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Puzzle, a San Francisco-based fintech startup, has launched an AI-powered accounting platform designed to automate up to 90% of routine tasks, allowing accountants to focus on more strategic work. In an exclusive interview with VentureBeat, Puzzle CEO Sasha Orloff outlined how the company's new general ledger software integrates complex accounting policies directly into the platform, aiming to eliminate the need for manual spreadsheet processes.
"What we're launching now is effectively taking the general ledger, the backbone of accounting, and bringing complicated accounting logic from spreadsheets into the core accounting software," Orloff said.
The platform supports both cash and accrual accounting, offering a solution for businesses of all sizes. Orloff emphasized that the system is designed to provide real-time, accurate accounting tailored to the increasing demands of today's fast-paced business environment, especially as the accounting industry faces a shortage of talent and growing workloads.
Puzzle's platform addresses the challenges of manual accounting by automating processes like revenue recognition, asset depreciation, and prepaid expenses. Traditionally, these tasks require spreadsheets, which must then be reconciled with accounting software such as QuickBooks.
"In QuickBooks, you typically have to calculate things like revenue recognition, fixed assets, and prepaid expenses manually in spreadsheets," Orloff explained. "You'll have QuickBooks open on one half of the screen and a spreadsheet on the other. With Puzzle, all of that logic and calculation is handled inside the software."
Puzzle allows users to set up accounting rules -- referred to as "software-driven accounting policies" -- for different types of transactions, such as SaaS subscriptions or prepaid contracts. "You save it, and then it just gets applied when an invoice or a bill comes in," Orloff said. This automation reduces the risk of errors and eliminates much of the manual, time-consuming work accountants typically face.
A key concern with AI-driven automation is ensuring accuracy, particularly in fields like accounting where precision is critical. Puzzle addresses this issue by allowing accountants to control the level of automation they use. Orloff described this flexibility, saying, "You can create a rule in our system that says, 'Let the system take its best guess, and I'll review it later,' or 'I want to do it manually.' The accountant is always in control."
Puzzle tags each transaction with information about how it was processed, providing transparency. "Everything is tagged, so you know whether something was drafted by AI or if it's a high-confidence transaction the system has handled before," Orloff said. This feature allows accountants to trace transactions and verify their accuracy.
By maintaining human oversight, Puzzle mitigates the risk of AI errors, or "hallucinations," as Orloff called them. "AI can hallucinate, but humans make mistakes too," Orloff said. "That's why we designed a system where AI suggests things, but the accountant can verify and control everything."
Puzzle's launch comes at a critical time for the accounting profession. The industry is facing a severe talent shortage, with 75% of accountants nearing retirement, 300,000 having left the workforce, and CPA applications are down nearly 30%. Burnout rates are also high, with 99% of accountants reporting feeling overworked due to the repetitive nature of their jobs.
Orloff sees Puzzle as a way to alleviate some of these pressures. "We're seeing a massive transformation in accounting with the introduction of AI," he said. Unlike competitors such as QuickBooks, which recently ran a campaign encouraging businesses to "fire your accountant," Puzzle's approach is to support rather than replace accountants. "We're here to take accountants and accounting firms and make them the heroes of their companies," Orloff said.
He envisions AI-driven tools like Puzzle enabling accountants to play more strategic roles in businesses. "If we can move accountants from the back office to a seat at the table for the most important financial decisions, that's a win for everyone," Orloff said. "The role of an accountant will become higher paid and more impactful, with a focus on big-picture decisions instead of routine tasks."
Since Puzzle's public launch less than a year ago, the platform has processed more than $30 billion in transactions for over 3,000 businesses, ranging from startups to small businesses using tools like Stripe, Gusto, and Brex. According to Orloff, Puzzle's growth has been largely driven by word of mouth, with the company experiencing 15-20% month-over-month growth, 70% of which has been organic.
While Puzzle initially gained traction with startups, demand from small businesses and accounting firms has grown significantly. "We started working with startup communities because they use modern tools and were eager to adopt new accounting solutions," Orloff said. "But we began to see inbound interest from small businesses like doctors' offices, law firms, and retail stores."
Accounting firms, in particular, are turning to Puzzle to manage more clients without increasing staff. "There's been a shortage of accountants, and accounting firms are turning away clients," Orloff explained. "With our automation, they can handle more business at higher margins, with greater customer satisfaction."
Orloff believes that Puzzle's platform represents the next step in the evolution of accounting. "When Excel came out, 1 million bookkeeping jobs were eliminated, but 1.2 million higher-paying advisory roles were created," he said. "We're going to see a similar shift today. The boring, repetitive work will be automated, and accountants will spend more time helping businesses devise tax strategies and improve their financial health."
Orloff sees Puzzle as a tool that not only benefits accountants but also the businesses they serve. "We're building a system that makes accounting easier and more enjoyable, and that strengthens the relationship between the accountant and the business owner," he said. "It's a win-win."
As more businesses adopt Puzzle, the platform's automation capabilities will continue to improve, creating a self-reinforcing cycle of efficiency and accuracy. "The more people use us, the more automation and accuracy we can build into the system," Orloff said. "It's a self-fulfilling flywheel where everybody wins: the business owner wins, the accountant wins, and ultimately, the entire economy benefits."
