Never! Only your employee can change their timesheet, with a signature and explanation (adequate automated systems require this). Employee timesheets should not look like a creative canvas of numbers and doodling, but rather, should be well organized and structured so the proper cost objectives are indicated and time can be accurately posted to the correct direct (by project) indirect and unallowable cost accounts. Your employees should be adequately trained as part of onboarding orientation and at least a semi-annual primer (documented in a meeting agenda). Adequate timekeeping is not only a requirement, but a best practice. After all, labor drives most of your costs, profit and value.
This is myth #14 of our SBIR Accounting Myths blog series. George Moker is a CPA and an entrepreneur who brings a real approach to managing the accounting needs of your firm. George created this series of blog posts to his more than 30 years of small business and startup experience in an attempt challenge the myths about an adequate accounting system and its importance within your organization.
For more information on how we can help with your SBIR accounting needs, please visit us at www.mokercpa.com