Revolutionizing Accounting with AI: Basis Raises $34 Million
The world of accounting is on the cusp of a significant transformation, thanks to the innovative efforts of artificial intelligence startup Basis. The company has successfully raised $34 million in a Series A funding round, led by Khosla Ventures, to further develop its AI-powered accounting automation product.
Autonomous Agents Take Center Stage
Basis is part of a growing category of AI startups creating autonomous agents, systems that utilize AI to perform actions independently. Industry experts, such as OpenAI CFO Sarah Friar, predict that these systems will dominate the AI agenda in the near future, as models have recently reached a point where they can execute long-term planning.
Streamlining Accounting Workflows
Basis’ product, designed specifically for accounting firms, is capable of performing various workflows, including entering transactions and ensuring data accuracy. It seamlessly integrates with popular ledger systems like Intuit’s QuickBooks and Xero. By automating these tasks, Basis enables staff accountants to focus on reviewing the AI agent’s work, rather than performing manual tasks.
Time-Saving Benefits
Large accounting firms, such as Wiss, have already seen significant time reductions of up to 30% by using Basis. The product functions like a junior accountant, allowing staff to review and validate the AI agent’s work, rather than doing it manually.
Addressing the Accountant Shortage
The accounting sector is facing a critical shortage of professionals, with baby boomers retiring and younger generations opting out of the profession. Basis helps address this issue by automating tasks, freeing up accountants to focus on higher-value work. According to the Bureau of Labor Statistics, the sector employs over 3 million people in the U.S., but the number of candidates sitting for the annual CPA exam has decreased by 33% from 2016 to 2021.
The Future of Accounting
Global accounting firms have historically dealt with the shortage by outsourcing to hubs like India. However, with AI disruption on the horizon, the sector is poised for a significant shift. A 2023 OpenAI paper concluded that large language model-driven automation could impact 100% of accountants and auditors’ tasks. Basis is at the forefront of this revolution, providing a solution that combines the power of AI with human expertise.
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