Xero adds machine learning to small business accounting

Xero has introduced what it says is the first personalised machine learning capability for a small business cloud accounting system. Its main role is to automatically allocate the correct account code to invoices. Xero says it uses detailed statistical analysis to learn from and assist the individual business and their partner based on their own specific circumstances. "The automation will mean small businesses no longer need to worry about where their invoice is filed - an invoice for time spent on site should be recorded against'Sales – Labour', not'Sales – Materials', for instance." According to Xero there are more than 10.1 million unique account codes in Xero created by small businesses, meaning items are often entered incorrectly, creating hours of work for the accountants who need to correct them.