If your company has been lucky enough to win a contract with the government, you should be able to comply with the Defense Contract Audit Agency. If you comply with this agency, you will continue winning more contracts, and your company will grow. More so, you will not face any compliance issues. For your company to show compliance, it has to have procedures and policies that are documented and strictly followed. Also, you must have a system that will help you to track your labor charges per hour. There are critical steps you should follow to ensure that you and your company are DCAA Compliant to avoid problems during auditing.
Time tracking is the first thing that you should do. DCAA provides guidelines that should be followed by all companies to track time. No company is an exception to this. Thus, employees should always clock in and out. Additionally, all the projects should be allocated the correct hours and unpaid time to be recorded. More so, there should be a record showing that all employees are aware of everything.
The second thing is to ensure that you are genuine and straightforward. Hence, you should not cut corners as this may land you into serious problems. During time tracking, all parties are important. Thus, all employees, managers, supervisors, and foremen should track their time. Also, the time sheets should be in good condition, accurate, and legible. The use of digital means is thus the best.
More so, you should always be in control of all labor costs. Labor costs are different from buying materials where you will get receipts. This is because paying employees is different and should be controlled. Therefore, all logs should be clear and accurate. If possible, there should be daily reminders. Also, all entries should be automatically logged and stamped, including revisions.
More so, you must make sure that you shift from the traditional filing system to the digital one. Traditional filing is still okay, but documents can be misplaced or lost. Therefore, you should use digital means to file and store all information. This will make it easier to retrieve at any time no matter what you are doing.
Also, it is advisable to note all the hours that your employees take in, including the overtime hours. Thus, track all the hours that your employees work every day, whether they are paid for or not. Auditors calculate the project cost based on all the hours that your team has worked, including overtime. These are referred to as uncompensated hours.
Additionally, ensure that you have synced the timesheets and payrolls. Before you start to work in any government contract, make sure that your accounting system is up to date. If you have no idea how to sync the payrolls and timesheets, you should get advice from the experts.
Also, you must always ready yourself for inspections. You cannot avoid inspections by the agency. Thus, you should be ready all the time and ensure that your documentation is accurate and updated. Being prepared for inspection will keep you away from compliance issues.
Time tracking is the first thing that you should do. DCAA provides guidelines that should be followed by all companies to track time. No company is an exception to this. Thus, employees should always clock in and out. Additionally, all the projects should be allocated the correct hours and unpaid time to be recorded. More so, there should be a record showing that all employees are aware of everything.
The second thing is to ensure that you are genuine and straightforward. Hence, you should not cut corners as this may land you into serious problems. During time tracking, all parties are important. Thus, all employees, managers, supervisors, and foremen should track their time. Also, the time sheets should be in good condition, accurate, and legible. The use of digital means is thus the best.
More so, you should always be in control of all labor costs. Labor costs are different from buying materials where you will get receipts. This is because paying employees is different and should be controlled. Therefore, all logs should be clear and accurate. If possible, there should be daily reminders. Also, all entries should be automatically logged and stamped, including revisions.
More so, you must make sure that you shift from the traditional filing system to the digital one. Traditional filing is still okay, but documents can be misplaced or lost. Therefore, you should use digital means to file and store all information. This will make it easier to retrieve at any time no matter what you are doing.
Also, it is advisable to note all the hours that your employees take in, including the overtime hours. Thus, track all the hours that your employees work every day, whether they are paid for or not. Auditors calculate the project cost based on all the hours that your team has worked, including overtime. These are referred to as uncompensated hours.
Additionally, ensure that you have synced the timesheets and payrolls. Before you start to work in any government contract, make sure that your accounting system is up to date. If you have no idea how to sync the payrolls and timesheets, you should get advice from the experts.
Also, you must always ready yourself for inspections. You cannot avoid inspections by the agency. Thus, you should be ready all the time and ensure that your documentation is accurate and updated. Being prepared for inspection will keep you away from compliance issues.
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