Do I need DCAA compliance for commercial work?

No, strictly speaking, but the standards (daily entry, accuracy) are best practices for any professional services firm.

Can I use Excel for DCAA compliance?

It is extremely difficult and risky, as Excel lacks immutable audit trails and change logs required by auditors.

Do salaried employees need to record time for DCAA?

Yes, 'Total Time Accounting' requires all employees working on government contracts, including salaried staff, to record all hours worked.

Compliance

What is DCAA Compliance?

DCAA (Defense Contract Audit Agency) compliance refers to the strict timekeeping and accounting standards required for companies contracting with the US government. It ensures that labor costs billed to the government are accurate, verifiable, and recorded daily.

Key DCAA Requirements

1Daily time entry: Employees must record time every single day.
2Total Time Accounting: All hours worked must be recorded, even unpaid overtime.
3Audit Trails: Any changes to timesheets must include a reason and timestamp.

The Risk of Non-Compliance

Failing a DCAA audit can result in contract termination, penalties, and debarment from future government work. Digital systems are preferred over manual ones for their auditability.

Audit-Ready Logs

ClockIt maintains detailed audit logs of every clock-in, edit, and approval, providing the transparency needed to pass DCAA audits.

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Frequently Asked Questions

Do I need DCAA compliance for commercial work?: No, strictly speaking, but the standards (daily entry, accuracy) are best practices for any professional services firm.
Can I use Excel for DCAA compliance?: It is extremely difficult and risky, as Excel lacks immutable audit trails and change logs required by auditors.
Do salaried employees need to record time for DCAA?: Yes, 'Total Time Accounting' requires all employees working on government contracts, including salaried staff, to record all hours worked.

Related Terms

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