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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Top Timekeeping Tips

Top Employee Timekeeping Tips

Insight into how your employees spend time is critical. That’s why employee timekeeping software tools make so much sense.

Knowing how much time your employees spend on overhead tasks, project, training, and unpaid leave is invaluable data for your business’s future. Tools that track employee hours and employee schedules will greatly reduce your hours spent processing manual time cards. Continue reading to find out more about tips for employee time and attendance and how Hour Timesheet is the perfect solution for you.

Employee timekeeping is not just for hourly employees

Nonexempt employees need to track work time for FLSA compliance but having salaried employees keep a time sheet is helpful too. Exception-based time tracking helps employers track employee attendance and improve the overall management of daily resources. Tools and solutions that include the ability for employees to track hours worked on mobile devices will provide real time job costing and absentee management at the supervisor level.

Internal policies & approval workflows are the keys to a successful employee timekeeping software implementation.

Software tools are a dime-a-dozen, but it’s how you use the software that defines your success. It’s important to document your timekeeping policies and required approval workflows before you invest in a time & attendance tool.

Don’t be afraid of internet-based employee timekeeping software tools

A detailed timesheet audit trail will flag when a user inputs timesheet data into your system from anywhere but the office. The activity log shows the IP address as well as each entry into the user’s timesheet with a non-editable time and date stamp. Online employee time tracking software also allows for integration with your payroll system with a 2-way sync to and from your payroll software like QuickBooks Online or QuickBooks Desktop.

Microsoft Excel is for spreadsheet data, not for employee timekeeping

Yes, you can keep your employees timesheet data in Excel but is that really efficient? Don’t be afraid to use the tools available to your organization to make you more productive. Rely on the experts…not Excel.

BOTTOM LINE… it’s just smart business.

Features such as daily timesheet reminders, employee leave management and embedded payroll processing make Hour Timesheet the perfect choice for your organization’s timekeeping software needs. Available on the web or your iOS and Android mobile app store.

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QuickBooks Online

QuickBooks Desktop

Additional Resources

Measure Costs Right: Make the Right Decisions

How To Calculate And Track Overhead Costs

How do I Calculate Overhead Costs?

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Advice for Successful Grant Management for Nonprofit Organizations

Nonprofit Timekeeping for Your Organization

Managing grant dollars is one of the weakest links in the grant process chain. Directors tend to have detailed and documented process of researching and developing grant proposals. But frequently, that is where the process stops. Unfortunately, the inability of nonprofits to manage grant funds successfully with nonprofit timekeeping software is the single most important reason why a funder may not fund them in the second or third year. Tracking employee hours and timesheet entries by projects and grants can help with these lingering issues. Locate an automated time tracking software for your employees to track hours and manage projects. With an online solution, you’ll be able to gain instant access into how much time your volunteers and employees are spending supporting each grant and lower level items to be tracked.

Track and document everything

Most government grants require significant documentation of all expenditures related to grants. Grant giving organizations require recipients to submit detailed supporting documents before grant payments are made. An employee time card tracking system that has the capacity to automatically generate grant reimbursements based on grant activity not only saves time but improves accuracy. Employee time clock software should include a business rule that requires employees capture all time worked on grand and “non-grant” related activities.

Understand indirect costs and Non-profit Timekeeping

Grants come with indirect costs. Understand whether operating funds for administrative burdens will be covered or if you need to dig up additional funding. Ask your team if your organization is prepared to reallocate its administrative budget to cover the cost and if so for how long. Cost allocation will allow your organization to share overhead expenses across different programs. A good non-profit Timekeeping solution will include time off requests, real time data capture, and a means to track overhead costs. Look for a solution that includes the ability to track volunteer hours using a mobile app for no additional fees.

Know your stuff

Essential to successful nonprofit timekeeping is understanding and adherence to regulations related to grant management. Regulatory compliance starts with federal guides for Cost Principles and Auditing from the Office of Budget and Management. These regulations impact state and local government grants and sets models of best practices for foundation and other private grantors. Utilize the built-in business rules in your timekeeping software to aid with specific regulations. Features like audit logs, daily reminders, online approvals all help your organization achieve compliance.

Staying on Schedule

Being able to quickly see what is coming up or quickly see a high-level view is critical to keeping the process running smoothly. SaaS based employee scheduling solutions can be utilized to track important deadlines and send email reminders of deadlines when they are approaching. This can be a great time-saver for the person who is organizing all the elements of a grant proposal and responsible for the final submission.

Bottom Line: Hour Timesheet and Nonprofit Timekeeping

Hour Timesheet can help you with all of the above requirements for non-profit timekeeping . Call or email now to see a demo at your convenience

Employee timesheet software

Hour Tracking

Payroll Integration (ADP and Gusto)

Leave Management

Online approvals

Email reminders and alerts

Real-time reporting

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Additional Resources

Nonprofits and Labor Laws

Managing Nonprofit Employees

Breaking down your nonprofit’s obligation to pay overtime

$8/user. NO setup Fees. NO support fees. NO contract.

Employee Leave Management

Types of Leave Management

Introduction to Leave Management

Effective leave management is crucial for maintaining employee satisfaction and ensuring smooth organizational operation. A well-structured leave management system allows employees to take necessary time off without disrupting workflow, while helping HR professionals and business owners maintain compliance with labor laws and promote a positive work environment.

Overview of Types of Leave

This guide will discuss the various types of leave that organizations typically offer, including:

Annual Leave
Sick Leave
Parental Leave
Bereavement Leave
Jury Duty Leave
Public Holidays and Special Leave
Remote Work and Flexible Leave

Annual Leave

Definition

Annual leave, often referred to as paid time off (PTO), allows employees to take time off for vacation, personal days, or rest, all while receiving their standard pay.

Calculation and Entitlement

Typically calculated based on the number of days worked per year.
Employees may accrue a certain number of days per month or receive a lump sum annually.
Regulations may vary by jurisdiction, but a common standard is 10-30 days per year.

Request and Approval Process

Employees submit leave requests through a formal process, such as an HR software system or written form.
Managers review requests considering operational requirements.

Rollover Policies

Some companies allow unused leave to roll over to the next year, while others may cap the amount or implement a “use it or lose it” policy.

Sick Leave

Types of Sick Leave

Paid Sick Leave: Employees receive full compensation for days missed due to illness.
Unpaid Sick Leave: Offered when paid leave has been exhausted, or as part of a policy for specific circumstances.
Short-term Disability: Insurance-based leave for extended illness or injury beyond typical sick leave.

Documentation Requirements

May require a doctor’s note or medical certification, especially for extended absences.
Policies should aim to balance trust and verification to prevent abuse.

Managing Abuse

Clear policies and regular communication can minimize misuse.
Implement monitoring and reporting systems for transparency.

Parental Leave

Maternity, Paternity, and Adoption Leave

Provides time off for mothers, fathers, or adoptive parents to bond with their new child.
Leave duration and pay entitlements can vary significantly by country and organization.

Eligibility

Often requires a minimum period of employment.
Some policies may have additional criteria, such as full-time status.

Return to Work Arrangements

Gradual return options or flexible work arrangements may be offered to ease the transition back.

Bereavement Leave

Entitlement

Provides compassionate leave for employees experiencing the loss of a family member.
Typically ranges from 3 to 7 days, depending on the relationship and company policy.

Eligible Family Members

Policies define which family relationships qualify for bereavement leave (e.g., spouse, child, parent).

Request Process

Employees notify HR as soon as possible, although immediate documentation is not always required.

Jury Duty Leave

Company Policy

Organizations often provide leave for jury duty, with some offering full pay and others applying state-mandated requirements.
Encourages civic responsibility while protecting employee income.

Public Holidays and Special Leave

Handling Public Holidays

Employees generally receive paid time off for designated public holidays.
Policies for working on holidays (such as double-time pay) should be clearly outlined.

Special Circumstances

Includes community service leave, voting leave, or other civic duties.
Flexibility can enhance employee satisfaction and corporate image.

Remote Work and Flexible Leave

Managing Remote and Flexible Work Arrangements

Policies should address unique needs for remote workers, such as asynchronous PTO or compensatory time off.
Flexibility with scheduling can improve work-life balance and productivity.

Automated Leave Management Systems and Payroll Integration

Detailed Explanations

Automated leave management systems streamline the process of tracking and managing employee leave, eliminating manual paperwork and reducing administrative overhead. These systems allow employees to submit leave requests efficiently, while managers can quickly approve or deny requests based on real-time data about staff availability and leave balances. By automating leave tracking, organizations can easily maintain compliance with labor laws and company policies.

Benefits of Automated Systems

Improved Accuracy: Automation reduces the likelihood of human error in tracking leave balances, ensuring accurate records.
Time Efficiency: Streamlining leave requests and approvals saves time for HR personnel, managers, and employees.
Enhanced Compliance: The system helps ensure adherence to legal requirements and organizational policies by automatically applying rules.
Better Data Management: Comprehensive data analytics provide insight into leave patterns, helping organizations forecast staffing needs and adjust leave policies accordingly.
Employee Satisfaction: A transparent and efficient leave management process can lead to increased employee satisfaction and trust.

Integration with Payroll Systems

An automated leave management system often integrates seamlessly with payroll systems, ensuring that payroll processes reflect accurate leave data. This integration streamlines the calculation of deductions for unpaid leave, adjustments for PTO use, and the alignment of pay cycles with leave entitlements. Furthermore, it reduces discrepancies in final settlements when an employee exits, as leave balances are automatically reconciled. With payroll leave management, organizations can efficiently handle aspects like holiday pay, sick leave compensation, and other pay-related entitlements, supporting both operational efficiency and financial accuracy.

Hour Timesheet

Employee Leave Management

People are an important resource of any business. Unauthorized absenteeism, lack of proper time/holiday planning, affect the overall efficiency of any organization. Many leave related issues can be addressed by using an automated leave tracking software such as Hour Timesheet.

A uniform application of leave policies and accurately tracking leave balances, can lead to greater employee satisfaction and enables organizations to engage employees better.

A complex leave management software solution can be utilized to automate time off request as well as real-time access to paid leave such as holiday, sick, vacation or comp time. Benefits of an online leave management system include the following:

All employees are able to apply or leave request in a central location

Aids user by having online access to leave balance data and leave transactions

Communication and enforcement of all company leave policies

Enhanced manager insight – supervisors and HR manager receives email alerts when employees request and use leave

Eliminate manual calculations of leave balances and paper-based leave request.

System-managed carry-over values from year to year.

System managed ceiling for each type of leave

Implementing the right employee leave management solution will significantly reduce work by the HR team as well as well as employees. Centralized business processes will reduce the time and effort spent by HR on maintaining accurate leave records in Microsoft Excel or by hand.

Hour Timesheet Leave Management Types

Earned Leave – Leave hours are earned based on the number of hours worked on the employee timesheet.

Accrued Leave – Leave hours are accrued based on the employee’s hire date. Accrual options are weekly, bi-weekly, semi-monthly and monthly.

Employee Leave Management Features

Balance is reduced after timesheet is submitted at the end of each timesheet period.

User receives error message upon entering time that exceeds current balance.

User may be allowed to “go into the negative” if feature is configured.

System will stop accruing leave once limit “ceiling” is reached.

System will reset balance to “carry-over” value each year.

Balance will reflect manual adjustments (if any).

For more information on employee leave management, visit our leave management website page or visit us in the QuickBooks marketplace listing.

Additional Resources

Ten states and Washington D.C. currently require paid sick leave
The Family and Medical Leave Act

Learn More