Planning to Update Your Timekeeping Software Tool in 2024?

Wondering when it’s the right moment to upgrade your timekeeping software tool? If any of the following four points resonate with you, then this article is a must-read!

Inefficient Manual Processes: If your current timekeeping system tool requires significant manual inputs and adjustments, leading to inefficiencies and increased risk of errors, it’s time for an update.
DCAA Audit Failures: Regular failures in DCAA audits due to non-compliance indicate that your software is not up to date with current DCAA rules and regulations, necessitating a change.
Poor Customer and Technical Support: If your vendor is unresponsive or lacks the expertise to quickly resolve software issues, it hampers productivity and can lead to significant time losses. A robust, reliable support system is crucial for smooth business operations, indicating the need for a software upgrade.
Poor User Experience: If your employees find the software challenging to use, leading to low usage or data inaccuracies, it’s a clear sign you need a more user-friendly, DCAA compliant timekeeping tool.

Planning Your Transition

Before you start looking at new software, identify your specific needs. What features are essential for your operations? What issues have you encountered with your current system?

Functionality: Determine the core features required in your new timekeeping software.
Usability: Consider the ease of use for both managers and employees.
Integration: Ascertain its compatibility with other software already in use.
Compliance: Ensure the software meets all necessary industry and legal regulations.
Scalability: Look for options that can grow with your business.
Support: Check if the vendor offers adequate technical and after-sales support.
Cost: Calculate the total cost of implementation, including software, training, and support costs.
Data Security: Understand the measures the software employs to protect your data.
Reporting: Examine the types of reports the software can generate as this will aid in business decision making.
Vendor Reputation: Finally, conduct research on the software vendor’s reputation in the market.

Research Timekeeping Software Tools

Once you’ve identified your needs, begin researching potential solutions. Look for software that is designed specifically for the GovCon industry, as this will best meet your compliance and operational needs.

Deltek Costpoint: A renowned name in the GovCon industry, Deltek Costpoint offers comprehensive solutions for project accounting, workforce and talent management, and billing and revenue recognition. The DCAA compliant timekeeping module is designed to provide accurate, real-time labor data, enabling users to effortlessly meet government requirements.
SpringAhead: Designed with government contractors in mind, SpringAhead offers robust, cloud-based timekeeping and expense tracking solutions. Its DCAA compliant module focuses on ease of use, secure data management, and seamless integration with popular accounting and project management systems. With real-time visibility into labor data and comprehensive reporting options, SpringAhead helps ensure accuracy and compliance in every project.
Hour Timesheet: A trusted solution in the GovCon community, Hour Timesheet provides a DCAA compliant timekeeping system that’s both user-friendly and robust. Its features include automated timesheet notifications, real-time labor cost reporting, and secure data protection. Its streamlined interface simplifies time tracking, while ensuring adherence to stringent government regulations. The software is easily integratable with popular payroll and accounting systems, making it a versatile choice for government contractors.

Plan the Transition

The transition to a new timekeeping software tool involves a structured approach to ensure minimal disruption to operations and seamless integration into current workflows.

System Configuration: In this phase, the software is set up to meet your specific needs. This could involve configuring settings, establishing user roles and permissions, and integrating the software with other systems you currently use.
Data Migration: Once the software is configured, the next step is to transfer all relevant data from your old system to the new one.
Training: Training is a pivotal part of the implementation process.
Go-Live: With training complete, it’s time to switch to the new system for daily operations. It’s advisable to have a support team on hand during the initial days of the transition to address any issues that may arise.
Use Product Support as a Resource: Remember, successful implementation requires meticulous planning, open communication, and ongoing support. Your software vendor is a valuable resource during this process, so don’t hesitate to seek their expertise as needed.

Getting Assistance

For a successful transition to a DCAA compliant timekeeping software solution before January 1, 2024, consider partnering with an experienced consultant. Here are some additional resources to help.

Hour Timesheet is an excellent place to start your search for consultants. Their partners are well-versed in Hour Timesheet’s DCAA compliant timekeeping software tool and can provide you with the guidance necessary for a seamless transition. They specialize in helping government contractors achieve compliance and operational efficiency, making them a reliable choice for your DCAA timekeeping and business needs.
The DCAA website: Here you will find links to various resources that can be helpful for many small businesses that are interested in getting into federal contracting.
Federal Acquisition Regulation (FAR): The FAR provides uniform acquisition policies and procedures for use by all Executive agencies.

In Conclusion

Don’t wait until the deadline is upon you . Consider the resources mentioned above and engage an expert to ensure a smooth transition today for your DCAA timekeeping needs!

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8 Things You Should Know About DCAA Compliance

The government frequently extends contracts to small- and medium-sized government businesses to cover its varied needs. Winning such a contract offers businesses a tremendous financial opportunity, but it comes with some essential responsibilities.

The U.S. Department of Labor (DOL) and the Department of Defense (DoD) work with the Defense Contract Audit Agency (DCAA) to ensure financial oversight of government contractors and their employees.

If your business has recently won a government contract, you are likely to have some questions regarding what you should know about DCAA compliance.

8 Things To Know About DCAA Compliance

Here are the eight facts that we believe are important facts that you need to know about DCAA compliance.

1. The founding of the DCAA and its mission

The DCAA was founded under the DoD to provide transparent financial services to ensure proper use of taxpayer dollars when the government signs small- and medium-sized businesses for contracts. The DCAA’s mission is to provide regular audits and financial oversight and work according to the authority and control of the Secretary of Defense to guarantee that the U.S. military has all the resources it needs at fair prices.

2. Guidelines for DCAA compliance

DCAA compliance focuses on a small contractor’s systems and diligent efforts to meet the stringent demands of a DCAA audit. There are two sets of guidelines government contractors must follow:

Federal Acquisition Regulation (FAR) Standards
Cost Accounting Standards (CAS)

3. What DCAA compliance covers and entails

Government contractors need to comply with various regulations and requirements, including the following:

Documented policies set forth by the DoD, DOL and DCAA
DCAA-compliant business systems
Accounting systems that track costs for various costs separately from nongovernmental business relationships
Job timekeeping records combined with cost accounting
Readily available auditing records for a DCAA-initiated audit at any time

4. The DCAA audit process

Any time the DCAA deems it necessary, the body will initiate an audit to examine costs, such as direct or indirect costs, unallowable costs or the pooling of indirect costs outlined in FAR, CAS and Government Auditing Standards.

5. Different types of DCAA audits

Different types of DCAA audits include those related to incurred costs, forward pricing, precontract award, labor charges, compensation and benefits, and contractor purchase systems review (CPSR).

6. Timekeeping audits can occur at any time

Government contractors should remain fully compliant and prepared for a full-fledged DCAA audit at any time. One frequent audit that DCAA auditors regularly conduct is related to timekeeping-specific examinations.

7. Basic protocols for a DCAA audit

When a DCAA audit is triggered or determined, an auditor will visit the contractor’s business site. The contractor should be ready to provide all requested documents, including:

Time entries for workers
Submission and approval procedures
Verification documents for paid and unpaid time
Time spent on each individual project

8. General risk thresholds that trigger audits

There are different risks that might trigger a DCAA audit, such as contracts on a specific job that cost the DoD more than $1 million. Another risk might involve those having recurring issues with their accounting systems and timekeeping records. These contractors might experience audits if their contracts fall well below the $1 million mark.

Our Solutions Will Help You Ensure Consistent Time Tracking Processes

With Hour Timesheet, our time tracking software will keep your payroll department and employees on point and compliant with your government contract.

Contact us to learn about our integrated system that will allow you to access vital employee time tracking information in an instant.

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The Keys Understanding DCAA Compliance

The term ‘DCAA compliance’ when referring to your timekeeping procedures is often just thrown around. But what is DCAA compliance, and what does it mean for your business? If you don’t understand what that means, Keep reading this blog post for assistance for keys to understanding DCAA Compliant Timekeeping

What Is the DCAA?

What does DCAA stand for? 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. Its purpose is to review all contracts with outside vendors and suppliers to ensure that taxpayer money is being spent in the most appropriate manner. With approximately 7,500 contractors being reviewed and audited every year, the agency’s responsibilities are substantial making Understanding DCAA Compliance critical for government contractors.

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.

For companies seeking government contracts, adhering to the DCAA requirements is imperative. Those that are found to be noncompliant with the agency’s standards run the risk of being hit with significant penalties. These run the gamut from termination of contracts to fines to prison time depending on the severity of the infractions. One of the most severe consequences of noncompliance is debarment, which means the contractor in question is no longer allowed to be considered for future federal contracts.

What Is an Audit and How does it Relate to Understanding DCAA Compliance?

Audits and reviews are the primary method the DCAA uses to determine whether or not a contractor is complying with the appropriate standards. What is a DCAA review? These typically examine a wide range of items, including direct costs, indirect cost pools, allowable costs and more.

There are a wide range of audits that a contractor may be subjected to, depending on the nature of the standards being looked at and the possible infraction. For example, audits may include:

Pre-award surveys — These reviews are conducted primarily to determine whether or not the contractor’s accounting system is up to DCAA standards. They typically involve the contractor demonstrating the system for an auditor.
Forward pricing — Under this type of audit, the DCAA evaluates the contractor’s estimate of the project’s cost. They are usually performed before the contract is awarded.
Incurred costs — These audits determine how accurate a contractor’s annual allowable cost representations are. This is performed after the awarding of the contract to ensure what the contractor has estimated the costs to be is truly what was quoted.

Keys to Understanding DCAA Compliance

Referring to Federal Acquisition Regulation and Cost Accounting Standards, respectively, FAR and CAS are rule sets used by the DCAA to establish its standards. FAR represents the guidelines for government procurement and is used by all federal agencies whenever purchasing goods or services. On the other hand, CAS refers to the rules used to establish consistency for government contractors’ cost accounting practices. This includes outlining how charges to contracts can be made and exactly what can be charged to them. Both of these frameworks inform and influence the DCAA regulations. Keys to Understanding DCAA Compliance are below.

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, not knowing the keys to understand 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.

We Can Help

What is DCAA accounting, and how can you ensure your organization is in compliance? Choosing Hour Timesheet’s solutions for your timekeeping provides you with a DCAA-compliant answer that is easy for you and your employees to use. Our simple, real-time time-tracking platform gives you the tools and resources needed to stay compliant and prepared for any audits that might come your way. To learn more about our software the Keys to Understanding DCAA Compliance and what it can do for you, reach out and speak with one of our representatives today.

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How Accurate Timekeeping Benefits Remote Workers

As the number of remote employees grows, employers need to understand the importance of accurate employee and contractor timekeeping. For government contractors who often use a timesheet system, it’s important to ensure that all employees are accurately tracking their hours and work activities. Here’s why accurate timekeeping is an essential part of managing remote workers.

Accurate Records Ensure Compliance with Laws and Regulations

When managing remote workers, it’s important to have accurate records for compliance with laws and regulations. Government contractors must comply with specific labor laws and regulations, such as the Fair Labor Standards Act (FLSA). The FLSA requires employers to keep accurate records of all employee hours worked, wages paid, and other payments made. Accurate employee and contractor timekeeping helps employers maintain compliance with these labor laws and regulations.

Improved Productivity for Remote Employees

Accurate employee and contractor timekeeping also helps increase productivity by providing visibility into how much time is actually being spent on tasks. Employers can identify areas where employees may be spending too much or too little time on their assigned tasks. This allows them to adjust workloads as necessary or provide additional training or resources if needed to ensure that tasks are completed efficiently. Having an understanding of each employee’s workflow also helps managers better assess performance levels over time.

Tracking Performance Metrics for Remote Workers

Accurate employee and contractor timekeeping also provides visibility into performance metrics like average completion times for projects or customer service response times. By understanding how quickly tasks are being completed by each employee, managers can more easily identify areas where improvements need to be made or processes can be streamlined for better efficiency overall. Accurate timekeeping data is especially useful for non-salaried staff who are paid hourly because it makes it easier to calculate total hours worked per week or month by each employee.

Conclusion

Accurate employee and contractor timekeeping is essential for managing remote workers—especially those in highly regulated industries like government contracting. Accurate records help companies remain compliant with various labor laws and regulations while also improving productivity and giving managers visibility into individual performance metrics like completion times and customer service response times. Employers should strive to implement an effective system such as Hour Timesheet for accurate timekeeping in order to maximize the benefits associated with having a remote workforce.

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How To Keep Track Of Employee Hours

Time tracking remains the most effective way to measure your employees’ value to your business. It is also the most practical way to pay them for their commitment and service to your organization. That’s one reason why it is so important to find out how to keep track of employee hours.

Additional benefits of learning how to track employee time worked include Defense Contract Audit Agency (DCAA) compliance, accurate payroll reporting, employee performance, time management, project progress, billing clients, and identifying potential issues and problems. Now that we have some thoughts in mind about why employee time tracking is so important, let’s dive deeper into this topic.

Tracking Employee Work Hours

Considering all the benefits of tracking employee time, you are probably wondering about the best way to do it. These days, you have plenty of options, ranging from manual pen and paper techniques and desktop timeclocks to comprehensive automated time tracking software programs that do it all.

Like most businesses, you probably don’t have time to take the traditional route and would rather find a user-friendly, high-functioning and customizable software tracking tool. You might find yourself lost in a sea of time tracking technology, requiring guidance regarding what you need along with best practices and standards.

What to Look for in Time Tracking Software

You might not know how to start your search with so many software options available. Here are four things to look for in time tracking software.

Payroll Integration

Payroll integration allows your payroll system to sync with other software programs. With integrated payroll capabilities, you can quickly and easily access vital information, including historical time and attendance records, all signed documentation from all employees, information about employees’ benefits and tax details, and workers’ compensation files.

Track Employee Hours and Job Costs

Job costing is a method included in different time tracking software that allows you to track all costs and revenue attached to each project. You can track everything from human resource investments to material costs and more.

Leave Tracking

Leave tracking is a crucial feature included with time tracking software, ensuring that your HR team and employees always know the status of vacation, PTO and sick time. Anyone who has managed leave time manually knows that requests for leave slips can fall through the cracks. Leave tracking also lets employees check their available time to avoid any missteps or confusion before making vacation plans. Finally, time tracking software’s inclusion of leave tracking lets everyone in the office know when an employee is out of the office.

Location Tracking

Employees who work remotely or who are frequently away from their desks can let other workspace members know where they are with location tracking capabilities enabling them to not only track employee work hours from Hour Timesheet’s simple and free mobile app.

Frequently Asked Questions

Is your software DCAA compliant?

Yes! Hour Timesheet provides detailed audit documentation, manager approvals and daily employee reminders to enter time tracking information, including authorized charge codes.

Will my team still need to do any manual data entry?

You won’t need to do much manual data entry, if any. We have automated and streamlined nearly every facet of employee time tracking.

Our Solutions Will Streamline Your Time Tracking Processes

At Hour Timesheet, our time tracking software will be a game-changer for your payroll department and employees. We offer an integrated system that ties everything together to keep valuable employee information at your fingertips. You won’t need to wonder about how to track workforce hours again.

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