An employee benefit plan audit reviews and assesses the benefits you offer and can provide valuable insights into how to improve the management of these amenities. For larger companies, the United States Department of Labor requires an annual benefit plan audit by an independent business accountant. But any operation of any size can reap benefits from such a review. Here are a few of the advantages.

Why You Should Have Employee Benefit Plan Audit

1. Compliance With the Law

Any company offering benefits to more than 100 employees must be audited yearly by a third-party business accountant. The audit must include Form 5500 and all associated financial reports and records. Not honoring this obligation can result in serious penalties, including a fine of up to $1,100 a day for a plan administrator who fails to file a Form 5500.

2. Save Money

An annual assessment of your benefit plan can identify areas where money can be saved. A business accountant will assemble and analyze your records so you can see exactly how money is being spent. There may be other providers or plan options that are more in line with your company's needs. But you'll only know this information after a thorough audit is performed.

3. Know What Your Plan Offers

A strong benefits package is appealing to job seekers. When your business is actively recruiting, you should know all the advantages the plan provides. Applicants will likely have questions about benefits, and an audit will ensure you or your human resources team understand the extent of what's covered. Having this information can play a major role in attracting the right members to your team.

When you need an employee benefit plan audit, trust the business accountants at Sharrard, McGee & Co., PA. With offices in Greensboro and High Point, NC, they have been serving businesses throughout the Triad Area for 40 years. They offer accounting services, tax preparation, and small business consulting. To schedule an appointment, call their Greensboro office at (336) 884-0410 or their High Point office at 336-884-0410. Visit their website for a look at their services.