Maintaining DCAA compliance is critical to DoD, NASA, DHS and even some DoE contractors, and the number one negative finding in a DCAA audit is related to timekeeping and timekeeping procedures. This being the case, proper and accurate timekeeping is a critical component of a compliant accounting system. DCAA timekeeping requirements are very exacting, tedious, and require meticulously-followed procedures. They also must be regular and performed consistently (which can be new and even bothersome to employees not used to this level of detailed timekeeping).
This is why setting up the timekeeping system and then mapping it back to the general ledger is such an important step in the process of installing a DCAA compliant accounting system. More importantly: because of the very high risk of timekeeping errors leading to failed audits, ReliAscent recommends--and always provides our clients with--an automated DCAA compliant timekeeping system (rather than a manual system), for any company with more than 3 employees (more on this below).
But first, to better understand the timekeeping required of contractors, it's best to examine the procedures involved, timesheet preparation steps, and a summary of DCAA timekeeping policies.
DCAA's requirements regarding the timekeeping procedures are found in the DCAA Audit Manual No. 76410.90, Enclosure 2, Paragraph 4, section a. Overall, the main procedures call for:
How the employee records their time in the system is critical to the process, and can be a paradigm shift for employees that are not used to recording their time on a daily basis, and breaking down each entry by task and/or contract (cost objective). These timesheet preparation requirements can be found in DCAA Audit Manual (DCAAM) No. 76410.90, Enclosure 2, Paragraph 4, b.
DCAA's policies on timekeeping can be found in the DCAA Audit Manual (DCAAM) No. 76410.90, Enclosure 2, Paragraph 4, c:
How can you ensure your business is maintaining compliance? What are the key requirements defined by the DCAA? You may find the following documents helpful:
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There are basically two types of compliant timekeeping systems: a manual system or an automated timekeeping system.
While ReliAscent® has a manual system that has been designed per DCAA requirements (which also has an accompanying procedure/manual), we recommend companies with more than 3 employees consider an automated system. However, companies that have adopted the ReliAscent® timekeeping system as their own have been successful in passing multiple audits.
Automated systems are available that can be attached to most typical accounting software packages (such as QuickBooks™). There are quite a few on the market that are designed to meet DCAA requirements, but the price and user-friendliness can vary, and new systems are hitting the market frequently. You may want to call ReliAscent® to investigate these options as we have investigated quite a few of the vendors. We have first hand experience with several of these systems and can help you select a system that best meets your budget and your operational needs.
ReliAscent® partners with the industry's top automated DCAA compliant timekeeping systems. The systems we use include:
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With Clockwise by GHG, we create custom solutions that make it easy for you to track time and save money. Clockwise is a scalable solution that can grow along with your organization. From large government contracting and DCAA compliance to non-profit organizations, we offer smart solutions for leave management, time and attendance, payroll integration, and more. Our application is designed to integrate with accounting and payroll programs. While most of our customers use QuickBooks, we also have many clients who use SAGE, MUNIS, Grant Management Software (GMS), Microsoft Dynamics, Insperity, and various other accounting tools. We also integrate Clockwise with 3rd-party payroll solutions such as QuickBooks Online, DELTEK, Paychex, and ADP. Whether you require time clocks or simply an easier tool to track your employees’ time and attendance, we have a solution to fit your needs. |
Hour Timesheet offers simple DCAA compliant time & attendance software for your small business with 1-click payroll integration to QuickBooks, ADP & Paychex. |
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SpringAhead™ provides both a timekeeping solution and an expense report solution that are DCAA compliant. SpringAhead™ is very affordable and can be set up through ReliAscent® directly when matching to the GovCalc™ system. ReliAscent® is a SpringAhead™ partner.
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Capriccio Fuzion™ is a new web based timekeeping system that meets DCAA requirements. ReliAscent® is a Capriccio Fuzion™ partner. Call our experts today to see how we can help you become compliant with government and DCAA requirements in your timekeeping system. Our staff is well versed in government timekeeping requirements, in dealing with uncompensated overtime, and installing and maintaining dcaa-compliant timekeeping systems. We have extensive experience with QuickBooks™, Microsoft Dynamics Great Plains™, Deltek™ GCS Premier™ and others. |
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Time tracking for DCAA compliance doesn't have to be a complex undertaking. TSheets makes it easy to comply with the DCAA by making it easy for every single employee within your company to track and submit time each day. TSheets’ uneditable audit log provides a secure record of all additions and changes to an employee's timesheet. And because it's all stored safely in the cloud, you can produce a record of your time data at a moment's notice. TSheets was built to help small-business owners save time and money on payroll — all while remaining DCAA compliant. But TSheets time tracking was also built with employees in mind. Their slogan — "We <3 Employees" — and their product stands by their commitment to employees. With thousands of five-star reviews, TSheets is the #1 employee rated and requested time tracking app on the planet. |
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