Ways AI is already transforming accountancy

Here’s how other accountants are using AI safely, from creating custom tools to strategic analysis.

As I’ve delved deeper into the world of Artificial Intelligence (AI), I’ve found it’s already surprisingly embedded in our day-to-day activities. I’ve always appreciated great tech but AI is changing the landscape of our roles whether we like it or not.

Personally, I believe we’ll always need a human in the loop. But, many of our routine tasks can be made more efficient and sped up, freeing us to focus on the strategic, high-value work that truly requires our expertise.

So what is AI, really?

Let’s start with the basics. AI refers to computer systems that can perform tasks typically requiring human intelligence, things like learning from data, recognising patterns, making predictions, and generating content.

You’ve probably been using AI for years without realising it:

• bank reconciliations in accounting software that automatically match transactions
• Netflix recommendations based on your viewing habits
• receipt scanning apps that extract data and post entries for you.

AI isn’t new. What’s changed is how accessible and powerful it’s become and how quickly it’s evolving.

How accountants can use AI safely

I work with businesses ranging from sole traders to multinational organisations, and each has different thoughts and approaches to this changing landscape. At the root of their concerns? Ethics and confidentiality.

I was sceptical at first. But after completing courses with experts and experimenting hands-on, I’ve personally loved the journey. That said, it’s crucial to use AI responsibly.

Key safety principles

1. Never input confidential information

This is non-negotiable. Don’t add client data, personal details, or sensitive financial information into free AI tools. Even paid versions with better security shouldn’t be used for personal data without proper safeguards and compliance checks.

2. Understand AI’s limitations

When ChatGPT first became mainstream, it frequently got calculations wrong. Why? Because it’s trained on datasets and retrieves information from memory, it’s not a calculator. It’s a language model that predicts what comes next, not a fact-checker.

3. Use AI for the right tasks!

AI works brilliantly for:

• reviewing budget scenarios
• summarising new HMRC updates
• drafting content (blogs, emails, reports)
• brainstorming ideas or exploring different approaches.

But always verify outputs, especially for compliance-critical work, and ask it to provide you with the sources – and check those too!

4. Master the art of prompting AI

It is only as good as the prompts you give it. Be specific about what you need, the format you want, and where information should be sourced from. Vague prompts = vague results.

Ethics and compliance: The non-negotiables

As accountants, we’re bound by professional standards and client confidentiality. AI doesn’t change that; if anything, it raises the stakes.

Questions to ask before using AI:

• Does this tool comply with GDPR and data protection regulations?
• Am I sharing client data, even anonymised?
• Can I verify the accuracy of AI-generated outputs?
• Have I been transparent with clients about how I use AI?

AI in action for accountants

Let me share some practical ways AI is already being used effectively in accountancy:

Automating routine tasks

• Receipt and invoice processing: Tools like Dext and Hubdoc use AI to scan, extract, and categorise data automatically.
• Bank reconciliation: Xero, QuickBooks, and Sage all use AI-powered matching to suggest transaction pairings, saving hours of manual work.
• Expense categorisation: AI learns your coding patterns and suggests categories for new transactions.

Enhancing client communications

Drafting emails and reports: Use AI to create first drafts of client updates, or tax planning letters. Just add your personal touch and verify accuracy.

Creating content: Blogs, newsletters, and social media posts become faster to produce. But beware, AI loves certain keywords and emojis that scream “I used AI!” Use it as a brainstorming partner, not a copy-paste solution.

Custom AI tools

You can now train AI to work specifically for your practice by creating custom GPTs. Give it:

• context (your companies’ services, tone, typical client queries)
• a role (e.g. ‘You are a UK tax advisor assistant’)
• instructions (output format, compliance reminders, sources to reference).

Strategic analysis

• Forecasting and scenario planning: AI can model multiple ‘what if’ scenarios quickly, helping clients make informed decisions.
• Trend spotting: Identify patterns in financial data that might indicate opportunities or risks.

For example…

Sole Trader: A freelance bookkeeper uses AI to draft monthly client reports and generate social media content. She saves five hours per week, which she reinvests in client consultations and business development.

Small Practice: A three-person accountancy firm uses AI-powered receipt scanning and bank feeds to cut data entry time by 60%. They’ve redirected that time to advisory services, increasing revenue per client.

Larger Organisation: A mid-sized firm has built a custom GPT trained on UK tax legislation and their internal processes. It helps junior staff draft technical information and answer routine client queries faster, with senior review.

My question to you

AI is here, and it’s evolving fast. The accountants who thrive won’t be the ones who resist it, they’ll be the ones who learn to use it wisely, ethically and strategically.

So here’s what I want to know: Are you already using AI in your practice or business? What tasks would you love to automate or speed up? What’s holding you back – concerns about ethics, accuracy, or just not knowing where to start?

Get in touch on LinkedIn. I’d love to hear your thoughts and experiences as we navigate this changing landscape together.

Tara Askham is an award-winning finance educator, published author, and qualified lecturer. A Maple Review Steering Committee member and contributor to Xero’s Financial Confidence Taskforce, she champions financial confidence and removing barriers into entrepreneurship for underrepresented founders.