Summary:
Filed raises $17.2M to automate tax prep using AI, led by Northzone
Tax industry faces a crisis with retiring CPAs and fewer new entrants
Filed's AI reads documents, applies tax strategies, and integrates with existing systems
Unlike competitors, Filed's AI is tailored for tax workflows and avoids tech overhauls
Founder Leroy Kerry's journey from South London to CEO highlights resilience and ambition
Filed Raises $17.2M to Automate Tax Preparation
There's a new player in the accounting software arena, Filed, which has just secured a $17.2 million funding round led by Northzone, with participation from Day One Ventures and Neo. This startup is on a mission to automate the tedious aspects of tax preparation, leveraging AI to streamline the entire tax return lifecycle.
The Crisis in the Tax Industry
Leroy Kerry, Filed's co-founder and CEO, highlights a growing crisis in the tax industry. With many CPAs nearing retirement and fewer students entering the field, the gap in tax professionals is widening. Kerry points to a 2021 report by the Association of International Certified Professional Accountants, underscoring the urgency for innovation.
"Professionals are drowning in paperwork, spending nearly half their time on low-value tasks that could be automated," says Kerry.
How Filed Works
Filed's AI-driven platform is designed to read documents, apply specific tax strategies, and input data into existing software systems. When the AI encounters scenarios requiring human judgment, it flags them for review, ensuring accuracy without eliminating the human touch.
- Unique Selling Point: Unlike competitors such as Black Ore and Basis, Filed's AI is tailored specifically for tax workflows and integrates seamlessly with current systems, avoiding the need for a tech overhaul.
The Vision Ahead
With the fresh capital, Filed plans to expand its team and hire more tax engineers. Kerry envisions Filed becoming the AI infrastructure backbone for the entire tax industry, transforming areas from client collaboration to audit preparation.
"The industry has been waiting for its AI moment, and we’re just getting started," Kerry asserts.
A Founder's Journey
Kerry's path to entrepreneurship is inspiring. Raised in South London by a single mother in low-income housing, he never imagined leading a tech company. His journey from a call center to managing teams and working with startups showcases his resilience and ambition.
- Key Milestone: Joining a startup that became a unicorn, Kerry gained invaluable experience in venture and high-growth companies, shaping his customer-centric approach.
Observing the Industry
Before launching Filed, Kerry and his team immersed themselves in small tax offices in Colorado and Arizona, witnessing firsthand the reliance on paper and fax machines. This hands-on research informed Filed's development, ensuring it addresses real-world pain points.
Filed is not just another accounting tool—it's a game-changer for the tax industry, poised to redefine how professionals manage their workflows.
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