Summary:
Basis raised $34 million in a Series A funding round.
Khosla Ventures led the funding, with participation from notable investors including Nat Friedman and Jeff Dean.
Basis's product automates accounting tasks, allowing firms to save up to 30% time.
The AI solution addresses the critical shortage of accountants in the U.S.
AI-driven automation could potentially impact 100% of accounting tasks.
Basis Raises $34 Million for AI-Powered Accounting Automation
Artificial intelligence startup Basis has successfully raised $34 million in a Series A funding round for its innovative AI-driven accounting automation solution. This funding round was led by Khosla Ventures, with notable participation from NFDG, the AI-focused fund managed by former GitHub CEO Nat Friedman, and other prestigious investors, including OpenAI board members Larry Summers and Adam D'Angelo, alongside Google's chief scientist Jeff Dean.
What Does Basis Offer?
Based in New York, Basis is at the forefront of a new wave of AI startups focused on creating autonomous agents—systems that utilize AI to perform tasks independently. According to industry experts, such systems are expected to dominate the AI landscape in the upcoming year, as recent advancements allow these models to engage in long-term planning.
Basis specifically targets accounting firms with its product, which can handle various workflows including:
- Entering transactions
- Double-checking data accuracy
The platform seamlessly integrates with popular ledger systems like Intuit's QuickBooks and Xero. As a testament to its effectiveness, large accounting firms such as Wiss, which employs 450 accountants, have reported up to 30% time savings when using Basis.
Addressing the Accountant Shortage
The product functions like a junior accountant, enabling staff accountants to focus on reviewing the AI agent's outputs rather than performing repetitive tasks manually. This innovation is particularly crucial in light of the current critical shortage of accountants, exacerbated by the retirement of baby boomers and a declining interest among younger generations in pursuing accounting careers, as noted by Khosla Ventures managing director Keith Rabois.
In the U.S., the accounting sector employs over 3 million professionals, but the number of candidates taking the CPA exam has dropped by 33% from 2016 to 2021. Historically, firms have mitigated this shortage by outsourcing to locations like India.
The Impact of AI on Accounting
Accounting is particularly susceptible to AI disruption, with a recent 2023 OpenAI paper suggesting that automation driven by large language models could potentially affect 100% of accountants' and auditors' tasks. This illustrates the urgency for firms to adapt to the evolving landscape of the accounting profession.
Reporting by Anna Tong in San Francisco; Editing by Bill Berkrot
Comments