DCAA-Compliant Time Tracking Software

If you're a US government contractor, DCAA compliance isn't optional — it's how you keep your contracts. And time tracking is one of the most heavily scrutinized areas in a DCAA audit.

But here's the problem: most "DCAA-compliant" software is overengineered, expensive, and painful to use. Your team hates it, adoption is low, and ironically, bad adoption creates exactly the compliance risks you're trying to avoid.

This guide covers what DCAA actually requires from your time tracking system, which tools meet those requirements, and how to get compliant without sacrificing usability.

What DCAA Actually Requires

DCAA (Defense Contract Audit Agency) doesn't certify software. No tool is "DCAA certified." What DCAA does is audit your timekeeping practices. Your software needs to support those practices. Here's what matters:

1. Daily Time Recording

Employees must record time daily, not weekly or retroactively. Your tool needs to support and encourage daily entries — ideally with reminders.

2. Total Time Accounting

ALL hours must be tracked — not just billable time on government contracts. This includes:

Direct hours on government contracts
Direct hours on commercial contracts
Indirect hours (admin, training, PTO, etc.)

Your tool must capture every hour of the work day, not just project time.

3. Individual Employee Entries

Each employee must enter their own time. No assistants, no managers entering on behalf of workers. Your tool needs individual logins and access controls.

4. Supervisor Approval

Timesheets must be reviewed and approved by a supervisor. Your tool needs approval workflows.

5. Audit Trail

Every change to a timesheet must be logged — who changed what, when, and why. No silent edits. Your tool needs a complete, immutable audit trail.

6. Segregation of Costs

Time must be allocated to specific contracts, tasks, and cost categories. Your tool needs a clear project/task hierarchy that maps to your contract structure.

7. Corrections Process

When errors are found, there must be a documented correction process — not just editing the original entry. Your tool should support adjustments with explanations.

Software Options Compared

Tool	Daily Reminders	Total Time Accounting	Audit Trail	Approval Workflows	Price
Emburse SpringAhead	✅	✅	✅	✅ Multi-level	Contact sales
Unanet	✅	✅	✅	✅ Multi-level	Contact sales
Deltek Costpoint	✅	✅	✅	✅ Multi-level	Contact sales (expensive)
A Human Time Enterprise	✅	✅	✅	✅ Multi-level	$28/user/mo
Toggl Track	⚠️ Limited	❌	❌	⚠️ Basic	$18/user/mo
Clockify	⚠️ Limited	❌	⚠️ Paid only	⚠️ Paid only	$12/user/mo

The Legacy vs Modern Trade-Off

Legacy tools (SpringAhead, Unanet, Deltek):

✅ Deep DCAA experience, battle-tested in audits
✅ Built specifically for government contracting
❌ Expensive (often $40-80+/user/month when fully loaded)
❌ Complex implementation (weeks to months)
❌ Dated interfaces that kill user adoption
❌ Opaque pricing — have to talk to sales

Modern tools (A Human Time Enterprise):

✅ All required compliance features (audit trails, approvals, daily reminders)
✅ Modern UX that drives actual adoption (98% adoption rate)
✅ Transparent pricing ($28/user/month)
✅ Setup in days, not months
❌ Newer — less audit track record than legacy players
❌ Fewer pre-built government-specific configurations

The Adoption Problem Nobody Talks About

Here's the dirty secret of DCAA compliance: the most expensive risk isn't picking the wrong software. It's picking software your team doesn't use properly.

If your time tracking tool is clunky and your team avoids it:

Entries get backfilled from memory (inaccurate)
Some hours don't get logged at all (incomplete)
Corrections are frequent and sloppy (audit red flags)
Managers rubber-stamp approvals to clear backlogs (ineffective controls)

A DCAA auditor seeing these patterns will dig deeper. And that's where real problems start.

The most DCAA-compliant tool is the one your team actually uses correctly every day. A modern, easy-to-use tool with 98% adoption is a stronger compliance posture than a legacy tool with 60% adoption and a lot of retroactive entries.

What to Look For

When evaluating time tracking software for DCAA compliance:

Immutable audit trail — every change logged with timestamp, user, and reason
Multi-level approval workflows — supervisor review is non-negotiable
Daily entry reminders — automated, not manual nagging
Total time accounting — must capture all hours, not just billable
Individual access controls — each person enters their own time
Correction workflows — documented adjustments, not silent edits
Export capabilities — auditors will want data in their format
High adoption rate — the best compliance feature is a tool people actually use

Our Recommendation

If you're a large prime contractor with complex DCAA history, legacy tools like Deltek or Unanet are the safe choice — even with their drawbacks.

If you're a small-to-mid government contractor (under 200 people) or a subcontractor looking for a modern alternative, A Human Time Enterprise gives you the compliance features you need at transparent pricing, with a user experience that actually drives the daily adoption DCAA requires.