There’s been a lot of recent discussing on the uses of AI in the accounts payable function. And with good reason — AI is transforming our industry, alongside countless others. AP automation software solutions are built on artificial intelligence, while exciting new AI tools promise to partially or even fully automate financial reporting. But many other industries are already benefitting from public domain AI tools like Dall-E, Midjourney, and in particular, ChatGPT. So how might AP accountants put ChatGPT to work, too?
Applications of ChatGPT for AP accountants
ChatGPT is a generative AI text tool capable of creating original copy based on prompts provided by the user. There are many potential applications of ChatGPT for accountants, including:
- Cash flow management: Accountants can ask ChatGPT for advice on how various AP processes impact cash flow management.
- Client & vendor communications: ChatGPT is capable of drafting emails and other forms of client communication.
- Compliance & regulations: ChatGPT can provide information and updates on tax regulations and accounting standards.
- Creating journal entries from receipts: The AI tool can process receipts and convert them into journal entries.
- Early payment discounts: Accountants can query ChatGPT about strategies for optimizing early payment discount opportunities.
- Efficiency optimization: Accountants can seek suggestions on optimizing their accounts payable workflows.
- Internal controls & fraud prevention: Accountants can seek advice on implementing internal controls to prevent fraud within the AP department.
- Invoice coding and categorization: ChatGPT can help with assigning appropriate account codes and categorizing expenses on invoices.
- Invoice verification & entry: ChatGPT can assist in verifying and entering invoices accurately — helping with the three-way matching process.
- Month- & year-end closing procedures: The tool can help outline the steps and requirements for month- and year-end closing in accounts payable.
- Reporting & metrics: ChatGPT can help generate or explain key performance indicators (KPIs) and metrics.
- Software & tools: ChatGPT can offer guidance on the use of accounting software, tools, and automation.
- Templating: ChatGPT is capable of creating various document templates, including invoices, emails, purchase orders, expense forms and others.
- Training & education: ChatGPT can serve as a resource for ongoing training and education, answering questions and providing explanations on AP-related topics.
- Vendor & invoice analysis: The AI tool can provide insights into vendor performance and invoice analysis to identify cost-saving opportunities.
- Vendor payment scheduling: ChatGPT can help to create and manage vendor payment schedules.
- Vendor statement reconciliation: ChatGPT can assist in reconciling vendor statements, helping to identify discrepancies and resolve outstanding issues.
How to use ChatGPT for AP accountants
ChatGPT can be used like a more sophisticated version of Google — answering questions and queries with specific, text-based responses. But it’s also capable of ‘working’ on your behalf, and creating documents and reports more or less from scratch.
- Visit https://chat.openai.com/
- Create an account if you haven’t already.
- Choose a plan that works for you: Free, Plus, or Enterprise. Plus and Enterprise plans offer data analysis functions and the ability to create custom workflows.
- Enter a prompt in the ‘send a message’ field. The success of your working relationship with ChatGPT depends on the efficacy of your prompts.
How to write a prompt for ChatGPT
- Be clear and specific. Vague or ambiguous prompts result in unclear and irrelevant responses.
- Ask open-ended questions. Craft your prompts to encourage detailed, informative responses. Instead of “is 3-way matching important,” try “why is the 3-way matching process important in accounts payable?”
- Provide context: Providing the context of your question or request helps ChatGPT provide more relevant responses. For example, you could begin your prompt with the statement “I work in the accounts payable function, and…”
- Specify the format: You can request that ChatGPT deliver responses in specific formats: a list, an email, an invoice, or whatever you might require.
- Use complete sentences: Avoid using fragmented or overly technical language. ChatGPT has been trained to understand the way we talk and interact, so write in a way that a human being would understand.
- Avoid excessive length: While context is important, overly long prompts can lead the model to become lost in the details.
- Review the responses: After receiving a response, take the time to evaluate it. If it’s not what you wanted or expected, consider refining your prompt or providing additional context.
Chat GPT prompts for AP accountants
Using the best practices outlined above, the following is a list of useful ChatGPT prompts for AP accountants
Vendor inquiries:
- Can you provide me with 3 different templates for a vendor inquiry letter?
- Help me draft 3 variations of an email to a vendor regarding a payment discrepancy.
Invoice processing
- You are an accountant. Can you assist me in categorizing expenses from a credit card statement if I provide you with vendors’ names and amounts?
- Provide guidelines for verifying and approving invoices for payment.
Account reconciliation
- Assist me in reconciling vendor statements with our records.
- Explain the best practices for resolving discrepancies in accounts payable.
Payment terms & discounts
- Explain different payment terms commonly used in AP, such as net 30 and 2/10 net 30.
- How can I optimize our use of early payment discounts to save money?
Tax compliance
- What are the key tax compliance considerations for AP accountants?
- Help me understand how to handle international invoices and VAT.
Expense reports
- Provide guidance on processing employee expense reports efficiently.
- How should we handle receipts and documentation for expense reimbursements?
Data analysis & reporting:
- Assist me in creating a monthly AP aging report template.
- What are the key performance indicators (KPIs) to monitor in accounts payable?
Vendor management
- Suggest best practices for vendor onboarding and maintaining vendor records.
- How can we evaluate vendor performance and negotiate better terms?
Internal controls:
- Explain the importance of segregation of duties in accounts payable.
- How can we enhance the security of our AP processes and prevent fraud?
Accounting software & automation
- Recommend accounting software or tools for improving AP efficiency.
- Provide insights on implementing automation in the accounts payable department.
Regulatory changes & compliance
- Inform me about recent changes in accounting standards affecting AP.
- How can we ensure compliance with financial regulations in our AP operations?
Training & development
- Suggest resources or courses to enhance my AP accounting skills.
- What are the latest trends and innovations in the field of accounts payable?
Remember that ChatGPT can use company and vendor data alongside these prompts to tailor responses to your organization. However, data privacy and security must be considered before using any potentially sensitive information with ChatGPT. Consider drafting a company AI policy if you intend to use tools like ChatGPT, or upgrading to an Enterprise account to take advantage of enterprise-grade data security and privacy features.
