Small business owners are so busy and often have to wear a multitude of hats when it comes to general operations and management duties. Securing adequate insurance is important, but what most small business owners do not realize is that general liability insurance and workers compensation insurance both depend on good accounting records and proper bookkeeping practices.

Complete Tax and Notary Services can help with all business accounting needs, especially those associated with an annual insurance audit.

Insurance Premiums

Workers compensation and general liability coverage are must-have insurance policies for small business owners. These lines of coverage have an annual premium cost that is determined by payroll, subcontractor costs, and/or gross sales. These insurance policies are typically estimated for the first year of coverage, but require an annual accounting audit for all subsequent years.

An insurance premium auditor will often make contact at the time of renewal to look at quarterly reports and wage records in order to input these validated numbers into a predetermined formula. The audit process will let underwriters and small business owners know what the premium price will be for next year of insurance. These audits go much smoother if they are handled by an accountant who has access to all of the necessary data.

Reports and Records

A lot of paperwork must be submitted in order to get a premium audit completed. A business owner must provide records regarding employee payroll, overtime, bonuses, subcontractor costs, casual labor expenses, and tax returns. Oftentimes an insurance policy period does not line up exactly with the calendar year, which means bookkeeping reports must be ran in the specified time frame that fits with a small business owner’s insurance policy period.

The necessary accounting paperwork and documentation must be provided for all annual audits in order to make sure that a business owner does not lose coverage. The professionals at Complete Tax and Notary Services understand what is needed for an insurance audit and can handle all of the paperwork and hassle, so that business owners can focus on day to day operations.

Contact Complete Tax and Notary Services today for more information regarding navigating an annual insurance audit.