


Question:
How can I practically use artificial intelligence in my business' financial operations?
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
Artificial intelligence (AI) is helping businesses streamline their financial tasks. Using AI carefully is lawful and can be very productive. Directors should understand the systems as, under the law, they remain accountable for the outcomes and compliant usage.
After struggling with outdated spreadsheets and unstable supply chains, a global manufacturing company improved its cash flow forecasting using AI. The finance team implemented an AI-powered tool to integrate real-time data from procurement, sales, and inventory systems. The AI model identified a recurring cash shortfall in the third quarter that had previously gone unnoticed. Consequently, the CFO adjusted supplier payment terms and restructured short-term financing, resulting in a 15 per cent improvement in working capital and reduced borrowing costs. This illustrates the growing trend of finance teams leveraging AI for better decision-making.
Bookkeeping tools use machine learning to sort transactions, reconcile accounts, and identify errors. Xero is the most widely used accounting platform among small businesses in Australia. Its Analytics Plus feature, available on premium plans, provides AI-driven insights such as cash flow projections and trend analysis. While Analytics Plus is not yet widely adopted, it is gaining traction among businesses seeking increased automation and deeper financial visibility.
Cash flow forecasting tools, like Float and Fathom, use historical data and real-time inputs to model future movements. These tools help finance teams anticipate shortfalls and plan more confidently.
Expense management tools, such as Expensify and Dext Prepare, scan receipts, extract details, and check for duplicates. They reduce manual entry and improve accuracy, especially when integrated with accounting software.
Accounts payable and receivable tools, like ApprovalMax and Lightyear, match invoices to purchase orders and enforce approval processes. These systems help prevent unauthorised payments and support internal controls.
Fraud detection and audit tools, such as MindBridge Ai and CaseWare IDEA, analyse transaction data to identify outliers and patterns. They support internal audit functions and reduce reliance on manual sampling.
Most of these tools do not use large language models (like ChatGPT). Instead, they focus on business automation, data analytics, and APIs to integrate with accounting systems. While these tools can improve efficiency, implementing new systems carries risks, such as upfront costs, staff training, and potential workflow disruptions. Businesses should ensure that a tool aligns with their internal controls and reporting obligations, as over-reliance on automation without proper oversight may lead to errors or compliance issues. A clear implementation plan with professional advice is essential.
Financial professionals should identify where AI can improve accuracy and control, choose transparent, auditable, and legally compliant tools, and implement monitoring. If AI aids financial decisions, directors must be able to explain those choices. With the right approach, AI can be a huge asset without being a speculative risk.