The Pain Points of Book-Closing: A Time-Consuming Process Prone to Errors
Month-end and quarter-end closings are often a dreaded time for accountants, involving manual, time-consuming processes that are prone to errors. This frustration is what drove Parker Gilbert, co-founder of Numeric, to develop a solution—a software platform designed to automate parts of the book-closing process.
The Birth of AI-Powered Book Closing
The introduction of generative AI has since transformed the platform, making it a go-to tool for companies like Brex, OpenAI, Plaid, and Wealthfront. By leveraging the power of artificial intelligence, Numeric’s software platform is able to streamline the book-closing process, saving accountants significant time and reducing the likelihood of errors.
Growth and Series A Funding
Over the past year, Numeric’s revenue has grown fourfold, catching the attention of investors. Just five months after raising a $10 million seed round, Numeric has now secured a $28 million Series A round led by Menlo Ventures, with participation from new investors IVP and Socii. Previous backers, including Founders Fund, Long Journey, 8VC, Friends & Family Capital, and Fifth Down, also contributed to the round.
The Impact of AI-Driven Book Closing
Numeric helps accounting teams shave days off their book-closing process by aggregating and reconciling data from different accounting systems and Excel sheets. An AI agent overlays this data, analyzing line-item changes month-to-month. If the agent identifies outliers or unexpected variations, it explains why certain accounts increased or decreased, saving accountants significant time on documenting account fluctuations (flux analysis).
Example of AI-Driven Book Closing in Action
For instance, if the AI detects higher legal expenses in October compared to September, it might explain, ‘Your legal expenses increased this month due to a $X payment to Wilson Sonsini for your funding‘. This level of transparency and explanation is a key differentiator for Numeric’s platform, allowing accountants to focus on high-level decision-making rather than getting bogged down in detailed analysis.
Accuracy and Future Capabilities
While the AI agent doesn’t currently handle final calculations, Gilbert, Numeric’s CEO, is optimistic that it soon will. He emphasized that the possibility of AI hallucinations—incorrect information generated by the AI—hasn’t been a major issue, as Numeric provides links to verify the AI’s analysis. Gilbert expects Numeric’s AI model to further improve, especially in synthesizing large amounts of data, which is already a strength of large language models (LLMs).
Investor Confidence in Numeric
Menlo Ventures partner Croom Beatty, who has long sought a disruptor in the accounting software space, said Numeric’s approach intrigued him. ‘Numeric’s moat is a lot deeper than a lot of areas we were looking at,‘ Beatty noted, adding that Numeric’s combination of complex workflows and data in a largely underserved market makes it stand out.
Beatty’s Vision for Numeric’s Expansion
Beatty also sees potential for Numeric to expand beyond accounting, predicting the addition of financial planning and analysis tools—a market currently dominated by Anaplan. This expansion would not only further solidify Numeric’s position in the market but also provide a new revenue stream for the company.
Competing in a Complex Market
Numeric faces competition from established players like BlackLine, a publicly traded company, and FloQast, an 11-year-old startup valued at $1.6 billion. However, Beatty emphasized that what Numeric is doing is highly complex and difficult to replicate, which sets it apart from other AI-powered entrants in the accounting software space.
Conclusion
Numeric’s innovative approach to book-closing has captured the attention of investors and industry leaders alike. With its AI-powered platform, the company is poised to disrupt the accounting software market and provide a new standard for accountants worldwide. As Numeric continues to grow and expand its capabilities, it will be exciting to see how this young startup shapes the future of finance.
About Numeric
Numeric is an AI-powered book-closing platform designed to automate parts of the accounting process. Founded by Parker Gilbert, the company has already secured significant funding from top investors and has seen its revenue grow fourfold in the past year. With its innovative approach and strong leadership team, Numeric is a company to watch in the world of finance.
About Menlo Ventures
Menlo Ventures is a venture capital firm that invests in early-stage companies across various industries. With a focus on supporting entrepreneurs who are building innovative products and services, Menlo Ventures has backed some of the most successful startups of the past decade. The firm’s investment in Numeric is a testament to its commitment to backing disruptive technology.
About IVP
IVP (Institutional Venture Partners) is a leading venture capital firm that invests in growth-stage companies across various industries. With a focus on supporting entrepreneurs who are building scalable businesses, IVP has backed some of the most successful startups of the past decade. The firm’s investment in Numeric is a testament to its commitment to backing innovative technology.
About Socii
Socii is a venture capital firm that invests in early-stage companies across various industries. With a focus on supporting entrepreneurs who are building innovative products and services, Socii has backed some of the most successful startups of the past decade. The firm’s investment in Numeric is a testament to its commitment to backing disruptive technology.
About Founders Fund
Founders Fund is a venture capital firm that invests in early-stage companies across various industries. With a focus on supporting entrepreneurs who are building innovative products and services, Founders Fund has backed some of the most successful startups of the past decade. The firm’s investment in Numeric is a testament to its commitment to backing disruptive technology.
About Long Journey
Long Journey is a venture capital firm that invests in early-stage companies across various industries. With a focus on supporting entrepreneurs who are building innovative products and services, Long Journey has backed some of the most successful startups of the past decade. The firm’s investment in Numeric is a testament to its commitment to backing disruptive technology.
About 8VC
8VC is a venture capital firm that invests in early-stage companies across various industries. With a focus on supporting entrepreneurs who are building innovative products and services, 8VC has backed some of the most successful startups of the past decade. The firm’s investment in Numeric is a testament to its commitment to backing disruptive technology.
About Anaplan
Anaplan is a cloud-based financial planning and analysis platform that helps companies make better business decisions. With a focus on providing innovative solutions for complex financial planning, Anaplan has become a leading player in the market. The company’s dominance in the space makes it an attractive target for potential acquirers.
Note: This article is a hypothetical example of how a real-world startup might be covered by a tech publication. It includes fictional companies and individuals to illustrate key concepts and strategies.
