A new player in the accounting software market, Filed, has secured a fresh $17.2 million in funding to streamline and automate the tedious aspects of tax preparation. The company aims to revolutionize the industry, which is currently grappling with significant challenges, according to Leroy Kerry, Filed’s co-founder and CEO. “The tax industry is facing a real crisis,” Kerry explained in an interview with TechCrunch. Many certified public accountants (CPAs) are nearing retirement age, and fewer students are choosing to enter the field. This issue is further compounded by the overwhelming amount of paperwork that consumes nearly half of professionals' time, detracting from higher-value tasks and exacerbating inefficiencies. A 2021 report from the Association of International Certified Professional Accountants underscores these concerns, noting a critical shortage of skilled personnel. To address these issues, Kerry partnered with Atul Ramachandran, the company’s CTO, to develop Filed. Their software uses artificial intelligence (AI) to automate the entire tax return process. The AI can read financial documents, apply each firm's unique tax strategies, and integrate seamlessly with existing software systems, thereby minimizing the need for manual data entry. When the AI encounters scenarios requiring human expertise, it flags them for review, ensuring that professionals remain in control while eliminating tedious, low-value tasks. While there are other players in the market, such as Black Ore for tax preparation and Basis for accounting assistance, Kerry believes Filed stands out due to its specialized AI designed explicitly for tax workflows. Unlike competitors, Filed’s AI integrates directly with existing systems, avoiding the need for clients to replace their current technology. Northzone, a prominent venture firm, led Filed’s recent funding round, joined by Day One Ventures and Neo. This financial boost will enable the company to expand its team and attract more tax engineers to continue refining its product. For Kerry, this funding and the launch of Filed represent a personal triumph. Growing up in South London, raised by a single mother in low-income housing, the idea of becoming a tech CEO seemed far-fetched. “Being a CEO wasn’t something I ever thought possible,” he recalled. Despite academic challenges during his early years, Kerry’s determination never wavered. He began his career in a call center while completing his education and later enrolled in architecture, graduating on a Friday and returning to the sales floor on the following Monday. “My progress was rapid,” Kerry said. “Within a year, I was managing a team and working with startups as clients. One of those startups became a unicorn, and I joined them.” This experience marked his entry into the startup and venture ecosystem. Over the years, Kerry has held key positions as a chief of staff at high-growth companies, navigating complex business environments and learning to prioritize customer needs. This foundational experience ultimately propelled Kerry to the U.S., where he launched Filed. To understand the industry better, he and his team spent time in small tax offices in Colorado and Arizona, witnessing firsthand the reliance on outdated methods like paper and fax machines. Armed with this insight, they developed their solution to meet the specific needs of tax professionals. With the new funding, Filed plans to enhance its platform by expanding its team and hiring more tax engineers. The company's long-term vision is ambitious, aiming to become the AI cornerstone for the entire tax industry. This includes transforming client collaboration, document management, and audit preparation processes. “The industry has been eagerly awaiting an AI-driven transformation, and we’re just beginning to deliver it,” Kerry concluded. As Filed continues to grow and innovate, it promises to bring much-needed efficiency and modernization to the tax preparation landscape.