Filed Raises $17.2M to Transform Tax Preparation with AI
Tax preparation is getting a high-tech makeover. Filed, an innovative accounting software startup, has secured $17.2 million in funding to automate the tedious aspects of tax filing—freeing professionals to focus on higher-value work.
The Growing Crisis in Tax Preparation
“The tax industry is facing a genuine crisis,” says Leroy Kerry, Filed’s co-founder and CEO. He points to alarming trends highlighted in a 2021 report by the Association of International Certified Professional Accountants:
- Aging workforce: Many CPAs are nearing retirement
- Talent shortage: Fewer students are entering the field
- Inefficiency: Professionals spend nearly half their time on automatable tasks
“Firms simply don’t have enough people to process returns efficiently,” Kerry explains. “Meanwhile, professionals are drowning in paperwork.”
How Filed’s AI Solution Works
Teaming up with CTO Atul Ramachandran, Kerry developed Filed to address these challenges through intelligent automation:
- Document processing: AI reads and interprets tax documents
- Strategic application: Applies each firm’s unique tax strategy approach
- Seamless integration: Works with existing software systems
- Human oversight: Flags scenarios requiring professional review
“Our AI keeps humans in control while eliminating the tedious work,” Kerry emphasizes.
Competitive Differentiation
While compe*****s like Black Ore and Basis offer tax preparation tools, Filed stands out by:
- Specializing exclusively in tax workflow automation
- Integrating directly with current systems (no tech overhaul required)
- Focusing on becoming foundational AI infrastructure for the entire tax industry
Funding and Future Plans
The $17.2 million funding round was led by Northzone, with participation from Day One Ventures and Neo. Filed plans to:
- Expand its engineering team
- Enhance its AI capabilities
- Broaden its vision beyond return preparation to transform:
- Client collaboration
- Document management
- Audit preparation
The Founder’s Journey: From Humble Beginnings to Tech CEO
Kerry’s path to entrepreneurship is particularly inspiring. Growing up in South London’s low-income housing with a single mother, he recalls, “Being a CEO wasn’t something I saw possible.”
His determination led him through:
- Early work in call centers while completing education
- Architecture studies in college
- Rapid career progression in sales and startups
- Chief of staff roles at high-growth companies in the UK and Sweden
“Those years taught me how to build through chaos and stay relentlessly focused on the customer,” Kerry reflects.
Hands-On Product Development
Before launching Filed, Kerry and his team conducted extensive field research:
- Observed small tax offices in Colorado and Arizona
- Documented reliance on outdated methods (paper, fax machines)
- Identified key pain points to address with technology
The Future of Tax Technology
“The industry has been waiting for its AI moment,” Kerry states. “We’re just getting started.” With its fresh funding and ambitious roadmap, Filed aims to fundamentally transform how tax professionals work—making compliance simpler, faster, and more efficient through intelligent automation.
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