By Riley Kaminer
Unleash the AI!
We’ve all seen the doomsday predictions of how artificial intelligence-powered tools are going to take our jobs, ruin our relationships, and pit us against each other in a 21st century arms race.
But today we’ve got some good news to share, straight out of Coconut Grove. Fintech rising star Taxfyle today announced the launch of Taxfyle AI, a system that automates a significant portion of the tax preparation process.
The company has already seen major growth, thanks to its series of apps and APIs to connect individuals, businesses and accounting firms with the accountants to help with their tax needs. When we spoke with Taxfyle in May, the company reported that it grew by 75% last year and is on track for a 100% growth rate in 2023. Last year, Taxfyle raised a Series B round led by IDC Ventures and Fuel Venture Capital.
“You no longer have to call a brick and mortar CPA that you don’t know, whose quality you don’t know,” co-founder and CEO Richard Laviña told Refresh Miami, noting that this could cause a poor user experience for the end clients. He added that many alternative accounting offerings have suboptimal platforms, making doing taxes even more of a headache.
This new AI offering doubles down on Taxfyle’s quest to optimize the tax process by collecting all the relevant documents and extracting the most important pieces of information. The idea is that this offering transforms the role of a tax professional from a preparer to a reviewer.
Why does that matter? Two main reasons. First, it improves margins. Second, it helps sidestep the staffing shortages currently plaguing the accounting industry.
“Taxfyle is at the forefront of revolutionizing the tax preparation industry with our industry-leading generative artificial intelligence solution,” Laviña said in a statement. “We are excited to empower tax professionals to achieve unprecedented levels of accuracy and efficiency.”
“Our AI driven approach will become a dependable remedy for the industry’s enduring staffing challenges,” commented Will Sahatdjian, co-founder and CTO. “As trailblazers in the accounting industry, we are thrilled to lead the way in adopting AI.”
Looking under the hood, we can see some exciting tech powering their new AI tool. Optical Character Recognition (OCR) technology underpins the tech stack, digitizing the information from the previous year’s tax returns. This data is tokenized, broken down, and then analyzed to identify specific tasks required for the current year’s tax return, thereby automating and streamlining the workflow.
Ultimately, Taxfyle asserts that its AI and OCR tech turns the traditionally labor-intensive and error-prone process of tax document management into a more efficient and reliable system. The company shared a few factors that it says will give it an edge in an increasingly crowded AI space: its superior workforce, rich data reservoir, domain expertise, and robust security architecture.
“Taxfyle’s goal has always been to transcend an outdated industry and we have accomplished our goal in making tax preparation easier for hundreds of thousands of Americans,” said Michael Mouriz, co-founder and COO. “Our AI component will allow us to continue transforming an outdated industry.”
Photo at top of post: Taxfyle co-founders William Sahatdjian, Richard Lavina and Michael Mouriz.
READ MORE IN REFRESH MIAMI:
- Taxfyle takes aim at tedious tax prep, sees exponential growth post Series B
- Taxfyle raises $20M Series B round, plans to grow its team by 100+
- Jaclyn Baumgarten to lead US expansion of IDC Ventures as Miami’s managing partner
- From Miami to Madrid: Charting the symbiotic relationship between these two high-growth tech hubs
- Xendoo’s digital accounting platform is used by nearly 1,000 businesses in 13 countries. What’s ahead for this team?
