Put yourself in your client's shoes. What first comes to mind when you hear the phrase ‘tax audit insurance’? Perhaps you think, “Oh, I’ve never been audited, so there’s no need,” or “I pay my accountant to do their job properly, isn’t that enough?,” or even “Great, more insurance I don’t need…”
Well, what if they heard the phrase ‘insurance that covers the professional costs of responding to reviews, audits, compliance obligations, prompted by the ATO or other governing bodies, for any and all historical tax returns while a policy is in force’? It’s a mouthful, but you would hope it would make them - and you - think more carefully about the possible benefits of such insurance.
In a post-Covid world where the ATO is upping its game daily, more accountants, businesses, and individuals are thinking about ways to protect themselves. And so they should, particularly with the ever-increasing possibility of being tapped on the shoulder and being subject to some form of intervention.
But what makes tax audit insurance the best option for counteracting the ATO’s incessant appetite? And what makes AuditCover stand out from other providers in the tax audit insurance arena?
Before we dive into the specifics of AuditCover - who they are and where they're headed - it’s necessary to understand (briefly) the history of tax audit insurance in Australia to date.
When first introduced in the early 2000s, tax audit insurance was (mostly) a one-size-fits-all model. Firms would partner with a provider to insure their client base in a subscription-style model and receive a commission for their efforts.
Yearly administrative burden on the firm? Check.
Sharing of sensitive client information with a third party? Check.
Tiresome sorting of said sensitive client information? Check.
Fast forward to 2022, and this inflexible model is still applied to practices, often with little awareness of the changes occurring across the industry. Until now.
AuditCover is a new tax audit insurance provider, combining technology and industry expertise to challenge the status quo and ultimately provide products that their partners and customers believe in. Their model is flexible, customizable, and definitely not one-size-fits-all. They work alongside firms of all shapes and sizes, Australia-wide, and understand that each and every one has different needs and preferences.
But of course, anyone can huff and puff and say they’re ‘different’ all day long - it’s another thing to prove. So let’s.
Their new model was developed after months and months of gathering partner and customer feedback, engaging in targeted product interviews, and fully understanding the ever-changing landscape around us.
Removal of yearly admin? Check.
Ideal user experience enhanced by technology? Check.
Option to self-serve or prefill? Check.
No need to share client data? Check.
At a time when cyber security is front of mind and in the wake of the Telstra, Optus, and Medibank data breaches, AuditCover can now offer practices a solution that protects their data every step of the way.
They're constantly evolving and adapting to suit the needs of those they work alongside. By moving to this new model, they're equipping their partners to begin the conversation about tax audit insurance when and where it makes the most sense. Perhaps it’s when onboarding new clients, doing yearly tax returns or embedding this product in the client experience.
There are so many different options and approaches, which is something that the most progressive practices in Australia are opting into. Imagine the possibilities available to a proactive accounting firm when given the ability to integrate with its existing workflows.
It’s time we all said goodbye to the fixed and inflexible versions of tax audit insurance and embraced embedded insurance that works for you. The industry is changing, and the best businesses will be changing with it. Why not learn more?
If you'd like to find out more about how AuditCover could benefit your accounting firm, get in touch with us, or book a meeting here.
Clarity Street was conceived from years of engaging with Accounting firms on a daily basis and a constant desire to make Accounting firms & SME’s more efficient and profitable.