Artificial intelligence is becoming part of everyday business life – helping with admin, marketing and productivity. But when it comes to tax and financial advice, relying on AI-generated answers could be doing more harm than good.
At Elsby & Co, we’re seeing a growing number of businesses facing real financial consequences after following generic advice produced by AI tools – from overpaid tax to missed reliefs and HMRC penalties.
The hidden cost of “quick answers”
Many business owners turn to AI because it feels fast, accessible and cost‑effective. But recent industry research tells a very different story.
A survey of 500 UK accountants and bookkeepers found that half had seen clients suffer direct financial losses after relying on AI-generated tax or finance advice. The most common issues included:
- Incorrect treatment of business expenses
- VAT miscalculations
- Payroll errors
- Business tax mistakes
For smaller organisations, errors like these aren’t just frustrating – they can put serious strain on cashflow and, in some cases, threaten the viability of the business.
As our Managing Director, Claire Emery, explains:
“Organisations often turn to artificial intelligence because they think it will save time and money. But what we’re seeing is the opposite – businesses are losing both.”
Fixing AI mistakes takes time (and money)
The same research showed that over 90% of accountants spend significant time each month fixing AI-driven mistakes for clients. Nearly 40% said they lose between four and ten hours every week unravelling incorrect data.
That’s time businesses could be spending on growth, strategy and running their operations – not correcting avoidable errors.
Why AI isn’t a substitute for professional judgement
General-purpose AI tools don’t understand your business, your goals, or the nuances of UK tax legislation. They don’t carry professional responsibility, and they don’t adapt advice to your specific circumstances.
Chartered accountants, on the other hand:
- Are highly trained and qualified
- Undertake ongoing continuous professional development
- Stay up to date with changing tax legislation
- Apply professional judgement and accountability
When businesses work with a chartered accountancy firm like Elsby & Co, they gain confidence that their financial decisions are built on expertise – not assumptions.
As Claire puts it:
“We take our role as chartered accountants very seriously. Our clients know they’re working with professionals who understand the rules, the risks and the opportunities – and who stand behind their advice.”
A joined‑up approach to supporting businesses
At Elsby & Co, we aim to be the only accountant our clients will ever need, supporting them at every stage of their business journey – from growth and scaling through to exit planning and beyond.
Our services include:
- The Elsby Business Hub – providing bespoke management accounts, real‑time KPIs and a fully outsourced finance function, including bookkeeping, credit control, payroll and payment processing
- Elsby Wealth Management – bringing together experts in wealth management, estate planning, insurance, mortgages and pensions for a joined‑up financial approach
- Audit and business coaching services to support compliance, performance and long‑term planning
Use AI wisely — but don’t rely on it for tax advice
AI can be a useful tool when used appropriately, but tax and finance decisions require accuracy, accountability and professional insight.
If you’re unsure whether advice you’ve received is correct – or want peace of mind that you’re getting things right – speaking to a qualified professional can save significant time, cost and stress in the long run.
How we can help
If you’d like to find out more about how Elsby & Co can support your business with trusted, professional financial advice, get in touch with our team.
📧 help@elsbyandco.co.uk
đź“ž 0330 053 9189