There is a new accounting software in town, coming in with a fresh $17.2 million raise and a desire to shake things up.
The company, Filed, hopes to automate the grunt work.The tax industry is facing a genuine crisis, Leroy Kerry, Fileds co-founder CEO, told A Technology NewsRoom.
Many CPAs are approaching retirement while a dwindling number of students are entering the field, he said, citing much-quoted research from a 2021 report on the topic from the Association of International Certified Professional Accountants.Firms simply dont have enough people to process returns efficiently.
Meanwhile, professionals are drowning in paperwork, spending nearly half their time on low-value tasks that could be automated, he says.So he teamed up with Atul Ramachandran, now the companys CTO, to launch Filed, which uses AI to complete the lifecycle of a tax return.It reads documents, uses reasoning to apply each firms specific approach to tax strategy, and then enters that data into their existing software systems, Kerry said.
He said that when the AI notices a scenario that requires human input, it flags it for review, keeping humans in control while eliminating the tedious work.There are others in this space, including tax preparation and accounting assistant software, Black Ore and Basis, respectively.
Kerry says his product is different from others because the AI was created specifically for tax workflow, and it directly plugs into software systems rather than forcing clients to overhaul existing tech.The venture firm Northzone led Fileds $17.2 million round, with Day One Ventures and Neo also participating in the round.It seems life has come full circle for Kerry, who didnt often see people like him running tech companies.
He grew up in South London, raised by a single mom in low-income housing.Being a CEO wasnt something I saw possible, he said.Still, he knew he wanted to become a businessman, whatever that meant at the time.
He started working at a call center while finishing up school and university.
He didnt have the grades during primary school, he said, but he did have grit.
He studied architecture in college, graduated on a Friday, and was back on the sales floor by Monday.Within a year, I was managing a team and working with startups as clients, he said.
One of those startups became a unicorn, and I ended up joining them.That was his foray into the world of venture and startups.
Hes since worked as a chief of staff at high-growth companies, working for businesses both in the U.K.
and Sweden.
Those years taught me how to build through chaos and stay relentlessly focused on the customer.His ambition led him to the U.S.
to launch his own company.
Kerry said he and his team went straight to the source, sitting in small tax offices in Colorado and Arizona, observing how teams still relied on paper and fax machines.
Filed will use its fresh capital to expand its team and hire more tax engineers.Our long-term vision extends beyond return preparation to become the foundational AI infrastructure for the entire tax industry transforming everything from client collaboration to document management and audit preparation, Kerry said.The industry has been waiting for its AI moment, and were just getting started, he said.