Best Timekeeping Software for Small to Midsize Government Contractors

Government contractors face stringent timekeeping demands—from daily time entry to audit‑quality trails for DCAA and FAR compliance. The right software helps reduce audit risk, support compliant billing, and streamline operations.

Here are some options tailored to smaller government contracting firms.

1. Hour Timesheet
   HourTimesheet is a web-based application designed for businesses to track employee time and expenses against specific projects. It aims to provide a straightforward platform for logging work hours, streamlining the process for payroll and client invoicing. It provides a rigorous accounting of all labor costs and can withstand a government audit.

Pros

• DCAA Compliance: The system enforces daily time entry, has unalterable audit logs and allows employees to accurately assign their time to specific government contracts, projects and indirect cost pools.

• Affordability: It is generally a more budget-friendly option compared to the comprehensive, enterprise-level systems, making it accessible for smaller contractors with limited software budgets.

• Easy sync into QuickBooks for billing and accounting.

Cons

• No All-In-One Power: Not an Enterprise ERP system.

2. WeWorked
   WeWorked is built specifically for government contractors and emphasizes DCAA‑ready time tracking compliance: project/task codes, digital audit logs, supervisor approvals, and retention of all edits.

Pros

• Fully DCAA‑oriented workflows: daily entry enforcement, labor classification, approval and audit logs.

• Mobile/web access for employees to log time anywhere.

• Easy sync into QuickBooks for billing and accounting.

Cons

• Primarily a timekeeping and project tracking tool—not a full ERP.

• May lack broader features like cost accounting or advanced project budgeting.

3. BigTime Software

A professional services automation (PSA) platform with built‑in DCAA timekeeping and integrations to QuickBooks and Sage Intacct. It supports audit trails, reminders, required notes, and approval workflows out of the box.

Pros

• Strong DCAA compliance support: detailed audit logs, supervisor approvals, daily reminders, project/labor categorization.

• Seamless integration with major accounting platforms for invoice automation and general ledger sync.

• Affordable entry plan (≈ $20/user/mo), scaling up to multi‑tier approvals and advanced features.

Cons

• More advanced accounting or approval features require higher‑tier plans (≈ $45/user/mo).

• Initial setup can be complex and may require training or support.

4. PROCAS
   PROCAS offers a DCAA-compliant timekeeping module built into its accounting/ERP suite—focused on government contracting. Features include audit trails, uncompensated overtime tracking, reminders, PTO tracking, and mobile access.

Pros

• Unified timekeeping and accounting with automatic labor cost allocation and billing.

• Supports PTO, time edits with justification, supervisory workflows and mobile entry.

• Audit-ready by design for FAR, DFARS, and DCAA standards.

Cons

• Typically part of a broader PROCAS implementation (so more investment).

• Smaller firms may not need full ERP-style accounting and reporting modules.

Bay Business Group recognizes the importance of timekeeping for government contractor clients and recommends the following:

• Use timekeeping systems built for DCAA compliance, not after-market add‑ons or generic tools.

• Ensure you enforce daily time submission, project code tagging, audit logging, and supervisory review.

• If using QuickBooks, ensure the time system supports tight integration to avoid audit gaps

• Keep systems simple when starting —scale up tools as you grow or shift into cost-plus contracts.

1. Small firms (≤ 20 employees): Start with Hour Timesheet or WeWorked —they offer core DCAA compliance and lower entry cost.
2. Growing firms (20–100 employees): Consider scaling to BigTime Premier if reporting features are essential.
3. Larger firms or with complex billing models: Evaluate PROCAS for deeper integration and compliance demands.

By thoughtfully matching your size, contract types, and compliance needs with the right timekeeping tool, you can enhance audit readiness, improve billing accuracy, and streamline your finance and operations workflow. See how Bay Business Group can help.