Accounting work has at all times been tedious. Every single day, we spend hours on duties that ought to be easier. We’re compelled to manually enter information, reconcile transactions, and sift by way of recordsdata attempting to find monetary info we want.
However synthetic intelligence is beginning to change this actuality. Xero, one of many main cloud accounting platforms, has built-in AI options which might be streamlining these day by day duties. From their new conversational assistant JAX to automated financial institution reconciliation, these instruments are serving to accountants and enterprise homeowners reclaim time for extra invaluable work.
Xero AI: Native options defined
At Xerocon 2024, one major product reveal was an AI assistant named JAX (Simply Ask Xero). It represented an fascinating shift in how we work together with accounting software program. As a substitute of navigating menus and kinds, you may merely message JAX by way of WhatsApp or electronic mail to create invoices, examine money move, or deal with payments.
Xero has added a number of AI capabilities that may make a distinction in the way you deal with day by day accounting duties. Let’s break them down.
1. Simply Ask Xero (JAX)
JAX marks Xero’s largest step into conversational AI. Introduced in February 2024, this AI assistant does extra than simply reply to instructions. It helps you’re employed naturally along with your accounting information. When you could generate an bill, fairly than opening Xero and navigating by way of menus, you may merely message JAX by way of WhatsApp or electronic mail along with your request.
The assistant handles core accounting duties like creating invoices, managing quotes, and processing payments. However its actual worth comes from its capability to assume forward. It suggests follow-up actions, alerts you about potential money move points, or reminds you about pending approvals. As Xero continues to develop JAX’s capabilities, they’re specializing in making accounting workflows extra intuitive and proactive.
2. AI-powered financial institution reconciliation
This method learns out of your reconciliation historical past to foretell and recommend matches between financial institution transactions and your accounting information.
Key capabilities embrace:
- Studying out of your previous reconciliation patterns to enhance matching accuracy
- Cross-referencing incoming funds towards excellent invoices
- Figuring out and flagging uncommon transactions that do not match typical patterns
- Suggesting transaction classes based mostly on historic information
- Automating recurring transaction matching
3. Good information extraction
Xero’s Hubdoc software can mechanically extract transaction information from financial institution statements and receipts and combine it into your accounting information. The system can course of a number of assertion codecs, figuring out key info like dates, quantities, and transaction sorts.
The AI validates extracted information towards current information, flagging any discrepancies that want human consideration. This implies you spend much less time on information entry and extra time on guaranteeing your monetary information are correct.
4. Analytics Plus
It brings AI-driven insights to your monetary information. As a substitute of spending hours analyzing spreadsheets, you get computerized forecasts based mostly in your precise enterprise information.
Key options embrace:
- Money move projections utilizing your actual bill and invoice information
- Quick-term money place monitoring
- Monitoring of upcoming funds and payments
- Enterprise efficiency monitoring
The facility lies in the way it makes use of your precise enterprise information. It analyzes every part out of your invoices and payments to financial institution transactions to offer these insights. This implies you are getting predictions based mostly on your corporation’s actual patterns, not simply generic forecasts.
5. AI-powered assist
Xero’s integration of GenAI into their assist middle, Xero Central, has reworked how customers discover solutions. As a substitute of scrolling by way of assist articles, now you can ask questions in plain language and get related solutions drawn from Xero’s assist documentation.
It will probably assist cut back common search time and reduce assist requests needing further assist. The very best half is that it provides customized responses based mostly in your position (enterprise proprietor, accountant, or bookkeeper and supplies solutions generated from verified assist content material.
The system understands context and may piece collectively info from a number of assist articles to offer you complete solutions.
6. Xero Bills
Xero Bills makes use of AI to automate the expense administration workflow. It streamlines expense processing by scanning and studying receipts in real-time by way of your cell digital camera and extracting key information factors with excessive accuracy. It will probably detect merchandise descriptions and classes, buy quantities and currencies, tax calculations and parts, vendor info, and fee strategies.
It learns out of your expense patterns to recommend classifications, matching bills to financial institution transactions mechanically. It will probably even create expense experiences based mostly in your personalized guidelines.
Whereas Xero’s native AI options deal with many day-to-day duties successfully, some companies want extra superior automation for his or her accounting workflows. That is the place specialised AI instruments could make a big distinction.
[Image source: Xero’s official website]
The best way to broaden Xero’s AI capabilities?
Xero provides a strong basis for digital accounting. It helps automate reconciliation, seize receipts, and streamline different on a regular basis finance duties. But when your workflow contains excessive bill volumes, advanced approvals, or strict PO matching, there’s room to go even additional.
That’s the place Nanonets matches in. Nanonets connects on to your current Xero account. It would not disrupt your staff’s routine. You may preserve working in Xero as Nanonets quietly handles the heavy lifting within the background: automating doc consumption, information seize, approvals, and syncing every part again to Xero, absolutely mapped and able to go. It simply builds on Xero’s AI and automation capabilities with none added problem.
Here is how Nanonets enhances the accounts payable workflow. I can even share the implementation steps concerned in every stage.
1. Automate doc consumption
Bored with dragging recordsdata round or sorting by way of your inbox? With Nanonets, you may have each bill, PO, or receipt despatched straight out of your finance mailbox, cloud drive, and even your vendor portal.
The AI additionally types the uploaded doc mechanically. It sends invoices to the fitting workflow, routing POs for matching, and eradicating junk or duplicates earlier than they ever hit your queue.
In case your invoices are in your electronic mail, simply arrange electronic mail auto-forwarding like within the video above. Nanonets’ classifier mannequin reads each doc and decides what’s value processing. No extra handbook sorting.
You don’t have to the touch each doc. The correct recordsdata go to the fitting place, each time. You save hours and remove errors.
2. Superior information extraction with studying
Each bill is totally different, however that shouldn’t gradual you down. Nanonets’ AI precisely extracts all the main points you want, be it your line gadgets, tax, vendor, GL codes. The system extracts 60+ fields and syncs with Xero in actual time.
Combine Nanonets along with your Xero occasion beforehand to make sure it mechanically fetches or matches from the grasp information. If one thing’s lacking or improper, simply appropriate it. The AI remembers, so subsequent time, it will get it proper.
Ultimately, it reduces handbook entry and error charges, whereas the extraction retains bettering to suit your distinctive paperwork.
3. Automated PO matching and exception dealing with
PO matching is tedious, but it surely’s important for catching overbilling or errors. Nanonets automates this by pulling in your POs, matching them to invoices, and flagging any mismatches in worth, amount, or description. You get a side-by-side view and may resolve points on the spot.
The AI matches POs and invoices, flags discrepancies, and brings exceptions to your consideration. You catch and resolve discrepancies early, so solely clear, correct information flows into Xero.
4. Configurable approval workflows
Approvals shouldn’t imply infinite electronic mail chains or misplaced paperwork. Nanonets helps you to construct approval flows that match your corporation: route by quantity, division, or vendor, and ship notifications by way of Slack, Groups, or electronic mail. Approvers get a direct hyperlink, can overview, approve, or remark, and every part is tracked.
Arrange guidelines for who must approve what. The system strikes recordsdata by way of every stage, notifies the fitting folks, and logs each motion. No extra bottlenecks or confusion. Approvals occur quick, with a transparent path for compliance.
5. Sync information to Xero
Re-entering authorised bill information into Xero doubles the work and introduces errors. Nanonets eliminates this step solely. Upon approval, all bill information—together with GL codes, tax info, and line gadgets—syncs on to Xero. The unique doc is hooked up for reference.
This automated workflow maintains information integrity between techniques and supplies full documentation. Your books will keep present with out handbook information entry, and month-end closing turns into considerably quicker.
6. Actual-time reporting
Wish to know the place issues stand? Nanonets offers you dashboards and experiences on bill standing, bottlenecks, getting older, and even money move forecasts. Ask a query in plain English—like “present prime distributors by spend”—and get a solution, not only a spreadsheet.
The system aggregates all of your workflow information and provides you real-time analytics, together with pure language queries. You at all times know what’s occurring, can spot points early, and make smarter choices—with out ready for month-end.
The complete cycle completes in beneath ~2 hours, in comparison with conventional 2-3 day processing occasions.
Remaining ideas
Synthetic intelligence is reshaping accounting, and the mix of Xero’s native AI with Nanonets’ specialised automation creates a strong resolution for contemporary finance groups. This integration would not simply save time – it dramatically improves how your staff handles accounts payable, lowering processing prices whereas bettering accuracy and management.
Able to see how AI can enhance your AP workflow? E book a customized demo to find out how Nanonets course of your precise invoices in real-time. Our staff will stroll you thru every step, from doc seize to Xero integration, utilizing your individual paperwork.