Insurtech AuditCover has closed its inaugural seed round funding to support the expansion of its business and technology development.

GM Adi Snir says the business, which offers digital solutions for tax audit insurance and risk mitigation, is well placed to fill the gap for smarter tax protection.

“Our model has been validated by accountants and we know the risk of audit is increasing every day,” Mr Snir said

“During [last year] the ATO stopped carrying out many of its typical tasks, but we believe with the economy now improving, the ATO will be poised to double down its debt recovery and audit activity efforts.”

The seed funding round was led by Insurtech Gateway Australia, an incubator focused on nurturing promising insurance-focused digital start-ups.

“AuditCover are in market with a competitive edge, built on digitising the user journey for the accountant and the insured client,” CEO Simon O’Dell said.

“But we’re particularly excited about their tech development roadmap, which includes integrating data analytics tools for accountants to help them strike at the root of the audit problem by identifying and managing risky returns prior to lodgement.

“This should ultimately save the client, the accountant, the insurer and auditing bodies money and resources.”