In a world where small businesses face constant challenges, leveraging technology can be a game changer. In this episode of The Small Business Show, Jim Fitzpatrick speaks with Liran Zelkha, co-founder and CTO of Lili, a fintech company helping small businesses navigate the complexities of finance and AI. Zelkha shares insights on how AI can streamline operations, overcome hurdles, and empower small business owners to focus on what they do best.
Liran Zelkha’s journey as a small business owner led him to recognize the critical need for efficient tools to handle the administrative side of running a business. After 20 years of coding for hire, Zelkha founded Lili, a fintech company that combines banking solutions with AI-powered accounting and tax services to make life easier for small business owners. He explains that small businesses, often overwhelmed by administrative tasks, can benefit significantly from AI’s ability to automate repetitive processes, such as writing emails or handling accounting.
According to Zelkha, small business owners often hesitate to adopt AI due to a lack of understanding or fear of technology. He advises, however, that once these owners experience the convenience AI offers—such as generating a well-written email or simplifying tax reporting—they quickly become converts. The key, he believes, is for AI tools to be intuitive and integrated seamlessly into existing business operations, saving time and reducing the risk of human error.
Zelkha also addresses the challenges of implementing AI for small businesses. The core tech behind AI can be complex, and small business owners typically seek practical solutions rather than handling the technical details themselves. This is where fintech companies like Lili come in, providing easy-to-use tools that integrate with existing systems to automate tasks such as accounting, cash flow management, and tax preparation.
He also highlights the underdeveloped state of banking services for small businesses, with traditional banks often focusing more on consumer banking. However, with small businesses needing specialized solutions, Zelkha sees a growing trend where fintech companies, such as Lili, are stepping in to bridge the gap. Over the next few years, he predicts significant adoption of AI-powered tools in banking, especially for small business owners who need affordable solutions for accounting, lending management, and risk assessment.
The conversation also delves into how AI is reshaping the landscape for small businesses globally. Zelkha points out that the barriers to starting a small business have diminished, as tools to attract customers and handle essential business functions, like taxes and financial management, are more accessible than ever. The rise of remote work since COVID-19 has also contributed to the increase in entrepreneurial ventures, with many side hustles transitioning into full-fledged businesses.
Ultimately, Zelkha stresses the importance of making AI a vital part of small business operations to help owners save time, avoid financial pitfalls, and focus on growing their passion projects.
"Tools that automate [accounting and tax] and take all the complexities out of it is very significant. We have customers, for instance, that you do your own taxes on the first year as a small business. You don't know what you do. You don't know how to deduct stuff….It can make the difference between a good business and something, someone that goes out of business just because they didn't handle their expenses and cash flow correctly." - Liran Zelkha
