How Accounting Firms Should Communicate With Clients Under an ATO Audit

01 September 2026·5 min read

Quick answer: When a client receives an ATO audit or review letter, your firm's job in the first 24 hours isn't tax advice — it's steady communication: acknowledge fast, set expectations on process and timeline, and give them one clear point of contact. This is a marketing and client-communication guide, not tax advice. Below is a copy-paste communication framework, three real scenarios, and the mistakes that make anxious clients quietly leave once the audit is over. 📈

An audit letter is one of the most stressful pieces of mail a client will ever receive, and fairly or not, a lot of that stress gets projected straight onto their accountant. The firms that communicate well through it tend to keep the client for years afterwards. The firms that go quiet while "working on it" tend to lose them the moment it resolves — even when the outcome was fine. 💖

What most accounting firms get wrong

Going quiet while "working on it" — silence reads as bad news to an anxious client, even when nothing has actually happened yet.
Leaning on jargon-heavy updates — copying ATO language back at the client instead of translating it into plain English.
No single named contact — the client calls, gets whoever picks up, and has to re-explain the whole situation from scratch.
Only communicating when there's news — long silences between updates feel worse than a short "still nothing to report" check-in.

Please note: general information, not tax advice — check current official ATO guidance and speak with the practitioner handling the audit before relying on any of this.

The audit communication script

A simple three-stage framework you can adapt per client:

Stage 1 — within 24 hours: "Hi [Name], we've received the ATO's [notice type] and wanted to reach out straight away so you're not sitting with this alone. Here's what happens next: [1–2 line plain-English explainer]. [Named contact] is your point person — direct line and email below. We'll check in every [timeframe], even if there's nothing new to report."

Stage 2 — ongoing, every 1–2 weeks: "Quick update: [what's happened / what we're waiting on]. Nothing needed from you right now, OR we do need [specific document] by [date]. Next check-in: [date]."

Stage 3 — resolution: "Update — as of today, [outcome in plain English]. Here's what this means for you: [plain English]. Happy to jump on a call to walk through it properly."

Three real examples

Retail and hospitality client under a GST review: the firm's admin team sent the Stage 1 acknowledgement by email the same afternoon the letter arrived, followed by a phone call from the account manager before end of day — the client's own words back to the firm were "I was expecting to be ignored for weeks."

SMSF client under a complex review: given the higher stakes and technical detail, the partner personally called rather than delegating to a junior staff member — the client had years of retirement savings tied up in the fund, and hearing directly from the person overseeing the matter mattered more than speed.

Sole trader tradie client: kept it deliberately simple — a short SMS plus a one-page document checklist rather than a lengthy email, matching how this client already preferred to communicate about everything else.

Building the cadence, not just the message

The script only works if there's a system behind it. Set an internal response-time standard for audit-related enquiries — same day, not "when we get to it." Assign one named point of contact per matter and make sure reception knows who it is, so a client calling in doesn't get bounced around. Match the channel to the client — some want a call, some want it in writing they can re-read when they're calmer. And log every touchpoint in your CRM or practice management software so anyone at the firm can pick up the file if the primary contact is unavailable.

💡 Heads up: The tone of your very first reply matters as much as its content. Lead with reassurance and clarity before you lead with process — a client in the first hour of audit anxiety isn't ready to absorb a technical explanation, even a well-written one.

Mistakes that quietly cost you the client

Waiting for a full answer before making contact — a short "we've seen this and we're on it" beats silence every time.
Mirroring ATO jargon back at the client — it feels efficient to you and confusing to them.
No shared record of the last contact date — leads to duplicate check-ins from different staff, or worse, missed ones.
Going quiet during genuinely slow admin stretches — a "no news, still waiting" message is still a message worth sending.

Frequently asked questions

Should we tell clients this is a routine, common review?

Be careful with blanket reassurances here — review and audit types vary considerably, and what's routine for one situation may not be for another. This is general communications guidance, not tax advice; the specifics of any individual case should come from the practitioner handling it.

How often should we actually update a client during a long audit?

Every one to two weeks is a reasonable default, even with no news to share. It's worth noting that some audits genuinely go quiet for stretches due to ATO processing times that are entirely outside your firm's control — the cadence is about managing the client's experience of the wait, not the wait itself.

Can any of this be automated?

The template structure can be, but audit communications are high-stress for the client — personalise each message with their specific detail rather than sending an obviously generic broadcast. A templated skeleton with a genuinely personal Stage 1 message tends to land best.

What if the update isn't good news?

Deliver it plainly and without burying it in qualifiers, paired immediately with clear next steps. Clients generally cope better with direct bad news plus a plan than with vague, softened bad news and silence afterwards.