What Magnetic does
Magnetic is an AI tax preparer built for CPA firms. It reads taxpayer source documents and enters the data into the tax preparation software firms already use, automating the data-entry stage of return preparation. The aim is to reduce manual keying and the errors that come with it during busy tax seasons.
Key capabilities
The system combines vision-language models with OCR to interpret a wide range of documents, from W-2s and 1099s to complex K-1 partnership schedules, handwritten notes, Excel files, and prior-year client files. It extracts relevant fields, maps them to the correct lines, and enters them into platforms such as UltraTax, Lacerte, ProSeries, and Drake, interacting with that software the way a human preparer would. Magnetic operates as a human-plus-AI system, with returns reviewed by a US-based EA or CPA before they go back to the firm.
Who it's for
Magnetic is built for CPA and accounting firms that want to speed up tax preparation and cut data-entry workload. Founded in 2024, it is part of Y Combinator.