Sunday, May 26, 2019

The Ultimate Guide To Becoming DCAA Compliant

By Jeffrey Burns


If your company has been lucky to secure a contract with the local government, you must ensure that you comply with the contracting agency to avoid facing compliance issues. The Defense Contract Audit Agency requires that all companies should abide by the policies they set. This way, you will not run into any trouble with them. Therefore, you must ensure that your company has documented policies as well as procedures that everyone will follow. More so, the company should create a system that will track all hourly labor charges. The following are some of the steps you have to follow to make sure that you are DCAA Compliant.

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 you should know is that you ought to be straightforward. Therefore, everything you do should be clear. In time tracking, everyone is important, including the foremen, managers, and supervisors. Therefore, all the timesheets should be accurate and legible. Therefore, to make sure that the records are clear, it is advisable to use digital means.

Additionally, make sure that you take control of labor costs. This needs close monitoring because it is not the same as buying materials where you get receipts. Hence, the payment of employees should be controlled as it is different. More so, you should have accurate logs. Create daily reminders and ensure that daily entries have been stamped and logged automatically, including all 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.

Always keep an eye on overtime, especially if you are working on a government contract. Make sure that you track all the hours that employees put in their work. This is critical whether they will be paid for the extra hours or not. This is because the agency calculates the cost of the entire project based on the total number of hours you and your team work.

Moreover, you must be able to sync your payroll with your timesheet. This is a necessity if you have taken up a contract with your local government. Thus, it is critical to see to it that your accounting system is updated. You can also get some training in case you do not know how to sync.

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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