Magnetic

Magnetic provides an AI-powered tax preparation solution specifically designed for CPA firms. The platform intelligently scans a wide range of client documents, from handwritten notes and Excel spreadsheets to complex multi-state K-1s, and automatically inputs the data into tax software. This automation significantly reduces the hours spent on tedious data entry, freeing up professionals to focus on higher-value tasks.

The accounting industry is currently grappling with a significant talent shortage, driven by fewer graduates entering the field and the retirement of experienced professionals. This has resulted in CPA and tax preparation firms struggling to manage their workload, leading to unanswered calls, client attrition, and overwhelmed staff working excessive hours to meet deadlines.

Magnetic was born from a direct request from a tax firm owner seeking to automate her workflow. The founders recognized a substantial market opportunity and leveraged their expertise to create a solution. Thomas, formerly Head of Product at Keeper, brings deep domain knowledge in tax engine automation and OCR form scanning. His previous work involved utilizing early access to OpenAI's LLMs to automate the entire tax filing process. Patrick, the first engineer at FunCraft, has a proven track record of building scalable mobile applications. Together, they offer a strong combination of tax expertise and engineering prowess.

The market potential is vast, with 80 million US personal tax returns filed annually through professionals. The current outsourcing market is valued at $2 billion, with individual CPA firms spending significant amounts on often-inferior services. Magnetic is poised to capture a substantial market share by offering superior accuracy, comprehensive document coverage, instant processing, and an exceptional user experience.