Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Xero launches machine learning automation

Xero launches machine learning automation to improve coding accuracy for small businesses and their accountants

The next step in accounting automation to bring greater efficiency and clarity to businesses


Wellington - 11 October, 2017 – Building on the success of its first machine learning project, Xero announced the next step in its journey towards code-free accounting – the automation of account codes and bills for all small businesses and their partners.

With more than 500,000 bills entered into Xero every day, and each line of a bill edited individually, the automation of billing account codes is set to transform accounting practices, ensuring greater accuracy and reducing the time small businesses spend creating bills.

While bills is the second-most commonly used feature of Xero, it has the second-highest rate of defaults, with every small business using the system differently. Fifty percent of businesses use 10 or more expense codes, while others create their own codes, which means that information is often entered incorrectly. Xero’s new artificial intelligence system will consider each individual business’s characteristics, then recommend account codes based on what it has learned.

“We set out to further develop our machine learning program to reduce the number of mistakes being made when creating bills. In doing so, we’ve created a system that not only learns from the individual needs of our customers, but can also make objective decisions about which account their transactions should be coded to,” said Andy Neale, Head of Data Science and Automation at Xero.

With accuracy at the forefront of Xero’s latest development, the account code automation is rolling out to all Xero users, with customers continuing to code their accounts for bills as normal. A minimum of 150 bills is required to be entered and as more bills are entered and accepted or corrected, the better the suggestions become.

“Account coding has the potential to impact both small business finances and reporting. So, when applying machine learning to Xero’s billing system, we needed to ensure accuracy was at the forefront of any changes we were making. While we’ll only know the true impact of the technology when people start using it, on average, we know we can achieve more than 75 percent accuracy after 150 bills have been entered.”

“Account codes can be time intensive task for small businesses. We are using machine learning to simplify the system overall, so that more time is spent growing the business, rather than on low-value, administrative tasks,” Neale said.

- Ends -

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on seek.co.nz. Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>