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,

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 is tracked

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DCAA Compliant Time Keeping Checklist

Best practices

Timekeeping continues to be a hot item for government contractors including DCAA Compliance. Having an Adequate DCAA Compliance Time Keeping Checklist is crucial to successfully securing or maintaining a government contract accounting system. Often deficient timekeeping is the reason for failing a DCAA (defense contract audit agency) audits.

1. The timekeeping system or procedures must be documented in a timekeeping policy or procedure provided to all employees.

2. All of the key elements of an adequate timekeeping and compliant accounting system must be addressed.

3. Every employee must record their time daily.

4. Recording time in advance or days after the fact such as at the end of the week is not acceptable.

5. All time must be charged

6. Time must be charged by day and by project and/or indirect accounts. This includes direct labor cost, indirect labor cost and uncompensated overtime.

7. Employees must record all indirect time.

8. Hours not identifiable to a given project must be charged to a proper indirect cost account.

9. All employee leave time must be recorded.

10. Employees must record all vacation, sick, holiday and other leave time to the proper accounts.

11. Job codes that appear in the system should be initiated by finance or the system administrator.

12. Job codes must be provided to employees authorized to work on a given project.

13. Under no circumstance may personnel work on one project and record time to a different project.

14. Under no circumstance may personnel work on indirect tasks and record time as direct costs to a project or vice versa.

15. Corrections are approved by the employee’s supervisor.

16. Under unusual circumstances where the employee cannot make the changes to timesheet, the accountant or administrator may make such changes with the employee’s consent.

17. All employee time must be signed by the employee.

18. All employee time must be approved by the employee’s supervisor.

19. All employees should be provided at least documented timekeeping training awareness.

20. Periodic monitoring of compliance with time tracking requirements should be conducted by “practice” dcaa audits or floor checks.

21. Timesheets and all corrections must be maintained for a period of at least 2 years. However, project records under a government contract must be maintained for audit purposes for a period of three years after final payment. The requirements for record retention are contained in FAR Subpart 4.7.

Check out more about DCAA Compliant Time Keeping @ Edward D. Moore, CPA dcaaConsulting LLC

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Hour Timesheet includes all the features for a DCAA compliant time tracking software for both small businesses and large. Employee timesheets are in the cloud are available real time with an online approval timesheet process for supervisors.

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Hour Timesheet: The Ultimate Solution for DCAA Compliant Employee Time Cards

DCAA Timekeeping

Hour Timesheet

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

Clock In/Clock Out – this section is OPTIONAL

Hours Worked – this section is required for QuickBooks timesheet integration and Gusto Payroll Integration

Notes/Summary – section for entering daily hours worked notes or viewing leave balance data or timesheet summary overview.

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.

When it comes to time tracking, user-friendly features are crucial. Imagine a clean interface, intuitive buttons, and straightforward navigation.

10 Signs You Need Web-Based Timekeeping Software

Web-based Timekeeping Software Top 10

top 10 reasons

Reasons why you need Hour Timesheet: The industry’s leading web-based timekeeping software.

You may need a new timekeeping software tool if:

You spend more than 5 minutes each week searching for missing employee timesheets.
Despite having a web-based solution for timekeeping, you still manually enter employee work hours into your third-party payroll software.
Basic math and time management are not strong suits for your employees.
Your non-exempt employees manually track overtime.
Your employees have varying billing rates for different jobs.
Your workforce telecommutes and desires a free time tracking app.
You have found yourself searching for an employee, only to remember two hours later that they took the day off.
There is an employee who is rarely present when needed.
You are tired of wasting paper and killing trees with printed timesheets.
Processing payroll feels more dreadful than going to the dentist.

Our team of seasoned experts, with over 20 years of experience in the time tracking software industry, is eagerly looking forward to hearing from you. We are passionate about delivering top-notch solutions and are dedicated to providing exceptional support throughout your journey. Feel free to reach out to us with any questions or requirements you may have.

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

Unveiling the Benefits of Hour Timesheet Integrated with Gusto Payroll

When Hour Timesheet joins forces with Gusto Payroll, the result is a streamlined timekeeping and payroll processing experience that adheres to the needs of businesses of all sizes. Here’s a look at the direct benefits of this powerful integration:

Seamless Synchronization: Employees’ hours are automatically synced with Gusto Payroll, which means no more manual data entry errors or discrepancies, leading to precise payroll processing.
Compliant Workforce Management: Stay updated with labor laws, as the integration ensures compliance with government regulations, providing peace of mind to employers.
Efficiency in Record Keeping: Tailor your reporting with robust data analytics that merge timekeeping data directly into your Gusto payroll reports.
Time Savings: Reduce administrative tasks and focus on driving your business forward while the integrated system takes care of the grunt work.
User Friendly: Enjoy an intuitive interface designed for ease of use, allowing quick adoption by employees and employers alike.
Cost Effective: Eliminate the need for multiple software solutions and reduce overhead costs with an all-encompassing, reliable, DCAA-compliant timesheet and payroll service.

By integrating Hour Timesheet with Gusto Payroll, companies can unlock unparalleled efficiency, accuracy, and compliance, ensuring that payroll processes are handled with finesse. Elevate your business operations—choose this integrated solution trusted by the world’s most innovative companies. Discover the potential by starting your 30-day free trial and see the discernible difference firsthand. Get started with Hour.

Ready to transform your timekeeping and payroll processes? Hour Timesheet offers everything you need—a seamless, efficient, and compliant experience. Don’t let payroll challenges slow down your business momentum. Embrace a solution that’s trusted by industry leaders and start reaping the benefits today.

Experience the full potential of our software with no risk involved. Click the link below to take the first step towards streamlining your business. Remember, every moment saved on administrative tasks is an opportunity for growth and success.

Start Your 30-Day Free Trial Now and witness the transformation in your payroll management.

Questions? Our expert support team is just a phone call or email away, ready to assist you with any inquiries and ensure a smooth transition to efficient timekeeping.

The A – Z Of QuickBooks Compatible Timekeeping

QuickBooks Compatible timekeeping should be as simple as ABC

26 Reasons Why Your Company Needs Hour Timesheet

HTS ABC List Audit trail – know where, when & who updated each timesheet entry. Accountability is important.

Back-end business logic – leave the thinking to us. Restrict overtime, late entries, absentees & more.

Contractor time tracking – 1099s and subcontractors can easily track time in Hour Timesheet.

DCAA compliant time tracking software – 25+ years of experience. Take care of your business and leave compliance to us.

Eliminate manual data entry – enter all your data one time and in one place

Free trial – 30-day no obligation free trial included when you sign up.

Gusto embedded payroll integration – run your Gusto payroll from within your Hour Timesheet account.

Helpful user guides – includes a detailed step-by-step guide of everything you need to know

Integration with QuickBooks, Gusto and ADP built-in

Job costing – stay informed. The who, what when and why of project management.

Knowledge base – easy to access on our website.

Leave management – let us track your employee leave balances. Delete that excel spreadsheet.

Manager approvals – sign one or sign them all. Supervisors will find this task easy as pie.

No credit card required – no obligations when you sign up for the free 1-month trial.

Overtime tracking – take control of your employees. No more surprises after payroll processing

Price – $8/user. Affordable for small businesses

QuickBooks compatible – simple integration with online and desktop versions.

Real time data – access to real-time data 24/7 from in the office or remote job site.

Save time time it takes to run payroll

Track time – on the web, on a smart phone or even a time clock

Uncompensated pay – track all your employee time, know where those extra hours are going.

Vendor tracking – import your 1099 and contractor users from QuickBooks Desktop

Working window-based web clock

X-tra care –our support team loves to help and we look forward to exceeding your expectations.

You won’t regret it – sign up now and see what everyone else is talking about. It’s almost too easy!

Zero cost for 30-days – Once again…. why not give us a try? We guarantee you’ll love it.

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Additional Resources

What is direct labor?