Xero is a popular cloud-based accounting software program that many businesses use to automate their accounting processes and financial decision-making. It also has an inventory management tool that can help manage your company’s inventory by letting you search, track, and modify your inventory items in real-time.
One of the most powerful features of Xero is its integration capabilities with other software and technologies, such as artificial intelligence. AI has dominated the technology of almost every industry over the last two years. Now, businesses can utilise AI with their Xero inventory management software to enhance financial decision-making and streamline accounting processes even more.
How to Integrate AI with Xero
There are several AI apps that you can integrate with Xero Inventory software. Here are some examples from the Xero App Store:
- ai
- ai
- XBert
- Syft
- Recordme
- MindBridge
Each AI app serves a unique purpose for automating and streamlining accounting tasks. Most of them automate bookkeeping tasks and streamline financial recordkeeping while maintaining accuracy. The star ratings listed on each app can help you decide which one is the best.
Once you choose an AI app, you must integrate it with the Xero inventory management software before you can use its features. Here is how to integrate an AI app with Xero:
1) Log into your Xero Account
The first thing you need to do is log into your Xero account. Hopefully, you already have a preexisting Xero account for your company. If not, then you will need to create a new account for your business and then log into that account with the login credentials that you create.
2) Visit the Xero App Store
Scroll all the way to the bottom of the Xero homepage. Under Accounting Software, click on the link “Explore the Xero App Store.” Enter “AI” in the search box to see all the different AI app integrations available for the Xero inventory management software.
3) Choose Your AI App
Click on any of the AI apps that interest you the most. Review the description overview of the app to confirm it is what you want for your Xero Inventory software. If it is, click the “Get this app” button at the top of the page.
4) Allow Access to Your Xero Account
You will see a series of command prompts asking you to allow the app access to your Xero account. Some AI apps offer free trial periods to let you test them out before you pay for them. Choose the trial option to skip payment.
5) Integration Complete
The integration is complete. If your AI app manages invoices or creates transactions, they will be marked as “System Generated” in the transaction history.
How AI with XERO Can Improve Financial Decisions and Accounting Processes
The newer versions of Xero have AI features already integrated into them. They don’t even require you to download separate AI apps. However, if you want to maximise the power of AI to improve accounting efficiency and decision-making, you have the option to download the ones that interest you the most.
Below are the top four ways that integrating AI with Xero inventory management software can enhance your company’s financial decision-making and streamline its accounting processes.
1) Process Invoices and Bills Faster
When invoices and bills are uploaded to the Xero software platform, the integrated AI can detect the critical information in the documents and automatically enter it into your financial records. It saves time from manually entering the information and improves the accuracy rate. Because of this, the AI integrated Xero software allows you to create invoices and pay bills much faster for better financial management and organisation.
2) Reconcile Your Bank Accounts and Ledgers Faster
A major responsibility of managing inventory is to reconcile bank account transactions with the company’s ledger entries to ensure they balance out. Manually doing this can take a long time because you must look at every credit and debit transaction on the ledger and bank statements to ensure they align. But with AI integration in Xero, this entire process is automated with enhanced speed and accuracy.
3) Predict Cash Flow Trends for Financial Planning
Efficient financial planning requires you to predict how much future cash will flow into your business to cover expenses. Cash flow predictions are based on historical cash flow patterns resulting from the profitability and productivity of your business. If your profits have gradually increased every month, you may have extra cash available to make investments or take out loans to expand your business.
Xero’s AI feature can thoroughly analyse cash flow patterns and trends based on past transaction information to determine how much cash will likely flow into your business in the future. Knowing this kind of information will make it much easier to make financial decisions about your business, such as whether to hire more employees, create new products, open another store, etc.
4) Custom Real-Time Insights and Recommendations
Xero’s AI regularly monitors and analyses all your company’s financial transactions, activities, inventory changes, and other actions. The longer you use the Xero software to manage your company’s accounting and inventory, the more it will understand your specific financial situation.
The AI is designed to recognize all kinds of financial patterns in your company’s accounting records. Based on the patterns and analytical reports, the AI will provide you with customised insights and recommendations for making better financial decisions. It will give you tips and advice on how to reduce expenses, increase cash flow, and the best time to purchase more inventory stock.
Get Professional Assistance
Do you need help understanding and using the AI integration of the Xero inventory management software? You do not have to do everything alone because professional inventory management consultants like Bluehub can guide you through the process. Their consultants can integrate the Xero Inventory system into your organisation and show you how to utilise its AI features to help you make better financial decisions in the future.
