Where accountancy automation can help
Look at the work before a set of accounts is ready. Staff request missing receipts, rename attachments, check which period a document belongs to and ask clients the same follow-up questions. A workflow can track the requested items, record what has arrived and prepare a targeted reminder for the remainder.
Invoice extraction can suggest supplier names, dates, amounts and references for review. Reconciliation support can suggest possible matches between transactions and supporting records. Reporting assistance can turn verified figures into a first draft. Each use case needs a different acceptance check; there is no single “AI accounting” switch.
Document chasing without repeated reminders
An effective collection workflow needs a reliable checklist for each client and period. When a document arrives, it should be matched to that checklist before another reminder is prepared. A file with an unclear date should remain an exception rather than being counted as complete.
Staff should be able to pause reminders when a client has raised a question or agreed a different deadline. Messages should refer to the specific missing item and offer a clear reply route. Track whether the collection task is complete, rather than treating a sent reminder as a successful outcome.
AI bookkeeping needs reviewable evidence
An extracted amount can be wrong even when the document looks simple. Keep the original receipt or invoice linked to each proposed entry so that reviewers can check the evidence quickly. Accounting software should perform calculations; an AI-generated explanation should not become the source of the figures.
Separate extracting facts from choosing an accounting treatment. A model may identify a supplier correctly while suggesting an unsuitable category. Tax treatment, unusual transactions, adjustments and final submissions need the appropriate professional review. Permissions should reflect the exact action authorised, such as creating a draft rather than posting automatically.
A practical pilot for an accountancy firm
Begin with one client document type or one document-collection process. Record handling time, missing-item rates and corrections before introducing the workflow. Use representative examples with permission, including low-quality scans, credit notes and documents belonging to a different period.
Compare the time spent reviewing proposed entries with the old manual process. Count the items that require correction and those the workflow cannot process. A convincing pilot shows where the system helps and where the accountant still needs to intervene; it does not hide difficult cases to produce an attractive average.
Integration and client information
A proposed connection to Xero, QuickBooks or Sage needs checking against the actual product, subscription and supported actions. Naming a platform does not establish that every requested workflow can be built. Confirm access to attachments, draft entries, status changes and the records needed for reconciliation before agreeing the scope.
Client information should remain separated between engagements. Agree the data a provider receives, who can access it and how long it is retained. Changes to payment instructions should be checked through an established independent process; an email or AI extraction is not sufficient verification.
Why firms are exploring AI
ICAEW’s May 2026 research found that 95% of the responding mid-tier firms expected AI use to increase over the following three years. The survey covered 35 firms, so it should not be treated as a measure of every UK practice. It is evidence of interest, not proof that a particular project will deliver savings. Read the ICAEW research.
A workflow to discuss
Illustrative steps to adapt to your systems and approval requirements.
- Select a document or collection task.
- Define the evidence and accountant approval needed.
- Run a controlled pilot with a separate exception list.
- Measure review time and corrections before extending the scope.
Common questions
Can AI replace an accountant?
AI can assist with preparation, extraction and drafting, but those capabilities do not establish professional judgement or accountability. A useful accountancy workflow keeps source documents available and leaves decisions such as accounting treatment, adjustments and final submissions with the appropriate person. The scope should make that responsibility explicit.
Can AI prepare management accounts?
It can help collect information and draft commentary from verified management-account figures. Calculations and reconciliations still need dependable accounting processes. Any explanation of why a figure changed should be checked against supporting evidence, because a plausible explanation is not necessarily the actual cause.
What is a sensible first accounting automation?
Document collection or invoice extraction into a review queue provides a clear starting point to assess. Both have visible inputs and checkable outputs. Choose the one that currently consumes the most repeat effort, and measure corrections and review time as well as the number of items processed.
Start with one process
Bring the task your team keeps repeating, the tools you use and a few examples with sensitive information removed. Discuss where automation could help and how to assess the result.
Talk to David