How to Turn a P&L and Balance Sheet Into Strategic Advice Using AI (Safely)

Most business owners don’t understand their financials.They nod when you walk them through the P&L. They ask, “Are we making money?”And that’s about as far as it goes.

But what if you could take those same reports—and in just a few minutes—turn them into strategic, plain-English insights your client actually understands and acts on?

You can. With AI.

Why This Matters

AI won’t replace you. But it can make you faster, sharper, and more valuable.

Here’s what happens when you combine financial data with smart prompting:

• You get better insights, instantly

• You spend less time writing long emails and follow-up summaries

• Your clients see you as a strategic partner, not a report-runner

This isn’t about automating your job. It’s about amplifying your impact.

Step 1: Protect the Data First

Before you use any AI tool, stop and handle the most important part: privacy.

Most tools (like ChatGPT, Claude, or Gemini) give you options to prevent your data from being used for training. Make sure those settings are on.

Or go one step further:

• ❌ Remove business names and owner names

• ❌ Redact sensitive info like bank accounts or customer lists

• ✅ Rename the business to something generic like “Company A”

Security is non-negotiable. But once you're in the clear, it’s time to get to work.

Step 2: Upload the Financials

You can drop in:

• A Profit & Loss statement

• A Balance Sheet

• Or both, ideally in PDF or text format

The AI doesn’t need fancy formatting. As long as the data is readable, it can work with it.

Step 3: Ask These Prompts

Here are 3 powerful prompts to copy and paste directly into your AI tool.

🔍 Prompt 1: Financial Health Check

"Analyze this P&L and/or balance sheet and identify any financial red flags or unusual trends. Point out areas of concern (e.g., declining gross margins, high expenses, negative equity) and explain what they might mean for the business."

This is great for identifying problems before your client even knows to ask.

📈 Prompt 2: Strengths and Opportunities

"Based on the financials, summarize the business’s recent performance. What are they doing well? What are 2–3 areas where they could improve margins, reduce costs, or manage cash better?"

This helps you shift the conversation from “what happened” to “what should we do next?”

🧠 Prompt 3: CEO-Friendly Summary

"Write a plain-English summary of this business’s financial position for the owner. Keep it under 200 words. Focus on what matters most, and include 2–3 simple takeaways they can act on."

This one makes you the translator between financial complexity and business strategy.

Final Thoughts: You Still Make the Call

AI can highlight trends and give you a head start. But it won’t know your client like you do.It won’t understand seasonality, context, or what happened last month with that surprise tax bill.

That’s why this works best when used by someone who already understands the books.

You.

So try it. See what insights you get. Clean up the language. Add your take.And when you send that next report, don’t just send the numbers—send the story behind them.

Want help setting this up?

We’re building LedgerView to make this kind of AI-powered analysis secure, easy, and purpose-built for accountants and bookkeepers.