Magnetic

Magnetic is building AI-powered tax preparation software for professionals, specifically targeting CPA firms and enrolled agents. Their innovative product scans, classifies, and populates client tax documents directly into professional tax software, enabling CPAs and EAs to handle more returns with greater accuracy and significantly less manual work. The company has developed AI that can process various types of documents - from handwritten charity notes to Excel spreadsheet Schedule Cs to complex multi-state K-1s - and automatically enter them into tax software, saving hours of tedious data entry.

Backed by Y Combinator (S25 cohort), Magnetic is addressing a critical challenge in the accounting profession: a massive talent shortage as graduates choose different careers and experienced professionals retire. CPA and tax preparation firms are overwhelmed with clientele but unable to keep up with demand. Magnetic's technology enables firms to scale their operations without proportionally increasing their workforce, answering the industry's most pressing need.