Key takeaways
- Most practices are on Microsoft 365, so Copilot Chat is the baseline and paid Copilot suits partners and managers.
- For analysis of exported data and drafting, ChatGPT or Claude is often the better tool for the people who do it daily.
- Tax and client confidentiality obligations shape the policy more than the choice of tool.
- AI drafts and checks. A qualified person signs off.
Accounting practices have a particular mix of AI work: spreadsheets, client letters, report commentary, review of workpapers, and a steady stream of client questions by email. They also have strict confidentiality obligations. This page compares the three mainstream assistants for that mix, and suggests a licence split that keeps cost sensible.
How they compare for practice work
| Task | Copilot | ChatGPT Business | Claude Team |
|---|---|---|---|
| Formulas and explaining a workbook | Strong inside Excel | Strong on uploaded files | Strong on uploaded files |
| Analysing an export | Good | Strong | Strong |
| Client letters and report commentary | Good, uses your files | Strong | Strong, often less editing |
| Catching up on client email threads | Strongest, reads the mailbox | Through connectors | Through connectors |
| Reviewing long workpapers or reports | Good | Good | Strong |
A licence split that works
- Everyone: Copilot Chat, included with Microsoft 365, configured and with training.
- Partners and managers: paid Copilot, because their day is email, meetings and reviewing files in your tenant.
- Advisory, CFO services and reporting staff: ChatGPT Business or Claude Team for analysis and drafting.
For the reasoning behind splitting by role, see Copilot vs ChatGPT Business.
Confidentiality comes first
Accountants hold some of the most sensitive information their clients have. Before anyone uploads a client file:
- Use business-tier tools only, with training on firm data off and retention set.
- Decide which client information may be entered, and whether tax file numbers, bank details and identity documents are excluded entirely.
- Check your professional obligations. In Australia, that includes the confidentiality requirements in the Tax Practitioners Board Code of Professional Conduct and APES 110. In the United States, consider section 7216 rules on the use and disclosure of tax return information.
- Fix file permissions before switching on paid Copilot, so client folders are not visible firm-wide. See SharePoint permissions before Copilot.
Rule for tax work: AI may draft, summarise and suggest. A registered practitioner checks every technical conclusion against current legislation and rulings before it reaches a client.
Where practices get the most from AI
- Monthly management report commentary drafted from the numbers.
- Client letters and engagement emails from a short brief.
- Summaries of long client threads before a meeting.
- First-pass review of workpapers for inconsistencies.
- Staff questions answered from your procedures manual.
For more on practice-specific use, read AI for accounting firms. To estimate the cost of a split like the one above, use the AI cost calculator.
Frequently asked questions
Can accountants upload client data to ChatGPT?
Only to a business or enterprise tier configured so data is not used for training, with retention and access controls set, and only within the firm's written policy. Tax practitioners should also check their specific confidentiality obligations, such as the Tax Practitioners Board Code in Australia or section 7216 rules in the United States.
Is Copilot good for Excel work?
Copilot in Excel is useful for formulas, explaining a workbook and summarising data in files you already hold in Microsoft 365. For one-off analysis of exported data, many accountants find ChatGPT's or Claude's analysis features faster. Try both on a real workbook.
What can AI do in an accounting practice?
Common uses include drafting client letters and engagement emails, summarising correspondence, explaining variances, preparing first drafts of management report commentary, reviewing workpapers for inconsistencies, and answering staff questions from internal procedures.
Should AI be used for tax advice?
As a drafting and research aid, with a qualified practitioner checking every conclusion against current legislation and rulings. General assistants can be out of date or wrong on specific tax rules, so they should never be the final word.
Get a straight answer for your business
The Clarity Package gives you a written business case and a detailed implementation plan for 500 USD. The Implementation Package does the whole build, live in 30 days, for a fixed 5,000 USD.