Filed Raises 17M to Revolutionize Tax Prep with AI Automation

The tax industry is undergoing a significant transformation driven by Filed, a new accounting software startup that recently raised $17.2 million in funding. Filed aims to address a critical labor shortage and inefficiency crisis in tax preparation by leveraging artificial intelligence to automate the most tedious and time-consuming tasks.

According to Leroy Kerry, Filed’s co-founder and CEO, the tax profession faces a looming workforce crisis as many certified public accountants (CPAs) near retirement and fewer students enter the field. This shortage leaves firms struggling to process returns efficiently, with professionals spending nearly half their time on low-value, repetitive tasks that could be automated.

Filed’s AI technology is designed specifically for tax workflows. It automates the entire lifecycle of a tax return by reading documents, applying each firm’s unique tax strategies through reasoning, and entering data directly into existing software systems. When the AI encounters complex scenarios requiring human judgment, it flags them for review, ensuring professionals remain in control while eliminating the grunt work.

Unlike other tax automation tools, Filed integrates seamlessly with clients’ current software, avoiding disruptive overhauls. This approach, combined with AI tailored to tax-specific workflows, differentiates Filed in a competitive landscape that includes players like Black Ore and Basis.

The company plans to use its new funding to expand its team, particularly hiring tax engineers, and to broaden its vision beyond tax return preparation. Filed aims to become the foundational AI infrastructure for the entire tax industry, revolutionizing client collaboration, document management, and audit preparation.

Leroy Kerry’s journey from a challenging upbringing in South London to leading a tech startup in the U.S. underscores the transformative power of grit and vision. His experience working with startups and high-growth companies shaped Filed’s customer-centric approach and focus on solving real-world tax industry pain points.

Filed’s AI-driven automation addresses a pressing need in the tax sector, offering firms a way to maintain productivity despite workforce challenges. By automating routine tasks and integrating with existing systems, Filed helps tax professionals focus on higher-value work, improving efficiency and accuracy across the board.

As AI continues to reshape industries, Filed’s approach exemplifies how targeted automation can transform complex, regulated workflows without sacrificing human oversight. Their vision to expand AI infrastructure across the tax lifecycle signals a broader shift toward intelligent, integrated solutions in financial services.