It’s that time of year again... whether it’s out in the real world or online in cyberspace, everywhere you look businesses are slashing prices to get those last minute sales through before the 30th June deadline.

So what do your accounts look like? Are you on the Xero bandwagon reconciling your accounts on a daily basis? Everything scanned in and attached eliminating the need for paper files? Or are you one of those people stuck in the dark ages collecting receipts in a shoebox? Either way your stomach will still be in the floor the moment you receive notice of a Tax Audit.

Instantly you’re thinking about all the hours you’re going to have to spend going through old receipts, answering questions, looking up details of purchases... was that really a staff meal or was that actually entertainment? It was 6 years ago how am I supposed to remember?! Do you have a vehicle log book on file to justify the personal use method you’ve selected rather than completing all that fringe benefit documentation. Are you still using the same accountant? Is your old accountant still in business? How much will the accountant fees be to get all of this sorted out? A thousand? Two thousand? Seven thousand...? 

What if I told you that you can actually take out insurance to cover the risk of your business being audited just like you can cover the risk of having a car accident?

Well, you can. It’s one of those smaller sections in your standard Business Package that until now you’ve probably looked at as an optional extra you don’t need. But since it’s tax time and you’re already talking to your accountant anyway, why don’t you ask him how much he’d have to charge you if you did get audited. Then give your broker a call and find out home much it would cost to insure the Tax Audit section. You’ll be surprised just how cheap it is, especially when it’s broken down into monthly premiums.

Now that you have this knowledge it’s up to you whether or not you choose the self insurance option (where you take the gamble and suffer the cash flow problems of the Worst Case Scenario actually happening) or you protect yourself using insurance to shift the risk.

Either way this is a decision about your financial situation which means you should seek professional advice and when it comes to insurance that professional is called a licensed general insurance broker, who you can find at Get Informed. Initial consultations and quotations are always free.