Here we are already in a new year! WOW the time really flies when you’re having fun, right?! Alright, before we get rolling here in 2025 discussing AI please do me a favor and as you read through share my newsletter to your social media pages, to friends, etc.
Artificial Intelligence (AI) is no longer a futuristic concept as many originally thought—it’s here, and it’s reshaping how small and medium-sized businesses (SMBs) manage their accounting processes. From streamlining tedious tasks to offering actionable insights, AI is empowering businesses to operate smarter and faster. I witnessed this first hand in 2024 and want you all to increase knowledge in this area during 2025.
I made a poll about a year ago asking what others thought about AI and it being utilized in business….so many thought it was a fad. I think not! Those still questioning AI’s capabilities within their business….how are you feeling about it after the advancements during 2024 you’ve witnessed?
Here’s a few areas where AI is making an impact and how you can take advantage of this for your business in 2025.
1. Accounts Receivable (AR): Faster Payments, Less Hassle
AI-powered tools can automate invoice creation, delivery, and follow-ups. Predictive analytics help identify customers likely to pay late, enabling proactive reminders and flexible payment options. SMBs using AI in AR report faster collections and improved cash flow predictability. Do you see yourself jumping on board here in the new year? You likely need to start exploring things here. Let me help! brad@guernseyconsulting.com or 812-207-1863 to setup a time to chat.
2. Accounts Payable (AP): Efficiency Meets Accuracy
Gone are the days of manually sorting invoices and matching purchase orders. AI solutions now handle invoice processing with precision, reducing errors and fraud risks. By automating approvals and payments, SMBs free up time to focus on strategic priorities and your team will thank you!
3. Forecasting: Smarter, Data-Driven Decisions
AI can analyze historical data and market trends to create accurate financial forecasts. Businesses are using this capability to anticipate cash flow needs, prepare for economic shifts, and make better-informed decisions for growth. While AI can help here, I do a ton of forecasting and there’s a still a manual part to this in my opinion where AI can’t predict certain unknowns that you and your Finance team may be aware of, but it’s not necessarily in the system or historical data.
4. Bookkeeping: Say Goodbye to Manual Entry
AI tools like OCR (optical character recognition) scan and categorize receipts, transactions, and bank statements in real time. This automation reduces human error and keeps records up-to-date, giving SMB owners a clear financial picture anytime. I use this a ton for my business and within QuickBooks. I know I know….many don’t like QB as an option, but my business model and strategy is simple and straight forward so it works perfect for what I do. Many others find solid value in QB as small business owners.
A big THANK YOU to this week’s sponsor AI Tool Report! Do me a favor and check them out by clicking the below link. You may find solid interest here as you navigate AI within your business and personal life. Lots of good articles located here!
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Why AI Matters for SMBs
The adoption of AI in accounting isn’t just about convenience—it’s about staying competitive. By automating repetitive tasks, SMBs can allocate resources to fuel growth-focused initiatives. Plus, with AI’s real-time insights, they can make proactive decisions rather than reactive ones. Proactiveness in just about anything Finance related can always help you out. Not all things, but most!
How You Can Get Started
- Research Tools: Platforms like QuickBooks, Xero, and specialized AI tools are great starting points. Check them out, ask other business leaders what they use, etc.
- Focus on High-Impact Areas: Identify where automation will save the most time—AR, AP, or bookkeeping. These are areas where cash flow is always adjusting and you need to obtain real time numbers during the month.
- Embrace a Learning Curve: AI is powerful, but it requires initial setup and training. Invest time to learn the basics. Don’t look at this as an expense for your business, but as a strategic investment that will pay you dividends in the long run.
As we get started this new year, here’s a few newsletters you may find interest in that I’ve truly enjoyed over the last few months.
Let’s make this year one to remember you all. Get after it early and often. You got this.
BG
Brad Guernsey
Check out My New Meta below for 2025! I think you’ll enjoy this as things start rolling out!
