Government Contract Accounting and 7 Top Practices for Time and Time Reporting
Time and time reporting is one of the main ways that government contractors get their revenue and profits. Making a mistake with time and time reporting may have negative effects on their planned budget.
Government contractors should never forget that their time and time reporting if done poorly, can lead to grave consequences to your budget, orders, and profits; and even increase your bills on your annual audit, as your data becomes skewed and unreliable.
Here’s what you can do to maximize your time and time reporting:
- Record time for your employees on a daily basis.
- Stay within budget by monitoring and evaluating how much time is spent on a job.
- To know if your time entry can apply for a change order, have complete details on your entries, especially if they have been charged.
- Ensure precise categories for time spent on indirect labor.
- Employees should receive consistent and continuous training on Time entry and related policies.
- Reconcile your timekeeping and job costings.
- Check-up and review:
- If time is being correctly charged and costed.
- Whether the procedures and policies for time are being followed.
- If general ledger mapping is observed for indirect charges.
Your accounting team should be able to do these on a regular basis as well as a more in-depth inspection before the fiscal year ends.
Contact Peter Witts CPA today to get the help you need with your government contract accounting.