This AI startup aims to automate nearly all of your accounting tasks

A new AI-powered accounting platform from San Francisco-based startup Puzzle aims to automate up to 90% of routine accounting tasks while maintaining human oversight and control.

The core innovation: Puzzle’s general ledger software integrates complex accounting policies directly into its platform, eliminating the need for manual spreadsheet processes that currently dominate accounting workflows.

• The platform supports both cash and accrual accounting methods, making it suitable for businesses of all sizes
• The system automates processes like revenue recognition, asset depreciation, and prepaid expenses
• Users can establish “software-driven accounting policies” that automatically handle different types of transactions, such as SaaS subscriptions and prepaid contracts

Key technological features: The platform combines AI automation with human oversight to ensure accuracy and maintain control over financial processes.

• Accountants can set their preferred level of automation, from full AI processing to manual review
• Each transaction is tagged to indicate whether it was processed by AI or human input
• The system maintains transparency by allowing users to trace and verify all transactions

Market impact and adoption: Puzzle has demonstrated significant traction since its public launch less than a year ago.

• The platform has processed over $30 billion in transactions for more than 3,000 businesses
• Growth has been primarily organic, with 15-20% month-over-month expansion
• Initial adoption came from startups, but demand has expanded to include small businesses like medical practices, law firms, and retail stores

Industry context: The platform addresses critical challenges facing the accounting profession.

• 75% of accountants are approaching retirement age
• 300,000 professionals have left the workforce
• CPA applications have declined by nearly 30%
• 99% of accountants report feeling overworked due to repetitive tasks

Business model and vision: Puzzle positions itself as an enabler rather than a replacement for accounting professionals.

• The platform aims to free accountants from routine tasks so they can focus on strategic advisory roles
• Accounting firms can manage more clients without increasing staff
• The system integrates with modern financial tools like Stripe, Gusto, and Brex

Future implications: The emergence of AI-powered accounting platforms like Puzzle suggests a fundamental transformation in how financial professionals will work.

• Just as Excel’s introduction led to more high-paying advisory roles replacing basic bookkeeping, AI automation may create new opportunities for accountants to provide strategic value
• As adoption increases, the platform’s automation capabilities will likely improve through machine learning
• The shift could result in higher-paid, more strategic roles for accounting professionals who embrace AI tools while maintaining human oversight of critical financial processes