An award-winning firm of Northamptonshire chartered accountants has warned that businesses following AI-generated tax and finance advice are at risk of suffering financial losses.
Rushden-based Elsby & Co is one of many chartered accountancy firms urging businesses to avoid using general-purpose artificial intelligence platforms for accountancy advice following reports of firms making errors that have led to instances of overpaid tax, missed capital allowances and HMRC penalties.
It has made the appeal during Chartered Week, which runs until Friday, February 27, and celebrates the vital role that chartered professionals play in setting high standards of competence, conduct and leadership in key industries and professions.
Elsby & Co Managing Director Claire Emery said: “A recent survey of 500 UK accountants and bookkeepers revealed that half have seen their clients suffer direct financial losses after relying on tax and financial advice from AI-powered chatbots.
“The top AI-generated errors include incorrect business expenses, VAT miscalculations and payroll and business tax errors.
“This is resulting in businesses suffering financial losses and for small organisations mistakes like these can put them at risk of insolvency.”
More than 90 per cent of the respondents to the survey by software company Dext said they spend a significant amount of time every month fixing AI-driven mistakes for clients, with nearly 40 per cent saying they lose between four and 10 hours every week unravelling incorrect data.
Claire said: “Organisations often turn to artificial intelligence because they think it can help them save time and money but this survey shows that turning to AI for accountancy advice is costing businesses both time and money.
“When organisations use chartered accountancy firms, like Elsby & Co, they can be confident they’re working with highly trained and qualified individuals who undergo ongoing continuous professional development. They have an in-depth knowledge of accountancy practices, the latest tax regulations and financial strategies and can give businesses peace of mind when it comes to their dealings with HMRC.
“We take our role as chartered accountants very seriously and strive to be the only accountant that our clients will ever need. We offer a comprehensive range of services that provide our clients with a personalised service that supports them throughout the growth of their businesses up to the time company owners want to start making exit plans and beyond.”
Elsby & Co’s offering includes its Business Hub which provides firms with regular bespoke management accounts with real-time key performance indicators and a complete outsourced finance function, including bookkeeping, credit control, payroll and payment processing.
Elsby Wealth Management brings together experts in wealth management, estate planning, personal and corporate insurance, mortgages and pensions to provide clients with a joined-up approach to managing their finances.
Elsby & Co’s comprehensive range of services also includes auditing and business coaching.
Companies which want to find out more about Elsby & Co’s services can email help@elsbyandco.co.uk, call 0330 053 9189 or visit the Elsby & Co website.
