AI can answer a tax question in seconds. Accounting software can categorise transactions, generate reports and automate much of your bookkeeping.
So, with technology doing more of the work, it is reasonable to ask:
Do I still need an accountant?
For most businesses, the answer is yes. But the role of your accountant is changing.
AI can be a useful accounting tool
AI can explain accounting terms, help you understand the basics of a tax rule or give you an idea of the questions you should be asking.
We use technology at North Devon Accounts too. When it saves time, reduces repetitive work or gives us better information, that benefits our clients.
But a useful tool is not the same as professional advice.
AI only knows what you tell it
Ask AI a question and it will produce an answer based on the information available to it.
What it may not know is the full picture behind your business.
Perhaps your profits have changed. You are thinking about employing someone, becoming a limited company or making a significant purchase.
Those details can change the answer.
An accountant can consider the question alongside the rest of your business.
A confident answer isn’t necessarily the right answer
AI can sound convincing even when an answer is incomplete, out of date or based on the wrong circumstances.
UK tax rules change regularly, with thresholds, exceptions and individual circumstances affecting what applies to you.
There is another important difference too: AI does not take responsibility for the answer it gives you.
If you use incorrect information from AI when preparing your accounts or tax return, the responsibility for what is submitted to HMRC remains with you.
For general information, AI can be extremely useful. When a decision affects your tax, accounts or business, it is worth making sure the advice is right for you.
AI can’t submit your tax return for you
AI might help explain what goes on a tax return, but it cannot act as your accountant and submit the return to HMRC on your behalf.
At North Devon Accounts, we do more than provide information. We prepare your accounts, calculate the figures, complete the relevant return and submit it to HMRC for you.
We can also deal with HMRC on your behalf where appropriate.
That is a very different service from asking an AI tool a question and deciding what to do with the answer.
Your accountant can spot what you haven’t asked
Sometimes the value of speaking to an accountant is discovering something you did not know you needed to ask about.
A conversation about buying a new van could uncover another tax consideration. Looking at your accounts might highlight a cash flow issue before it becomes a problem.
Part of our job is to recognise those things.
What happens when something goes wrong?
If HMRC sends you a letter you do not understand, your bookkeeping does not balance or you discover a mistake, you probably do not want an explanation of what might have happened.
You want someone who understands your accounts and can help you decide what to do next.
That is where having an accountant you can actually speak to matters.
AI or an accountant? Why not both?
We do not see technology as the enemy of good accountancy.
Used properly, it can make accounting faster and more efficient. It can remove repetitive work and give business owners easier access to their financial information.
But good accountancy has never been about entering numbers into boxes.
It is about understanding your business, applying the rules to your circumstances and taking responsibility for the work we do for you.
AI can be a useful tool.
Your accountant is there to turn the information into action.
Looking for more than an online answer?
If you want an accountant who combines modern technology with personal support, talk to North Devon Accounts.
Book a free 30-minute consultation with our team and find out how we can help.
