Xero is rolling out new bank reconciliation predictions that bring a new application of AI into the Xero platform designed to reduce manual data entry.
The new feature uses machine learning to predict the contact and account code for transactions that cannot be matched to invoices or bills using an organization’s bank rules, Xero’s matching logic, or memorizations. Previously, users had to manually enter new contacts or account codes to reconcile these transactions.
Bank reconciliation predictions adds to a growing portfolio of Xero’s AI enabled product features, most recently Analytics Plus, a suite of planning and forecasting tools, powered by artificial intelligence and designed to help businesses and advisors plan for the future with confidence. Xero also uses two core machine learning techniques — text classification and entity recognition — to free small business owners and employees from repetitive tasks with automatic form filling in both Hubdoc and Xero Expenses.
The machine learning algorithms for bank reconciliation predictions learn from millions of historical reconciliations across different organizations. As the algorithms improve over time, users can complete bank reconciliation faster, with more accurate information and reduced manual data entry.
The new bank reconciliations predictions feature will roll out in phases to all customers. As Xero continues to improve these algorithms, users will see Account and Contact predictions in bank reconciliation more frequently.