Can AI prepare annual accounts? A guide for NZ and Australian firms

What AI can prepare

Given access to a client's accounting file, bank data and source documents, AI can do most of the steps a staff accountant does at year-end:

• Check bank and account reconciliations and flag unreconciled items.
• Review coding, including GST coding, and suggest corrections.
• Prepare year-end adjustments such as accruals, prepayments and depreciation.
• Prepare financial statements in the firm's format.
• Prepare the income tax return ready for review.
• Build workpapers showing how each balance was worked out.
• List questions and exceptions for the firm to follow up.

Where the limits are

AI can make mistakes. It can misread a document, apply the wrong treatment or miss context that a client never wrote down. That is why AI-prepared work should always be reviewed by a qualified person at the firm before it goes to the client or to IRD or the ATO.

AI also works only with the information it is given. Missing records, unusual transactions and judgement calls about tax positions still need your firm's input.

What stays with your firm

• Review and sign-off. Your firm is responsible for the work.
• Filing and lodgement. In New Zealand your firm files with Inland Revenue. In Australia your registered tax or BAS agent must supervise the work and lodge with the ATO.
• Advice. Tax and business advice to your clients stays with you.
• Telling clients. Your clients should know that AI is used and that their information is processed by an AI provider.

How AnnualsAI does it

At AnnualsAI, AI prepares the work and AI reviews it, inside your firm's own software. Annual accounts are delivered within 5 days of receiving everything we need, and your first job is free. Read how it works or our AI disclosure.