AI in the Books: Workflows for Firms

You are helping a CPA firm build a month-end close checklist for internal use.

Firm profile:
- Entity types we close: [e.g., S-corps, LLCs, nonprofits, HOAs]
- Accounting software: [QuickBooks Online / Xero / Sage / other]
- Close deadline: [e.g., books due by the 15th of the following month]
- This checklist is for: [Staff accountant / Senior accountant / Manager review]

Our current close steps (describe what you know — even if incomplete):
[DESCRIBE YOUR PROCESS HERE]

Generate a complete month-end close checklist that:
1. Covers all standard close tasks for the entity types listed
2. Groups tasks into phases: Pre-Close, Core Close, Review, Client Deliverables
3. Includes a clear owner for each task (Staff / Senior / Manager)
4. Flags high-risk steps — timing cutoffs, audit trail items, common errors
5. Is formatted as a table: Task | Owner | Due | Risk Flag | Done

After the checklist, list any questions you would ask before finalizing it for this firm.

You are helping a CPA prepare a plain-English cash flow summary for a business owner who is not an accountant.

Below is the Statement of Cash Flows for [CURRENT PERIOD] and [PRIOR PERIOD] (client name removed).

Context about this period: [ADD WHAT YOU KNOW — examples: "We purchased a vehicle in January for $42,000." / "Owner took a $30,000 distribution." / "Collections were behind — AR grew by $18,000." / "No major one-time items — the variance is operational."]

Your tasks:
1. Identify the top 2–3 drivers of the cash change this period
2. Write a 3–5 sentence plain-English summary for a business owner — explain operating vs. investing vs. financing in plain language
3. Answer the question 'Why is cash down even though we're profitable?' if operating income is positive but cash decreased
4. Flag any line items I should verify or explain further to the owner

Format:
— Top cash drivers (bulleted, largest first, dollar amounts included)
— Owner summary (plain-English paragraph, no accounting jargon)
— Items to verify or clarify

[PASTE YOUR STATEMENT OF CASH FLOWS HERE]

You are helping a CPA prepare a budget-to-actual management commentary for the period ending [MONTH/YEAR].

Below is a Budget vs. Actual P&L report (client name removed). Columns: Account | Budget | Actual | Variance $ | Variance %

Context about this period: [ADD WHAT YOU KNOW — examples: "Hiring for the operations role is delayed by 6 weeks — salary variance is planned." / "Revenue shortfall on Contract XYZ — they pushed the project to Q3." / "Equipment purchase in June was unbudgeted but approved by ownership." / "No unusual items — all variances are operational."]

Your tasks:
1. Identify the top 5 favorable and unfavorable variances by dollar amount
2. Write a 4–6 sentence management commentary suitable for a CFO or ownership group
3. Separate planned variances from unexpected ones based on the context I provided
4. Flag any variances I should investigate further before finalizing the commentary

Format:
— Top variances table (Account | Budget | Actual | Variance $ | Favorable/Unfavorable)
— Management commentary (paragraph format, plain English, no jargon)
— Variances to investigate

[PASTE YOUR BUDGET VS. ACTUAL REPORT HERE]

You are helping a CPA review accounts payable transactions for potential duplicate payments.

Below is an AP transaction list covering [DATE RANGE] (client name removed). Columns: Date | Vendor | Invoice Number | Amount | Payment Date

Please scan for the following duplicate patterns and report each match:
1. Same vendor + same amount, payments within 30 days of each other
2. Same vendor + same invoice number, regardless of date
3. Same vendor + same amount + invoice numbers that differ by only 1–2 characters (e.g., INV-1042 and INV-1024)
4. Same dollar amount from different vendors on the same calendar day (flag only if amount exceeds $500)

For each match found:
— List both transactions side by side: Date | Vendor | Invoice # | Amount
— Assign a risk level: High (exact invoice number match), Medium (same amount within 30 days), Low (similar invoice number)
— Add a one-line note on what to check in the source system

Sort results by risk level, highest first. If no duplicates are found, confirm the scan was completed and state which patterns were checked.

[PASTE YOUR AP TRANSACTION LIST HERE]

You are helping a CPA review a client's Chart of Accounts for cleanup and consolidation opportunities.

Client context:
- Entity type: [LLC / S-corp / C-corp / Nonprofit / Sole proprietor]
- Industry: [e.g., HVAC contractor, dental practice, retail, software company]
- Size: [e.g., solo operator / 3 employees / 20 employees]
- Accounting software: [QuickBooks Online / Xero / Sage / other]
- Problem we are trying to solve: [e.g., reports are hard to read / too many accounts / duplicates / unclear account names]

Below is the Chart of Accounts (Account Name and Type only):
[PASTE COA HERE]

Please review and provide:
1. Duplicate or near-duplicate accounts that should be merged (list both account names)
2. Accounts that appear miscategorized by type (e.g., an expense coded as an asset)
3. Over-segmented areas where 4–6 accounts could become 1–2 without losing reporting value
4. Account names that are unclear or inconsistent with standard chart naming conventions
5. Accounts that are likely inactive and candidates for archiving

Format your output as a prioritized action list:
— High priority (errors that affect financial statement accuracy)
— Medium priority (consolidations that improve readability)
— Low priority (cleanup and naming conventions)

For each item, explain the rationale in one sentence.

You are helping a CPA prepare for a client financial review meeting.

Client context (name removed):
- Entity type: [LLC / S-corp / other]
- Industry: [e.g., HVAC contractor / dental practice / retail]
- Meeting frequency: [monthly / quarterly]
- Meeting length: [30 minutes / 60 minutes]

Prior meeting notes (client name removed):
[PASTE YOUR NOTES FROM THE LAST 1–2 MEETINGS]

Current period highlights:
[PASTE 3–5 KEY FINANCIAL ITEMS — e.g., "Revenue up 12% vs. last month. Payroll variance of $6,200 due to new hire. Cash decreased $18,000 — equipment purchase. AR balance higher than usual."]

Please prepare:
1. A 4–6 item meeting agenda with estimated time for each item
2. A status summary for any open action items from prior meeting notes (resolved / still open / unknown)
3. 2–3 questions I should ask the owner during the financial review
4. One sentence I can open the meeting with that frames the current period in plain English

Format:
— Opening line
— Agenda (item | time | owner: CPA or Client)
— Open items status
— Questions to ask

You are helping a CPA draft a professional response to an IRS notice on behalf of a client (taxpayer information will be added separately before mailing).

Notice details:
- Notice type: [e.g., CP2000 / CP501 / CP503 / CP504 / CP3219A / Letter 12C]
- Tax year: [e.g., 2023]
- IRS assertion: [Describe what the IRS is claiming — e.g., "Unreported 1099-NEC income of $12,400 from a single payer" / "Balance due of $3,200 after return processing" / "Mathematical error on Schedule C"]
- Our position: [Describe the taxpayer's position — e.g., "The income was reported correctly on Schedule C" / "The 1099 was from a related-party transaction that was already included" / "Agree with the balance due — requesting a payment plan"]
- Supporting documentation available: [e.g., copy of filed return, 1099, bank statements, prior correspondence]

Please draft a professional IRS response letter that:
1. Opens with the standard IRS correspondence reference line format
2. States our position clearly in the first paragraph
3. Provides a factual summary of the issue and the taxpayer's position
4. Cites the applicable IRC section or IRS publication if relevant
5. Requests the specific resolution: adjustment, abatement, payment plan, or confirmation of no change
6. Closes with an enclosure list placeholder for the supporting documents

Leave [TAXPAYER NAME], [SSN/EIN], and [DATE] as placeholders — I will complete those before printing.

You are helping a CPA firm draft a professional engagement letter for a new client service.

Firm details:
- Firm name: [YOUR FIRM NAME]
- State of licensure: [STATE]
- Engagement start date: [DATE or 'Upon execution']

Service scope:
- Service type: [e.g., Monthly bookkeeping / Annual tax preparation / Fractional CFO / Compilation / Payroll services]
- Entity type: [LLC / S-corp / C-corp / Nonprofit / Sole proprietor]
- Deliverables: [e.g., Monthly P&L, Balance Sheet, and bank reconciliation by the 15th of the following month]
- Reporting period: [Monthly / Quarterly / Annual]
- Fee: [e.g., $600/month flat fee, billed on the 1st / $2,500 fixed fee for 2024 tax return]
- Payment terms: [e.g., Net 15 / Auto-charge on file / Due upon delivery]

Exclusions (what is not included):
[LIST WHAT YOU ARE NOT DOING — e.g., tax planning, audit, payroll, CFO advisory, prior period corrections]

Additional terms:
[ANY SPECIFIC TERMS — e.g., client must provide bank statements by the 5th / 30-day termination notice required / late fees of 1.5% per month]

Please draft a complete engagement letter that includes:
1. Scope of services (with clear deliverables and timeline)
2. Exclusions section
3. Client responsibilities (what the client must provide and when)
4. Fee and payment terms
5. Term and termination clause (including how either party can end the engagement)
6. Confidentiality clause
7. Limitation of liability clause
8. Signature block for both parties

Format as a formal business letter. Leave [CLIENT NAME] and [CLIENT ENTITY] as placeholders.

You are helping a CPA review a general ledger account for unusual or anomalous journal entries.

Account details:
- Account name: [e.g., Legal & Professional Fees / Owner's Draw / Other Expenses / Prepaid Assets]
- Account type: [Expense / Asset / Liability / Equity]
- Period: [e.g., January 2025 – December 2025]
- What normal activity looks like: [e.g., "Monthly payments to 2 law firms, typically $1,500–$4,000 each" / "Weekly owner draws of $3,000" / "Occasional vendor invoices, usually under $2,500"]
- Review purpose: [e.g., Audit prep / Year-end close / Internal controls review / Suspected misclassification]

Below is the GL detail for this account (client name removed). Columns: Date | Type | Ref # | Memo | Amount | Running Balance

Please flag entries that match any of these anomaly patterns:
1. Round-number amounts over $1,000 (e.g., $5,000, $10,000, $25,000)
2. Entries with a blank or generic memo (e.g., 'Adjustment,' 'Correction,' 'See attached')
3. Entries posted on the last 1–3 days of a month or quarter
4. Credits in an account that normally has only debits (or vice versa)
5. Amounts significantly larger than the typical transaction range I described
6. Multiple entries on the same date to the same account from different sources

For each flagged entry:
— List: Date | Ref # | Memo | Amount | Anomaly Pattern
— Assign risk level: High (multiple flags or near period-end), Medium (single flag), Low (minor deviation)
— Add a one-line question to investigate in the source system

Sort by risk level, highest first.

[PASTE YOUR GL DETAIL REPORT HERE]

You are helping a CPA prepare a payroll variance explanation for a client's ownership group.

Below are two months of payroll summary data in this format:
Payroll Category | [Prior Month] Total | [Current Month] Total

Context: [ADD WHAT YOU KNOW — examples: "We hired 2 employees mid-month." / "One employee took unpaid leave." / "Q2 bonuses were paid this month." / "No planned changes — this variance is unexpected."]

Your tasks:
1. Calculate the dollar and percentage change for each category
2. Identify the top 3 variance drivers by dollar amount
3. Write a 3–5 sentence plain-English explanation for a business owner who is not an accountant
4. Flag any line items I should verify before sending

Format your response:
— Top drivers (bulleted, largest first, dollar + %)
— Owner summary (plain English paragraph, no jargon)
— Verify before sending (bulleted)

[PASTE YOUR TWO MONTHS OF DATA HERE]

You are helping a CPA review vendor payments for 1099-NEC and 1099-MISC eligibility.

Below is a vendor transaction list for [YEAR] (client name removed). Columns: Date | Transaction Type | Vendor | Account | Amount

Review the list and do the following:

1. Total all payments by vendor for the year.
2. Flag vendors who received $600 or more total who appear to be individuals, sole proprietors or LLCs based on name format — no Inc., Corp., Ltd. or clearly national brands.
3. List vendors who are clearly ineligible (incorporated entities, national chains, utilities) and why.
4. List vendors where eligibility is uncertain and explain what information is needed to confirm.
5. Note any vendors with payments categorized to rent, legal fees or medical payments — those have different 1099 type rules.

Format the output as three sections: LIKELY NEED 1099 | CLEARLY INELIGIBLE | NEEDS VERIFICATION

For each flagged vendor: Vendor Name | Total Paid | Reason for Flag

[PASTE YOUR VENDOR TRANSACTION LIST HERE]

You are helping an accounting firm draft collection emails for past-due invoices.

Firm name: [FIRM NAME]
Payment terms: [e.g., Net 30]
Accepted payment methods: [e.g., check, ACH, online payment portal at URL]

Below is an accounts receivable aging summary (client names are placeholders — I will swap them back before sending). Columns: Customer | Invoice # | Invoice Date | Amount Due | Days Past Due

[PASTE AGING REPORT HERE]

Draft one collection email per customer. Calibrate tone by aging tier:

1-30 days: Friendly, assumes oversight. Remind, include invoice details, provide payment options.
31-60 days: Direct. Reference that payment was expected by [DATE]. Ask for payment or a status update within 3 business days.
61-90 days: Firm. Note that the account is significantly past due. Request payment or a call to discuss. Mention that continued non-payment may affect future services.
90+ days: Escalation. State clearly that the account requires immediate attention. Ask for payment in full or a payment plan discussion within 5 business days.

Format each email with: Subject line | Body | [CUSTOMER PLACEHOLDER] so I can find and replace the name.

Group emails by tier.

You are helping an accounting manager audit expense reports for policy compliance before reimbursement.

Expense policy rules:
[PASTE YOUR POLICY RULES HERE — e.g., Meals: $75/person/day, Receipts required over $25, No alcohol, Weekend travel requires pre-approval]

Below is an expense report for review. Employee names have been replaced with IDs. Columns: Date | Employee | Merchant | Category | Amount | Receipt (Y/N) | Notes

[PASTE EXPENSE REPORT HERE]

For each expense line, flag any that:
1. Exceed per diem or category limits
2. Are missing a receipt where one is required
3. Fall into a restricted category (alcohol, personal entertainment, etc.)
4. Appear on a weekend or holiday without an explanation
5. Have the same date, merchant and similar amount to another line — possible duplicate
6. Have no merchant name or description

For each flag:
— Show the line: Date | Employee | Merchant | Amount
— State the policy rule it may violate
— Assign: HOLD (requires documentation before approval) or REVIEW (explain or verify)

If no flags, confirm the review was completed and list the policy rules checked.

You are helping a CPA draft a plain-English tax projection letter for a client.

Client first name: [FIRST NAME]
Firm name: [FIRM NAME]
Letter date: [DATE]

Projection data:
- Prior year total tax: $[AMOUNT]
- Projected current year total tax: $[AMOUNT]
- Estimated payments made to date: $[AMOUNT]
- Remaining balance due (or refund expected): $[AMOUNT]
- Recommended Q4 estimated payment: $[AMOUNT]
- Q4 due date: [DATE — e.g., January 15, 2027]

Primary reason tax changed from prior year: [e.g., rental income increased by $40,000 or mortgage interest deduction was lost or Roth conversion of $75,000]

Any year-end action items: [e.g., consider charitable contribution before December 31 or none at this time]

Write a 3-4 paragraph letter that:
1. Opens warmly and states the purpose in plain English
2. Explains what the projection shows and why it changed from last year — no tax jargon
3. States clearly what the client needs to do and by when (payment amount and due date)
4. Closes with one sentence on any year-end opportunity or a simple reach-out invitation

Do not use the words herein, aforementioned, pursuant or enclosed please find. Write like a person, not a form letter.

You are helping an accounting firm create a structured client profile from a new client intake questionnaire.

This is an internal reference document. Extract the following fields from the questionnaire responses below:

1. Client name and primary contact
2. Entity type (sole proprietor, LLC, S-corp, C-corp, partnership, individual)
3. State of formation and states of operation
4. Fiscal year (calendar year or other — note month-end if other)
5. Current accounting software and version
6. Services requested (bookkeeping, tax prep, payroll, CFO advisory, etc.)
7. Current situation: what is working, what is not and why they are changing firms
8. Key deadlines or urgent items mentioned
9. Open questions or items that need follow-up before the first meeting
10. Any red flags noted (e.g., behind on filings, unresolved IRS issues, books not current)

Format as a clean reference document with labeled sections. If a field is not answered or unclear, mark it as [NOT PROVIDED — follow up].

Questionnaire responses:
[PASTE INTAKE QUESTIONNAIRE RESPONSES HERE]

Context: [client or company name], AR platform: [Billtrust / NetSuite / QuickBooks, etc], as-of date: [date]

Summarize accounts receivable risk for [client name] as of [date]. Include:
1. Total outstanding AR
2. Aging buckets (0-30, 31-60, 61-90, 90+ days)
3. The five largest outstanding balances by customer
4. Any accounts that moved into a worse aging bucket since [prior date]

Do not take any action on any account. This is a read-only summary request.