Accounting firms are under growing pressure. They are expected to deliver faster answers, handle more data, and meet strict regulatory standards, all while relying on workflows that are still heavily manual and spread across multiple tools.
Here’s where San Francisco–based Accrual comes into play. The startup has launched with $75 million in funding to bring AI-native automation to accounting preparation and review workflows.
The round was led by General Catalyst, with participation from Pruven Capital, Edward Jones Ventures, and a group of accounting industry executives and founders.
The US company plans to use the funding to continue building its AI platform, grow its team, and onboard accounting firms as it scales across the U.S.
Fixing broken accounting workflows
Led by Cosmin Nicolaescu, Accrual is an AI-native accounting platform built for leading accounting firms.
The platform unifies tax preparation and review into a single system that automates manual work while preserving the accuracy, controls, and auditability firms require.
“Accounting is a deeply interconnected system, yet most software treats it as a collection of disparate tasks. We are building core infrastructure from the ground up to unify these workflows into a single system that amplifies judgment and compounds a firm’s expertise over time,” said Nicolaescu.
The platform uses AI agents that act like a preparer. They read and organise client documents, flag missing information, generate follow-up questions, and produce draft tax returns that are ready for professional review.
As data enters the system, it is automatically structured, so preparation and review build on each other rather than starting over.
Early results with large firms
Over the past year, Accrual has worked with firms including H&R Block, Armanino, and Creative Planning, as well as several other top U.S. accounting firms.
For now, Accrual is focused on individual tax returns. The platform can handle complex real-world inputs, including K-1s, 1099s, large spreadsheets, emails, photos, and hundreds of pages of financial statements. It also integrates with existing tax engines, allowing firms to keep using the systems they already trust.
According to Accrual, firms using the platform have reduced preparation time by more than 85 per cent and cut review time by up to 60 per cent. Every 50 complex returns processed adds the equivalent capacity of one additional accountant, without increasing headcount.
“Accounting is one of the largest and most critical professional services markets in the world, yet its core workflows have remained largely unchanged for decades,” said Marc Bhargava, Managing Director at General Catalyst. “Cos and Sidd have spent their careers building software for complex, highly regulated environments, and we believe they are the right team to rebuild these systems using AI without compromising the trust the profession depends on.”
Accrual is now onboarding more accounting firms and plans to expand beyond individual tax returns over time. The company is also hiring engineers, product leaders, and accounting experts as it builds the next generation of accounting infrastructure.
