Eliminating low-value, repetitive work is a goal for many CPA firms. Instead of focusing on transactional services that are billed at lower rates, CPA firms can instead spend more time on higher-value advisory work for clients.

If a CPA firm wants to continue offering payroll processing as a loss leader, however, an AI-powered payroll system may be able to provide assistance sometime in the near future.

Understanding AI in Payroll Processing

AI in payroll goes beyond simple automation. It can help CPA firms with the following tasks for clients:

• Extract and interpret data from documents or timekeeping systems
• Flag anomalies or errors before they cause issues
• Predict costs and trends for better financial planning
• Respond to queries using natural language processing
• Ensure compliance with tax and labor laws by auto-updating with regulatory changes.
  
  

Practical Ways CPA Firms Can Help Clients Leverage AI for Payroll

Here are some examples of how AI could help CPA firms better manage their clients’ payroll processing

Customize AI tools for clients. A CPA firm helps one of their business clients, which has a remote workforce and needs to navigate multi-state tax rules, integrate AI-driven payroll software with their human resources system. This AI tool can automatically detect an employee’s location and adjust payroll tax calculations accordingly, ensuring compliance in every applicable state.

Implement intelligent document processing. A retail chain manually enters timecard data from 30 locations every week. Their CPA firm introduces an AI tool that scans, validates, and imports the data into their payroll system automatically - cutting down payroll prep time from 15 hours to under 2 hours weekly.

Reduce risk and monitor compliance. A construction client was facing fines due to misclassified contractors. Their CPA firm deployed an AI tool that flags potential misclassifications and updates the payroll system when worker statuses change. This proactive approach prevented further fines and improved the client’s readiness for future audits.

So, Where Can A CPA Firm Find an AI Platform for Payroll?

In the near future, the payroll industry’s giants will have the capital to develop and harness the aforementioned efficiencies at a scale that smaller payroll providers and CPA firms can only dream of. In short, the jury is still out on how AI will impact CPA firms and other providers who offer payroll processing services.

In the meantime, if your firm wants to continue offering payroll services, consider the value of partnering with a leader in the payroll processing industry that can set you up for success when the time comes to start offering AI-related payroll services.

Or maybe your payroll business is at the point where you’d rather not get involved with the next great leap forward with new technology, as there will certainly be plenty of challenges as AI begins to integrate more into the payroll process.

If you think the time is right to cash out of your payroll business, consider speaking with one of our team members.