Automating Book keeping/Artificial Intellegence

[Shane Quin]

Is there any Artificial Intelligence software that help in bookkeeping.

I currently use google sheets to try and keep track of everything but feel there has to be a more automated way to doing this.

Thank you

[Max Ferguson]

Bookkeeping as in watching your credit cards, writing off utilities, etc.? 

I wish I knew of something! Maybe you could use one of the softwares that tracks your bills but only input the real estate cards and accounts? 

This would save tons of time! Stessa may have something similar to this if someone can add input? 

[Shane Quin]

Yes thats what I'm looking for - Bookkeeping as in watching your credit cards, writing off utilities, etc.?

What are some of the softwares for tracking bills?

[Austin Cheatham]

Absolutely, there are several AI-driven software solutions that can significantly streamline your bookkeeping process beyond what Google Sheets offers. Tools like QuickBooks Online and Xero utilize AI to automate data entry, categorize transactions, and generate financial reports, making it easier to keep track of your finances. Additionally, software like FreshBooks and Wave are user-friendly options that integrate AI features to help with invoicing, expense tracking, and financial management. All are simple and easy to use.

Additionally, I would recommend having an accountant assist in setting up your bookkeeping system effectively. This will ensure that you capture all necessary data and that your financial records are organized and accurate. This foundational work can save you time and headaches down the road, especially during tax season.

[Simon W.]

I wouldn't say QBO and Xero utilizes AI to automate data entry. It is just based on historical data and it does a poor job at it.

There are plenty of platforms to track income and expenses but you need to know how to categorize it. 

AI isn't gong to take over accounting because there are too many gray areas when it comes to accounting.

[Austin Cheatham]

Quote from @Simon W.:

I wouldn't say QBO and Xero utilizes AI to automate data entry. It is just based on historical data and it does a poor job at it.

There are plenty of platforms to track income and expenses but you need to know how to categorize it. 

AI isn't gong to take over accounting because there are too many gray areas when it comes to accounting.

No one said AI will take over accounting, but those who fail to adapt to the use of AI in their daily routines will slowly be phased out by the accountants who do.

And to your point on QBO and Xero, it can based on rules you setup for incoming transactions. So it is as effective as the rules you setup for it. If you setup poor rules, then sure, it will poorly categorize them. It is not perfect, which is partially why I mentioned consulting with an accounting professional when it comes time to set these things up. There are too many nuances in accounting to try and do these things without the advice of an accounting professional. You will only end up costing yourself more time, headache, and possibly money.

I recommend working directly with your tax professional to help ensure you have a smooth setup going for QBO and/or Xero. You need someone who understands the tax piece and the accounting piece to make sure everything is in sync. If your tax professional can not provide advice on QBO/Xero setup and categorization, you may need to think about hiring a new tax accountant. Your tax professional should not just do your taxes and send you out the door. They should act as a strategic partner for all of your accounting needs.

[Simon W.]

Quote from @Austin Cheatham:

Quote from @Simon W.:

I wouldn't say QBO and Xero utilizes AI to automate data entry. It is just based on historical data and it does a poor job at it.

There are plenty of platforms to track income and expenses but you need to know how to categorize it. 

AI isn't gong to take over accounting because there are too many gray areas when it comes to accounting.

No one said AI will take over accounting, but those who fail to adapt to the use of AI in their daily routines will slowly be phased out by the accountants who do.

And to your point on QBO and Xero, it can based on rules you setup for incoming transactions. So it is as effective as the rules you setup for it. If you setup poor rules, then sure, it will poorly categorize them. It is not perfect, which is partially why I mentioned consulting with an accounting professional when it comes time to set these things up. There are too many nuances in accounting to try and do these things without the advice of an accounting professional. You will only end up costing yourself more time, headache, and possibly money.

I recommend working directly with your tax professional to help ensure you have a smooth setup going for QBO and/or Xero. You need someone who understands the tax piece and the accounting piece to make sure everything is in sync. If your tax professional can not provide advice on QBO/Xero setup and categorization, you may need to think about hiring a new tax accountant. Your tax professional should not just do your taxes and send you out the door. They should act as a strategic partner for all of your accounting needs.

First, I was addressing the AI won't be taking over to the OP as a general statement because everyone seems to think AI will take over in everything.

Second, your whole first reply/post was AI generated which means you didn't do your due diligence in reading the incorrect information before posting it. I do not knock on AI generated content, but a lot of the times, AI does not give correct information.

Third, you replied back about the rules, the rules are generated by the users, the user categorizes 90% of the transactions, QBO tries to do historical data but fails most of the time, and latestly, AI does not generate the financial reports, the user does.

For anyone reading this thinking that the platforms you mentioned are AI-driven to do everything you just said is simply false.

I will agree with you that they should have someone setup the books accordingly. 

[Austin Cheatham]

Quote from @Simon W.:

Quote from @Austin Cheatham:

Quote from @Simon W.:

I wouldn't say QBO and Xero utilizes AI to automate data entry. It is just based on historical data and it does a poor job at it.

There are plenty of platforms to track income and expenses but you need to know how to categorize it. 

AI isn't gong to take over accounting because there are too many gray areas when it comes to accounting.

No one said AI will take over accounting, but those who fail to adapt to the use of AI in their daily routines will slowly be phased out by the accountants who do.

And to your point on QBO and Xero, it can based on rules you setup for incoming transactions. So it is as effective as the rules you setup for it. If you setup poor rules, then sure, it will poorly categorize them. It is not perfect, which is partially why I mentioned consulting with an accounting professional when it comes time to set these things up. There are too many nuances in accounting to try and do these things without the advice of an accounting professional. You will only end up costing yourself more time, headache, and possibly money.

I recommend working directly with your tax professional to help ensure you have a smooth setup going for QBO and/or Xero. You need someone who understands the tax piece and the accounting piece to make sure everything is in sync. If your tax professional can not provide advice on QBO/Xero setup and categorization, you may need to think about hiring a new tax accountant. Your tax professional should not just do your taxes and send you out the door. They should act as a strategic partner for all of your accounting needs.

First, I was addressing the AI won't be taking over to the OP as a general statement because everyone seems to think AI will take over in everything.

Second, your whole first reply/post was AI generated which means you didn't do your due diligence in reading the incorrect information before posting it. I do not knock on AI generated content, but a lot of the times, AI does not give correct information.

Third, you replied back about the rules, the rules are generated by the users, the user categorizes 90% of the transactions, QBO tries to do historical data but fails most of the time, and latestly, AI does not generate the financial reports, the user does.

For anyone reading this thinking that the platforms you mentioned are AI-driven to do everything you just said is simply false.

I will agree with you that they should have someone setup the books accordingly. 

Understood on your first point.

But I believe you are wrong and have a misunderstanding of what AI actually is. 

If you did your due diligence on what AI actually is, then you would understand that my initial post is in fact correct or else I would have not posted it. Artificial intelligence (AI) is the simulation of human intelligence processes by machines, especially computer systems. Artificial Intelligence (AI) enables machines to learn from experience. Key word there, experience. It must first learn what you need it to know, and then apply that knowledge. That is where categorizing transactions comes in to play. You first teach the machine the vendor name, and then teach it to associate that vendor name with said GL account. So now you have a robot who can read transaction details and classify that transaction to the programmed GL account. So for example, you set your rules to Lowes classify as Repairs because the only items you buy from Lowes are repair related. You swipe your credit card at Lowes, the machine has learned that Lowes within the transaction line detail is to be associated and coded to repairs. You then never have to categorize a Lowes transaction again (unless circumstances change where you are making other transactions at Lowes).

So yes, AI is capable of learning to read transaction details and categorize that transaction based upon the initial rule you set. A robot is not going to know accounting, unless it is programmed to do so.

From there, you then can generate your reports. So while AI did not literally go and generate your report, it did all of the leg work for you to click a button to obtain whatever report you need. AI can not read your mind to auto generate reports. You would have to set rules up for that as well. It learns from experience. There are tools to integrate with Quickbooks and Excel to generate your reports for you based upon text prompt.

Am I saying the software is perfect? No. But to say that my initial post was incorrect is simply not true. 

[Jack Krusinski]

I use QuickBooks online, and it has many automation features. It is not fully automated, but it gets better and better every year. You can also hire a bookkeeper who can log right into your QBO and do your bookkeeping as well. 

[Simon W.]

This is my last response to this nonsense.  The generated financial reports aren't created by AI. It was already mapped to layout what are assets, liability, equity, income, and expenses. 

With your logic, QB Desktop from 2001 had AI tech. 

I know what AI tech is and I specifically use Linux (Arch) which i had to code to create my OS/Desktop. I was a Computer Programmer and was ranked one of the top hackers in TryHackMe. 

QBO had that feature of recognizing past transactions due to a formula that were coded to see repeats, hardly AI doing the work.

for all members reading this, make what you will about this. I could be wrong but haven't been proven wrong. I am not going to debate with someone that fails to correct the AI generated info and then make it seems as if it was true.

people are using the word AI too loosely.

[Andrew Syrios]

AI isn't at the place yet where I would trust it with bookkeeping. But there are AI tools integrated into QuickBooks and other software programs I believe that should make them easier and faster to use than they once were. 

[Simon W.]

Quote from @Andrew Syrios:

AI isn't at the place yet where I would trust it with bookkeeping. But there are AI tools integrated into QuickBooks and other software programs I believe that should make them easier and faster to use than they once were. 

Yeah, it's no where near where we can trust it. Right now QBO is in beta mode for the AI-powered invoicing but it isn't really used for real estate.

QBO focuses on small businesses and it's more about getting paid quicker than anything else. 

I love the idea that AI can help support accountants but it's not happening anytime soon unless we can prompt it and changes things on the fly without messing up the books.

[Andrew Syrios]

Quote from @Simon W.:

Quote from @Andrew Syrios:

AI isn't at the place yet where I would trust it with bookkeeping. But there are AI tools integrated into QuickBooks and other software programs I believe that should make them easier and faster to use than they once were. 

Yeah, it's no where near where we can trust it. Right now QBO is in beta mode for the AI-powered invoicing but it isn't really used for real estate.

QBO focuses on small businesses and it's more about getting paid quicker than anything else. 

I love the idea that AI can help support accountants but it's not happening anytime soon unless we can prompt it and changes things on the fly without messing up the books.

Yeah right now AI seems like it's a super Google search engine and makes some art of mostly comedic value. It will be a while before we can start to trust it with such things and at that point, we have to worry about whether we can trust it not to wipe us out like the ants we bulldoze over when paving a parking lot...

[Landon Mizuguchi]

Check out Digb, they're using AI to automate bookkeeping. 

[Max Emory]

Hi @Shane Quin, bookkeeping for REI companies (especially rental property companies) is super nuanced. For example, for rental properties, lots of the categorization depends on the REI's specific tax strategy regarding what we're capitalizing versus what we're immediately deducting. It's heavily dependent on what the tax code allows and who is interpreting the tax code. There's room for flexibility depending on the desired tax strategy.

I'm sure all accounting platforms, whether they are tailored to the REI industry or not, use AI. I'm not super techy so I won't speak to that.

What I will tell you is, we use QuickBooks Online exclusively for all of our REI Clients. I use it for my personal portfolio as well. We've found it has superior reporting features, integration features, and is overall more efficient to work within than other REI-specific software.

The downside is QBO is not set up for REI so you'll need to do that or work with an expert to ensure it is set up for your business appropriately.

Something else to keep in mind is your entity structure and how your entities file tax returns. As a general rule, each entity that files a separate tax return (partnership, s-corp, c-corp, etc) will need its own QBO subscription. If entities are disregarded, you can keep up with more than 1 in a single QBO account using the location/business feature to keep track of them separately. This will save you on subscription costs.

If you want to discuss any of this further, I'm happy to answer questions and help walk you through it.

Best of luck!