Artificial intelligence (AI) continues to redefine industries, and accounting is no exception. Matt Tait, co-founder and CEO of Decimal, recently announced a significant milestone in the company’s journey: Decimal has become the largest user of an AI-native general ledger platform, Puzzle.
This decision marks a crucial step in the evolution of AI-powered accounting solutions and signals a shift in how accounting firms can leverage technology for efficiency and scalability.
Decimal’s commitment to innovation dates back to December 2022, when it acquired KPMG Spark. This acquisition was driven by two primary factors: the quality of the KPMG brand and its service business, along with the technology underlying Spark, which was originally developed by Bookly.
Decimal saw an opportunity to stabilize, improve and ultimately turn this general ledger into a more scalable, AI-integrated solution.
Understanding that great tech companies should build software while accounting firms should focus on service, Decimal strategically aligned itself to enhance its ledger through partnerships rather than in-house software development.
This approach led them to Puzzle, an AI-native ledger designed specifically for small and medium-sized businesses (SMBs). By transitioning hundreds of clients onto Puzzle, Decimal has taken a significant leap forward in streamlining financial management through AI.
In the summer of 2023, Decimal’s leadership team visited multiple San Francisco-based companies developing next-generation general ledgers. Their goal was to identify a truly AI-native solution capable of handling large-scale operations.
Puzzle emerged as the best fit due to its innovative approach, transparency and robust AI-driven capabilities.
A key differentiator of AI-native platforms like Puzzle is their ability to automate up to 90% of routine accounting tasks. This automation encompasses general bookkeeping, bank reconciliations and quality control processes. By reducing manual input and minimizing human error, Puzzle enhances efficiency and allows accountants to focus on higher-value client interactions.
The adoption of Puzzle at Decimal has transformed operations in several ways:
Despite these advancements, Decimal has not completely phased out legacy platforms.
The company continues to support over 6,700 clients on QuickBooks while strategically transitioning suitable businesses to Puzzle. Industries that benefit most from Puzzle’s capabilities include cash-basis businesses, technology companies with Stripe and Gusto integrations, and dental or orthodontic practices. Over time, Puzzle’s feature set will expand, making it viable for a broader range of businesses.
To further optimize processes, Decimal is working to integrate Puzzle with Keeper, a workflow management platform widely used in accounting firms.
This integration will create a unified system where accountants can work efficiently across different general ledger platforms. By centralizing workflows and automating quality control, Keeper’s integration will ensure consistency in financial reporting, regardless of whether a client is on Puzzle or QuickBooks.
The rapid adoption of AI in accounting is no longer theoretical; it is now a practical and scalable solution. Tait emphasizes that firms must begin implementing AI tools rather than merely discussing their potential.
The key takeaway for accountants is to focus on leveraging AI-driven platforms rather than attempting to build proprietary software solutions. By adopting AI-native tools like Puzzle, firms can streamline operations while maintaining their core expertise in accounting services.
For firms hesitant about making the leap, Tait advises a phased approach:
Decimal’s adoption of Puzzle underscores a broader industry shift toward AI-driven accounting solutions. By strategically integrating AI while maintaining strong client relationships, Decimal is setting a precedent for other firms looking to modernize their operations.
As AI technology continues to evolve, firms that embrace this transformation will be well-positioned to enhance efficiency, reduce costs, and deliver greater value to their clients.
To hear more about Tait's take on AI, Puzzle and Decimal, listen to our full podcast below, or tune into the After the First Million podcast and take a peek at Tait's professional profile.
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