing number of companies are switching to Hour Timesheet.

Regular Reminders

Hour Timesheet features both daily and weekly reminders to employees and managers when timesheets are due. This ensures that everyone working for the company, whether remotely or in the office, regularly tracks their time. DCAA compliance requires daily timesheet entries by every employee and for managers to approve their hours. This must happen whether they’re working on the DCAA that day or not. They don't let it accumulate and try to submit them at the end of the month in a hurry.

Accurate Charging Codes

Hour Timesheet’s DCAA compliant timekeeping software restricts employees charging to an expired charge code. With Hour Timesheet, employees can only enter labor time for specified job code assignments and labor categories, with the ability to set maximum limits or expiration dates. Thanks to this feature, managers do not need to worry about unauthorized or excessive labor costs for their tasks. This built-in feature prevents government contractors from making incorrect entries, resulting in time-consuming corrective actions, delayed invoice payment, or the most severe DCAA audit findings.

Regular timesheet processing

Part of the DCAA compliant timekeeping requirements is that timesheets must be processed every month, if not more frequently. Hour Timesheet's timekeeping procedures allow for this to happen. A report can be generated to illustrate the number of timesheets generated for the month, information on costs, and billing.

A detailed audit trail

As DCAA compliant time tracking software, Hour Timesheet is DCAA compliant. That means it has a long and detailed audit trail. If an employee or manager edits a time card after it has been submitted, the DCAA will want to know who made the change, when it was made and why? Hour Timesheet creates an un-editable audit log that provides a permanent list of all the additions, subtractions, and changes that have been made to the employees’ timesheets.

Manual time tracking

The Hour Timesheet time-entry feature can help protect and allow your business to grow with the timekeeping capabilities you need to be DCAA compliant. Our manual time tracking features will help you track direct and indirect costs on a project-by-project basis and tackle head-on one of the most daunting aspects of DCAA compliance by creating a detailed audit trail. Often the timekeeping requirements of being government contractors can be overwhelming. Let, Hour Timesheet help.

An up-to-date sick/personal leave balance

With Hour Timesheet, all employee's current sick/personal leave and vacation balances are always prominently displayed on their timesheet entry page. There is no need to wait for a regular pay stub to review these balances.

For more information on DCAA timekeeping requirements and how Hour Timesheet is the software to meet the compliance needs, contact us today. We offer a FREE 30-day trial of our software, because we know that you’re going to love it!

QuickBooks Integration Q&A

QuickBooks Integration Q&A

Common questions and answers for Hour Timesheet and QuickBooks Integration

Question 1. How does QuickBooks sync data with Hour Timesheet?

Answer. We utilize the Web Connector (provided by QuickBooks) to sync company data between QuickBooks Desktop and Hour Timesheet in real time. The version of QuickBooks Online offers a direct sync between the two systems.

Question 2. What type of data does QuickBooks sync with Hour Timesheet?

  • Employees: The sync tool will import all “active” QuickBooks employees and vendors (optional) into your Hour Timesheet account. Only vendors that have a First and Last Name field value in QuickBooks will be imported.
  • Customers/Jobs: The sync tool will import all “active” Customer/Jobs in to your Hour Timesheet account.
  • Service Items: The sync tool will import all “active” Service Items in to your Hour Timesheet account.
  • Classes: (optional) The sync tool will import all “active” Classes in to your Hour Timesheet account.
  • Payroll Items: (optional) The sync tool will import all “active” Payroll Items in to your Hour Timesheet account.

Question 3. How do I add a new data in Hour Timesheet (employees, customers, jobs, etc)?

Answer. New data will need to be entered into your QuickBooks company file first. Once the new data is entered, you can use the web connector tool to import your new data in to your Hour Timesheet account.

Question 4. How will my employees receive their Hour Timesheet login credentials?

Answer. Hour Timesheet will send an email invitation to each employee with the link and login ID to the Hour Timesheet account included in the body of the email. Once the employee accesses the link, the employee will be prompted to create an initial password to login to Hour Timesheet.

Question 5. Can my employees track time against customers and jobs, service items, classes and payroll items?

Answer. Yes, your employees will be asked to select from a list of authorized charges. Employee authorized charges (EOC) are defined by the admin at the employee level. This feature enables the employees to only see EOC’s that are assigned to each user.

Question 6. How do I delete information in my Hour Timesheet account?

Answer. Once you mark the data (employee, customer, job, etc.) as inactive in QuickBooks, the data will be updated in your Hour Timesheet account upon performing the data sync.

Question 7How does Hour Timesheet identify billable vs non-billable items on the timesheet?

Answer. By default, any EAC that includes a service item will be marked as billable time in QuickBooks.

Question 8. Can employees add comments to a timesheets?

Answer. Yes, Hour Timesheet includes a feature to allow employees to input general comments and daily comments.

Question 9. I exported my employee's time into my company QuickBooks file, but now I need to make corrections. How do I do this?

Answer. Hour Timesheet does not allow processed timesheet data to be edited. Hour Timesheet will display a link on the Timesheet Review page that will allow the user to create a “corrected” copy of the timesheet. The detailed audit trail will show the log of all changes made to the revised timesheet.

Question 10. Can multiple supervisors approve a single timesheet?

Answer Yes. Hour Timesheet will allow for multiple supervisors to approve a timesheet.

Question 11. We have a requirement for our employees to enter hours worked.daily, does Hour Timesheet include daily reminders?

Answer Hour Timesheet includes the option to turn on daily notifications to serve as reminders for those employees who forget to enter time daily.

Question 12. I track my employee leave balance data manually in an Excel spreadsheet because QuickBooks doesn’t include all of the options I need, can Hour Timesheet manage leave?

Answer - Hour Timesheet has a full-function leave management feature that will allow accrued and earned types of leave tracking.

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Additional Resources

QuickBooks Tutorials for Accountants

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DCAA Compliant Timekeeping Software

DCAA Compliant Timekeeping Software

Having been in the industry for over 25 years, there are a number of key topics that continue to come up when talking with a government contractor about DCAA timekeeping requirements.  One common theme I hear time and time again is centered around managing correction previously entered time entries as well as enabling someone other than an employee to update an employee's timesheet. There are many sources on the web and in your google searches that are willing to charge you for FAR training, consulting fees or "compliant bookkeeping. Go ahead, do a little "google research" or just ask one of our many referral partners.

Advice from the experts

Everything needs to be tracked - Time spent on overhead tasks, bid and proposals, training, leave (paid or unpaid) and yes, even uncompensated time should be recorded on a timesheet. Bottom line, all hours worked by employees are required to be tracked by a companies timesheet software.

Timekeeping isn't just for hourly employees -Employees working on contract and in the corporate office need to track hours. This includes salaried and hourly employees. This includes both labor cost and indirect labor cost (overhead, G&A, B&P)

Corrections on timesheets are okay - Budgets change, mistakes are made, people forget.. that's why documented timekeeping procedures that include a correction process is imperative.

Audit logs are the key - With the internet, all things are possible. Anywhere. Anytime. A detailed audit trail real time edits to all timesheet entries. The time, the place as well as the details.

Do practice floor checks - let your employees know what to expect in the event that the defense contract audit agency does to a floor. Quarterly planned practice floor checks will put your employees at ease.

Just saying it doesn't make it true - Any software can claim that their software meets dcaa compliance and FAR regulations but we don't just say it. We guarantee it. Our experts of 20+ years will make sure!

Additional Resources

Measure Costs Right: Make the Right Decisions

How To Calculate And Track Overhead Costs

How do I Calculate Overhead Costs?

Federal Acquisition Regulation Full Download

Federal Timekeeping Policies for Government Contractors (chron.com)

Record-keeping Requirements under the Fair Labor Standards Act

DCAA Approved Timekeeping System

DCAA Approved Timekeeping System

Is Your Company Ready?

Most likely, your answer to this question is, “I don’t know”. It's often the case that a company thinks maybe they could be ready for a DCAA audit, but has little confidence that they would pass. On the other end of the spectrum, are you a company who thinks you're definitely ready for DCAA because you have an expensive or robust accounting and/or timekeeping system?

Unfortunately, if you never had DCAA in your office before, then you probably are not ready, regardless of your systems.

Contrary to what you may have heard, you cannot “buy” a DCAA-approved accounting system. No accounting or timekeeping system has ever, or will ever, receive DCAA’s stamp of approval. As a government agency, they will not endorse a product in that manner. In addition, DCAA never “approves” your systems anyway. Instead, they test your end to end system, policies and procedures and determine if it is “adequate”. In a nutshell, they want to make sure that you walk the talk and you do it according to regulation.

How can you prepare for an Audit?

Test yourself

Internal audits (or as we call them “mock audits”) are an ideal way for you to determine where your gaps are and correct those gaps. They are also great to get you ready for an audit as practice. Having an outside party review your accounting system, timekeeping system, chart of accounts, policies and procedures, then test you on those, is the only way to ensure you are ready. Without such a test, you are walking into the battlefield blind. -  Arrowhead Solutions, LLC,

What do they test (or look for)

  • Daily time entry for every employee
  • Are all employees capturing all hours worked (paid and unpaid)
  • A detailed audit log or audit trail of every entry made to the employees time card
  • A system that tracks time by project or job codes
  • The ability to capture both direct labor cost and indirect labor cost
  • Supervisor submissions and approvals
  • Documented timekeeping procedures
  • All time worked (on government contracts) and overhead

Read similar post about DCAA Compliant Timekeeping Practices

DCAA Compliant Timekeeping Key Requirements

Advice from the Experts

Tired of Deltek Timesheets?

For more information becoming a referral partner, visit our partner or visit us in the QuickBooks marketplace listing.

Referral Partner Listing

DCAA Assist

Arrowhead Solutions

Edward Moore

Gov-Con Solutions

ReliAscent

Time Card Features for Employees In Hour Timesheet

Timesheet Sections The “My Timesheet” can be subdivided into 4 sections

  1. Clock In/Clock Out – this section is OPTIONAL
  2. Hours Worked – this section is required for QuickBooks timesheet integration
  3. Notes/Summary – section for entering daily hours worked notes or viewing leave balance data or timesheet summary overview.
  4. Timesheet Audit Log – non-editable activity log of all entries on the employee timesheet.

Section 1. Clock In/Clock Out

This section is auto populated with employee who clock in/out utilizing the web clock on the Hour Timesheet login page. Daily hours are totaled by calculating the time between “clocked in” and “clocked out”. A user may have as many in/out pairs as required. This feature is optional and is hidden by default if no values are present in the in/out section of the timesheet.

Section 2. Adding Work Hours and Leave Hours

  • Adding Work Hours - this section contains a set of drop down boxes that are available once the user clicks the “Add Work Hours” button on the timesheet. These codes are referred to as “Employee Authorized Charges”. These selections are designed limited to codes each user is “authorized” to use when charging time on the timesheet.
  • Adding Leave Hours - this section contains a set of drop down boxes that are available once the user clicks the “Add Leave Hours” button on the timesheet. These codes are the leave types that are available to each user of Hour Timesheet.
  • Copy Previous Timesheet Codes – this feature allows the user to copy the codes from the previous timesheet period to the current period.

Section 3. Timesheet Notes/Hours Summary/Leave Balance

  • Adding Notes – there are two types of notes that may be entered in the timesheet. General notes are notes that apply to the entire timesheet. Daily hours worked notes apply to the single entry of time entered for a specific authorized charge code on a specific day.
  • Hours Summary – This graphic shows the breakdown of hours worked on the current timesheet divided into the following categories 1) Regular Hours 2) Leave Hours 3) Overtime Hours
  • Leave Balances – Displays the current leave balance for each employee.

Section 4. Timesheet Audit Log

This section of the timesheet is auto populated with each entry into the employee timesheet. The audit trail captures the username of the person who made the timesheet entry, the IP address of the person who made the entry along with a time and date stamp of the entry made. The audit trail is not editable.

Hour Timesheet Simple Time Tracking