Which Jobs Should AI for Accountants Take On First?
Quick answer
The best AI for accountants starts with five jobs around Xero that Xero's own AI does not cover.
- Chase client records before each BAS
- Sort the inbox and draft first replies
- Turn uncoded transactions into client questions
- Flag odd numbers before review, then draft reports
Which jobs in your practice does Xero's own AI leave alone? Start there, because it already reconciles bank transactions and chases overdue invoices.
Here are the five jobs to turn into a workflow first, how each one works with Xero, and the rules on client data.
What does AI for accountants already do inside Xero?
Xero's built-in AI already handles bank reconciliation and invoice chasing inside each client file. So those aren't the jobs to build. JAX is the name of the AI built into Xero. Its AI accounting page says JAX reconciles bank transactions at 97% accuracy and wins back 22+ hours a month.
The same page says JAX follows up overdue invoices on its own. That's the job we covered in what overdue invoices do to cash flow, and it's now mostly solved inside Xero. Xero also offers a connector for Claude. It's read-only, so Claude can see the numbers but can't change them.
What JAX doesn't do is the work between your practice and your clients. It doesn't chase a client for missing receipts, answer their emails or write your month-end notes. That gap is the work an AI automation partner in Australia can take off your desk.
Which five jobs are worth a workflow first?
The five jobs worth a workflow first repeat every week or quarter, follow clear steps and end with a person checking. A workflow is a set of steps that software does the same way every time. AI steps in only where text needs reading or writing, as what AI automation is explains.
| Job | What the workflow does | What it reads in Xero | Who checks it |
|---|---|---|---|
| Chase client records | Sends reminders until records arrive | Which files are behind | Admin |
| Sort the inbox | Labels emails, drafts replies | Balances and due dates | Accountant |
| Query uncoded items | Lists questions for the client | Uncoded transactions | Bookkeeper |
| Pre-review flags | Lists odd numbers before review | GST codes, last quarter | Reviewer |
| Monthly report notes | Drafts what moved and why | Profit and loss | Partner |
Xero's September 2026 research found 94% of practices using AI daily have their processes written down, against 40% of those not using AI. Write the steps down first.
How does chasing client records before BAS work?
Chasing client records works best as a workflow that checks each client file and sends the reminder for you. It sends a friendly email, then a firmer one, until the records arrive. The deadline is fixed, which makes it easy to plan. The ATO's lodgment page says a quarterly BAS is due on the 28th of the month after the quarter, except the December quarter. Registered agents get later dates.
Here's a worked example of what doing nothing costs, so swap in your own numbers. Say you have 120 BAS clients and chasing takes 15 minutes per client each quarter.
What chasing records costs in a year
- Hours chasing a year (120 clients, 15 minutes, 4 quarters), 120
- × What your hour is worth, $90
- = Spent sending reminders a year, $10,800
Our guide to what manual processes really cost shows how to time your own jobs.
The same pattern runs the start of every engagement too. Our piece on automating client onboarding for accountants walks through the first week.
Can AI for accountants sort the inbox and draft replies?
Yes, AI can sort a practice inbox and draft first replies, as long as a person reads each one first. The workflow labels each email by client and type, such as a question, a document or a complaint. Then it pulls what the answer needs from Xero, like a balance or a due date, and writes a draft.
CPA Australia found members testing this as early as 2023. The head of one small practice told CPA Australia that drafting client email replies "works OK" but needed tweaking. A workflow fixes that with rules, so every draft starts from your own templates and the client's real numbers.
The third job sits right next to this one. Uncoded transactions become a short list of plain questions, sent to the client in one email instead of six. It's a small step toward an AI agent for your business. The software handles the back and forth, and you approve the answers.
How do review flags and monthly reports fit around Xero?
Review flags and monthly report notes both read from Xero, then hand a person a short list instead of a blank page. Before a BAS goes to review, the workflow compares GST codes against last quarter and lists anything odd. So the reviewer opens a short list of questions instead of the whole file.
Monthly report notes work the same way. Plain code pulls the profit and loss from Xero, and the AI drafts two or three lines on what moved. We run our own weekly reports this way, with code doing the sums and the model only writing the summary.
Xero's API is the door these workflows use. Xero's developer limits page allows 5,000 calls a day for each client file you connect, and 60 a minute. A nightly check across every client file fits well inside that. If you want to know what tools do the wiring, see n8n vs Zapier for small business.
What do the rules say about AI for accountants and client data?
The Tax Practitioners Board says you need a client's permission before their details go into an AI tool that shares them. That's from TPB(GS) 55/2026, issued on 22 July 2026. A signed engagement letter can carry that permission. The TPB also warns that AI can hallucinate, which means it makes things up. Check its output before you rely on it.
Before you switch on any AI step
UnderCurrent Automations currently builds on Claude. We're open to changing, but it works for us, and switching every month wastes time. Anthropic's privacy centre says its commercial products don't train on your inputs by default. Our guide to using Claude in your business covers the setup.
What changes when one job becomes a workflow?
When one repeated job becomes a workflow, you get hours back each week and the work comes out the same every time. Xero's research found practices save 8 hours a week with AI, and the top ones save 11. CA ANZ's AI mastery resources also point to repeat tasks as the place to start.
Here's the story behind UnderCurrent Automations. Before the business existed, the founder worked in sales. Finding leads, research and first-draft emails ate most of each day, so our founder built a workflow for all three. It saved three hours a day. We build for Australian practices the same way, one job at a time, with a person checking what comes out.
If you want that first job built as a workflow around Xero, talk to us about your first workflow. It starts with a short chat about the one job, and it costs you nothing to ask.
Frequently asked questions
Will AI replace accountants in Australia?
AI is unlikely to replace accountants in Australia soon, going by what firms themselves expect. Xero's September 2026 survey of 524 senior accountants and bookkeepers asked about this. It found 88% don't expect AI to cut team numbers in the next year. About 38% expect to reshape roles around AI. And 44% of practices said the hours AI saves now go into advice work.
Can you put tax file numbers into an AI tool?
Putting tax file numbers into an AI tool brings extra rules for Australian tax agents. The Tax Practitioners Board's July 2026 guidance says a separate TFN rule applies. It sits on top of the usual duty to keep client details private. It tells tax agents to get their own advice before using AI with TFNs. The safest workflow keeps tax file numbers out of any AI step and lets plain code handle them.
Do you need to leave Xero to use AI in an accounting practice?
You don't need to leave Xero to use AI in an accounting practice. Xero already includes its own AI, called JAX, for bank reconciliation and invoice follow-ups. Custom workflows plug into Xero through its API, which allows 5,000 calls a day for each client file. So a practice can keep its client files where they are. It just adds workflows around them for chasing, emails and reports.
Should bookkeepers use AI differently from accountants?
Bookkeepers and accountants in Australia use the time AI saves in much the same way. Xero's 2026 practice research found 45% of accountants and 40% of bookkeepers put the time saved into advice work. For a bookkeeper, the best first job is often turning uncoded transactions into client questions. For an accountant, it's more often review flags and drafting the notes that go with monthly reports.
What is the difference between AI and automation for accountants?
Automation is a set of fixed rules that run the same way every time. AI reads and writes text that doesn't follow a set pattern. For accountants, automation might send the same BAS reminder on the same date every quarter. AI can read a client's messy email, work out what they're asking and draft a reply. The strongest accounting workflows use both, with plain automation doing the sums and AI handling the wording.
