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AI Tools for Accountants

A curated directory of AI tools that UK accounting firms are actually using — from document processing to workflow automation. Each tool has been selected for its relevance to practice workflows, not just hype.

Data Privacy & GDPR Warning

Before using any AI tool with client data, your firm must consider its data protection obligations. Misuse of AI with personal data can lead to regulatory action from the ICO and damage client trust.

  • Never upload client data to public AI tools (e.g., free ChatGPT, free Claude) without explicit client consent and a lawful basis under GDPR. Data entered into free tiers may be used for model training.
  • GDPR applies to AI processing. If you feed personal data (names, addresses, financial details) into an AI tool, that counts as data processing. You need a lawful basis, and your privacy notice should cover it.
  • Follow ICO guidance. The ICO has published specific guidance on AI and data protection. Ensure your firm has conducted a Data Protection Impact Assessment (DPIA) before deploying AI tools that process personal data.
  • Choose GDPR-compliant tools. Prefer AI tools that offer enterprise or professional plans where your data is not used for training. Check for Data Processing Agreements (DPAs) and UK/EU data residency options.
  • Anonymise before you experiment. If you want to use general AI tools for research or drafting, strip out all client-identifying information first. Replace real names, UTRs, and addresses with fictional data.

Document Processing & OCR

Extract data from receipts, invoices, and bank statements automatically. These tools eliminate manual data entry and feed directly into your accounting software.

Dext (formerly Receipt Bank)

Paid

AI-powered receipt and invoice extraction that automatically reads, categorises, and publishes financial documents to your accounting software. One of the most widely used tools in UK practices.

Best for: Firms processing high volumes of client receipts and purchase invoices

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Hubdoc

Free

Captures bills and receipts via email forwarding, upload, or mobile scan. Included free with every Xero subscription, making it a no-brainer for Xero practices.

Best for: Xero-based firms wanting document capture at no additional cost

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AutoEntry

Paid

Automated data extraction for invoices, receipts, bank and credit card statements. Integrates with Sage, Xero, and QuickBooks. Particularly strong at processing bank statements.

Best for: Multi-platform firms or those processing lots of bank statements

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Bookkeeping Automation

Let AI handle transaction categorisation, reconciliation suggestions, and routine bookkeeping tasks so your team can focus on advisory work.

Xero AI Auto-Categorisation

Paid

Xero uses machine learning to suggest account codes for bank transactions based on past coding patterns. Accuracy improves over time as the AI learns from your corrections.

Best for: Firms already on Xero wanting to speed up bank reconciliation

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QuickBooks Online AI Features

Paid

QuickBooks uses AI to auto-categorise bank transactions, match receipts to expenses, and flag potential duplicate entries. Includes smart invoicing suggestions.

Best for: Firms using QuickBooks Online who want faster transaction processing

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Datamolino

Paid

AI-powered data extraction that reads invoices and receipts, then maps the data directly into your accounting software with the correct VAT treatment and nominal codes.

Best for: Firms needing accurate VAT extraction and multi-currency support

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Communication & Scheduling

Draft client emails, transcribe meetings, and automate appointment booking. AI saves hours every week on communication overhead.

ChatGPT

Freemium

Draft client emails, explain technical tax concepts in plain English, create meeting agendas, and write engagement letters. Excellent for overcoming writer's block on routine communications.

Best for: Drafting client correspondence and simplifying complex explanations

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Otter.ai

Freemium

Real-time meeting transcription and AI-generated summaries. Records Teams, Zoom, and Google Meet calls, then produces searchable notes with action items highlighted.

Best for: Firms wanting automatic records of client meetings and internal discussions

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Calendly

Freemium

AI-assisted scheduling that lets clients book meetings based on your real-time availability. Eliminates back-and-forth emails and integrates with Outlook and Google Calendar.

Best for: Reducing admin time spent coordinating client meeting times

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Research & Compliance

Use AI to speed up tax research, check HMRC guidance, and stay current with regulatory changes. Always verify AI outputs against primary sources.

Claude

Freemium

Anthropic's AI assistant, particularly strong at analysing long documents, summarising HMRC guidance, and reasoning through complex tax scenarios. Produces well-structured, cautious responses.

Best for: Detailed tax research, document analysis, and nuanced compliance questions

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Perplexity

Freemium

AI-powered search engine that provides answers with inline citations and source links. Excellent for quickly checking current HMRC guidance, rates, and thresholds with verifiable references.

Best for: Quick fact-checking and research where you need cited sources

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Lexis+ AI

Paid

LexisNexis’s AI legal research tool trained on professional legal and tax content. Provides hallucination-free, source-linked answers from trusted legal databases.

Best for: Complex compliance questions requiring authoritative legal and tax sources

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Workflow Automation

Connect your apps and automate repetitive multi-step processes. Move data between systems without manual copy-pasting or re-keying.

Zapier

Freemium

Connects over 6,000 apps with AI-powered automation. Create workflows that trigger actions across your practice tools — e.g., auto-creating tasks when emails arrive or syncing CRM data to your accounting software.

Best for: Firms wanting to connect multiple cloud tools without coding

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Make (formerly Integromat)

Freemium

Visual workflow builder with powerful data transformation capabilities. More flexible than Zapier for complex, multi-branch automations and offers better value for high-volume workflows.

Best for: Complex automations with conditional logic or data transformation needs

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Microsoft Power Automate

Paid

Part of the Microsoft 365 ecosystem. Automates workflows between Outlook, Teams, SharePoint, Excel, and hundreds of other apps. AI Builder adds document processing and text analysis.

Best for: Firms heavily invested in the Microsoft 365 ecosystem

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How to Evaluate AI Tools for Your Firm

Not every AI tool is worth adopting. Before adding anything to your stack, ask these questions.

  • 1.Does it integrate with your existing accounting software (Xero, QuickBooks, Sage)?
  • 2.Where is your data stored, and does the provider offer a Data Processing Agreement?
  • 3.Will it genuinely save time, or just shift the work to checking AI output?
  • 4.Does it have a UK or EU data residency option?
  • 5.Is the pricing sustainable as your firm grows, or does it scale per-user?
  • 6.Can you trial it with dummy data before committing to a subscription?
  • 7.Does your professional indemnity insurance cover AI-assisted work?

Need help choosing the right AI tools?

We help UK accounting firms evaluate, implement, and integrate AI tools into their workflows. Book a free discovery call to discuss your firm's needs.

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AI Tools for Accountants — Curated Directory for UK Firms | NerdNumbers