📄 Magnetic - AI Tax Prep for CPA firms
Magnetic scans client docs - from complex K-1s to handwritten notes - and enters them into your firm's existing tax software
TL;DR: Magnetic scans taxpayer documents and enters them into tax software automatically, replacing data entry roles and reducing costly errors for CPA firms.
Ask: Know a firm struggling with tax prep capacity? We’d love an intro.
The Problem:
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.
Our Solution:
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.
Our Backgrounds:
Thomas (CEO): Former Head of Product @ Keeper (YC W19). Built AI Turbotax + form scanning engine that powered thousands of automated returns. CMU & UMD.
Patrick (CTO): First engineer @ FunCraft (shipped multiple mobile games to millions of installs and millions in ARR). USC CS
