For decades, small- to medium-sized businesses (SMBs) have been the underserved middle children of enterprise technology.

Too small to afford robust enterprise resource planning (ERP) systems and too complex for consumer-grade tools, many SMBs have had to rely on spreadsheets, manual entry and fragmented services to manage their financial operations.

But that is changing. A wave of artificial intelligence-powered, no-code tools is transforming the way these businesses handle their back offices, empowering a new generation of citizen developers to build custom finance stacks from the ground up.

Today, solo founders, accountants and operations managers are turning to AI to automate key back-office functions. From invoice generation and bill reminders to recurring billing and AI-assisted tax calculators, SMBs are using technology once reserved for large corporations.

They’re doing it without writing a single line of code — or at least, not traditional code. Instead, they’re using natural language prompts, low-code platforms, and AI copilots to script their way to financial agility.

Take the case of Greg Schwartz, founder of Household.tv, a boutique marketing agency in Manhattan. Tired of manually generating invoices and chasing down payments, Schwartz used an AI-coding tool to write a script himself that integrates with Household’s back office and automates invoice creation for each project the agency tackles.

“It used to take me hours every week to generate invoices and follow up with clients,” Schwartz told PYMNTS. “The natural language interface of these tools transformed what used to be a serious engineering lift, or a third-party tool with limited customization, to a fully customized and automated part of my business. And on top of it, it’s helped with cash flow.”

Read also: The Customer Is Always Right: How SMBs Can Attract and Keep Customers

The Rise of the SMB Developer

The concept of the citizen developer isn’t new, but its potential has been supercharged by advances in AI, particularly when applied to business owners. These are not professional software engineers. They are entrepreneurs, founder-CEOs and operations staff who understand their workflows better than anyone and now have the tools to automate them.

What once required a team of developers and a hefty software budget can now be accomplished with a few smart prompts and some time on a Sunday afternoon.

This DIY approach allows SMBs to tailor their tools exactly to their needs, rather than being forced into the rigid workflows of traditional software. Because these solutions are modular, they can evolve alongside the business. Need to add expense tracking? There’s an AI plugin for that. Want to automate payroll reminders? A few clicks in a no-code interface can set it up.

The PYMNTS Intelligence report “Platform Power: The Growing Importance of Embedded Finance to SMB Success” found that 91% of SMBs said they feel ready for growth in 2025. As a result, companies are planning to increase their investments in software — not just for cost savings, but also to unlock new revenue streams and accelerate scaling.

See also: ERPs Find New Home on Main Street as SMBs Tackle Uncertainty

Business Owners Embrace DIY Tech Stacks

The finance stack, traditionally the exclusive domain of larger enterprises, is now being reconstructed by SMB owners using modular, AI-enhanced tools. Invoices, for example, can be auto-generated using language models trained on prior billing data. Payments can be tracked and reconciled while tax estimates can be generated by AI models trained on federal and state tax code changes.

This DIY approach allows businesses to tailor their tools exactly to their needs, rather than being forced into the rigid workflows of traditional software. Because these solutions are modular, they can evolve alongside the business. Need to add expense tracking? There’s an AI plugin for that. Want to automate payroll reminders? A few clicks in a no-code interface can set it up.

As SMBs grow more confident in their DIY capabilities, some are choosing to opt out of traditional third-party financial services.

This isn’t just about cost savings, although that’s a major factor. It’s also about control. When businesses own their financial stack, they gain visibility into their operations and the flexibility to adapt quickly compared to peers and competitors reliant on inflexible external vendors.

As AI continues to evolve, more sophisticated solutions are expected to emerge. From predictive analytics to real-time financial forecasting, the next frontier is in sight. At the heart of it all will be the scrappy, resourceful SMB owner, building the future one automation at a time.

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