In Part 1, we discussed the primary rules and regulations for timekeeping compliance. In this portion of the series, we’ll be going over written policies and the benefits of opting for an electronic time-tracking system as opposed to timecards. Also, we’ll cover the Project Service application in Microsoft Dynamics 365, and how it’s the best option for government contractors. Without any more delay, let’s talk about electronic timekeeping systems!

Seven Benefits of Electronic Timekeeping Systems

If you thought paper timesheets and punch cards had made their way into history books by now, you’d be wrong. It seems like everyone these days records their work and hours in a digital environment, but according to a 2017 study done by TSheets (by Quickbooks) conducted a survey on time-tracking habits and found 38% of workers still use non-electronic, or “traditional,” time tracking methods.

Though it’s still pretty standard, traditional methods of timekeeping, more often than not, are prone to errors. Papers get lost, timecards aren’t accurate, data entry takes hours, and so forth. With an electronic system, there’s little to no room for errors; they’re efficient, easy to use, accurate, and versatile. To be specific, here are seven benefits of electronic timekeeping systems:

  1. Many of your employees are more than likely working offsite. Without a cloud-based electronic timekeeping system, they can’t just log their hours from their smartphones; they have to return to the job site. With a digital timesheet, they can record their hours, expenses, and more from anywhere at any time.
  2. With an electronic system, there’s no more chicken-scratch or illegible handwriting, and thus no misunderstanding. Entering hours and projects through an application presents clear, concise information every time. Not to mention the reduction of human error with other areas as well.
  3. With paper timesheets and punch cards, supervisors spend hours on data entry. With an electronic system, there’s no need for such monotonous tasks.
  4. By having the choice to enter hours as either direct or indirect immediately, the quality of hour-tracking and accuracy will significantly improve.
  5. With most cloud-based electronic timekeeping systems, your admins can integrate the platform with other software like Quickbooks, to streamline HR and payroll processes.
  6. Forgetting to log hours is a thing of the past. With automated notifications sent to any device, your employees will never forget to enter their hours.
  7. Making changes on paper timesheets is always a tedious process, but with an electronic system, you can make changes, add comments, attach documents, and more at any time. No need to go into the job site to clear things up, do it wherever you are whenever you want.

Now that you know the benefits, it’s time to purchase software and begin your transition from paper to electronic timekeeping methods.

Timekeeping with Microsoft Dynamics 365

Choosing a timekeeping software that fits your needs is easier than you think. There are dozens of companies that offer timekeeping software with application integration capabilities. At GovCon365, we recommend Microsoft Dynamics 365 for all government contractors. Not only is it equipped with a variety of features and applications for all-around business usage, but the Project Service application is perfect for accessing the benefits mentioned above.

Not only does Project Service offer your employees an optimal portal for them to enter hours, project information, and expenses, but it also helps conduct other related tasks. Managers get a bird’s eye view into all projects (with visuals for status, resource usage, cost, etc.), and by connecting it with your billing software, billing your clients will be prompt and accurate. Not to mention the recognition your employees will get for the hard work they do.


As government contractors, timekeeping is an integral part of your business. The better you make your timekeeping methods, the better your company will be. Whether you’re employing an electronic system to maintain compliance, enhance time tracking, or improve billing processes, it’s all about making your business better. For more information on DCAA compliance, government contracting systems, or information, check out our other blogs here.

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