Before examining how artificial intelligence technologies impact the business world, it is important to define what the term means. Artificial intelligence is a broad term that covers all computer software that performs human-like activities such as learning and problem-solving. Specific applications called “artificial intelligence” would be like calling a 2013 Honda Accord a vehicle. It’s technically accurate but doesn’t address all the details. Therefore, we need to understand which type of artificial intelligence is dominant in business.
Payroll software automates the management, organization and payment of employees. It tracks all payments and keeps all payment records. Small businesses can use payroll software as well as large corporations. Management can monitor attendance, taxes information, and pay structure with payroll software. It will easily integrate with existing company processes. Before purchasing a payroll software program for your company, please refer to this ultimate guide.
Some payroll professionals may be confused by the term digital transformation. It means, at the minimum, learning a new platform. However, advances in payroll technology could also mean that some job responsibilities can automate. As a result, it can cause concern about job security.
This wave of digital transformation has been particularly disruptive for payroll departments across the country. However, it is nothing that a savvy payroll specialist should be suspicious of.
While technology has already changed the way we work, it will continue to do so. However, it will also open up new possibilities. This wave can be ridden by motivated professionals looking to find a better job, possibly with a higher salary.
Robert Half’s report Benchmarking Accounting and Finance Function provides a comprehensive overview of current IT trends in finance. Here are four trends you need to know about payroll technology to succeed in your field.
According to the latest Benchmarking data, more companies are switching to cloud-based systems. For example, 75% of U.S. finance professionals surveyed said their company is transitioning to cloud systems or will soon. It compares with 72 percent and 62 percent, respectively, in 2017. That could mean that payroll staff will need to move from their current software platform to the cloud and use Enterprise Resource Planning (ERP).
Cloud-based systems allow you to easily share data and work remotely. This shift is also attractive to companies because it requires less equipment to purchase and maintain. Experience with Microsoft Dynamics, NetSuite Oracle, SAP, and other ERPs is a huge asset for any payroll resume.
Excel remains the best planning and budgeting tool. However, our annual benchmarking survey shows that Excel’s reliance decreases slightly. For example, only 63 percent of respondents used Excel this year compared to 69 percent in 2017.
Data analytics: A shift toward data analysis
Cloud-based ERP software is a powerful new system that generates large amounts of data. It can give a company unprecedented insight into its operations. As a result, much back-office staff will shift from performing purely functional work to a more strategic position. For example, the payroll system is rich in financial and human data. Management will expect employees to use analytics tools to help them make sense of this data.
Automation of processes has increased
Automation has made it possible to eliminate much of the repetitive work that HR and finance teams used to do. The self-service portal for benefits is a prime example. It allows employees to manage their time, update their personal information, and manage their benefits online without speaking to anyone. In addition, automating payroll reconciliation and processing has made it easier for staff to focus on higher-value tasks. Automation also increases accuracy.
According to executives who were surveyed, some of the downsides are the learning curve and the high cost of automation software. Financial automation is both the future and the present, but it’s clear that this technology is a must-have.
Are you looking for a job as a payroll employee? Check out the duties and job descriptions for the different positions within the payroll department.
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Artificial intelligence is on the rise
Artificial intelligence is a part of automation. But it’s much more. AI algorithms can detect patterns in big data and then analyse them to help humans understand them. Deep learning is also known as self-learning. AI systems can use their past performance to make better predictions in the future. You probably have a weather app installed on your smartphone (which is almost everyone). You are benefiting from the power of AI.
AI excels in payroll analysis, analysing all kinds of variables, including employee classification, age, withholding amounts, etc. It can also detect non-obvious errors in paystubs, which can increase accuracy. Chatbots can also be used to answer routine questions about employees.
Thanks to automation and AI, the future payroll department will have fewer data entry clerks. However, staff will still need to be able to do more creative and cognitively challenging tasks. Non-routine situations are easy for humans to handle. Payroll and talent management are based on the human experience. People will still crave human interaction, no matter how sophisticated a company’s AI program.
Data management simplified
Managing all of the data before you can process a pay check is one of the most tedious aspects of payroll.
Before a payroll can process timesheets, leave requests and expense claims must all be approved and reviewed by a manager.
Machine learning has allowed for the elimination of the approval process. Instead, managers can only approve exceptions, saving hours and countless manual approvals.
It’s difficult for business owners and managers to keep up with the changing landscape of the payroll industry. However, payroll systems can track legislative changes, analyse their impact on payrolls, and notify business owners and payroll administrators of potential problems.
The bottom line
Digital transformation is underway in the entire financial industry, including payroll. Although no one can predict what the field will look like in 50-years, one thing is certain: Payroll technology should not be feared. Instead, you should use it to your advantage and become a more knowledgeable, productive, and valuable payroll professional.