The evidence-first data platform allows accountants to trace the flow of funds and verify entire transaction populations.
BOULDER, CO (Sept. 28, 2021) – Valid8 Financial, a company that streamlines the collection of accounting evidence to improve efficiency and reduce risk in audit, forensic, advisory or tax engagements, today announced it has closed on a round of seed financing. The company is part of the 2021 CPA.com and Association of International Certified Professional Accountants (AICPA & CIMA) startup accelerator program.
Created by CPAs for CPAs, Valid8 Financial automates the collection and application of accounting evidence, resulting in time savings of 80% and the elimination of sample risk through testing of entire data sets. This allows accountants to spend more time on higher value activities.
Capital Midwest led the financing round with First Trust Capital, CPA.com, Green Cow VC and others. The company plans to use the funds to accelerate hiring throughout North America.
“We’ve spent the last few years refining and optimizing our patented data transformation algorithms,” said Valid8 Financial CEO Chris McCall. “These funds enable us to focus more deeply on our mission of helping CPAs and accounting professionals reduce risk in their engagements.”
Used in thousands of professional accounting engagements in the United States, United Kingdom and Canada, Valid8 allows customers to achieve higher quality output while automating the low level, mundane work that may hinder firms’ recruitment efforts. Types of engagements include:
- Financial Statement Audits
- Forensic Accounting
- Federal and State White-Collar Crime Investigations
- Chapter 11 Bankruptcies
- Corporate Restructuring
- High Net-Worth Divorces
- Buy-Side M&A Diligence
“We’re always looking to support new, innovative solutions that will push the profession forward,” said Erik Asgeirsson, President and CEO of CPA.com. “Valid8offers great potential for CPA firms looking to modernize and improve engagement quality for audits, forensics, advisory or tax practices.”
The inspiration for Valid8 was based on experience working on Seattle’s largest-ever Ponzi scheme. Frustrated with the sheer volume of evidence collection required, cofounder Tod McDonald created Valid8 to automate the creation of a transaction database that could be used to compare information against audited financial statements and other management-supplied information.
“Valid8 has been a real game-changer for us,” said Matt Sutorius, an audit partner with Clark Nuber, a regional accounting firm based in the Pacific Northwest. “It’s enabled my team to instantly verify that everything that the client says happened on the bank statements, did happen.”
About Valid8 Financial
Valid8 Financial, with headquarters in Boulder, CO, extracts accounting evidence from documents and systems to help eliminate or reduce sample risk from professional accounting engagements.