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The Future of Accounting: How AI Stands to Revolutionize Small Businesses

It's the latest tech trend - but how can AI actually help small businesses at the moment? We're introducing a solution that's set to revolutionize small business accounting.

AI. It’s constantly in the headlines, generating buzz on a daily basis as more and more companies embrace this technology and leverage it to meet the needs of their customers. But beyond the usual buzzwords and lofty theories about the future of technology, how can AI actually help small businesses at the moment? 

The truth is that Artificial Intelligence (AI) has already started to make its mark across various industries, adjusting the way small businesses function, especially related to creative tasks and resource management. As AI continues to evolve, a new wave of transformation is on the horizon, and this time, it’s set to shake up a pivotal area of business operations: accounting.

AI is Already Impacting Small Businesses

Small businesses have already experienced the influence of AI in supporting activities like developing marketing messaging and scaling content creation. The introduction of AI-powered tools like ChatGPT and Midjourney to supplement existing processes has boosted efficiency, helping small businesses overcome creative dilemmas and produce content at a faster pace. This, in turn, enables businesses to focus their resources on refining marketing tactics and coming up with more innovative strategies to drive growth.

However, the true potential of AI has yet to be fully realized when it comes to business operations. This is especially true when it comes to accounting, which remains complex and resource-intensive, requiring the highest level of financial organization in order to ensure accurate reporting for compliance and strategic purposes. With the development of technological solutions that aim to streamline bookkeeping and reporting, the accounting landscape is on the brink of a profound shift, and the release of Lili AI is at the forefront of this transformation.

Introducing Lili AI: Redefining Small Business Accounting

In a survey of small business owners we recently conducted, when asked how they manage their business accounting, 90% of respondents stated that they handle it themselves. This is exactly why we introduced Lili Smart earlier this year, empowering small business owners by uniting accounting with business banking within the same platform in order to streamline financial management. And this is exactly why we’re introducing Lili AI now, to take that concept to the next level.

Lili AI is the first AI accountant designed specifically for small business owners. Its innovative capabilities aim to simplify day-to-day bookkeeping tasks, enhance accuracy, and maximize efficiency, empowering business owners to focus on their core objectives and plan the future of their business with confidence.

Lili AI: Phase 1 and Beyond

The first phase of Lili AI will bolster Lili’s smart bookkeeping through the introduction of predictive transaction categorization. This feature is propelled by the combination of an immense internal transaction database and the integration of ChatGPT as a complementary classification engine. Lili AI learns from historical transaction categorization data (having already processed tens of millions of transactions and counting) and utilizes ChatGPT’s public database to fill in any contextual gaps to classify specific (sanitized) transactions, enabling it to accurately predict the appropriate tax categories for future transactions. The powerful synergy between extensive data processing and a large-scale language model will substantially increase efficiency in routine bookkeeping tasks for small businesses.

As we continue to develop Lili AI, we’ll introduce new functionalities designed to further optimize accounting processes, including the following planned features: 

Automated Reconciliation and Reporting

By automating reconciliation and financial reporting, Lili AI will eliminate the need for business owners to engage in time-consuming processes and avoid manual errors that could compromise the accuracy of their financial records.

On-Demand Financial Insights

Lili AI will generate financial insights, available on-demand, providing business owners with a comprehensive understanding of their financial health.

Prefilled Tax Forms

Tax compliance is an integral part of every business, and Lili AI simplifies this process by automatically prefilling tax forms with organized and accurate financial data, significantly reducing the burden of tax season.

The Promise of AI in Small Business Accounting

As AI technology continues to develop, the potential for its impact on small business accounting is boundless. By harnessing the power of AI tools, small business owners can unlock unparalleled efficiency, accuracy, and decision-making capabilities. The future of accounting is AI-driven, and the time to embrace this revolutionary technology is now. 

By automating resource-intensive tasks and providing real-time insights, Lili AI seeks to empower business owners to focus on advancing their businesses rather than getting bogged down by operational work. Small businesses often face resource constraints, and Lili AI offers a cost-effective solution to tackle accounting challenges without requiring an extensive accounting team. Lili AI also ensures that financial data is meticulously managed, allowing owners to gain a clear understanding of their bottom line and plan their business strategies with confidence.

At Lili, our focus has always been on providing our customers with the tools they need to succeed. With the release of Lili AI, we’re leveraging cutting-edge technology to give our customers an additional edge in managing their finances, and I’m excited to see it help them drive their businesses forward.

Written by

Lilac Bar David is the co-founder and CEO of Lili. With 20 years of experience in banking and payments management, Lilac is a leading expert in the fintech ecosystem.