Accounting work has all the time been tedious. Daily, we spend hours on duties that needs to be easier. We’re compelled to manually enter information, reconcile transactions, and sift by means of information making an attempt 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 can 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 priceless work.
Xero AI: Native options defined
At Xerocon 2024, one principal 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 types, you’ll be able to merely message JAX by means of WhatsApp or e-mail to create invoices, examine money circulation, 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 together with your accounting information. When it’s essential to generate an bill, slightly than opening Xero and navigating by means of menus, you’ll be able to merely message JAX by means of WhatsApp or e-mail together 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 circulation 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 embody:
- Studying out of your previous reconciliation patterns to enhance matching accuracy
- Cross-referencing incoming funds in opposition to excellent invoices
- Figuring out and flagging uncommon transactions that do not match typical patterns
- Suggesting transaction classes primarily based on historic information
- Automating recurring transaction matching
3. Sensible information extraction
Xero’s Hubdoc device 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 in opposition to present information, flagging any discrepancies that want human consideration. This implies you spend much less time on information entry and extra time on making certain 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 primarily based in your precise enterprise information.
Key options embody:
- Money circulation projections utilizing your actual bill and invoice information
- Brief-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 supply these insights. This implies you are getting predictions primarily based on what you are promoting’s actual patterns, not simply generic forecasts.
5. AI-powered assist
Xero’s integration of GenAI into their assist heart, Xero Central, has reworked how customers discover solutions. As a substitute of scrolling by means of assist articles, now you can ask questions in plain language and get related solutions drawn from Xero’s assist documentation.
It may assist cut back common search time and reduce assist requests needing further assist. The perfect half is that it presents personalised responses primarily based 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 provide 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 means of your cell digital camera and extracting key information factors with excessive accuracy. It may detect merchandise descriptions and classes, buy quantities and currencies, tax calculations and parts, vendor info, and cost strategies.
It learns out of your expense patterns to recommend classifications, matching bills to financial institution transactions mechanically. It may even create expense experiences primarily based 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 major distinction.
[Image source: Xero’s official website]
Tips on how to increase Xero’s AI capabilities?
Xero presents 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 present Xero account. It does not disrupt your workforce’s routine. You may hold 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, totally mapped and able to go. It simply builds on Xero’s AI and automation capabilities with none added trouble.
This is how Nanonets enhances the accounts payable workflow. I may also share the implementation steps concerned in every stage.
1. Automate doc consumption
Bored with dragging information round or sorting by means of your inbox? With Nanonets, you’ll be able to 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 precise workflow, routing POs for matching, and eradicating junk or duplicates earlier than they ever hit your queue.
In case your invoices are in your e-mail, simply arrange e-mail auto-forwarding like within the video above. Nanonets’ classifier mannequin reads each doc and decides what’s value processing. No extra guide sorting.
You don’t have to the touch each doc. The appropriate information go to the precise place, each time. You save hours and eradicate errors.
2. Superior information extraction with studying
Each bill is totally different, however that shouldn’t sluggish you down. Nanonets’ AI precisely extracts all the main points you want, be it your line objects, tax, vendor, GL codes. The system extracts 60+ fields and syncs with Xero in actual time.
Combine Nanonets together with your Xero occasion beforehand to make sure it mechanically fetches or matches from the grasp information. If one thing’s lacking or unsuitable, simply appropriate it. The AI remembers, so subsequent time, it will get it proper.
Ultimately, it reduces guide 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, nevertheless it’s important for catching overbilling or errors. Nanonets automates this by pulling in your POs, matching them to invoices, and flagging any mismatches in value, 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 e-mail chains or misplaced paperwork. Nanonets allows you to construct approval flows that match what you are promoting: route by quantity, division, or vendor, and ship notifications by way of Slack, Groups, or e-mail. Approvers get a direct hyperlink, can evaluation, approve, or remark, and every part is tracked.
Arrange guidelines for who must approve what. The system strikes information by means of every stage, notifies the precise individuals, 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 accredited bill information into Xero doubles the work and introduces errors. Nanonets eliminates this step fully. Upon approval, all bill information—together with GL codes, tax info, and line objects—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 guide information entry, and month-end closing turns into considerably sooner.
6. Actual-time reporting
Wish to know the place issues stand? Nanonets offers you dashboards and experiences on bill standing, bottlenecks, ageing, and even money circulation forecasts. Ask a query in plain English—like “present high 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 all the time know what’s taking place, can spot points early, and make smarter selections—with out ready for month-end.
All the cycle completes in beneath ~2 hours, in comparison with conventional 2-3 day processing instances.
Last 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 does not simply save time – it dramatically improves how your workforce handles accounts payable, decreasing processing prices whereas bettering accuracy and management.
Able to see how AI can enhance your AP workflow? E book a personalized demo to learn the way Nanonets course of your precise invoices in real-time. Our workforce will stroll you thru every step, from doc seize to Xero integration, utilizing your individual paperwork.
