5 ways cloud accounting and AI can transform your business

Artificial intelligence (AI) has become somewhat of a buzzword. Not least over the last few months, with the inception of Chat GPT. 

The purpose of AI is to replicate and scale human intelligence. And this can seem daunting. But let’s reframe this. When used in tandem with cloud accounting, AI provides a huge opportunity to streamline and grow your business. And that’s without replacing the invaluable input of individual people within your business. 

Harness the data you have at hand through cloud accounting and AI

Owning, running and growing your business can feel like a fine balancing act. And although many businesses are sitting on data that they could be making the most of, it is often put on the back burner or ignored completely.

This is where AI can completely transform the way you do business. It can process huge amounts of data quickly and accurately. Uncovering patterns and insights which may have otherwise been left uncovered.

Cloud accounting software, like Xero, offers a great jumping off point for those who are new to AI. The software uses AI-powered analytics to provide real-time information, insights and performance indicators for your business. It examines financial data to identify trends, anomalies and ideas for improvement.

You and your team can then use these insights to make strategic decisions for the future of the business.

Take a step away from the mundane

The administrative burden of owning a business is often seen as an inevitability. Requiring time that could be spent on blue sky thinking, innovating and strategising.

Cloud accounting uses AI to simplify processes and enhance productivity. Whether it’s entering and/or extracting data; expense categorisation; bank reconciliation or invoice processing, AI will learn from past behaviour to improve accuracy, with little-to-no input. 

This will streamline your operations and free up time which you can reinvest. Allowing you to focus on other priorities, build relationships and collaborate more.

Can you predict the future?

Using AI, you could foresee the future of your business (well, to an extent).

Using algorithms to analyse historical data, as well as external factors such as payment patterns, sales trends and recurring fees, cloud accounting AI software can generate accurate forecasts and predictions.

The software drills down into patterns and data, identifying risks and detecting anomalies. Even going as far as acting as an indicator of fraudulent activities. Whilst AI is capable of producing more insight for business owners than ever before, it often takes a professional to decipher and piece together the picture that this data paints for business owners.

Using cloud accounting’s AI-powered capabilities, business owners can leverage this information to make proactive and timely decisions. Whether it be in regards to your pricing, resourcing or demand forecasting, cloud computing can optimise operations, increase profitability and minimise the risk of financial and reputational damage.

The software can make recommendations off the back of these insights. But the decisions still rely on the input of yourself, your team and your advisors. So, make sure to consult the right people, rather than placing the responsibility on machines.

Focus in on your clients and customers

This one is a topic of contention.

On the one hand, AI can refine and improve your customer experience. It can help you to monitor sentiment and interactions, develop in-depth segmentation, analyse preferences, demographics and purchasing patterns. All of this can help create a more bespoke and personalised product and/or service. And in turn can increase engagement, satisfaction and brand loyalty.

Although data can now do so much, we can’t forget the deep-rooted politics when it comes to storing and monitoring data. Always tread with care and caution here, and keep the best intentions at heart. If you’re unsure on whether to press ahead with this, it’s best to consult an expert on the matter.

It's also worth keeping in mind that, when it comes to your customers and clients, going the extra mile, and adding a personal touch and face-to-face meetings will never go amiss. I’m sure there are instances where a chatbot hasn't hit the mark or provided the answer you’re looking for.

So, as the world continues to turn digital, being able to create and maintain personal relationships with your customers could set you apart from your competition in the long run.

How well do you really know your market?

And how well do you compete?

Drawing upon market intel, insights and industry trends AI can collate a comprehensive analysis of your sector, as well as other organisations operating within the same space.

This can help you to plan strategically, spot opportunities to develop new products or services and allow you to stay ahead of the game.

Keep in mind, that any actions taken need to align with your overarching business goals and values. They should also be implemented by your own innovation team and/or other businesses you’re already working with.

What are your next steps?

The benefits of utilising AI are far-reaching. From streamlining your process and planning ahead to furthering your market understanding. But where do you go next?

Get researching

If you haven’t already implemented cloud accounting software, now is the perfect time research. Invest time looking into which software is right for you and your business. Especially with the Making Tax Digital deadline swiftly approaching.

If you already use cloud accounting, make sure you’re truly maximising the software and AI capabilities you have at hand.

Get talking

Consult those around you. Get to know how others within your professional network are using AI. Listen to the opinions (and learn the capabilities) of your team about AI. Speak to your advisors on how it will work best for you.

Get going

Start making the most of AI and all it has to offer. Start acting upon the insights and tools that cloud accounting and AI has to offer.

Supporting you on your cloud accounting journey

Navigating the world of AI can be overwhelming. There information out there is vast. And the semantics and capabilities of AI are ever-changing.

Our team of experts are here to support you. Whether it’s answering your questions, helping to maximise your software, or setting you up from scratch, please feel free to get in touch.