Government contractors face an increasingly complex landscape when it comes to maintaining compliance with Defense Contract Audit Agency (DCAA) regulations. The Defense Contract Audit Agency (DCAA) is the governing agency responsible for ensuring that government contracts are executed with transparency, accuracy and adherence to established regulations. For contractors seeking to win and maintain government contracts, choosing the best DCAA compliant timekeeping software isn’t just a matter of convenience—it’s essential for business survival.
Understanding DCAA Compliance Requirements
DCAA compliance means that a contractor’s policies and systems for managing money are in accordance with the … DCAA’s Contract Audit Manual (DCAM). The stakes couldn’t be higher: non-compliance can result in contract termination, financial penalties, and permanent disqualification from future government work.
Core DCAA Timekeeping Requirements
Total Time Accounting (TTA): One of the fundamental rules is the concept of total time accounting. This means tracking ALL employee hours—not just billable time. This includes:
- Direct labor hours on government contracts
- Indirect time for overhead, general & administrative (G&A) tasks
- Paid and unpaid leave
- Training time
- Business development activities
Daily Time Entry: The DCAA stipulates that GovCons should show “the correct distribution of time by project numbers, contract number or name, or other identifiers for a particular assignment”. Employees must record their time daily as work is performed—no retroactive entries or future-dated submissions.
Audit Trail Requirements: The time tracking system must meet federal IT security standards. Your time tracking software must have secure access controls and meet government-grade data protection requirements. Every change to timesheets must be documented with timestamps, user identification, and justification.
Segregation of Duties: The agency states that “the responsibility for timekeeping and payroll accounting should be separated”. This prevents fraud and ensures proper oversight of time recording processes.
Why Hour Timesheet is the Best DCAA Compliant Timekeeping Software
After over 25 years in the government contracting industry, Hour Timesheet has developed a solution specifically designed to address every aspect of DCAA compliance. Here’s why Hour Timesheet stands above the competition:
1. Comprehensive Audit Trail System
Hour Timesheet maintains detailed audit trails, which include timestamped logs of all timesheet entries. These audit trails are instrumental during DCAA audits, providing irrefutable evidence of compliance and facilitating smoother audit processes.
The system captures:
- Username and IP address for every entry
- Exact timestamps of all timesheet modifications
- Detailed change logs showing what was modified and why
- Supervisor approval records with electronic signatures
This level of documentation ensures that during a DCAA floor check, auditors can trace every hour worked back to its original source with complete transparency.
2. Automated Daily Time Entry Compliance
Hour Timesheet includes automated reminders that prompt employees to record their time daily, addressing the DCAA requirement for timely entries. The system automatically:
- Sends daily reminders to employees who haven’t completed timesheets
- Prevents future-dated time entries
- Flags incomplete daily time records
- Enforces real-time time tracking protocols
This automation eliminates the human error factor that often leads to compliance failures during audits.
3. Total Time Accounting (TTA) Support
The software also supports indirect time tracking, allowing users to assign non-billable codes such as G&A, Overhead, and Business Development. This feature is essential for proper cost allocation and compliance with DCAA standards.
Hour Timesheet enables contractors to:
- Track both direct and indirect labor costs accurately
- Assign appropriate job codes to all activities
- Maintain proper cost allocation across multiple contracts
- Generate detailed reports for cost analysis and compliance verification
4. Seamless Integration with Accounting Systems
The software’s ability to integrate seamlessly with popular payroll systems like QuickBooks, ADP, and Gusto further streamlines operations, ensuring that time entries and job costing data are consistently aligned with payroll processing.
This integration provides:
- Automated data synchronization between timekeeping and payroll
- Elimination of manual data entry errors
- Real-time cost reporting for project management
- Streamlined billing processes for government contracts
5. Mobile and Remote Work Support
Hour Timesheet also excels in supporting remote work environments. With mobile and location tracking features, employees can record their time and location from anywhere, ensuring that even off-site workforces remain compliant with DCAA standards.
Key mobile features include:
- GPS location tracking for off-site work verification
- Break and lunch time tracking capabilities
- Drive time recording for travel between client sites
- Secure mobile access with government-grade security
6. Supervisor Approval Workflows
Hour Timesheet facilitates multiple supervisor signatures, allowing both employees and supervisors to sign off on timesheets digitally. This ensures proper segregation of duties and creates a clear chain of approval for all time entries.
The approval process includes:
- Electronic employee certification of time accuracy
- Supervisor review and approval workflows
- Automated routing to appropriate managers
- Locked records after final approval to prevent unauthorized changes
Supporting Documentation and Proven Track Record
Industry Recognition and Experience
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 compliant timekeeping software and requirements and guidelines. This extensive experience translates into practical solutions that address real-world compliance challenges.
Guarantee of Compliance
Any software can claim that their software meets DCAA Compliance and Timekeeping Software regulations but we don’t just say it, we guarantee it. Our experts of 20+ years will make sure! Hour Timesheet backs up this guarantee with:
- Free implementation support from DCAA compliance experts
- Ongoing consultation to ensure continued compliance
- Regular updates to address changing regulations
- 24/7 customer support for audit preparation
Data Security and Retention
Hour Timesheet keeps the timesheets indefinitely for all employees, current, and past. This exceeds DCAA requirements for record retention and ensures that historical data is always available for audits, no matter how long after the fact they occur.
Real-World Benefits for Government Contractors
Streamlined Audit Preparation
The real-world success of Hour Timesheet is evident through numerous client testimonials. Users frequently commend its ease of use and the pivotal role it plays in maintaining compliance. When DCAA auditors arrive for floor checks, contractors using Hour Timesheet can:
- Instantly produce required documentation
- Demonstrate transparent time tracking processes
- Show clear audit trails for all time entries
- Prove segregation of duties compliance
Cost-Effective Compliance Solution
At just $8 per user per month, Hour Timesheet provides enterprise-level DCAA compliance capabilities at a fraction of the cost of building internal systems or hiring expensive compliance consultants. The 30-day free trial with full functionality allows contractors to test the system’s capabilities before committing.
Risk Mitigation
Unfortunately, DCAA timekeeping compliance is one of the primary reasons government contractors fail an audit. Hour Timesheet can help. By implementing Hour Timesheet, contractors significantly reduce their risk of:
- Failed DCAA audits
- Contract termination for non-compliance
- Financial penalties and cost disallowances
- Suspension from future government contracting opportunities
Comparison with Competitors
While other timekeeping solutions may claim DCAA compliance, Hour Timesheet distinguishes itself through:
Purpose-Built for Government Contracting: Unlike generic time tracking tools adapted for DCAA use, Hour Timesheet was designed from the ground up specifically for government contractors.
Proven Track Record: With 25+ years of industry experience and thousands of successful DCAA audits, Hour Timesheet has the longest track record of any purpose-built DCAA solution.
Expert Support: Free setup assistance and ongoing support from DCAA compliance experts—not just generic technical support.
Comprehensive Feature Set: Other solutions may offer some DCAA features, but Hour Timesheet provides a complete ecosystem of compliance tools in one integrated platform.
Implementation and Support
Hour Timesheet’s commitment to customer success extends beyond software delivery. Every new client receives:
- Free implementation consultation with DCAA experts
- Customized setup based on specific contract requirements
- Employee training on DCAA compliance procedures
- Ongoing support throughout the contract lifecycle
This level of support ensures that contractors don’t just have compliant software—they have a compliant process that will withstand the most rigorous DCAA scrutiny.
Conclusion
In the competitive world of government contracting, choosing the best DCAA compliant timekeeping software is not just about meeting minimum requirements—it’s about gaining a competitive advantage through superior compliance capabilities. Hour Timesheet’s combination of comprehensive features, proven track record, expert support, and cost-effective pricing makes it the clear choice for contractors serious about DCAA compliance.
Hour Timesheet emerges as a pivotal ally in this endeavor, offering a DCAA-compliant timekeeping solution that simplifies the audit process. Through its array of features—such as precise time tracking, job costing, and seamless integration with payroll systems—Hour Timesheet equips contractors with the necessary tools to maintain compliance effortlessly.
For government contractors looking to secure their future in federal contracting, the choice is clear: Hour Timesheet provides not just software, but a complete compliance partnership that ensures success in every DCAA audit.
Ready to experience the best DCAA compliant timekeeping software? Start your free 30-day trial today and discover why thousands of government contractors trust Hour Timesheet for their most critical compliance needs.
