As the financial controller for JKL Construction, I’ve always focused on maintaining accurate financial records. However, several years ago, we encountered a significant issue during our annual workers’ compensation audit.
At the time, our standard procedure was to reimburse workers for job-related expenses and track these transactions manually. This system seemed adequate initially, but as our company expanded, we began to experience difficulties.
During that year’s audit preparation, I discovered that we were missing receipts for numerous expense claims. Despite spending several days searching through our records and email communications, we couldn’t locate documentation for thousands of dollars in reimbursements before the audit began.
The result was a substantial financial penalty. When the auditors reviewed our records, they reclassified these undocumented expenses as additional payroll. This reclassification drastically increased our workers’ compensation premiums, resulting in a financial penalty of over $100,000. The impact of this penalty was severe; we had to postpone several projects, which strained our client relationships and cash flow, and limiting our ability to bid on new contracts. The situation caused great stress within our team, and I was deeply concerned about the long-term effects on our business.
This year, however, things changed. We had transitioned to APARBooks, a construction-specific accounting platform. This system transformed our expense management process by digitally capturing all receipts and automatically associating them with the corresponding claims. Workers now submit receipts promptly, and I can monitor any missing documentation in real-time.
Thanks to APARBooks, we approached this year’s audit with confidence. I was able to generate comprehensive reports quickly, providing auditors with clear and accurate records. This new system helped us avoid penalties and even reduced our workers’ compensation costs by streamlining our documentation. Our financial workflow is now more efficient, saving us time and enhancing financial control across the company.
