Features To Look For In DCAA Compliant Time Tracking Software

Government contractors that are hoping to get awarded projects from the government have to comply with the regulations set in place by the DCAA. The Defense Contract Audit Agency outlines exactly how businesses should be tracking their time and documenting accounting when working on a government project. The DCAA will audit companies, and ensure they are following these guidelines. The DCAA compliant timekeeping procedures can be tricky to navigate, which is why Hour Timesheet has compiled a DCAA compliance checklist. This makes it easy to prepare for an audit, and make sure your company is in line with DCAA regulations.

DCAA Compliance and Time Tracking

Let’s say you’re looking for a long-term solution to DCAA compliance. Time tracking is a big part of many businesses, and adding in DCAA compliance makes the process lengthy and tiresome. Luckily, companies like Hour Timesheet exist to make it easy for businesses. You don’t have to worry if your time tracking meets DCAA requirements, because we’ve already done it for you. Even if you’re already using QuickBooks, and you’re just looking for some extra help – Hour Timesheet can integrate directly with QuickBooks.

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 a different set of rules and are required to track time, both hours for exempt and non-exempt employees. They also have certain rules in place involving tracking indirect costs, such as labor costs. Even organizations that 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.

What to Look for When Evaluating a DCAA Compliant Timekeeping Software? When researching tools, it’s important to make sure the software that you are evaluating meets certain criteria. Whether you’re an organization with salaried employees, or government contractors hoping to win a government contract, it’s important to partner with companies you can trust. Here are some things to look for when searching for a timekeeping system:

Reminders to Track Time Daily

It’s common for employees and contractors to forget to track time, which can cause a lot of issues for DCAA audit trails. Hour Timesheet offers daily reminders to track time and ensure it’s getting done accurately.

Online Approvals

Whether it’s approvals for time log edits or approvals for charge codes, it’s important to have a timekeeping system that allows approvals online.

Mobile Access (iOS and Google Play)

Managers can access Hour Timesheet from any computer, or through the mobile app, and submit approvals online.

Detailed Audit Log and Audit Trail

Whenever the DCAA performs an audit on your company, they’re going to want to see records of everything. The best practice when hoping to win future contracts is to keep detailed records and trails of all time, labor, and cost history. This will make it easier for you and the DCAA when the time comes for an audit.

Real-Time Location Tracking

Government contractors often perform work offsite and on the location of clients or at work sites. This can make time tracking difficult when managers are unsure where workers actually are. Hour Timesheet offers real-time, accurate location tracking so that your records can be as accurate as possible.

Integration with Accounting Software (QuickBooks Online & QuickBooks Desktop)

This is arguably one of the most important features in time tracking software. The DCAA not only wants to audit the company’s timekeeping requirements, but they also want to do an accounting system audit and ensure those records are accurate. By connecting your timekeeping software to your accounting system, such as QuickBooks, you’re making this process seamless. The DCAA will look at things like labor distribution, cost objectives, indirect costs and direct costs, and uncompensated overtime. Everything needs to be tracked to ensure proper DCAA compliance with QuickBooks.

Knowledge of Government Contracting

At Hour Timesheet, we believe the most important thing to look for in a timekeeping system is a demonstrated knowledge about the DCAA system. Without this knowledge, the software may not be able to provide what it promises. It’s important to work with a company that has an in-depth understanding of how the federal government awards contracts, audits companies and enforces DCAA regulations.

Work Smarter, Not Harder

Some other features that can be very beneficial in a timekeeping system include an online web clock, correction timesheet workflows, and online job tracking. These make it easier for everyone involved to do their job.

Are you wasting time and money on the following?

Correcting math errors on hours worked and other time entry activities

Tracking down late or missing weekly timesheets

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 and makes DCAA compliance easy. Give us a try FREE for 30 days. No credit card is 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.

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Incorporating Analytics in Timekeeping Software

Incorporating Analytics in Timekeeping - clock on desktop with cell phone and notebook

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.

What is digital timekeeping software?

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 time off, and calculate payroll more accurately. While the data for all of this has always been there, with the help of artificial intelligence, or AI, enabled data analytics tools, companies can work towards these tasks much more efficiently and thus, increase overall profits.

How does data analytics play a part?

Modern employee time keeping devices are powered by two of the fastest-growing technologies: artificial intelligence 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.

What insights can timekeeping software give?

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.

How can time tracking and data analytics benefit employees?

Good timekeeping software with an intuitive interface also allows managers to take care of employees’ interests. Employees can 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 and directly integrate with QuickBooks. This means that timesheet data can 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.

Can time tracking software be used for remote employees too?

We recognize the importance of 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, time management provider such as Hour Timesheet allows workers to do their jobs remotely.

With a workforce time clock, employers won’t have to worry about their employees tracking their work time, they can keep tabs on leave and absence time, and make sure their employees are 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; without this data and subsequent review, analytics in timekeeping software would be useless.

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.

At Hour Timesheet, we strive to make a product that will offer the best, most accurate time tracking, in the most intuitive platform possible. If you want to learn more about our software, contact us today to receive a free, 30-day trial.

Article solely for the use of Hour Timesheet.

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:

Staying connected

Encouraging timely and accurate input

Ability to monitor employee productivity

Improving manager productivity

Improving employee accountability

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

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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

Track Overtime | California Over Time

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

Android App | Time Tracking Android App | Time Tracker | Leave Management

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.

Are timesheets required by law?

Timesheets are a legal document, which are the source of payroll transactions, and are related to a project, customer invoicing. Timesheets serve as the legal authority to pay an employee. … For example, the timesheet policy might require that time worked be reported accurately on the date that such work was performed.

Can my boss alter my timesheet?

While falsification of an employee’s time sheet can be a serious offense, it isn’t illegal for a supervisor or employer to change an employee’s time sheet –as long as it reflects the correct hours that were worked.

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Additional Resources

Record-keeping Requirements under the Fair Labor Standards Act

Electronic Code of Federal Regulations