Best Premium Audit Software
The best premium audit software may already be right in front of you and costs nothing to use. We receive many calls every week where an employer is very anxious about their workers comp premium audit. One of the main questions is how to properly prepare for this yearly necessity.
The best way to begin to prepare is with the right premium audit software.
By the way, the premium audit software the auditors use is very limited in availability. I have often been asked what the best software is by independent premium auditors.
The secret to any type of audit – be it tax, workers compensation, etc. is to be highly organized. One of the worst ways to prepare is by just piling a large amount of paper in front of any type of auditor and then say – go through it.
First impressions count in audits just as they do when meeting someone for the first time. The best method is to have everything organized as much as possible. Auditors – including premium auditors- by their nature are very organized workers.
The software that you likely have on your computer right now can easily organize what you need to show the premium auditor. Excel(R) or any other type of spreadsheet software is great for such a task. One of the main determinants will be the auditor’s letter to you.
The letter will point out what the auditor needs to complete the audit. One important point is that you are not required to let the auditor leave with any of your business information. If your company does not have Excel(R), you may want to try Apache’s Open Office.
Calc is their version of a good spreadsheet program. It is open source and free, but you should donate to the program if you use it for commercial purposes. Programmers have donated thousands of hours of their time to make it work.
I have seen some employers organize the payroll by classification codes based on their prior year’s audit. Spreadsheet programs are perfect for this task. This can be helpful if you know exactly what you are doing. In some cases, this may cost you. The main goal is to be concise and complete.
If you use a payroll service, they can always run a yearly report. Some even have a Workers Comp report template that you can use. I just searched in my Excel 2010 for “yearly payroll” and was provided with a free template that with a few alterations may suffice.
The main goal is to summarize all your payroll data as much as possible using a spreadsheet. Premium auditors are under a tremendous time pressure. Anything you can do to present your payroll information in summary form with backing data will always pay off in the long run.
Article provided by James J Moore, AIC, MBA, ChFC, ARM. All articles are original content. Check out the full website at www.cutcompcosts.com.