Last month I caught up with Sarah Chen, who runs a small accounting practice in Bendigo. She’s been testing AI bookkeeping tools with her clients for the past year, and her insights are worth sharing—especially for regional business owners wondering if this stuff is actually useful.

“I was skeptical at first,” Sarah told me over coffee at her favourite spot on Pall Mall. “But some of these tools have genuinely changed how I work with certain clients.”

The Tools That Actually Work

Sarah’s been hands-on with about a dozen different AI-powered accounting tools. Here’s what she recommends for regional businesses.

For Receipt and Invoice Processing

Hubdoc (now part of Xero) has been her go-to for years, but she’s recently been impressed with Dext (formerly Receipt Bank). “It reads receipts accurately about 95% of the time now. Two years ago it was more like 70%.”

The time savings add up. “I’ve got a café owner client in Eaglehawk who used to spend four hours a month sorting receipts. Now she photographs them on her phone and the system does the rest.”

For Bank Reconciliation

Xero’s built-in machine learning for bank reconciliation has improved dramatically. “It learns your patterns. After three months with a client, it’s suggesting the correct coding for maybe 80% of transactions.”

Sarah also mentioned that MYOB’s newer AI features are catching up, which matters for the many regional businesses still on that platform.

For Forecasting and Cash Flow

This is where Sarah gets excited. “Small businesses often struggle with cash flow because they don’t forecast. Tools like Futrli and Fathom use AI to predict cash flow based on your historical patterns.”

She shared a story about a Bendigo retailer who was about to expand their inventory before discovering they’d hit a cash crunch in six weeks. The AI flagged it early enough to adjust plans.

What Doesn’t Work (Yet)

Sarah was equally clear about limitations.

“Complex GST situations still need human eyes. If you’ve got mixed-use assets or complicated BAS requirements, AI tools make mistakes.”

She also warned against over-relying on automated categorisation for businesses with unusual transaction types. “I had a client whose AI kept categorising their equipment purchases as office supplies. You’ve got to check.”

The Regional Angle

Here’s something Melbourne consultants often miss: internet reliability matters. Several AI tools struggle if your connection drops mid-sync.

“I recommend my rural clients do their bookkeeping uploads during off-peak hours,” Sarah said. “And always have your data backed up locally too.”

She’s also noticed that some AI tools are trained primarily on American or British businesses. “Australian-specific requirements like superannuation, PAYG, and our BAS system aren’t always handled well by overseas tools.”

Getting Started

If you’re a regional business owner wanting to try AI bookkeeping tools, Sarah suggests:

1. Start with receipt scanning—it’s low-risk and saves immediate time
2. Talk to your accountant first—they need to work with whatever system you choose
3. Give it three months—AI tools improve as they learn your patterns
4. Keep checking the outputs—trust but verify

“The goal isn’t to replace accountants,” Sarah concluded. “It’s to spend less time on data entry and more time actually helping clients grow their businesses.”

I couldn’t agree more. Technology works best when it handles the tedious stuff, freeing up humans for the work that requires judgment and relationships—something regional businesses understand better than most.

Business Victoria offers resources on digital tools for small business, and SmartCompany regularly covers AI tools for Australian businesses.