Understanding Employee Benefit Accrual: Challenges and Solutions

Hello everyone,

As a budding bookkeeper working in-house, I’ve stumbled upon a puzzling situation regarding our company’s insurance plan that I’d like to share and seek your insights on.

Our organization’s insurance plan accrues expenses and liabilities on a bi-weekly basis, specifically every 14 days. However, the insurance provider bills us once a month. This discrepancy has resulted in a recurring issue where my liability account never zeroes out, creating a sense of uncertainty around our financial statements. I’m left wondering if this is a significant concern and what steps I should take to address it.

Currently, I’m not responsible for payroll, as a more experienced bookkeeper and mentor handles that aspect. He is scheduled to teach me the ropes, but due to his busy workload, I hesitate to burden him with my questions just yet. I am seeking advice on how to manage this discrepancy effectively and whether it is something that needs immediate attention.

Any guidance or strategies from seasoned professionals in the field would be incredibly helpful. Thank you for your support!

Best,
[Your Name]