I Tested Every AI Feature in Popular Accounting Software

Accounting software companies discovered AI. Now everything has “smart” features and “intelligent” categorisation.

I spent a month testing what actually works. Xero and MYOB are the big Australian players here.

The Test Setup

Three businesses:

  • My consulting practice (simple, services)
  • A friend’s e-commerce store (complex, inventory)
  • A small agency (multiple clients, project-based)

Ran each through Xero, MYOB, and QuickBooks. Tested every AI feature.

Xero’s AI Features

Auto-categorisation: 74% accurate for recurring transactions. Falls apart on anything unusual. Took 2 weeks to learn patterns.

Invoice data extraction: Actually good. Reads supplier invoices, pulls amounts and dates correctly 85% of the time.

Cash flow predictions: Garbage. Predicted we’d be negative when we had $80,000 coming in. Doesn’t understand project-based billing.

Bank reconciliation suggestions: Helpful. Saved maybe 20 minutes per week once trained.

Overall: Mixed. Invoice extraction is worth it. Cash flow prediction is worse than a spreadsheet.

MYOB’s AI Features

Smart coding: Similar to Xero’s auto-categorisation. 68% accuracy.

Invoice capture: Worse than Xero. Struggled with non-standard invoice formats.

Automated payment reminders: Not really AI, just automation. Works fine.

Overall: Nothing special. MYOB’s AI feels bolted on, not integrated.

QuickBooks’ AI Features

Receipt capture: The best of the three. 89% accuracy on expense receipts. Reads crumpled, faded receipts somehow.

Categorisation: 71% accuracy. Middle of the pack.

Reports insights: Useless. “Your expenses increased this month.” Yes, I know. Tell me why.

Overall: Receipt capture is genuinely excellent. Everything else is mediocre.

What I Actually Use Now

Xero for accounting (their invoice extraction is worth it).

Dext (formerly Receipt Bank) for receipt capture instead of QuickBooks’ native feature. $30/month but more flexible.

Ignore all “insights” and “predictions” features. They’re wrong too often to trust.

The Money Math

Time saved per month from useful AI features: About 3 hours.

At bookkeeper rates ($50/hour), that’s $150/month value.

Extra cost of software with AI vs without: $0-30/month depending on plan.

Net benefit: Real but modest. Don’t upgrade plans just for AI features.

The Bottom Line

AI in accounting software is oversold. The useful features:

  1. Invoice data extraction (Xero)
  2. Receipt capture (QuickBooks or Dext)
  3. Transaction categorisation (all, after training)

Everything else is marketing. Cash flow predictions are dangerous. Insights are obvious. Recommendations are generic.

Stick to the basics. Reconcile regularly. Review your numbers yourself. AI can’t replace understanding your own finances.