New AI-powered features help firms automate administrative tasks, identify unbilled work, and uncover opportunities to expand advisory services.
For accounting firms, profitability isn't always determined by how much work they bring in. Sometimes, it's about how much time they're spending on work they aren't getting paid for.
Whether it's responding to unexpected client requests, following up on conversations, entering data, or managing work that falls outside the original engagement, those seemingly small tasks can add up quickly.
Practice management software provider Levvy is looking to address that challenge with new artificial intelligence capabilities designed to help accounting firms better understand where their time goes, reduce administrative work, and identify opportunities to generate additional advisory revenue.
Announced November 2, the expanded Levvy AI capabilities include automation tools built directly into the company's practice management platform, along with new integrations that allow firms to interact with Levvy through popular AI assistants Claude and ChatGPT.
One of the challenges facing accounting firms is managing work that wasn't necessarily included in the original scope of a client engagement.
According to Jeanne Hardy, founder of Levvy and owner of accounting and advisory firm Creative Business Inc., these additional requests can represent a significant amount of a firm's workload.
"What we find is inbound client requests and ad hoc work are 25-30% on top of the regularly scheduled scoped services," Hardy said.
That additional work presents both a challenge and an opportunity.
When firms fail to capture and track these requests, they risk giving away valuable services without realizing it. However, many of those same requests may represent opportunities to expand client relationships and introduce higher-value advisory services.
Hardy believes better visibility into this work can help firms identify those opportunities without overwhelming their teams.
"Much of that is the foundation of advisory services. Being able to capture that inbound work and schedule it quickly and cleanly can enable a firm to take on more advisory without reducing profits and keeping their teams from getting buried in unpaid projects," she said.
Levvy's expanded AI functionality focuses on several areas where accounting professionals routinely spend time on administrative activities rather than client-facing work.
Accounts payable automation. Levvy's AP Agent can process vendor invoices received through a client's email inbox and create bills in QuickBooks Online. Rather than manually entering invoice information, bookkeeping staff can review and approve the transactions.
Client meeting follow-up. An AI-powered note taker converts client conversations into actionable tasks and workflows. This is intended to help firms capture requests, assign responsibilities, and reduce the likelihood that important follow-up items get overlooked.
Workflow creation. Firms can use existing checklists to generate workflows within Levvy, eliminating some of the manual setup required when implementing or updating practice management processes. Users can also create client tasks using simple natural-language instructions.
Profitability and capacity analysis. Levvy AI Insights allows firm owners to ask questions about client projects and team performance using everyday language. Combined with the platform's existing profitability and capacity reporting, the feature is designed to help owners identify trends, evaluate client relationships, and better understand how their resources are being used.
For firms looking to improve profitability, that last capability may be particularly valuable.
Understanding which clients are profitable, where staff capacity is being consumed, and how much unplanned work is being performed can help owners make more informed decisions about pricing, staffing, and service offerings.
Another component of the announcement is Levvy's new connection to ChatGPT and Claude.
Rather than requiring users to perform every action within the Levvy interface, the integration allows authorized team members to interact with their practice management information through AI assistants they may already be using.
The connection is designed with several controls intended to protect firm information and prevent unauthorized changes.
According to Levvy, the integration respects each user's existing permissions and requires approval before creating new items. It also does not allow AI assistants to edit or delete existing workflows or tasks.
The company reports that it is SOC 2 compliant.
These safeguards are particularly relevant for accounting firms evaluating how to incorporate AI into their operations while maintaining appropriate oversight of client information and internal processes.
While much of the discussion surrounding AI in accounting focuses on automation and efficiency, the bigger opportunity may be what firms choose to do with the time they recover.
Reducing manual data entry and administrative follow-up is valuable, but those improvements don't automatically translate into increased profitability.
Firms still need to understand their costs, manage capacity, establish appropriate service boundaries, and recognize when client requests represent work that should be billed separately.
That is where Levvy is positioning its AI capabilities: not simply as tools for completing tasks faster, but as a way to give firm owners greater visibility into the work being performed and the potential revenue opportunities that work creates.
"Advisory is living in the moment with your clients, and you can't do that when your team is buried in admin," Hardy said. "This is all about putting your firm's profitability in your hands."
For firms considering an expansion into advisory services, the ability to identify and manage work already being requested by existing clients could provide a practical starting point.
Of course, the actual time savings and financial impact will depend on how firms implement the technology and use the information it provides.
Levvy AI and the new ChatGPT and Claude connections are included with all Levvy subscription plans at no additional cost.
The company's plans start at $59 per user per month, billed annually. Levvy also offers a 14-day free trial without requiring a credit card.
Founded by Hardy, who has operated Creative Business Inc. since 2005, Levvy currently serves accounting firms in 18 countries.
For more information about the new AI capabilities, visit Levvy AI.
Insightful Accountant's Take
For accounting firm owners, the real question surrounding AI shouldn't simply be how many hours a new tool can save. It should be what those recovered hours are worth.
If AI can help a firm identify unbilled work, improve workflow efficiency, and free up staff to provide higher-value services, the potential benefit extends well beyond reducing administrative costs.
But technology alone won't solve profitability challenges. Firms must still establish clear scopes of work, track the services they deliver, and develop a strategy for turning additional client requests into appropriately priced engagements.
The opportunity is to use AI not just to do the same work faster, but to build a more profitable practice while delivering greater value to clients.