Tax season pressure never seems to ease. Client volumes grow, deadlines tighten, and the complexity of compliance requirements increases yearly. But accountants who’ve embraced AI tools report something different: calmer seasons, fewer late nights, and better client outcomes.
Here are five practical ways to use AI to transform your tax season workflow.
1. Automated Document Collection and Chase
The weeks spent chasing missing documents are some of the most frustrating of tax season. AI can largely eliminate this bottleneck.
How It Works
Modern practice management tools like Karbon use AI to:
- Generate personalised document request lists based on client type
- Send automated reminder sequences that feel personal
- Track which documents have been received
- Escalate urgently when deadlines approach
Implementation Tips
Start early. Set up automated document requests to go out in early January. The AI handles the follow-up while you focus on clients who are ready.
Create smart templates. Build document request templates for different client types (sole traders, limited companies, landlords). The AI can then customise these based on each client’s specific situation.
Use tiered escalation. Program increasing urgency levels:
- Week 1: Friendly reminder
- Week 2: Firm but polite follow-up
- Week 3: Urgent notice with deadline consequences
- Week 4: Direct phone call trigger
Time Saved
Practices report saving 5-10 hours per week during peak season on document chasing alone.
2. Intelligent Data Entry and Categorisation
Manual data entry from bank statements and receipts remains one of the biggest time sinks. AI handles this faster and often more accurately than humans.
Tools That Excel
Dext can process hundreds of receipts and invoices daily, extracting:
- Dates and amounts
- Supplier names
- VAT details
- Line item breakdowns
Xero and Sage both offer AI-powered bank feeds that automatically categorise transactions based on learned patterns.
The Real Productivity Gain
The biggest gain isn’t the initial categorisation—it’s the learning. After processing a client’s first year of data, the AI handles 80-90% of subsequent transactions without intervention.
For a typical small business client with 200 monthly transactions:
- Month 1: 60% auto-categorised, 40% manual review
- Month 6: 85% auto-categorised, 15% manual review
- Month 12: 95% auto-categorised, 5% exceptions only
3. AI-Assisted Review and Error Detection
Even experienced accountants miss things under time pressure. AI provides a tireless second pair of eyes.
What AI Can Catch
Numerical anomalies:
- Unusually large transactions
- Duplicate entries
- Round number patterns that suggest estimation
- VAT calculation errors
Categorisation issues:
- Personal expenses coded to business
- Capital items expensed
- Inconsistent treatment of similar items
Missing items:
- Expected recurring transactions that didn’t appear
- Bank account balances that don’t reconcile
- Directors’ loan movements without documentation
Using ChatGPT and Claude for Review
ChatGPT and Claude can review trial balances and management accounts for issues. Try prompts like:
Review this trial balance for a UK limited company
(e-commerce business, turnover £500k). Highlight any
balances that seem unusual or warrant investigation.
Consider typical ratios and relationships between accounts.Note: Never upload identifiable client data. Anonymise figures or use representative examples.
4. Streamlined Client Communication
Tax season communication often follows predictable patterns. AI handles routine correspondence while preserving your personal touch.
Automated Updates
Set up AI-generated status updates that:
- Inform clients when their documents are received
- Explain where you are in the process
- Request specific missing items
- Confirm completion and next steps
Personalised at Scale
The key is making automated messages feel personal. Modern AI excels at this:
- Reference specific details from the client’s return
- Adjust tone based on client relationship
- Include relevant contextual information
- Sound like you wrote it personally
Example Workflow
- Client submits final documents
- AI generates acknowledgment with estimated completion date
- Processing begins
- AI sends progress update at 50% completion
- You review and approve return
- AI generates summary email highlighting key points
- Client receives personalised completion notice
Time Saved
Practices using AI for client communication report spending 60-70% less time on routine emails during tax season.
5. Knowledge Assistance for Complex Queries
Tax legislation changes constantly. Keeping up is essential but time-consuming. AI helps bridge knowledge gaps quickly.
Using AI for Research
Claude excels at explaining complex tax positions in plain language. For example:
Explain the rules around transferring a business to
a limited company, including:
- Incorporation relief conditions
- Capital gains implications
- Stamp duty considerations
- Practical steps requiredImportant Caveats
- Always verify against official HMRC guidance
- AI knowledge has a cutoff date
- Use AI for understanding concepts, not as definitive advice
- Document your research trail
Building a Knowledge Base
Use AI to create client-facing explanations of common topics:
- MTD requirements
- Dividend versus salary decisions
- Pension contribution benefits
- Capital allowances claims
These explanations can be reused across clients, saving hours of repeated communication.
Putting It All Together
The practices seeing the biggest tax season improvements combine multiple AI tools into integrated workflows:
Week 1-4: Preparation
- Automated document requests go out
- AI chases missing items
- Bank feeds run and auto-categorise
Week 5-8: Processing
- AI-processed data reviewed by staff
- ChatGPT assists with research questions
- Automated client updates sent
Week 9-12: Completion
- AI flags review issues
- Personalised completion emails generated
- Next year planning automated
Common Concerns Addressed
”What about complex returns?”
AI handles the routine elements, freeing your time for complexity. A complex return might still need hours of expert attention—but you’ve gained those hours by automating simpler work.
”Will clients accept AI involvement?”
Most clients never know. The AI works behind the scenes, making your communication faster and your work more thorough. If asked, frame it as using modern tools to provide better service.
”Isn’t this expensive?”
Calculate the ROI. If a £100/month tool saves 5 hours weekly during a 12-week tax season, that’s 60 hours. At any reasonable charge-out rate, the return is substantial.
Getting Started This Season
If you’re new to AI in tax season:
- Pick one area – Document collection or data entry are good starting points
- Start with willing clients – Not everyone needs to be on the new system immediately
- Measure results – Track time spent versus previous years
- Iterate and improve – Each season, add more AI capabilities
The accountants thriving during tax season aren’t working harder—they’re working smarter, with AI handling the predictable so they can focus on what truly requires human expertise.
Looking for the best AI tools for your practice? See our complete guide to AI tools for accountants.
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