Accrual Launches AI Automation for Federal and State Tax Forms

Tax season has always had a reputation. Long nights. Endless document chasing. Coffee cups that deserve their own depreciation schedule. Every year, firms brace for the same chaos and hope technology will finally save them. Now, a new player is stepping into the ring. Accrual, an AI-native tax preparation and review platform, officially launched with $75 million in funding, backed by General Catalyst, Pruven Capital, and Edward Jones Ventures. Its promise is bold but simple: automate the most painful parts of tax prep without turning professional judgment into collateral damage. If early results are any indication, this is not just another tool. It could be the biggest workflow reset accounting has seen in decades.

From Tax Season Madness to OK

Accounting firms sit at the center of financial decision-making, yet their workflows still rely on fragmented systems, manual coordination, and processes that feel stuck in another era. Accrual attacks that problem head-on by unifying tax preparation and review into one AI-driven system. Instead of treating prep, review, and client follow-ups as separate steps, Accrual treats accounting as what it actually is: a connected process. Its AI agents work like a virtual preparer that:

• Reads and organizes client inputs automatically
• Identifies missing information before it becomes a filing fire drill
• Generates targeted follow-up questions
• Produces draft returns ready for professional review
• Structures data as it enters the system to eliminate repetitive rework

As Accrual CEO Cosmin Nicolaescu puts it, “Accounting is a deeply interconnected system, yet most software treats it as a collection of disparate tasks.” Translation: less manual chaos, fewer surprises, and a workflow that finally flows.

This Thing Handles the Real Stuff

One of Accrual’s biggest flex is that it is built for real-world tax complexity, not just clean demo data. The platform supports every federal and state tax form, along with unstructured inputs that usually break traditional systems. That includes:

• Individual federal and state tax forms
• Complex K-1s
• 1099s of all types
• Prior-year returns and carry-forwards
• Spreadsheets and CSV files
• Emails and PDFs
• Scanned documents and photos
• Handwritten notes, checks, and expense records
• Multi-hundred-page financial statements

Unlike legacy tools that rely on OCR and rigid templates, Accrual uses AI models that understand what a document actually is and how it fits into the return. Instead of saying “extract text from box X,” the system asks, “This is a W-2. Who is the employer? How does this affect the return?” That shift matters. Accrual claims 100% accuracy, with models making multiple validation passes and showing exactly where each data point lands. No black box guessing, no blind trust required.

Not Here to Replace You

There is always one question hanging over AI in accounting: Is this trying to replace accountants? Accrual’s answer is a clear no. The platform is designed to amplify professional judgment, not automate it away. AI handles the mechanical work. Accountants handle interpretation, planning, and client strategy. The software even shows its work. Users can click references and jump straight to the exact box or form field where the AI acted. That level of transparency is critical in a profession built on trust and review. As Nicolaescu puts it, accounting is still a relationship business. Accrual exists to give professionals their time back so they can actually deepen those relationships.

This Is a Big Deal

Accrual has already been deployed with firms like H&R Block, Armanino, Creative Planning, and several Top 100 accounting firms. The results are hard to ignore:

• Preparation time reduced by more than 85%
• Review time reduced by up to 60%
• Every 50 complex returns adds the capacity of one accountant
• Thousands of hours saved per tax season

John Karls, National Tax Practice Leader at Armanino, summed it up best: “Returns coming out of Accrual are already at manager-review quality. What used to take hours now processes in minutes.” That is not incremental improvement. That is a structural shift.

Why This Hits Different for This Tax Season

This tax season is coming in hot. Rising complexity, tighter deadlines, talent shortages, and clients expecting instant answers. Accrual directly tackles the pressure points firms are feeling right now:

• Speed without cutting corners: Data is structured from the moment it enters the system, reducing review fatigue and human error.
• Capacity without hiring panic: Automation expands output without adding headcount in a tight labor market.
• More advisory, less box-filling: When prep time drops, professionals can focus on planning, strategy, and high-value client work.
• Earlier risk detection: Issues are flagged upstream, lowering the risk of amended returns and compliance headaches.

For firms feeling stretched thin, this is not just helpful. It is a lifesaver.

The Bigger Play

Accrual is not positioning itself as another productivity add-on. It is aiming to rebuild accounting software from the ground up as an AI-native infrastructure. Backed by deep-pocketed investors and led by founders with experience building systems at Stripe and Brex, the company is playing a long game. While the current focus is on individual tax returns, expansion into broader accounting workflows is already on the roadmap. As General Catalyst’s Marc Bhargava put it, “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.” Accrual is betting that era is finally over.

The Bottom Line

For decades, tax season has been about survival. Get through it. Fix what breaks. Do it all again next year. Accrual is trying to flip that script. By unifying preparation and review, supporting every form and document type, and letting AI handle the grind while professionals handle the judgment, the platform is redefining what efficient tax work looks like. In a profession built on precision, trust, and time, that might be the most valuable return of all. If Accrual delivers on its promise, this tax season might finally feel less like a scramble and more like progress.

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