PayTheory Announces $3.6M Seed Round for AI-Based Accounting Solution

Published 6 months ago
  Pay Theory

PayTheory has announced a $3.6M seed round led by Better Tomorrow Ventures. The funding round also saw participation from BoxGroup, Avid Ventures, top accounting firms, and leaders from the accounting and machine learning communities.

The New-Age Accounting Solution

Accounting is a vital part of our market economy, providing businesses, non-profits, governments, and the public with accurate and trusted data for financial decision-making. Over the years, however, there has been a shortage of accountants, with 300,000 accountants leaving the field in the past few years. This has led to more accounting firms turning down clients due to workload constraints, risking the loss of this critical advisory role.

Large machine learning models can potentially change this scenario by completing core workflows end-to-end, thereby easing the accountant shortage and allowing them to focus more on advice, judgment, and strategy. The integration of AI into the accounting field could also improve the quality of service and array of offerings accountants can provide their clients.

A Look at the Basis Platform

PayTheory’s Basis Platform aims to harness the potential of large machine learning models. The platform partners with accounting firms to build native solutions across different practice areas, including CFO advisory, assurance, client accounting services, and bookkeeping.

The Basis Platform is built around the principles of trust, transparency, and verification, mirroring the ethos of accounting firms that handle sensitive client data with meticulous care. The platform is already serving clients across multiple areas.

The Future of PayTheory

With the new investment, PayTheory plans to broaden its partnerships and scale its team. The company aims to lead the charge in the AI revolution in accounting, which is predicted to occur much faster than previous accounting system transitions. The transition from paper ledgers to digital spreadsheets took almost 25 years, and the majority of accounting systems took 15 years to move from desktop to cloud-based software. However, the integration of AI into the accounting field is expected to occur at a much faster pace.