New York

Bookkeep raises another $6.6 million to automate accounting entries from any platform

Today’s e-commerce merchants are using an unprecedented number of different channels to sell and find customers. While platforms like Shopify, Amazon Seller, eBay, and Etsy open up new revenue opportunities, more channels make accounting more complex. Payment platforms also introduce an additional layer. bookkeeping An accounting automation platform for businesses and accounting firms that streamlines the process of recording manual entries. The platform integrates directly with 30 sales, e-commerce, and payment platforms and also handles PDF, CSV, and Excel files, making the platform capable of handling virtually any system, allowing sales and financial data to Can be imported into popular accounting programs such as Xero and QuickBooks. It is estimated that over $50 billion is wasted each year outsourcing manual ledger entries. Bookkeep plans start at $40/month and automate this process for both businesses and professional accounting firms, providing insight and alignment on day-to-day sales.

alley watch Catch up with Bookkeep co-founder and CEO Jason Richelson To learn more about the business, the company’s strategic plans, the latest funding round, and more…

Who are your investors and how much did you raise?

Bookkeep has raised $6.6 million in a Seed+ round. Fin Capitalwith the participation of existing investors TTV Capital, Argonautic Ventures, Lerer Hippeau, Haymaker Ventures, others. This round brings Bookkeep’s total funding to his $10 million, following his $3.3 million seed round in 2021, led by Lerer Hippeau. The new funding will support product innovations that help accountants and businesses of all sizes scale their operations through automation. This capital will also help Bookkeep maximize the impact of new AI technology that processes sales reports from traditional data formats such as PDF, CSV and Excel. The accountant still downloads these reports today and manually enters data from small e-commerce platforms, his vertically specialized POS, and other payment and sales systems.

What products or services does Bookkeep offer?

Bookkeep is an accounting automation platform for independent bookkeepers, accounting firms and growing businesses. Our technology enables professional accountants and bookkeepers to generate accrual sales accounting entries and automatically reconcile payment deposits. The platform integrates directly with over 30 sales, e-commerce, and payment channels such as PayPal, Shopify, Amazon Seller, and can support other channels via AI processing of PDF, CSV, and Excel files. Bookkeep posts daily financial information from these channels to accounting systems like QuickBooks and Xero. Professionals using the Bookkeep platform save 20 hours per month per client.

What inspired you to start Bookkeeping?

In 2018, I realized my bookkeeping was broken. As a serial entrepreneur who has personally managed entrepreneurs and kept the books of record for each startup, I have unique insight as a business owner and first-hand experience with payments, POS systems, and revenue accounting. . That led me to start a business that could improve the way we handle financial data.

Today, the industry is at an inflection point. Accountants are overwhelmed by the volume of digital transactions, and accounting systems do not address how transactions from multiple sales channels and payment methods are captured, processed, and reconciled. At the same time, the industry lacks financial reporting and data management standards, requiring accountants to manually download reports and integrate data into systems. According to Bookkeep, a market research study conducted in partnership with Paradoxes Inc. earlier this year, the accounting firm said he lost about 100 hours a month, or 2.5 weeks of his full-time equivalent, to manual processes across his team. I’m here. For each individual staff member, he spends nearly a quarter of his time each month doing manual work.

Manual data entry is not a scalable solution. In particular, it is becoming increasingly difficult to find people willing to do this work. According to Sage, a staggering 93% of accountants say they’re under pressure to close their accounts early. Automation is the only solution to the problems facing the underserved accounting industry. Our team is dedicated to creating technologies and new ways of working that eliminate manual data in the industry. Today, over 850 small and medium-sized retailers and restaurants with billions of dollars in annual revenue use our technology.

How is it different from bookkeeping?

Bookkeep is the only automated platform designed to provide proper revenue recognition for e-commerce and retail. Bookkeep automates the time-consuming and complex process of posting daily financials from a wide range of sales channels to accounting systems such as QuickBooks, Xero, Sage Intacct and NetSuite. Our technology enables professional accountants and bookkeepers to automatically generate accrual summaries, post journal entries and reconcile payment deposits. Integrate directly with large sales channels and use AI to process data from the many small or niche sales channels in use today.

What is Bookkeep’s target market and size?

More than $50 billion is wasted annually on outsourced, manual accounting data manipulation, entry, and reconciliation for income and payment reporting.

Nearly 60% of the 1.1 million retail and accounting firms surveyed by Paradoxes Inc. this year are looking for services that reconcile payment deposits and automatically generate journal entries. Bookkeep’s platform addresses this need by automating how data is collected and aggregated into an accounting platform across multiple sales and payment channels.

what is your business model?

In February 2020, Bookkeep began charging customers a monthly fee. Pricing models currently range from $40/month to $320/month.

How are you preparing for a potential economic slowdown?

Our business is very lean, but in anticipation of the economic slowdown, we have looked at all our expenses and reduced our run rate. We regularly review all company spending to ensure we are delivering value for every dollar spent.

In reality, accounting is essential for any business. An economic downturn has not slowed it down, and accounting professionals are looking for efficiency gains to serve in this kind of environment. Businesses of all sizes need timely and accurate financial information to achieve efficiencies and improve operations.

What was the fundraising process like?

This wasn’t my first venture-funded company, so we had pre-existing relationships with respected VC firms. ) and built a platform that delivers real revenue. Our track record is strong and demand for our services continues to grow.

What was the biggest challenge you faced in raising capital?

This is a very different year for fundraising compared to 2021. According to Crunchbase, venture funding totaled $81 billion in the third quarter of 2022, down $90 billion (53%) from the year-ago quarter and down $40 billion (33%) from the quarter. .

We have seen funding timelines extended – it has been a much longer and more intense process. Investors are spending more time evaluating companies and conducting rigorous due diligence This is a positive result from our point of view.

Many VC funds are now refocusing their investments in more grounded technology companies focused on solving real-world problems, which could lead to higher returns over time. . Startups are always expected to demonstrate greater financial transparency. Our company was built on this premise and designed to help other businesses maintain accurate records of their monthly expenses and earnings.

What factors in your business are driving investors to write you checks?

Peter Ackerson, General Partner, Finn Capital:

“As a former CFO, I know first-hand the problems Bookkeep solves. Meeting Jason and the team brought back the nightmare of handling manual data entry and fixing the errors it often causes.” Bookkeep is solving an under-appreciated problem in the accounting and CFO department.As more companies and accounting firms grapple with the demands and challenges of e-commerce, the team is a leader in accounting automation. We believe we are well positioned for long-term growth.”

Gardiner Garrard, Co-Founder and Managing Partner of TTV Capital:

“This is the second time we have invested in Jason. What we saw then is still true today: Jason and his team are building much-needed solutions for people who process and analyze transactions on a daily basis. We are proud to once again support him in bringing Bookkeep to accountants everywhere.”

viken dujanManaging Partner, Argonautic Ventures:

“Accounting requirements become much more complex as brands connect and sell to customers through new channels. Accounting teams bear the brunt of this complexity. Uniquely understanding the problem, we built a platform that leverages automation to make accountants more efficient.As commerce continues to move to omnichannel, Bookkeep helps accountants keep up with exponentially increasing workloads. I’m sure it’s a secret weapon that allows us to keep track of it.”

What milestones do you plan to achieve in the next six months?

We have revenue goals as well as expanding our feature set, such as being able to handle any data source for our clients. Within 6 months, we will use our new AI processing to expand our ability to process sales reports from over 100 different traditional and smaller channels, and we will use our platform to provide accounting professional end-client We want to be able to handle the entire portfolio.

We have revenue goals as well as expanding our feature set, such as being able to handle any data source for our clients. Within 6 months, we will use our new AI processing to expand our ability to process sales reports from over 100 different traditional and smaller channels, and we will use our platform to provide accounting professional end-client We want to be able to handle the entire portfolio.

What advice can you give to New York companies that haven’t injected fresh capital into their banks?

In today’s tight economic environment, venture capital firms are more hesitant to put capital and will find more reasons to say no. Running out of cash without proof is no longer an option. If the company wants to raise capital and increase its chances of reaching the finish line of his IPO, it needs to start putting its finances in place now.

Where do you see the company going now in the near future?

Our goal is to continue to grow into a sales and payment getaway for all independent bookkeepers and growing businesses. It’s about providing new AI-driven automated services that meet their needs and enabling accounting firms to do so more efficiently.

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