How to Use ChatGPT for Accounting Tasks

ChatGPT has become one of the most valuable productivity tools for accountants. But to get the best results, you need to know how to use it effectively. In this practical guide, I’ll share specific prompts and techniques that work brilliantly for common accounting tasks.

Before You Start: The Golden Rules

Before diving into specific use cases, keep these principles in mind:

1. Never share identifiable client data – Always anonymise or generalise
2. Verify important information – ChatGPT can make mistakes, especially with recent regulations
3. Be specific in your prompts – The more context you provide, the better the output
4. Iterate and refine – Your first prompt rarely produces perfect results

Practical Use Cases with Example Prompts

1. Drafting Client Emails

One of ChatGPT’s strongest applications is drafting professional communications. Here are some prompts that work well:

Requesting Missing Documents

I'm a UK chartered accountant. Draft a professional but friendly email
to a small business client asking them to provide their Q3 bank
statements and sales invoices. The deadline for their VAT return is
in 2 weeks. Keep it concise.

Explaining a Complex Issue

Draft an email to a client explaining why they need to register for
VAT. They're a UK sole trader who has exceeded the £90,000 threshold.
Explain the key obligations without using too much jargon. Mention
MTD requirements briefly.

Fee Increase Letter

Draft a letter to clients informing them of a 5% fee increase
effective from April. The tone should be professional and
appreciative of their loyalty. Mention rising costs without
being defensive. We're a small UK accounting practice.

2. Excel Formula Creation

ChatGPT excels at creating Excel formulas from plain English descriptions. Here are examples:

VLOOKUP Replacement

Create an Excel formula using XLOOKUP that: looks up the value
in cell A2 in column A of Sheet2, and returns the corresponding
value from column D of Sheet2. If not found, return "Not Found".

Conditional Summing

I need an Excel formula that sums all values in column C where:
- Column A contains "Revenue"
- Column B is between 01/01/2024 and 31/12/2024
Use UK date format.

Complex IF Statements

Create a nested IF formula that:
- Returns "VAT Registered" if cell B2 > 90000
- Returns "Approaching Threshold" if B2 > 75000
- Returns "Below Threshold" if B2 <= 75000

3. Research and Explanations

ChatGPT is excellent for quick research and understanding complex topics:

Understanding Regulations

Explain the UK's MTD for ITSA requirements that start in April 2026.
What are the key obligations, who needs to comply, and what are the
quarterly reporting requirements? Be specific about thresholds.

Summarising Guidance

Summarise the key points accountants need to know about the 2024
changes to R&D tax relief for SMEs. Focus on practical implications.

Preparing for Meetings

I have a meeting with a client who wants to understand the tax
implications of converting from sole trader to limited company.
Give me a bullet-point summary of the main considerations I
should discuss, including corporation tax, dividend taxation,
and national insurance.

4. Creating Templates

ChatGPT can create useful templates and checklists:

Engagement Letter Sections

Create a section for an engagement letter that covers the scope
of services for annual accounts preparation and corporation tax
return filing for a UK limited company. Include standard exclusions
and client responsibilities.

Client Onboarding Checklist

Create a checklist for onboarding a new UK limited company client
for bookkeeping and accounts preparation services. Include all
documents we need to request and steps to take.

5. Data Analysis Descriptions

When you need to describe what you want to achieve:

I have a spreadsheet with columns: Date, Client Name, Invoice Amount,
Date Paid, Payment Amount. I want to:
1. Calculate days between invoice and payment for each row
2. Flag any partial payments
3. Create a summary showing average payment days by client
4. Highlight invoices over 60 days old that are unpaid

What's the best approach in Excel, and can you provide the
formulas I'll need?

Advanced Tips

Use Custom Instructions

ChatGPT allows you to set persistent instructions. For accounting work, consider:

I'm a UK chartered accountant working with small businesses.
When I ask about regulations, assume UK context unless specified.
Use professional but accessible language. When creating formulas,
use UK date format (DD/MM/YYYY). Always remind me to verify
important regulatory information against official sources.

Chain Your Prompts

Complex tasks work better when broken into steps:

1. First prompt: “Outline the main sections needed for…”
2. Second prompt: “Now expand on section 1…”
3. Third prompt: “Revise this to be more concise…”

Save Your Best Prompts

Keep a document of prompts that work well for you. Over time, you’ll build a personal library of effective templates.

Common Pitfalls to Avoid

1. Being too vague – “Write an email to a client” won’t give good results
2. Asking about very recent changes – ChatGPT’s knowledge has a cutoff date
3. Trusting numbers without checking – Verify any specific figures or thresholds
4. Sharing sensitive data – Always anonymise client information

Conclusion

ChatGPT is a remarkably useful tool when used correctly. Start with one or two use cases that address your biggest time drains, and gradually expand from there. The key is practice – the more you use it, the better you’ll become at crafting prompts that give you exactly what you need.

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