AI Bookkeeping For Small Business

AI technology has been taking the world by storm, and this is especially true for AI-driven accounting software that have seen the biggest adoption rate. Join us as we take a quick look at how AI has impacted business in the last two years, and then delve into two bookkeeping automation platforms that will energize your small business financial processes.

Want to save on time, money, and labor? Then read on to discover how you can join other small businesses that have already adopted AI financial tools and are reaping the benefits.

Adoption of AI technology by small business: An update

According to the Small Business and Entrepreneurship Council’s 2023 Small Business AI Adoption Survey concluded in Oct 2023, 40% of businesses surveyed adopted financial management automation software. This same survey reported that out of the 676 small businesses surveyed, up to 86% with a turnover of >$ 1 million use AI technology. Furthermore, 83% of small businesses plan to invest in AI in the short term.

The SBE Council also found that small businesses are rapidly adopting AI technology to give them a competitive edge in tough markets and address challenges like inflation and labor shortage.

Fast forward to Sept 2024, and the numbers have increased even further. In a survey by The U.S. Chamber of Commerce and Teneo, nearly every small business — 98% — said they are utilizing a tool that is enabled by AI.

Why has AI accounting software become so popular?

The answer is simple. Traditional bookkeeping has always had its pitfalls – manual data entry has been time-consuming and prone to data errors. Real-time financial insights were slow to come, and information about cash flow was always one step behind.

AI technologies such as machine learning and natural language processing are employed to automate data entry, categorize expenses, and detect anomalies, thereby reducing manual effort and increasing accuracy. Faster processing means faster real-time data, enabling better decision-making and efficient financial operations. It’s what the accounting industry has been dreaming about for decades, and now it has been made possible by AI-powered software.

If you have a small business and haven’t adopted artificial intelligence for your bookkeeping tasks, or you want to invest in more sophisticated AI technology and get even further benefits from accounting automation, then you can start by employing the two AI tools we recommond for small business accounting.

Envoice

Envoice is your go-to tool for total management of your expenses and automated approvals. Pre-accounting tasks become fully automated, cutting down on manual data entry and manual approvals.

Use Envoice in your small business if:

• You want data extracted from bills, receipts, and invoices accurately and within seconds.
• You want repetitive tasks such as manual data entry to be reduced or completely eliminated.
• You want human-in-the-loop verification services for critical accounting processes.
• You want to automate your approvals workflow.
• You want to automate expense distribution for more accurate project cost allocation.
• You want paperless employee reimbursements and expense management.
• You want to stay in sync with a mobile app when you’re on the run.
• You want a cloud-based accounting platform that is accessible anywhere, anytime.

This powerful AI tool (costing $14 a month/per company) has the capability to streamline your accounts payable process and manage all your business expenses in one place. Expense reports can be created by employees, and quick and efficient reimbursements can be made directly to their bank accounts. As a business owner, you’ll always know when to pay bills, be on top of the approval process, and have the ability to make data-driven decisions.

Envoice case studies

Other small and medium businesses have seen the benefits of using Envoice in their pre-accounting and bookkeeping processes. They were able to leverage AI to eliminate time-consuming tasks, get real-time insights, reduce costs and manual work, and achieve seamless integration with other business tools. Their success provides the foundation for other businesses to follow suit.

1. e-Residency Hub

e-Residency Hub, serving over 800 clients globally, faced challenges managing a growing client base with limited accounting staff. By adopting Envoice, they automated data entry and expense management, significantly reducing manual workload. This integration allowed them to handle increased client demands without expanding their accounting team. They achieved a 40% annual growth while achieving 2x faster document processing and reducing workforce needs. They also managed to use one streamlined and uniform process despite working with clients in 68 countries, thanks to the Envoice software.

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2. Stillabunt

Stillabunt, a company dedicated to environmental initiatives like reforestation in Estonia, sought to simplify its invoice processing. Implementing Envoice enabled them to automate and expedite their accounting tasks, allowing more focus on their core environmental projects. Invoices were processed with minimal employees, and workflows were streamlined for efficiency.

3. 1Office

1Office, focused on simplifying business management for clients, needed to automate internal processes while maintaining personalized client interactions. Partnering with Envoice allowed them to automate document management, enhancing efficiency without compromising their commitment to personalized service.

As a small business owner or accounting firm, Envoice offers a host of attractive AI features promising increased efficiencies and a significant reduction in manual intervention and human oversight.

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QuickBooks Online

If Envoice provides the ability to automate pre-accounting work and streamline expense management, then QuickBooks Online (QBO) becomes the core system where you can consolidate all your accounting processes, financial records, and financial reports.

Use QuickBooks for your small business if:

• If you want a clear view of what you make and spend over time.
• If you want payroll done accurately and have your payroll taxes done for you.
• If you want to get paid into your bank account and manage your bank transactions in one place.
• If you want to accept card payments, ACH payments, Apple payments, or PayPal.
• If you want to track, approve, and adjust your team’s working hours.
• If you want personalized help and guidance from accounting experts from the start.

With QuickBooks Online, a myriad of accounting tasks can be automated. These include:

• Accounts payable and receivable
• General Ledger
• Payroll
• Procurement
• Cash flow analysis
• Tax reporting

QuickBooks case studies

Companies have been seeing increased efficiency and transformed financial data by using QuickBooks as their core accounting system. With QuickBooks using more advanced machine learning algorithms and automation, it has increased its usage among small businesses looking to save time, money, and labor costs.

1. Complete Contoller

Complete Controller, a 100% remote bookkeeping firm, sought to modernize its platform by transitioning from QuickBooks Desktop to QuickBooks Online (QBO). This shift aimed to improve integration, enhance user experience, and increase efficiency, especially as more clients were already using QBO.

The migration provided numerous benefits: it improved efficiency, reduced costs, and created a more integrated bookkeeping model, which helped Complete Controller increase its client base by 10% in 2020. This model also enabled seamless collaboration with CPA firms, making bookkeeping more transparent and accessible.

2. Cookie Doughboy

Brooke and Danny Alexander launched Cookie Doughboy during the COVID-19 pandemic, initially relying on word-of-mouth and social media to build their customer base. As demand surged, they faced challenges in managing orders and bookkeeping.

To streamline operations, they adopted QuickBooks Online, which allowed them to handle invoicing, track expenses, and maintain financial records efficiently. This integration enabled them to focus on product development and customer engagement, leading to business growth and the establishment of wholesale partnerships with local cafes.

Based on other case studies of small businesses, QBO also allowed business owners to conveniently upload receipts, generate income and expense reports on the go, automate invoice reminders, and use the mobile app to scan receipts and get financial information on demand.

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Grow your small business with financial AI tools

AI-powered bookkeeping tools like Envoice and QuickBooks Online offer the opportunity for transformation in small businesses across the globe, enabling you to achieve the growth that was previously only accessible to larger organizations. AI removes efficiency roadblocks like manual data capture, manual approvals, and lagging data, speeding up your entire bookkeeping process and allowing you to get to things that grow your business.

The case studies presented prove that AI is not just a future trend but a reality that many businesses are using to their advantage. Companies like e-Residency Hub, Stillabunt, and Cookie Doughboy have demonstrated how AI can streamline processes, reduce costs, and scale efficiently, achieving growth without sacrificing quality or increasing overhead. The numbers back it up, too: with nearly every small business surveyed now using AI, it’s clear that adopting these tools isn’t just about keeping up; it’s about staying ahead.

For small business owners who haven’t yet adopted AI bookkeeping, the choice is clear and simple. Implementing platforms like Envoice and QuickBooks Online is the first step towards a smarter, and more agile business model. With the power of AI, you can quickly adapt to market changes and focus on building lasting customer relationships that will fuel long-term success. Take the first step now!