This week on Let’s Talk, our experts weigh in on whether AI bookkeeping truly delivers on its promises for small businesses. If it does, we’ll also explore how SMEs can implement it effectively and make the switch with minimal disruption.
AI bookkeeping can save time, reduce data entry errors, and provide new insights into cash flow. But experts warn it’s not a set-and-forget solution. The best approach is careful and strategic. AI systems still need accurate data and consistent oversight because mistakes at the start can teach the software the wrong rules and create ongoing errors.
Let’s see what our experts have to say. Let’s Talk!
Read also: Let’s Talk: How can AI help small businesses read their customers’ minds?
Matt Patterson, Head of Sales, AU (SME & Growth), Airwallex
“AI has the power to completely transform bookkeeping for small businesses – but too many are yet to take advantage. New research from Airwallex, conducted with YouGov, found that less than half (43%) of Australian SMEs plan to invest in AI and automation in the next two years, compared to almost two-thirds (61%) of large enterprises.
“The gap often comes down to resources, not readiness. Enterprises have the money and manpower to move fast but SMEs shouldn’t feel left behind. AI-driven financial tools are now more accessible than ever, automating routine tasks, reconciling payments in real-time, and giving owners clearer visibility over cash flow and compliance.
“For small businesses, it’s not about replacing people – it’s about freeing them up to focus on strategy, customers, and growth. Those who make the switch early will have a real competitive edge.”
Leanne Berry, Partner Engagement Manager at MYOB
“As someone who works closely with small businesses and bookkeepers across Australia, I’ve seen firsthand how AI is transforming the way we manage our finances and admin. If you’re considering making the switch, here’s how you can get started.
“Adopting AI for bookkeeping and admin can be a game-changer. Start small: automate repetitive tasks like invoice scanning, expense categorisation, and bank reconciliation using AI features in your cloud accounting software. For example, let AI extract data from invoices and match transactions, saving time and reducing errors.
“Integrate these tools with your existing systems – most accounting platforms offer built-in AI capabilities that streamline workflows. Focus on maintaining clean, consistent data, as AI relies on quality inputs for accurate results. Regularly review your records and train your team on best practices.
“Security is critical: ensure your software providers complies with Australian privacy laws and has transparent data-handling policies. Before adopting new tools, check for compliance with the Australian Privacy Principles.
“Invest in training so your team can interpret and validate AI-generated reports. Encourage questions and continuous learning. Once comfortable, explore advanced features like cash flow forecasting or anomaly detection.
“AI isn’t about replacing people – it’s about empowering your business to work smarter.”
Morgan Wilson, Founder & Director, creditte
- “Context: AI can clean up messy books fast, but it only works if your underlying processes are solid. If your bank feeds, chart of accounts, and approval workflows are inconsistent, AI just makes the wrong answers faster.
- Insight: We see the biggest wins when AI handles repeatable tasks (bank recs, receipt capture, coding common transactions) while a human reviews edge cases and patterns. The sweet spot is ‘AI does the doing, humans do the deciding.’
- Impact: Better data, sooner. That means tighter cash control, fewer GST surprises, and clearer margins by job or product. But cutover risk is real: poor data mapping and loose user permissions can blow up a BAS or payroll run.
- Takeaway: Start with one process, one entity, one month. Standardise categories, lock permissions, set review rules, and measure error rates before scaling. Building better businesses starts with better numbers and AI should make those numbers cleaner, not just quicker.”
Sharon Nouh, Founder and CEO at ProSpend
“AI unlocks the ability to streamline repetitive expense processes including expense claims, approvals and credit card reimbursements, saving up to 90% of costs and time in most cases. In fact, our recent report, Stop the AP Leak, explains why more businesses need to embrace AI and automation now, more than ever.
“For example, staff using ProSpend can quickly snap a photo of their receipt. With OCR (Optical Character Recognition) technology, receipt data is captured, automatically matched to the expense, and then routed for approval.
“Understanding how powerful Artificial Intelligence can be, it is also important to recognise that it is just like a human in the process of learning. It is always learning and adapting, but just like a human, it can and will make mistakes. Although once recognised, it aims to avoid making the same mistakes in the future.
“Taking the example of OCR, what happens if invoices are not formatted correctly? This is where leading automation software providers, like ProSpend, invest in crucial services including HITL (Human-In-The-Loop) to resolve errors seamlessly. HITL is ‘a branch of artificial intelligence that leverages both human and machine intelligence to create machine learning models.’
“Leading software such as ProSpend utilises expert teams that review each receipt and invoice that has been prompted as an error to assess why this occurred. This team will then train the AI system and apply a machine-learning algorithm to learn, adapt and understand what to do next time this error occurs. The HITL approach fuses machine learning and intelligence, with human intelligence to make fast, seamless and accurate decisions.”
Elvis Sehovic, Head of Business Services, Polyglot Group
“AI-powered bookkeeping is here, and it’s changing the game for small businesses. But before you jump in, know this: it’s not plug and play. Integration with your current systems can be tricky and may mean extra costs or short-term disruption. Data security is another big one. These platforms handle sensitive financial information, so make sure they comply with the Australian Privacy Act and use strong encryption.
“Automation is fantastic for cutting manual work, but it doesn’t replace human oversight. If the setup is wrong or transactions are misclassified, you’ll end up with inaccurate records and compliance headaches. AI tools also need to meet Australian tax obligations, including BAS reporting and ATO record-keeping requirements.
“Transparency in financial reporting and ethical use of AI matter more than ever. Set clear policies for reviewing AI-generated outputs to prevent errors and maintain trust.
“My advice? Start small. Automate one process, like expense tracking, before scaling up. Train your team, choose platforms with strong security and compliance certifications, and keep a balance between automation and judgment. Get the fundamentals right and AI will work for you, delivering real benefits without exposing your business to unnecessary risk.”
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