Concept note
US CPA Market
Confidential
April 2026
Autonomous reconciliation for US accounting firms.
CPAs spend a third of their capacity on reconciliation work that is repetitive, error-prone, and carries real penalty risk. Re-Con deploys autonomous AI agents that handle this end-to-end — from first-pass matching to dispute resolution — freeing CPAs to focus on advisory work that actually requires their judgment.
01 / 05
The problem
Where CPA firms lose time — and take on risk.
US tax compliance is structurally fragmented. CPAs navigate federal and 50-state obligations simultaneously, across clients with mismatched ERPs and incomplete data. The work is high-volume, low-forgiveness — errors attract IRS notices, penalties, and reputational damage.
01 / 04
1099 / withholding reconciliation
Matching vendor payments against W-9 data, flagging missing TINs, tracking cumulative thresholds, and managing B-notices is done almost entirely in Excel — across hundreds of vendors per client. A single misclassification can trigger a CP2100 notice or backup withholding liability.
02 / 04
Multi-state sales tax nexus
Post-Wayfair, CPAs must monitor economic nexus thresholds across 46 taxing states for every e-commerce client. There is no unified reconciliation layer — firms patch together Avalara outputs, spreadsheets, and manual review. Late nexus discovery means back-tax exposure and voluntary disclosure negotiations.
03 / 04
Payroll tax reconciliation (941 / W-2)
Quarter-end 941 filings must reconcile against payroll ledgers, state SUI returns, and W-2 totals. Mid-year corrections and retroactive adjustments create cascading mismatches that surface — painfully — during annual close or an IRS inquiry.
04 / 04
AP / AR ledger to bank matching
Multi-entity and multi-currency clients require continuous GL-to-bank reconciliation. QuickBooks' auto-match logic handles simple cases; everything else lands in a manual review queue that grows unchecked between closes.
02 / 05
The solution
Autonomous agents, one per reconciliation layer.
Re-Con does not surface dashboards for humans to act on. It deploys task-specific agents that ingest source data, execute reconciliation logic, flag only the exceptions that need human judgment, and maintain a fully auditable trail of every decision.
Agent 01 — 1099
Vendor payment classifier
Ingests AP data, maps payment types to 1099 categories (NEC, MISC, rents, royalties), tracks per-vendor cumulative thresholds, validates TINs against IRS records, and generates a filing-ready register — without a human touching a spreadsheet.
Agent 02 — Nexus
Sales tax threshold monitor
Continuously maps client transaction data to state-level economic nexus thresholds. Alerts before a threshold is crossed, not after. Maintains a living nexus map per client, updated as transactions flow in.
Agent 03 — Payroll
941 / W-2 reconciler
Cross-references payroll system exports, 941 filings, and GL entries. Detects wage, tax, and contribution mismatches at the line level. Surfaces discrepancies before quarter-end close, not during IRS review.
Agent 04 — Ledger
GL-to-bank matcher
Runs continuous matching across bank feeds, AP/AR sub-ledgers, and the general ledger. Categorises unmatched items by root cause — timing differences, duplicate entries, missing invoices — and routes each to the right resolution path.
03 / 05
Outcomes
Faster, cleaner, and lower risk — measurably.
Re-Con's agents eliminate the manual lookup, copy-paste, and formula-matching that defines current reconciliation workflows. The impact is felt across three dimensions:
Metric 01 — Speed
75–80%
Reduction in time spent on reconciliation tasks per client
Metric 02 — Accuracy
~Zero
Threshold or classification errors that reach a filing
Metric 03 — Posture
Proactive
Issues caught pre-filing, not post-notice
Beyond speed, the structural shift is from reactive to proactive compliance. A CPA using Re-Con does not discover a nexus obligation after a state audit — they receive an alert when a client's transactions approach a threshold. They do not receive a CP2100 notice — the 1099 agent has already validated every TIN before filing.
04 / 05
What comes next
Downstream: autonomous dispute management.
Reconciliation is not the end of the workflow — it is the beginning. IRS notices, state tax authority inquiries, and vendor disputes downstream of reconciliation errors consume enormous CPA capacity. Re-Con's roadmap extends the agent layer into dispute handling:
1
Notice intake and triage. IRS CP2100, B-notices, and state audit letters are ingested, parsed, and matched to the underlying reconciliation record. The agent identifies whether the notice is valid, partially valid, or erroneous — in minutes, not days.
2
Response drafting. For routine notices (TIN mismatches, reporting discrepancies), the agent drafts a compliant IRS response with the supporting transaction evidence attached — ready for CPA review and sign-off.
3
Vendor dispute resolution. When a 1099 discrepancy is flagged by a vendor, the agent pulls the original AP records, traces the payment trail, and generates a reconciliation summary the CPA can send to the vendor directly.
4
Audit support package. For state or federal audits, Re-Con auto-assembles a transaction-level evidence package — every matched entry, every classification decision, every threshold crossing — with a natural-language explanation of each. The CPA shows up to an audit with a complete, auditable record instead of a stack of exports.
The long-term vision: a CPA firm should be able to handle 2–3× its current client load with the same team — not by cutting corners, but because Re-Con's agents absorb the mechanical layer entirely, and only surface work that genuinely requires a licensed professional's judgment.
05 / 05
What we are looking for
Strategic asks.
01 / 05
Pilot CPA firm partners (US)
02 / 05
AICPA & CPA.com introductions
03 / 05
US-based accounting BPO partnerships
04 / 05
Advisory from US-licensed CPAs
05 / 05
Seed / pre-Series A investment interest
Re-Con AI — Concept Note
April 2026