puzzlea San Francisco-based fintech startup, has launched an AI-powered accounting platform that goals to automate as much as 90% of routine tasks, allowing accountants to concentrate on more strategic tasks. In an exclusive interview with VentureBeat, Puzzle CEO Sasha Orloff explained how the corporate's latest general ledger software integrates complex accounting policies directly into the platform, eliminating the necessity for manual spreadsheet processes.
“What we're rolling out now’s taking the overall ledger, the backbone of accounting, and integrating complicated accounting logic from spreadsheets into the core accounting software,” Orloff said.
The platform supports each money and accrual accounting, providing an answer for businesses of all sizes. Orloff emphasized that the system is designed to offer accurate, real-time accounting tailored to the increasing demands of today's fast-paced business environment, especially because the accounting industry faces a talent shortage and growing workload.
Automate complex accounting tasks with Puzzle's AI General Ledger
Puzzle's platform addresses the challenges of manual accounting by automating processes resembling revenue recognition, asset depreciation, and prepaid expenses. Traditionally, these tasks require spreadsheets, that are then linked to accounting software resembling: B. have to be compared QuickBooks.
“In QuickBooks, you usually should calculate things like revenue recognition, fixed assets, and prepaid expenses manually in spreadsheets,” Orloff explained. “You have QuickBooks open on one half of the screen and a spreadsheet open on the opposite. With Puzzle, all logic and computation is managed inside the software.”
Puzzle allows users to establish billing rules – called “software-driven billing policies” – for various kinds of transactions, resembling: B. SaaS subscriptions or prepaid contracts. “You store it after which it just applies when a bill or invoice is available in,” Orloff said. This automation reduces the chance of errors and eliminates much of the manual, time-consuming work that accountants typically face.
Ensuring accuracy with human-in-the-loop AI
A key concern with AI-driven automation is ensuring accuracy, especially in areas like accounting where precision is critical. Puzzle addresses this problem by allowing accountants to manage the extent of automation they use. Orloff described this flexibility by saying, “You can create a rule in our system that claims, 'Let the system make its best guess and I'll check it later,' or 'I need to do it manually.'” The Accountant is all the time on top of things.”
Puzzle tags each transaction with details about the way it was processed, ensuring transparency. “Everything is tagged so you realize if something was designed by AI or whether it is a highly confidential transaction that the system has previously processed,” Orloff said. This feature allows accountants to trace transactions and confirm their accuracy.
By maintaining human oversight, Puzzle reduces the chance of AI errors, or “hallucinations,” as Orloff called them. “AI can hallucinate, but humans also make mistakes,” Orloff said. “That’s why we developed a system where the AI ​​suggests things, however the accountant can check and control every part.”
Addressing the Accounting Talent Shortage with AI
The launch of Puzzle comes at a critical time for the accounting industry. The industry is facing a severe talent shortage, with 75% of accountants affected retirement300,000 with left the world of laborand CPA applications are down almost 30%. The burnout rate can also be high: 99% of accountants say they feel unwell revised as a consequence of the repetitive nature of their tasks.
Orloff sees Puzzle as a approach to alleviate a few of these stresses. “With the introduction of AI, we’re witnessing an enormous change in accounting,” he said. Unlike competitors like QuickBooks, which recently ran a campaign encouraging businesses to “Fire your accountant“Puzzle's approach is to support accountants moderately than replace them.” “We are here to make accountants and accounting firms the heroes of their corporations,” Orloff said.
He envisions AI-driven tools like Puzzle allowing accountants to tackle more strategic roles in corporations. “If we will move accountants out of the back office and right into a seat on the table making crucial financial decisions, that’s a win for everybody,” Orloff said. “The role of an accountant will likely be higher paid and more impactful, with an emphasis on big-picture decisions moderately than routine tasks.”
Rapid Growth for Puzzle as AI Transforms Accounting
Since Puzzle's public launch lower than a 12 months ago, the platform has processed greater than $30 billion in transactions for over 3,000 corporations, from startups to small businesses, using tools like stripes, gustoAnd Brex. According to Orloff, Puzzle's growth has largely been driven by word of mouth, with the corporate seeing 15-20% month-over-month growth, 70% of which was organic.
While Puzzle initially found favor with start-ups, demand from small businesses and accounting firms has increased significantly. “We began working with startup communities because they use modern tools and are serious about adopting latest accounting solutions,” Orloff said. “But we began seeing increased interest from small businesses like doctor’s offices, law firms and retail stores.”
Accounting firms particularly are turning to Puzzle to administer more clients without increasing staff. “There is a shortage of accountants and accounting firms are turning away clients,” Orloff explained. “With our automation, they’ll do more business with higher margins and greater customer satisfaction.”
AI as a strategic advantage for the longer term of accounting
Orloff believes Puzzle's platform represents the following step within the evolution of accounting. “When Excel got here out, it eliminated 1 million accounting jobs but created 1.2 million better-paying consulting jobs,” he said. “We will see the same change today. The boring, repetitive work will likely be automated and accountants will spend more time helping corporations develop tax strategies and improve their financial health.”
Orloff sees Puzzle as a tool that advantages not only accountants but in addition the companies they serve. “We are constructing a system that makes accounting easier and more enjoyable and strengthens the connection between the accountant and the business owner,” he said. “It’s a win-win situation.”
As more corporations adopt Puzzle, the platform's automation capabilities will proceed to enhance, making a self-reinforcing cycle of efficiency and accuracy. “The more people use us, the more automation and accuracy we will construct into the system,” Orloff said. “It’s a self-fulfilling flywheel where everyone wins: the business owner wins, the accountant wins, and ultimately the whole economy advantages.”
