What can AI do in a small accountancy practice?
AI in a small practice handles the admin around the accounts, such as chasing clients for records, sorting bank lines and drafting routine replies. The judgement stays with a qualified person, which means the advice, the sign-off and anything filed with HMRC.
That split matters more from April 2026. Making Tax Digital for Income Tax moves sole traders and landlords with qualifying income over £50,000 to quarterly updates from 6 April 2026. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. Each step down adds clients who need chasing four times a year instead of once.
How many hours does chasing records cost a practice?
Work it out with your own numbers before buying anything. Here is the sum for a practice with 150 clients on quarterly updates, using example figures you should replace with yours.
- Clients chased each quarter: 150
- Average reminders before records arrive: 3
- Minutes per reminder, including checking what is missing: 5
That is 150 × 3 × 5 = 2,250 minutes, or 37.5 hours a quarter, about 150 hours a year. At a loaded staff cost of £25 an hour, chasing costs £3,750 a year before anyone touches the accounts.
AI drafts the reminders, tracks who has replied and lists what is still missing. A person still decides when a late client gets a call or a fee. If drafting and tracking fall from 5 minutes to 1, the same year costs about 30 hours.
What should stay with a qualified accountant?
Three things stay with a person. Tax advice, because a client relies on it and your professional body holds you to it. Sign-off on anything filed with HMRC. And anti-money laundering decisions, which the Money Laundering Regulations place on the firm, not on a tool.
AI can collect ID documents and fill in the onboarding checklist. It should not decide whether a client passes.
What is the decision rule for a small practice?
Fix the job with the most hours first, and check your existing software before you buy a new tool. Most practice and bookkeeping platforms have added AI features in the last year, often switched off by default.
Only bring in outside help when the job crosses several tools or people. Our workflow scoring method ranks the jobs for you. Before any client data goes near a chatbot, check the settings that keep it out of model training.