Worker's Comp Audits
One thing I’ve noticed working with contractors and small construction businesses is how many people are completely unprepared when workers comp audit time comes around.
Usually it’s not because they’re doing anything wrong intentionally — it’s because bookkeeping, payroll, subcontractor tracking, and certificates of insurance all end up scattered in different places.
A lot of expensive audit adjustments come from things like:
- uninsured subcontractors
- labor coded incorrectly
- payroll not matching reports
- missing COIs
- messy QuickBooks records
Good bookkeeping throughout the year honestly makes workers comp audits SO much easier and can save businesses a surprising amount of money.
I’m a bookkeeper and have handled full workers comp audits for clients, and it’s one of those areas where clean books really matter more than people realize.
Curious how other contractors/business owners handle audit prep now?