In a recent Foodbevy Startup to Scale podcast episode, host Jordan Buckner sat down with our CEO Alice Zhang to discuss a question many founders are asking: Can AI handle your bookkeeping? The conversation offered practical insights into what's possible today and what's coming tomorrow.
The Reality of AI in Financial Management Today
Alice shares a candid look at what AI can actually do right now: "We're leveraging AI technology in two aspects," she explains. "Categorization itself for e-commerce or CPG businesses has always been a pain and a chore that most people don't like to do. Like even accountants don't like to do it." This hits at the heart of why AI matters - it's taking on the tasks that bog down both business owners and financial professionals.
The impact is particularly significant for growing businesses. As Zhang points out, "Sometimes daily transactions could be hundreds or thousands of transactions, so it's getting to a point where it's just not viable to hire a human accountant who can do that type of categorization manually for you." This volume of transactions is exactly where AI shines, handling in real-time what would typically take a bookkeeper weeks to process.
Let's start with the basics - bookkeeping has traditionally been a manual, time-consuming task. Even with tools like QuickBooks, most businesses still rely on bookkeepers who update their books monthly or, if they're lucky, weekly. But things are changing.
Our AI technology handles routine tasks like categorizing transactions and matching them to your chart of accounts. For CPG companies processing hundreds or thousands of transactions daily, this automation is a game-changer. The system sorts through sales data, expenses, and invoices in real-time, giving business owners a much clearer picture of their financial status.
What Our AI Does Well
The current strengths of our AI-powered system include:
- Real-time transaction processing
- Basic categorization of expenses and income
- Tracking sales across different channels
- Breaking down complex orders (products, shipping, taxes)
- Spotting unusual patterns in spending or revenue
While the accuracy is typically around 80-90%, it gives business owners useful insights much faster than traditional methods.
Beyond Basic Bookkeeping
Our AI Financial Interpreter goes beyond just organizing numbers. It acts as a junior analyst, spotting trends and flagging important changes in your business.
This tool alerts you when your revenue grows significantly, identifies what's driving that growth, and highlights concerning trends in your expenses or cost of goods sold. For CPG founders dealing with constantly changing ingredient costs and supply chain issues, this kind of immediate insight is invaluable.
The Human Element
Despite these advances, human expertise remains crucial. High-stakes financial decisions, compliance matters, and strategic planning still need human oversight. There are legal considerations with financial statements shared with lenders and investors - this isn't something you want to leave entirely to AI.
Our approach combines AI efficiency with human expertise:
- AI handles the routine, time-consuming tasks
- Human experts review the output and handle complex decisions
- Together, they provide more accurate and timely financial guidance
Looking Ahead
The future of AI in financial management looks promising but measured. In the next few years, we're working toward:
- More sophisticated pattern recognition
- Better integration with industry benchmarks
- Improved communication between business owners and financial systems
- More nuanced financial analysis
We're particularly excited about developing conversational AI interfaces that understand CPG-specific accounting practices, allowing you to ask questions about your business and get informed, contextual responses instantly.
The Educational Angle
An unexpected benefit of our AI system is its role in education. It helps founders understand basic accounting concepts, explains financial terms, and provides context for their numbers - all without requiring formal financial training.
What This Means for CPG Founders
For CPG founders, our message is clear: AI won't replace your bookkeeper or CFO, but it will make financial management much more efficient.
The key benefits are:
- Less time spent on manual data entry
- Faster access to financial insights
- Better tracking of complex transactions
- More time to focus on strategic decisions
- Easier access to financial expertise when needed
The Bottom Line
AI is becoming a valuable tool in financial management, but it's just that - a tool. The best approach is to embrace its capabilities for handling routine tasks while maintaining human oversight for critical decisions and compliance matters.
As Jordan noted in our conversation, it's about being "optimistically terrified" - excited about the possibilities while staying aware of the limitations. Used wisely, our AI-powered system helps CPG brands manage their finances more efficiently, make better decisions, and focus more time on growing their business.
The future of financial management isn't about AI replacing humans - it's about finding the right balance between automated efficiency and human expertise. At MyPocketCFO, we're committed to helping you find that balance.
