Filed, an AI tax preparer, secured $17 million in pre-seed and seed funding rounds backed by Northzone and Day One Ventures. The fund will help US tax firms increase their capacity through AI. Other investors included J Ventures, Neo, Raine, and Greens Ventures, as reported by Sifted.
Being an accountant is not for the faint-hearted, but AI can speed up the tax filing process. Data by Accountancy Age shows that 99% of accountants have leveraged AI as it enhances efficiency and boosts client outcomes. Leroy Kerry, Field’s co-founder and CEO, teamed up with Atul Ramachandran, its current CTO, to help firms work faster.
“Tax firms are drowning in paperwork while their best talent walks out the door. This isn’t just a talent gap–it’s a slow-moving collapse,” Kerry said in a LinkedIn post.
What is filed, and how does it work?
Filed automates tax prep from upload to review-ready returns, which allows firms to increase capacity and reduce manual work. “It reads documents, uses reasoning to apply each firm’s specific approach to tax strategy, and then enters that data into their existing software systems,” Kerry told TechCrunch. Kerry adds that when AI identifies a situation that requires human work, it flags it for review.
Though similar startups use AI for tax preparation and accounting, Kerry says his product differs from others because the AI was explicitly created for tax workflow.
The fund will be used to expand its team of 20; It plans to add more engineers in Stockholm and build a sales and marketing team in the US.
Focusing on the US market
The startup decided to focus on the US market, as there is greater demand for its product there. Kerry highlighted that around 60% of US taxpayers seek professional help for tax filing, possibly due to severe penalties for mistakes. “There is a real fear amongst US taxpayers not to mess about with their taxes,” Kerry told Sifted.
Though the company will focus on the US market, it is based in Stockholm.
Image: Filed
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