ClickTime gives government contractors the audit trail, supervisor approvals, and DCAA-specific controls they need to pass audits and protect contract revenue.
A DCAA audit can disallow costs, freeze payments, or put an entire contract at risk—and the first thing auditors examine is your timekeeping system. If edit history is incomplete, supervisor approvals are missing, or labor records can't be traced back to source entries, the burden of proof falls on you. ClickTime gives government contractors a detailed audit trail and DCAA-specific controls that produce defensible, finance-ready labor records without adding friction to daily time entry.
Every change to time and expense data is logged with original values, edits, timestamps, and user details
Required edit explanations and supervisor approval workflows align with Defense Contract Audit Agency standards
Generate reports showing approvals, revisions, and traceable labor cost data for internal and external audits
DCAA auditors don't just want to see the final timesheet—they want to see what changed, when, and why. ClickTime logs original entries and all subsequent revisions with timestamps and user details, giving contractors a complete, unbroken record of every time entry from creation through approval. When 23% of organizations have faced audit failures from poor labor cost records, having verifiable revision history isn't optional—it's how you protect contract revenue.
The Defense Contract Audit Agency (DCAA) requires government contractors to maintain accurate, daily time records that distinguish between direct and indirect labor costs. Timekeeping systems must include supervisor approvals, a complete audit trail of all edits with explanations for corrections, and the ability to allocate time across multiple contracts. Records must also be retained and accessible for audit review, typically for three years after final contract payment.
DCAA auditors may conduct floor checks—unannounced visits to verify employees are working on the projects recorded in their timesheets—or full system audits that examine your timekeeping policies, edit history, approval workflows, and labor cost allocation. Auditors look for complete revision histories, documented supervisor approvals, and consistent timekeeping practices across the organization. Non-compliance can result in disallowed costs, withheld payments, or contract termination.
A DCAA-compliant timekeeping system must enforce daily time entry, require supervisor approval of all timesheets, and maintain a detailed audit trail that logs every edit with timestamps and user explanations. The system should support allocation of hours across direct and indirect cost categories and generate reports that auditors can independently verify. Using purpose-built time tracking software with built-in audit trail controls reduces the risk of compliance gaps compared to spreadsheets or general-purpose tools.
Timesheets are the primary source document for labor costs charged to government contracts—and labor is typically the largest cost category. DCAA reviews timesheets to verify that contractors are accurately recording and allocating labor costs between direct contract work and indirect activities. Inaccurate or undocumented timekeeping can lead to overbilling the government, which is why DCAA holds timekeeping systems to strict documentation and approval standards.
Yes. DCAA timekeeping requirements apply to both prime contractors and subcontractors working on government contracts. Any organization that charges labor costs to a government contract—whether directly or through a subcontracting arrangement—must maintain compliant timekeeping records. Subcontractors are subject to the same audit standards, including daily time entry, supervisor approvals, and documented edit histories.
