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Small Business Accounting And Annual Insurance Audits

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LUXA Enterprises specializes in small business accounting in Denver. They are on-hand to help with all of a company's bookkeeping requirements, especially during the time of an annual insurance audit.

The first year of insurance coverage for a small business typically comes with an estimated premium rate. However, after that first year of coverage it is common practice for insurance carriers to order insurance audits on all small business customers.

The renewal and establishment of more precise premium rates for a company's workers' compensation and general liability policies depends on the meticulous tracking of payroll, subcontractor costs, sales figures, and more.

Workers' Compensation Insurance

Insurance companies typically order physical or phone audit reviews on all policy renewals for workers' compensation. Especially when a business is growing and adding more employees to the payroll or using more subcontractors.

The insurance audit process can be time-consuming. LUXA Enterprises has the expertise to record and evaluate all aspects associated with a company's payroll department. They can track every category of remuneration, which may include all or some of the following: salary wages, hourly wages, overtime, bonuses, work expenses, and more.

Subcontractor costs also play a big part in determining a company's insurance premium for the next year. Expertise tracking of all payments issued to independent contractors can be easily accomplished by LUXA Enterprises.

General Liability Insurance

While workers' compensation insurance is based on payroll, general liability insurance premiums can be based on sales, units, payroll, subcontractor costs, etc. LUXA Enterprises can create spreadsheets to track specific business areas that will provide clear and concise data to an insurance auditor on an annual basis. This will go a long way in securing swift policy renewals and also making sure insurance premium costs are adequate and fair for the operations being conducted by the small business.

Contact LUXA Enterprises to learn more.

Topics: Accounting Accounting procedures