How to Use AI to Manage Your Small Business Finances: Plain English for Non-Accountants | AI Alchemist
How to Use AI to Manage Your Small Business Finances:
A Plain-English Guide for Non-Accountants
You do not need to understand accounting. You need to understand your own business well enough to make good decisions and answer the questions your accountant asks. These five ChatGPT prompts help you do exactly that — understanding your cash position, chasing late invoices, preparing for VAT, briefing your accountant, and checking whether your pricing actually covers your costs. Free. Plain English. No financial training required.
Financial anxiety is one of the most common things small business owners carry.
Not because they don’t care about money — but because the language of finance feels foreign. Cash flow forecasts. Break-even analysis. Gross margin. VAT thresholds. Making Tax Digital. These terms create a fog that makes the finances of even a healthy business feel more complicated and more frightening than they actually are.
ChatGPT does not replace your accountant. What it does is translate. It takes the rough numbers you know — what came in this month, what went out, what is owed to you — and turns them into plain-English explanations that help you understand your own business, have better conversations with your accountant, and make decisions with more confidence.
Prompt 1 — The Cash Flow Explainer
Before you can make good financial decisions, you need to understand where you actually stand. This prompt takes your rough income and outgoing figures and returns a plain-English explanation of your cash position — what is healthy, what to watch, and what to act on.
You are a plain-English financial advisor helping a small business owner understand their cash position. Do not use accounting jargon. Explain everything as if talking to someone with no financial background. My business: [Brief description — e.g. "sole trader plumber in Leeds" / "hair salon with 3 staff in Bristol"]. My rough figures for the last 3 months (approximate is fine): - Month 1 income: £[X] / $[X] — Outgoings: £[X] / $[X] - Month 2 income: £[X] / $[X] — Outgoings: £[X] / $[X] - Month 3 income: £[X] / $[X] — Outgoings: £[X] / $[X] - Money currently owed to me (unpaid invoices): £[X] / $[X] - Money I currently owe (unpaid bills): £[X] / $[X] - Current bank balance: £[X] / $[X] Please explain: 1. Is my business currently cash-flow positive or negative? 2. What is my rough profit margin and is it healthy for my type of business? 3. What is the single biggest risk to my cash position right now? 4. What is the one thing I should do differently in the next 30 days? Plain English only. No formulas. No jargon. Explain it like I'm smart but not a finance person.
Prompt 2 — The Late Invoice Chaser
Overdue invoices are the most common cash flow problem for small businesses — and the most avoidable. Most business owners delay chasing because they worry about damaging the relationship. These three escalating messages are firm enough to prompt payment, professional enough to preserve the relationship, and warm enough to not sound like a debt collector.
You are a professional business communication writer helping a small business owner chase an overdue invoice. My business: [Business name], a [brief description]. Client name and business: [First name] at [Company name if applicable] Invoice number: [Invoice #] Invoice amount: £[X] / $[X] Invoice date: [Date] Payment terms: [e.g. "30 days" / "14 days"] Days overdue: [X days] Write THREE escalating chase messages: MESSAGE 1 — 7 days overdue: Friendly reminder. Assumes it may have been missed. No pressure. Professional and warm. MESSAGE 2 — 14 days overdue: Firmer tone. States clearly that payment is now 14 days overdue. Requests payment within 5 business days. Still professional and relationship-preserving. MESSAGE 3 — 30 days overdue: Direct and serious. States the amount outstanding, the number of days overdue, and that if payment is not received within 7 days you will need to explore further steps. Professional and factual — not aggressive or threatening. Each message: under 80 words. Email format with subject line. Do NOT open any message with "I hope this email finds you well."
Prompt 3 — The VAT Preparation Brief
For UK small businesses subject to VAT — and for US businesses preparing quarterly estimated taxes. This prompt does not calculate your tax or file anything. It produces a clear summary of what information your accountant will need and what to watch out for this quarter.
You are a plain-English financial advisor helping a small business owner prepare for their quarterly tax or VAT return. Do not file anything or give specific tax advice — help me understand what I need to gather and what questions to ask my accountant. My business: [Brief description]. Country: [UK / USA] My VAT / tax status: [e.g. "UK VAT registered, standard rate 20%" / "UK not yet VAT registered, turnover approaching £90k threshold" / "US sole trader making quarterly estimated tax payments"] My approximate quarterly figures: - Total income this quarter: £[X] / $[X] - Total business expenses this quarter: £[X] / $[X] - Any unusual items (large purchase, one-off income): [Describe or leave blank] Please explain: 1. What records and documents I need to gather for my accountant before the quarter end 2. Any specific items I should flag to my accountant based on these figures 3. One thing I should check or be aware of for this particular quarter 4. The key deadline(s) I need to be aware of UK-specific: mention Making Tax Digital if relevant. Plain English throughout.
Prompt 4 — The Accountant Briefing Note
The most common problem in accountant meetings is the small business owner arriving without having clearly organised what they need advice on. The accountant spends the first 20 minutes gathering information. The client leaves having spent money on an hour that could have been 30 minutes if they had arrived prepared. This prompt produces the briefing note that fixes that.
You are a business communication writer helping a small business owner write a clear briefing note to send to their accountant before a meeting. My business: [Brief description]. Meeting purpose / question I need advice on: [e.g. "whether I should take on a member of staff vs remain as a sole trader" / "whether to register for VAT now or wait" / "whether to buy a van outright or lease it" / "whether to move from sole trader to limited company"] Background context: - My current annual turnover: approximately £[X] / $[X] - My current monthly take-home: approximately £[X] / $[X] - Any relevant recent changes: [e.g. "I've had a large new contract start" / "I'm thinking about buying equipment worth £X"] - My main concern or uncertainty: [Describe what worries you about this decision] Write a clear briefing note of under 200 words that I can email to my accountant before our meeting. It should: - State the specific decision or question I need help with - Give them the key numbers they need - Explain what outcome I am hoping to achieve - Ask them to come prepared to advise on this specific issue Professional tone. Clear structure. Saves both of us time in the meeting.
Prompt 5 — The Pricing Check
One of the most common and most expensive mistakes small business owners make is pricing work below cost without realising it — because they have never done the maths carefully. This prompt takes your costs and your current prices and produces a plain-English assessment of whether your pricing is actually profitable.
You are a plain-English financial advisor helping a small business owner evaluate whether their pricing is profitable. My business: [Brief description]. My main product or service: [e.g. "a full boiler replacement" / "a full colour and cut" / "a day rate for cleaning contracts"] My current price: £[X] / $[X] per [job / day / hour / unit] My direct costs for this job: - Materials / products: £[X] / $[X] - Labour (my own time at the hourly rate I want to earn): [X hours at £[Y]/hour] - Any subcontractor or third-party cost: £[X] / $[X] My monthly fixed costs (overhead): £[X] / $[X] (rent, insurance, vehicle, subscriptions, etc.) Number of this type of job I do per month: [X] Please explain: 1. What my gross margin is on this job (in plain English, not just a percentage) 2. Whether my pricing covers my fixed overhead adequately 3. What I would need to charge to achieve a [20% / 25% / 30%] net margin — choose whichever is most realistic for my sector 4. One specific thing I could change to improve my profitability without raising prices Plain English throughout. No jargon. If my numbers suggest I am underpricing, say so directly.
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