Not all timekeeping systems are the same. Many systems claim to be “DCAA-compliant,” but what does this mean? Will the one you select provide the optimal solution for your company?
Password Protection
Does the system require a unique password for each user to access the timesheet? Although this is a common feature today with almost all systems, there are still a few systems out there that lack this feature. Most notable is the timesheet screen in QuickBooks. Anyone with access to the accounting system has access to all the timesheets. To overcome this limitation of the timesheets in QuickBooks, you’ll need a third-party system that is password protected.
Audit Trail
Is there an audit trail report that shows time stamps of all changes to the timesheet, including who made the changes? This feature is essential because DCAA will want to ensure that the time entered by the employee is not being altered by the supervisor, to prevent time sheet fraud. All changes require a reason to be logged on the audit trail report. The time and date of the entry or change are important to DCAA to ensure that time is being recorded daily.
Approval System
Both the employee and the employee’s supervisor will need to approve the timesheet. Your timekeeping system should have an automated way of routing the timesheet for approvals. The approvals must be time-stamped with a signature (electronic is okay).
Charge Code Assignment
Can the timekeeping system assign only the relevant charge codes to employees? The system should be able to prevent employees from charging projects for which they have not been assigned. This internal control feature helps to ensure timesheet accuracy.
While the following are not required for DCAA compliance, consider certain features that will make the operation of your system more efficient.
Integration With QuickBooks
Not all DCAA-compliant systems are fully integrated with QuickBooks. Some simply do not import into QuickBooks; if they do, they require data files to be manipulated and manually imported. Many do not import all of the required data. You will want a system that imports not only the hours and project codes but also the service items and payroll items. This is important because the most efficient way to maintain DCAA compliance is to run your labor distribution from timesheets in QuickBooks.
Multiple Service Items
A service item in QuickBooks is used as a line item on customer invoices, vendor bills, and contract budgets. It is the link that ties all this data together to make your QuickBooks system DCAA-compliant. On many federal contracts, you will need to track multiple line items, CLINs, or labor categories. A timekeeping system that can handle multiple service items per project will help keep your system under manageable control.
Mobile App
Do you have a mobile workforce? Sometimes, returning to a desktop computer daily is difficult for your employees. If this is the case, a system with a mobile app that allows time entry from a smartphone or tablet will help ensure that time is entered daily, a DCAA requirement.
Project Management Reports
The ability to see time spent on projects is critical to managing your projects for profitability. Timekeeping systems have a varying degree of user-friendly project management reports and the ability to distribute or segment the reports by project manager. I recommend carefully reviewing the types of reports available before committing to a new timekeeping system.