What do accounting firms use AI for?
Client email drafts
Answers to routine questions about deadlines, extensions and what to send, drafted in the firm’s tone for a person to approve.
Engagement letters and organizers
First drafts from the firm’s own templates and checklists.
Document chasing
Tracking who still owes a W-2, 1099 or K-1 and drafting polite reminders.
Summaries
IRS notices, prior-year workpapers and long PDFs condensed with page references.
Research questions
General technical questions with no client details in them, checked against primary sources.
Meeting notes
Rough notes turned into a memo with action items.
AI tools for accounting firms, by job, and where client data goes
The question that matters for client files isn’t which brand is “best”; it’s where each tool processes the data you give it.
| Tool type | Typical jobs | Where client data is processed | Usual pricing |
|---|---|---|---|
| General chat assistants (ChatGPT Business, Claude Team, Microsoft 365 Copilot) | Drafting, summaries, questions | The vendor’s cloud | Per user per month |
| AI features inside tax and practice-management software | Workflow, client portals, data entry | The software vendor’s cloud, under your existing agreement | Usually part of a per-user or per-firm subscription |
| Tax research assistants (for example Blue J) | Research answers with citations | The vendor’s cloud | Subscription |
| AI bookkeeping and categorization tools | Transaction coding, reconciliations | The vendor’s cloud | Subscription |
| On-site private AI (AdminOnsite) | Drafts, inbox triage, file search, follow-ups | A Mac mini in your office | One flat monthly price for the office |
Tool types and examples are illustrative, not a ranking. Read each vendor’s data terms before putting client information into it.
The client-data rules: §7216, Circular 230 and the AICPA
None of these rules bans AI. They govern what happens to client information and who answers for the output.
- IRC §7216 makes it a crime for a return preparer to knowingly or recklessly disclose or use tax return information without authorization: a fine of up to $1,000, up to a year in prison, or both. §6713 adds a civil penalty of $250 per disclosure, capped at $10,000 a year.
- Tax return information is defined broadly: “any information, including, but not limited to, a taxpayer’s name, address, or identifying number, which is furnished in any form or manner for, or in connection with, the preparation of a tax return” (Treas. Reg. §301.7216-1(b)(3)).
- IRS OPR Issue 2026-19 (June 24, 2026) says Circular 230’s due-diligence (§10.22), competence (§10.35), firm-procedures (§10.36) and fee (§10.27) rules apply to AI-assisted work, and that practitioners “must strictly handle all client data using only secure, enterprise-approved AI.”
- The AICPA Code’s confidentiality rule requires client consent before CPAs disclose confidential client information to third parties, independently of §7216.
Our §7216 and AI guide covers the options: anonymizing, compliant consent, vendor exceptions and keeping the data local.
Where an on-site AI box fits
AdminOnsite runs the models on a Mac mini in your office. Client email, workpapers and prior-year files are processed there rather than sent to an AI provider, which takes the “where did the data go” question off the table for the work it does. It doesn’t prepare returns, make return determinations or file anything: it drafts, summarizes, searches and reminds, and your staff decide.
Whether that settles your own obligations is a question for your advisor; we don’t make compliance claims. See AdminOnsite for accountants for what it does day to day.
A tax-season morning, as an example
7:30 AM rundown: 14 client emails sorted; 9 have reply drafts waiting. 6 clients still missing documents; reminders drafted for your OK.
A client asks what was carried forward last year. The assistant finds last year’s workpaper in the shared drive and points to the page.
An IRS notice PDF comes in; it’s summarized in five lines with the response deadline highlighted for a preparer to verify.
Questions
Can accountants use ChatGPT with client data?
Using it for research or fully anonymized questions raises no client-data issue. Entering identifiable tax return information into an outside AI service can be a disclosure under §7216, so firms either obtain compliant written consent, use a vendor that fits a regulatory exception, or keep the data on their own systems. Confirm your setup with your own advisor.
What is the best AI for accountants?
It depends on the job. Research tools are best for technical questions, AI inside your practice software for workflow, and general assistants for drafting. For anything that touches identifiable client files, the deciding factor is where the tool processes the data.
Does AdminOnsite prepare tax returns?
No. It drafts client emails and letters, sorts the inbox, searches and summarizes your files and keeps follow-ups moving. Preparers make every determination.
Did the IRS ban AI in tax practice?
No. Issue 2026-19 says existing Circular 230 duties apply to AI-assisted work: review everything AI produces, understand the tools, have firm procedures, and bill fairly.
How much does AdminOnsite cost for a CPA firm?
From $249 a month plus $299 setup for about five people, up to $699 a month for 15–30 people. No per-seat fees.
Sources, checked November 13, 2026
- IRS Office of Professional Responsibility, Issue 2026-19: Introductory Guidelines for Responsible AI Use in Federal Tax Practice (June 24, 2026)
- 26 U.S.C. § 7216 (Cornell LII)
- 26 U.S.C. § 6713 (Cornell LII)
- OpenAI Help Center: ChatGPT Business overview
- Claude Help Center: What is the Team plan?
- Microsoft: Copilot plans and pricing for business