Leaps in technology can lead to shifts in how accounting professionals do their jobs, from paper ledgers to spreadsheets to cloud-based computing. And now, the integration of artificial intelligence is the next big leap, and understanding how to leverage AI is essential to keeping up in the profession. Getting started with Copilot in accounting is an excellent first step towards improving efficiency while developing valuable skills.
If you haven't used it or are new to using Copilot in accounting, especially in Excel, we're explaining what the tool is, ways to use it, and provide you with actionable tips to get started.
Summary
Microsoft Copilot can be a transformative tool for accounting professionals through its integration with Excel to streamline workflows, enhance accuracy, and save time. By using the formula =COPILOT with a plain text prompt or opening the Copilot pane within the spreadsheet, you can quickly clean, organize, format, and analyze data.
What is Microsoft Copilot?
Microsoft Copilot is an AI assistant integrated directly into the Microsoft 365 apps you use every day, including Word, Outlook, PowerPoint, and most importantly for accountants, Excel. Unlike a standard search engine or a standalone chatbot, Copilot works alongside you within your documents.
It utilizes large language models (LLMs) combined with your data you're providing, whether you're using a spreadsheet, email, chat, or documents, to turn your words into a powerful productivity tool. For an accountant, this means you have an intelligent assistant that understands the context of your work.
Copilot in accounting turns plain-English prompts and spreadsheets into faster, auditable analysis with narrative. However, it's important to remember that it's a multiplier of expertise, not a substitute for professional judgment. You still validate outputs, document what you did, and treat results as evidence to scrutinize—not blindly accept.
The Excel Integration
For most accounting professionals, Excel is home base. This is where Copilot shines brightest. It allows you to interact with your data using natural language. Instead of manually searching for the right formula or spending hours formatting a pivot table, you can simply type in Excel using the =COPILOT() function or use the Copilot interface in Excel.
The Benefits of Copilot in Accounting
Integrating AI into your financial processes is not about letting a computer do your job; it is about freeing you up to do the best parts of your job. The implementation of copilot in accounting offers several distinct advantages that can immediately impact your productivity.
Enhanced Accuracy
Human error is an inevitable risk in manual data entry and complex formula creation. A misplaced parenthesis or a wrong cell reference can throw off an entire financial model. Copilot helps mitigate this risk by generating formulas based on your descriptions. When you ask it to "Calculate the year-over-year variance for Column C and D," it writes the syntax for you. While you must always review the work, having the AI generate the initial structure significantly reduces syntax errors.
Increased Efficiency
During tax season or month-end close, time is limited and any way you can save it is valuable, but you don't want to cut corners. Copilot in accounting accelerates routine tasks. What might take thirty minutes to format and analyze manually can often be done in seconds. This efficiency gain allows you to shift your focus from data compilation to data interpretation. You spend less time building the spreadsheet and more time understanding what the numbers mean for your client or organization.
Data Standardization
If you've been using the same spreadsheet for a long time or several people have entered data into it, your spreadsheet is probably pretty messy or inconsistent. Copilot offers a fast, easy way to standardize your data and clean up messy exports like names, addresses, descriptions, or number formats, so your reporting doesn't break.
Analytical Insights
Data across hundreds (or thousands) of rows makes it easy to miss spikes or outliers and overlook patterns. Copilot can scan large datasets and spot these factors that make it easier to gain valuable insights in a shorter period of time.
Streamlined Communication
Accounting isn't just about numbers; it's about explaining those numbers. Copilot in Word and Outlook helps you draft client emails, summarize lengthy audit reports, or generate meeting agendas based on previous email threads. This ensures clear, professional communication without the writer's block.
Practical Examples: How to Use Copilot in Accounting
To truly understand the value of Copilot in accounting, it helps to see it applied to real-world scenarios. Here are practical ways you can start using this tool today to streamline your work.
1. Automating Financial Analysis in Excel
Imagine you have a raw dataset containing thousands of transaction rows for the fiscal year. You need to identify which expense categories have exceeded the budget.
- Without Copilot: You would likely filter the data, create a pivot table, perhaps build a few charts, and manually scan for outliers.
- With Copilot: You open the Copilot pane in Excel and type: "Analyze this data and identify the top three expense categories that are over budget compared to last year. Visualize this as a bar chart."
In moments, Copilot analyzes the table, highlights the relevant insights, and inserts a chart directly into your worksheet. You get immediate visibility into the data without the manual setup.
2. Complex Formula Generation
You are working on a depreciation schedule and need a formula that calculates depreciation only if the purchase date is within the current fiscal year, otherwise returning zero.
The Prompt: "Write a formula that checks if the date in cell A2 is in 2024. If it is, calculate straight-line depreciation based on cost in B2 and useful life in C2. If not, return 0."
Copilot will generate the specific nested IF function for you to copy and paste. This saves time looking up syntax and ensures the logic holds together.
3. Summarizing Financial Narratives
You have just received a 50-page industry report on tax regulation changes. You need to brief your CFO on the highlights but don't have three hours to read it word-for-word immediately.
The Application: Open the document in Word and activate Copilot.
The Prompt: "Summarize the key tax compliance changes mentioned in this document that affect the retail sector. List them as bullet points."
You now have a concise summary that allows you to digest the critical information quickly and prepare your briefing.
High-Level Tips for Success
Adopting copilot in accounting requires a slight shift in mindset. It is a partnership between your expertise and the AI’s processing power. To get the best results, keep these tips in mind.
Master the Art of Prompting
- Be Specific: Instead of saying "Analyze this," say "Analyze this sales data to find the month with the highest revenue and explain why."
- Provide Context: Tell Copilot what role it should play. Start with, "Acting as a financial auditor, review this dataset for..."
- Iterate: If the first answer isn't perfect, ask a follow-up question. You can refine the results by saying, "Make that explanation shorter," or "Format that as a table."
- Use Constraints: Reduce the chance for inaccurate outputs by adding constraints like "Use only these catetgories..."
- Document prompts: Save your prompts on a working document so you can reproduce them for other spreadsheets and tasks.
The "Human in the Loop"
This is the most critical rule for accountants: Always verify. AI is powerful, but it is not infallible. It can occasionally "hallucinate" or misinterpret data context. You must treat Copilot as a junior assistant or intern. You would check their work before sending it to a client or submitting it; you must do the same with any work completed with AI. Your CPA license and professional judgment are the final seal of approval, not the AI.
Start Small
Do not try to automate your entire month-end close on day one. Pick one task—perhaps analyzing a specific ledger account or drafting a single client update—and use Copilot for that. As you become comfortable with its capabilities and limitations, you can expand its use to more complex processes.
The Future of Your Role as an Accountant
There is a common fear that AI in accounting may replace the actual accountants. However, the trajectory of how AI is progressing and changing suggests a different future. Automation handles the repetitive, data-heavy tasks that often lead to burnout. This allows you to step into a higher-value role.
Clients and stakeholders don't just want spreadsheets; they want strategic advice. They want to know how to improve their cash flow, not just what the cash flow is. By leveraging Copilot to handle the heavy lifting of data processing, you gain the time and mental bandwidth to provide that strategic guidance.
Take the Next Step with Copilot AI in Accounting
Understanding the basics is just the beginning, but if you want to feel more confident and see better results, Becker offers CPE courses and more to help you grow!
With four on-demand courses plus hands-on exercises, Becker's AI for Accounting and Auditing Certificate offers an excellent way to develop your skills and show off your knowledge with a badge and certificate. Plus, you'll earn nine NASBA-approved CPE credits.
Build essential skills and boost your professional impact with Becker's AI for Accounting & Auditing Certificate
