AI Tax Preparer for CPA Firms

The accounting profession is in crisis. CPAs and other tax professionals face a massive talent shortage as new grads abandon the field and experienced pros retire or sell their firms to PE. Firms are overwhelmed, working 80+ hour weeks during tax season, turning away clients, and missing deadlines - not due to a lack of work, but a lack of bandwidth. Many of the firms we talk to either don't have a working website or don't pick up the phone - because they can't handle new clients.

Most CPA firms still rely on manual data entry or expensive outsourcing services that are slow, error-prone, and hard to scale.

Magnetic automates tax data entry. We scan client docs - from handwritten donation notes to messy Schedule Cs and multi-state K-1s - and enter the data directly into legacy tax software like UltraTax, Drake, or ProConnect with 90%+ field-level accuracy (vs ~50% from incumbents).

The agent can even reason over complex documents, reference the tax code, and perform calculations to handle nuanced scenarios like allocating tax-exempt interest across states for compliance with state apportionment rules.

The opportunity is massive - there are 80M US personal tax returns filed via professionals annually, in a $2B outsourcing market where individual CPA firms currently pay $100k-$1M per year for inferior services. We're positioned to capture significant market share by offering better accuracy & document coverage, instant processing, and superior user experience.