{"id":92213,"title":"📄 Magnetic - AI Tax Prep for CPA firms","tagline":"Magnetic scans client docs - from complex K-1s to handwritten notes - and enters them into your firm's existing tax software","body":"**TL;DR:** Magnetic scans taxpayer documents and enters them into tax software automatically, replacing data entry roles and reducing costly errors for CPA firms.\n\n**Ask**: Know a firm struggling with tax prep capacity? We’d love an intro.\n\nhttps://youtu.be/5--kYPgPLEM\n\n---\n\n**The Problem:**\n\nThe 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.\n\nMost CPA firms still rely on manual data entry or expensive outsourcing services that are slow, error-prone, and hard to scale.\n\n---\n\n**Our Solution:**\n\nMagnetic 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).\n\nThe 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.\n\n![uploaded image](/media/?type=post\u0026id=92213\u0026key=user_uploads/1753404/0ae3eead-1899-4368-9b2c-84e45e502b29)\n\n---\n\n**Our Backgrounds:**\n\n**Thomas (CEO)**: Former Head of Product @ Keeper (YC W19). Built AI Turbotax + form scanning engine that powered thousands of automated returns. CMU \u0026 UMD.\n\n**Patrick (CTO)**: First engineer @ FunCraft (shipped multiple mobile games to millions of installs and millions in ARR). USC CS\n\n![uploaded image](/media/?type=post\u0026id=92213\u0026key=user_uploads/1753404/1e80e15e-0f0f-4848-b706-15537d0c23e2)\n\n---","slug":"NzJ-magnetic-ai-tax-prep-for-cpa-firms","created_at":"2025-07-16T18:24:41.120Z","updated_at":"2026-05-25T01:59:21.458Z","total_vote_count":45,"url":"https://www.ycombinator.com/launches/NzJ-magnetic-ai-tax-prep-for-cpa-firms","share_image_url":"https://www.ycombinator.com/media/?type=post\u0026id=92213\u0026key=user_uploads/1753404/0ae3eead-1899-4368-9b2c-84e45e502b29","company":{"id":30776,"name":"Magnetic","slug":"magnetic","url":"https://www.magnetictax.com","logo":"https://bookface-images.s3.amazonaws.com/small_logos/9c6be0818283f49c20fc921c3bc7db67bfb60bf5.png","batch":"Summer 2025","industry":"B2B","tags":[],"search_path":"https://bookface.ycombinator.com/company/30776"}}