"This is just the first step in our promise to make code-free accounting a reality for all our small business and accounting partners alike," says Herman Man, VP of product and partnerships at Xero.

The company says Bills is the second-most commonly used Xero feature, but also has the second-highest rate of defaults as each line of a bill is edited individually.

With the new capabilities, accounts continue to be coded as usual. A minimum of 150 bills is required to be entered and as more bills are entered and accepted or corrected, the better the suggestions become.