Filed Raises $17M to Automate Tax Preparation

Filed, a new accounting software company, has raised $17.2 million to automate and streamline tax preparation processes amid a crisis in the tax industry, where many CPAs are retiring and fewer students are entering the profession. Co-founder and CEO Leroy Kerry highlighted that tax professionals spend nearly half their time on low-value, repetitive tasks that Filed's AI technology aims to reduce by managing the entire tax return lifecycle, applying firm-specific tax strategies, and integrating seamlessly with existing software systems. The AI flags scenarios requiring human input to maintain oversight while alleviating paperwork burdens. Filed differentiates itself from competitors like Black Ore and Basis by focusing specifically on tax workflows and avoiding the need for costly technology overhauls. The funding round was led by Northzone, with participation from Day One Ventures and Neo. Kerry's personal journey from growing up in low-income housing in South London to leading a tech company underscores his determination to innovate in a sector facing significant staffing challenges.