Artificial intelligence tools like ChatGPT are quickly becoming part of everyday business life. From writing emails and analysing numbers to planning content and summarising reports, AI can save small business owners a huge amount of time.

But here’s the catch.

AI is only as good as the instructions you give it.

If you’ve ever typed something like “Help me with my business” and thought the response was a bit… average — you’re not alone. The problem usually isn’t the tool. It’s the prompt.

When it comes to using AI well, context and clarity are king.

Let’s break that down in a simple, practical way.

What does “context” actually mean?

Context is the background information you give the AI so it understands your situation.

Think of it like this:
If you asked a new employee for help, you wouldn’t just say “Do the thing.” You’d explain what business you’re in, who the customer is, what’s already been done, and what the end goal looks like.

AI works the same way.

Context includes things like:

  • Your industry (tradie, consultant, retailer, café, professional services)
  • Your location (Australia matters — especially for tax, GST and compliance)
  • Who the output is for (a customer, your accountant, a staff member, the ATO)
  • Your tools (Xero, MYOB, Excel, Outlook, Google Docs)
  • The situation (first reminder vs third reminder, good cash flow vs tight cash flow)

Example

Instead of:

“Write a payment reminder”

Try:

“Write a friendly but professional payment reminder for an Australian plumbing business. The invoice is 21 days overdue, the client is a long-term customer, and we use 30-day payment terms.”

Same task. Much better result.

What does “clarity” mean?

Clarity is about being specific and direct about what you want.

AI isn’t a mind reader. If your prompt is vague, the response will be vague too.

Clarity answers questions like:

  • What exactly do I want done?
  • What format do I want it in?
  • How long should it be?
  • What tone should it use?
  • What’s the purpose of this output?

Example

Instead of:

“Explain cash flow”

Try:

“Explain cash flow in simple terms for a 17-year-old who runs a small online business in Australia. Use an everyday example and keep it under 150 words.”

Clear task. Clear audience. Clear result.

Why context and clarity matter so much for SMEs

Small business owners don’t have time to rewrite things five times.

Good prompts:

  • Save time
  • Reduce back-and-forth
  • Produce more useful, usable outputs
  • Lower the risk of mistakes (especially with finance and compliance)

Poor prompts lead to:

  • Generic answers
  • Missed Australian rules (GST, BAS, PAYG)
  • Extra editing
  • Frustration

The better your prompt, the less work you have to do afterwards.

A simple formula for better prompts

When in doubt, use this structure:

  1. Tell the AI who to be
    “Act as an Australian bookkeeper”
    “Act as a small business finance manager”
  2. Explain the task clearly
    “Create a checklist”
    “Draft an email”
    “Summarise this report”
  3. Add context
    Industry, situation, audience, tools
  4. Define the output
    Bullet points, table, email, short explanation
  5. Set boundaries
    Word count, tone, what to include or avoid

You don’t need to overcomplicate it — just don’t under-explain it.

Common prompting mistakes (and how to avoid them)

Mistake 1: Being too vague

“Help me improve my finances”

Fix:
“What are three practical ways a small Australian service business can improve cash flow in the next 90 days?”

Mistake 2: Asking too much at once

One massive prompt with five different questions can confuse the AI.

Fix:
Break big tasks into smaller steps. Think of it like training a junior staff member.

Mistake 3: Forgetting Australia exists

AI tools don’t automatically know you’re dealing with the ATO.

Fix:
Always mention Australia, GST, BAS, or local rules when relevant.

Mistake 4: Treating AI as the final authority

AI sounds confident — even when it’s wrong.

Fix:
Use it to draft, explain, summarise and organise.
Always double-check tax, legal and compliance matters with a professional.

Mistake 5: Sharing sensitive data

Never paste:

  • Bank account numbers
  • TFNs
  • Credit card details
  • Client personal information

Fix:
Use placeholders like “Customer A” or round numbers.

Why AI works best as a finance sidekick (not a replacement)

AI is brilliant at:

  • Writing emails and reminders
  • Summarising reports
  • Explaining financial concepts in plain English
  • Creating checklists and templates
  • Spotting patterns in numbers you provide

It is not a replacement for:

  • Your accountant
  • Your bookkeeper
  • Lodging BAS or tax returns
  • Making major financial decisions

The sweet spot is using AI alongside professional advice — not instead of it.

The real mindset shift: Treat AI like a conversation

Your first prompt is rarely the final one.

Good users:

  • Ask follow-up questions
  • Request changes to tone or format
  • Say “make this simpler” or “rewrite for a client”
  • Refine as they go

That’s not failure — that’s how you get great results.

Final takeaway

If there’s one thing to remember, it’s this:

Context and clarity are king

The more clearly you explain your situation and what you want, the more useful AI becomes — especially for busy Australian small business owners juggling finance, compliance and growth.

Used well, AI doesn’t replace expertise.
It gives you back time — and that’s something every SME can use.

Looking for solutions?

Click the link below to Register for our 3-day Camp from 1–3 March, 2027 to learn strategies to finally get your business under control.

https://globalbusinesscamps.com.au/camps-events/register-for-the-2027-camp/

Or if you are unsure, book a discovery call with John Tsoulos on (08) 8423 6177 to learn how this fantastic event could be just what you have been looking for.