Why it helps
Most small business owners have a shoebox, a glovebox or a phone full of receipts, and a bank statement with lines like "POS W/D 4471 HARDWARE". Sorting them into categories before you hand them to your accountant, or before you code them in Xero or MYOB, is slow and boring.
AI is good at the boring sort. Give it a list of expenses, and it groups them into sensible categories, totals each one, and flags the ones that might include GST or might be personal. You still decide what's a business cost and what's claimable. It just gets the pile into shape.
The prompt
Copy it, swap the bits in [square brackets], and paste it into ChatGPT, Claude, Gemini or Copilot.
I run a small [type of business, e.g. building] business in New Zealand. Below is a list of expenses for [month]. Please sort them into a table for my accountant. Use NZ English. Columns: Date, Supplier, Description, Amount (as I've written it), Suggested category, Might include GST? (Yes / Probably not / Check), Notes. Rules: - Use simple categories like: Materials, Fuel and vehicle, Phone and internet, Software and subscriptions, Tools and equipment, Bank fees, Advertising, Meals and entertainment, Possibly personal, Other. - Keep every amount exactly as I've written it. Don't change, round or add any numbers. - Don't tell me what is or isn't claimable. Just flag anything that looks personal, unclear or worth asking my accountant about. - After the table, give a total for each category and a short list of questions to ask my accountant. Expenses: [paste your list, one per line: date, supplier, amount, and a few words on what it was]
Then keep chatting
Give me that table as CSV so I can paste it into a spreadsheet.
Just show me the items marked "Check" or "Possibly personal".
Use these categories instead, to match my Xero chart of accounts: [paste your account names].
Which of these are missing a description? List them so I can fill the gaps.
Step by step
- Make a simple list from your receipts or bank statement: date, supplier, amount and a few words. Type it out, or copy just those columns from your bank's export.
- Remove anything personal before you paste: account numbers, card numbers, your address and any customer names.
- Paste the prompt and your list. Read the table.
- Check that every amount matches your receipt or statement, and that the total adds up to what you expect.
- Go through the "Check" and "Possibly personal" items yourself, then send the table to your accountant or use it to code the transactions in Xero or MYOB.
Worked example
Example details are made up. Your results will vary, so always read and check before you use them.
Watch out for
- AI doesn't decide what's claimable. Whether something is a business expense, and whether you can claim the GST, depends on your situation and whether you're GST registered. Check with your accountant or ird.govt.nz.
- Never upload or paste a full bank statement. It has your account number, balance and other people's names on it. Copy only the date, supplier, amount and description lines you need.
- Check the totals yourself, or paste the table into a spreadsheet and use SUM. AI can make arithmetic slips.
- You still need to keep your receipts and tax invoices. IRD has rules about what records to keep and for how long, so check ird.govt.nz.
Go further
Once you've got categories that match your accountant's, save the prompt with your own category list so every month is the same. If you want to see what's coming up rather than what's already gone out, try the [simple cashflow forecast](/use-cases/simple-cashflow-forecast).
