AI-powered tax platform Muse Tax has been making waves by providing automated, personalised tax strategies and financial insights to banks, payroll providers, and other financial institutions. The company also claims that its AI can solve complex tax optimisation and compliance challenges much faster than humans.
Launched in 2022, the company has carved out an AI-driven tax intelligence that’s as compassionate as it is cutting-edge, helping human accountants to navigate the complex and quickly changing tax codes. The company’s emergence also coincided with the rise of generative AI and transformational forces like OpenAI (creator of ChatGPT). Using the Sam Altman-led tech venture’s GPT technology, Muse disrupted the financial industry by connecting its digital platform to AI through software bridges known as application programming interfaces (APIs).
Established by public accountants Colin Horsford and Busayo Ogunsanya, Muse has built its own software on top of the OpenAI platform. Data and precise analytics have become the venture’s key tools to build a better operational future for financial institutions.
Knowing The Company In Detail
The company follows a business-to-business model, where it stitches up partnerships with financial institutions. Back in 2022, Muse Tax was funded with a combination of investments by its founders, as well as about USD 350,000 in pre-seed capital from early-stage investors, including “Techstars,” the “AI Operators Fund,” and “Everywhere Ventures,” formerly known as “The Fund.” Then, in 2023, it raised a USD 2 million seed round.
Horsford, who is himself a financial industry veteran (as he worked with American International Group, Goldman Sachs Group, and other financial-services companies), during an interaction with The Wall Street Journal in 2023, explained the company’s operations in the following words: “Users feed their tax returns and transaction data into the Muse Tax system, which can keep track of all the latest updates to the tax codes. The system recommends ways in which the user can keep tax bills to a minimum.”
“You have to stay abreast. During the COVID pandemic, there were so many tax changes that preparers and accountants missed some. That is really what our model is trained to do—to be more up-to-date and process information a lot faster than the average human preparer or accountant, even if they are very experienced,” he stated.
Muse Tax usually can make tax recommendations in 20 to 30 seconds—sometimes as long as 45 seconds—as opposed to their human counterparts, who generally take five to seven hours for comparable advice and cost more. Why does the company use GPT? Because the latter can synthesise and summarise information, including the tax-related ones, in the blink of an eye. However, it doesn’t mean that AI does everything at the start-up, as Muse has put together procedures to oversee the AI’s responses.
Here Are The Key Products
Among Muse Tax’s key products, we have CheckBoost, which boosts customer paychecks by up to USD 200, apart from creating opportunities for them to pay down debt, save, or invest. The start-up’s advanced algorithms suggest alterations that maximise financial well-being, which potentially leads to increased take-home pay. CheckBoost also optimises tax withholdings for a more stable financial flow and customers with quicker access to their refunds. The solution also ensures the information entered in the W-4 (Employee’s Withholding Certificate, an IRS tax form used by employees to inform their employer of the correct amount of federal income tax to withhold from their paycheck) is accurate and aligned with the latest tax regulations.
CheckBoost also automatically transfers funds to high-yield savings accounts, helping its customer companies pay off debt, make investments, and more. Employees can enjoy increased take-home pay while experiencing better financial wellness.
“CheckBoost stays current with the latest tax laws, minimising the mental burden of updating a W-4 and reducing tax-related confusion for workers. By using CheckBoost, workers gain more control over their finances, positively affecting their mental well-being by offering clarity and simplifying financial decision-making,” the start-up commented.
“CheckBoost boosts employee paychecks by up to USD 200. We optimise their tax withholdings; they get more take-home pay. Employees can use their increased pay to buy groceries, save, or take that vacation that they’ve always wanted to take,” it added.
Another innovative tool is MuseScore, which quantifies its users’ financial profile, apart from giving them a score like a credit score. It helps individuals understand their current financial situation, find saving opportunities, and provides constant monitoring of their financial health to help them make the most of their disposable income.
Muse Score quantifies its users’ tax profile, offering clarity on their overall financial health and guiding them towards financial improvement. The start-up explained its product in the following words: “By revealing your tax situation, Muse Score identifies potential savings and strategies to enhance your tax efficiency. It’s as insightful as a credit score. Muse Score enables near real-time insights into possible deductions, credits, and your projected tax liability or refund throughout the year.”
How does MuseScore work? The solution assesses its users’ disposable income and tax burden to generate a centralised score. The score gets standardised on a 350 to 850 scale, similar to the solution’s users’ credit score, while taking into consideration factors like the cost of living, total taxable income, and dependent deduction. The score also evolves as an individual’s financial situation changes. Things such as a bump in disposable income or the birth of a child could change the tax optimisations. MuseScore considers these factors while keeping its customers informed about their tax optimisation.
Also, “Muse Compass” pulls data from a business’ key sources, including bank accounts, payroll, QuickBooks, spreadsheets, and more, before leveraging the AI to recommend the best solutions based on the business’s market situation. The tool also has its own predictive analysis that, through financial forecasting and analytics, warns entrepreneurs beforehand about an impending financial crisis.