Digits Blog

Most accounting platforms weren't built for how modern accounting firms operate or what their clients expect. Learn why firms are building AI-native practices on Digits.

This July, Digits was invited to present our latest lessons learned from our Agents in Production journey at AI in Production 2025 conference.

This July, Digits joined the AI in Production 2025 conference in Asheville, NC.

QuickBooks may have been the go-to for years, but it's not designed for firms that are ready to scale. Read why growth-minded firms choose Digits.

Relive Digits' presence at Scaling New Heights 2025, featuring Jeff's exciting keynote, our hands-on booth experiences, and the launch of our AI-Native Accounting podcast.

Introducing Digits Accounting Agents: automate bookkeeping, dashboards, and reporting with AI-native workflows. Review, approve, and unlock a new era of accounting today!

Announcing our partnership with Arc! Combine Digits' AI-driven accounting with Arc's cash management for real-time financial insights. Unlock benefits like high-yield accounts and free software with qualified deposits. Modernize your financial strategy and make every dollar count. Start optimizing today!

Digits explored Meta's Llama-4-Scout performance issues tied to third-party server deployments. Recent vLLM updates have significantly improved accuracy and latency.

If you've been using Pilot, you may feel left out of some of the more advanced bookkeeping and accounting features available today, including real-time insights and access to seamless automation.

This April, Digits led a panel at Startup Grind Conference 2025 in San Francisco, sharing insights on LLM finetuning strategies and best practices.

We're excited to announce our partnership with Gusto, the #1 HR platform for payroll and benefits. This integration enhances Digits, unifying payroll and headcount data with our real-time insights. Simplify tax preparation and empower your small business with smarter financial management. Experience the next level of efficiency today!

This March, Digits was invited by NVIDIA to join NVIDIA's GTC'25 and present the Autonomous General Ledger® developed by Digits.

After 5 years of building, and a year of intensive testing with hundreds of businesses, we’re unveiling Digits: the first end-to-end accounting platform for the AI era. The world’s first Autonomous General Ledger®, or AGL®.

In February 2025, Members of the Digits machine learning team were invited to speak at the Google Developer Group Seattle on the topic of LLM deployments on Google Cloud.

Startup taxes don't have to be complex. Our guide breaks down the requirements and rules all founders should know so you can approach your taxes with confidence.

Discover the small business tax rates and brackets for founders and startups. Learn how much tax your business may pay, as rates vary by structure and state.

What is COGS, and why does it matter? Learn how to do a COGS calculation for your SaaS startup to manage finances and impress investors.

Discover the 7 stages of startup funding—from pre-seed to IPO—in this comprehensive guide designed for founders.

Discover the top reasons startups fail and get actionable insights from founders who've been there. Learn how to set your startup up for success.

We're trilled to introduce Digits AI Invoicing—giving business owners complete control over both accounts payable and accounts receivable

Do you know when it's appropriate to hire a 1099 vs. a W-2 worker? Here are the rules business owners must follow, plus pros and cons of each work relationship type.

Check out our guide to learn how to decide between a C corp, an S corp, or an LLC for your startup.

Discover the 6 best bookkeeping services for startups to simplify your accounting needs. Plus, learn important steps to set up your bookkeeping.

Despite accounting for less than 1% of America's land mass, Delaware is home to more than 65% of Fortune 500 countries. And 80% of IPOs in 2023 were registered in Delaware. So, what makes this little state so appealing to all kinds of businesses?

Unsure if you need an accountant for your small business? Discover when to hire one, the benefits of a small business accountant, and their services.

The sudden shutdown of Bench should serve as a wake-up call for all business owners: Even seemingly stable service providers aren't immune to disruption. While you can't predict the future, these proactive steps can help protect your business from similar events in the future.

Predictive analytics. Automated account reconciliation. Sounds like sci-fi, but it's reality. Find out why AI accounting should be the next investment for your business.

Digits Tax-Ready simplifies your bookkeeping and delivers everything you need to confidently hand off your financials to a tax preparer. With automated categorization, expert-reviewed accuracy, and compliant, ready-to-file reports, this plan puts tax season on autopilot—so you can focus on growing your business, not drowning in paperwork.

Ignoring this tax filing isn't an option. Unfortunately, we have seen dozens of new startups miss this deadline as they operated under the assumption that they were not profitable, so no tax filings were needed.

If you're exploring alternatives to Puzzle, you're not alone. This guide will walk you through some of the best Puzzle alternatives on the market today so you can find the perfect accounting software for your growing business.

Smart founders know that professional tax guidance isn't just about filing returns — it's about strategically using these benefits to put more money back into your business.

From leveraging the R&D credit to planning for a tax-free exit with QSBS, these strategies can make a substantial impact on your business's growth and profitability.

To help you get ahead of your business tax filings, we've mapped out every critical deadline for the 2024 tax year (most of which you'll tackle in 2025), from federal to state requirements.

One of the most common questions we receive from startup founders is, "When should we convert from an LLC to a C corporation?" While the transition may appear straightforward, several legal and tax considerations must be considered.

Mistakes with 409A valuations are all too common in startups — but they don't have to be. From errors in execution to the misconception that they're unnecessary, these pitfalls can lead to severe tax penalties, unhappy employees, and wary investors.

QSBS isn't exactly straightforward. There's plenty of misleading information out there, and the nuances can trip up even seasoned founders. The good news? You don't have to tackle this alone.

When you're starting a business, every dollar counts. That's why it's so important that you know about common IRS tax-deductible business expense categories so you can maximize your deductions while minimizing your tax paid.

At the heart of startup success is financial management. It's not just about profits or how much you raise; it's also about how well you manage your money day-to-day.

Learn everything you need to know about 1099-NEC forms, including who needs to file, key deadlines, and tips to stay compliant with IRS regulations.

Whether you're hearing about BOI reporting for the first time or scrambling to meet the original deadline, this article will ensure you understand exactly what is happening and what you need to do next.

Open Banking could save your business hundreds of hours and thousands of dollars each month. Why? Innovation and automation.

Investors want frequent updates on how they've spent their money. Reporting can assure them that they've made the right decision in supporting a startup.

Accounting for startups is key for gaining investor confidence. Learn how to set up an accounting system.

Fundraising is one of the biggest challenges startups face. To help you find the right way to scale your startup successfully, here are the 7 most important funding sources.

Learn what burn rate is, why it's crucial for your startup's financial health, and how to calculate it accurately.

Over hundreds of years, the general ledgers has come a long way. Here's how they've changed to meet the needs of modern companies.

Solid financial records form the foundation of any successful business, particularly in the fast-paced world of startups. Whether you're preparing for investor pitches, planning for strategic growth, or simply ensuring day-to-day operations run smoothly, having well-organized books is essential.

Without a clear overview of your finances, it's impossible to calculate your remaining runway or adjust your burn rate.

At Digits, we are constantly pushing the limits of production machine learning, therefore we were beyond excited in being selected for one of the few and rare tickets of the inaugural IRL event hosted by the CUDA Mode community in San Francisco, a gathering organized by Accel and NVIDIA on September 21st, 2024. This event, brought together some of the brightest minds in the Torch and CUDA ecosystem, was a testament to the vibrant and ever-evolving world of AI.

Hosting large language models (LLMs) like Llama 3.2 presents unique challenges, requiring specialized infrastructure and deployment strategies. This is where vLLM comes in, a cutting-edge framework designed to optimize LLM deployment on Kubernetes, the industry-leading container orchestration platform.

Meta's recent release of Llama 3.2 has sent shockwaves through the AI community, and for good reason. This latest iteration isn't just an incremental upgrade; it's a significant step forward in making large language models (LLMs) more accessible, efficient, and responsible.

In this comprehensive guide, we'll explore everything you need to know about working with a startup business accountant. We'll cover the multifaceted role of startup accountants (which extends far beyond basic bookkeeping) and how to select the right accounting solution for your specific needs.

In the world of machine learning, the allure often lies in the dazzling advancements: the latest models, cutting-edge techniques, and breakthrough success stories. It's comparable to admiring the tip of an iceberg without recognizing the substantial structure beneath the surface that keeps it afloat.

This July, Digits was invited to present our latest lessons learned from our Open Source Large Language Model journey.

This July, Digits was invited to present our latest lessons learned from our Open Source Large Language Model journey.

Digits now offers tax and budgeting & forecasting plans. Join us to make more informed decisions, maintain better financial health, and streamline tax filings. Become a customer today!

Digits is now SOC 2 Type 2 compliant! Learn how this boosts data security for startups, ensuring financial info is safe and secure with Digits trusted accounting solutions.

Explore Digits' latest announcements from Scaling New Heights 2024 – Orlando. From AI innovations in accounting to keynotes and our exciting Basis acquisition, discover how we're reimagining the future of accounting!

Welcome Basis! Digits has acquired Basis Finance – integrating advanced budgeting and forecasting tools into our AI accounting platform. Save time and simplify financial planning today!

Digits leverages AI to transform accounting with our proprietary models, achieving unmatched accuracy and reliability compared to general LLMs like GPT-4. Learn how we set new standards.

This May, Digits was invited by Google to join Google I/O and participate in the exclusive, invitation-only developer advisory board.

Introducing Digits Bill Pay — accounts payable automation made brilliant! We've made Digits even more powerful by integrating Bill Pay directly into our AI accounting platform.

Your Finances, All In One Place – Bookkeeping, Reports, Vault – Consolidate today and use a smarter, more intuitive set of tools to manage your finances.

This April, Members of the Digits machine learning team were invited to speak at the University of Washington on the topic of GenAI in Finance.

This April, Digits was invited by NVIDIA to show our latest ML/AI projects at Google Cloud Next'24.

If you're a startup founder or an entrepreneur frequently engaging with independent contractors or freelancers for services, you should familiarize yourself with the Internal Revenue Service's (IRS) Form 1099-NEC – a tax document introduced by the IRS in 2020 to report non-employee compensation.

Accounts receivable (AR) is all about the outstanding money owed to your business for either goods or services received, but not yet paid for, standard practice for a lot B2B transactions and startups, especially in the SaaS space.

During the lifecycle and evolution of a startup, certain scenarios will make the founder feel the need for a Chief Financial Office (CFO) to lean on and collaborate with. Hiring a full-time CFO immediately, however, is likely not the right choice and a fractional CFO is likely the startup's best bet to bridge the gap until they are ready to commit to a full-time CFO.

In the world of SaaS, there is a key metric that many companies use to measure their overall health and performance: the Rule of 40. This 'rule' is a simple formula that helps SaaS companies understand the balance between growth and profitability.

As a startup founder, you have a lot on your plate, including managing finance and tax details for your business and your employees/contractors. One important document is the IRS W-9 form. Here's what you need to know about W-9s, including their significance to your business and how to handle them effectively.

Tax season is a dizzying time for anyone, especially startup founders. The last thing you want to be dealing with are forms, withholdings, or deadlines — you've got your business to run! One key piece of the tax season puzzle is a Form 1120, aka the Income Tax Return. Here's a startup founders guide to understanding you Form 1120.

In simple terms, depreciation is an accounting method that allows a company to spread the cost of an expensive purchase over a period of time, rather than all at once. This not only eases the immediate financial burden but also smooths out expenses over time. This process is vital for budget planning, particularly for start-ups, as it enables more predictable financial management.

An income statement, often referred to as a Profit & Loss (P&L) statement, is a financial report that shows your business profitability over a specified period. It presents your revenue and deducts your expenses and losses, shedding light on your company's financial health.

In the business world, the term "per diem" is quite common, but its meaning and application often confuse individuals. To clear these misconceptions, let's dive into the definition, implications, and operations of a "per diem" system.

Understand the pitfalls of running a startup without the help of an accountant, as well as the benefits of partnering with one.

In this article, we'll dive deeper into both of these financial functions, exploring what good bookkeeping and accounting look like for startups at different stages.

In the world of accounting, two of the most common methods utilized are cash accounting and accrual accounting. Each method has its particular characteristics and benefits. Choosing the right accounting method can significantly impact how a startup's financial health is perceived.

Starting a new business venture is an exciting time, filled with creativity and ambition. However, amidst the enthusiasm, one crucial aspect that many startup founders overlook is accounting.

At some point along your personal or professional journey, you may wonder, "When do I need to hire an accountant?" Accountants can provide essential financial services that simplify many challenging tasks.

Digits, AI accounting for startups, prioritizes data security with cutting-edge encryption and key protection methods. Recently achieving SOC2 Type 1 compliance, Digits sets the industry standard for secure financial data handling. Learn more about our relentless dedication to integrity, transparency, and security.

Deep dive into the problems with small business accounting in the U.S and Digits' mission to fix these fundamental flaws in the system, leveraging AI and modern technology to push for a long-overdue overhaul.

Introducing Digits Reports 3.0 – interactive, fast, and collaborative business reporting. Discover instant insights, effective one-click annotations, sophisticated AI assistance, and unmatched speed. Transform your business financial reporting with Digits.

Rounding out summer, Digits introduced new features for better efficiency and customization including the integration of Digits AI into report building, giving your clients access to Digits AI during report reviews, and much more!

This September, Digits was invited to present at Google Cloud's Next - their premiere event to explore Generative AI, learn from experts, connect with builders, and see how AI/ML are reshaping our world.

Dive into the impact of AI on the accounting industry, featuring insights from the Scaling New Heights conference. Including Jeff Seibert's keynote presentation on the introduction of Digits AI, the future of small business finance, and an enlightening discussion on AI adoption in accounting.

1,000+ new businesses on Digits, new AI capabilities, and Reports get a fresh new look! Read more…

Announcing the launch of Digits AI: the world's first secure, accurate, business-specific finance AI. Digits AI empowers business owners, accountants, and finance teams with real-time financial planning and analysis, insights, and powerful visualizations - all accessed through a simple conversational interface.

Is Machine Learning commoditized?

Using a machine learning model to classify an object (be it text, image, tabular data) with a label that the model has never seen before, Zero-Shot Classification, seems like an impossible task.

Digits answer to automating the transaction review process for both accountants and their clients. Providing a faster, more accurate categorization of transactions, a desired client communication experience, a more seamless and elegant workflow for accountants, and speeding up the overall process.

In our previous blog post, we introduced how we use similarity-based machine learning for accounting use cases. In this blog post, we will focus on how we use generative machine learning at Digits.

Early in 2022, Digits released Boost to help accountants save time by automating their work. Boost instantly spots inconsistencies in their client's ledger. Every second, Digits sifts through every single transaction and performs a deep analysis. Digits' Boost alerts accountants if it finds errors like transactions in unexpected categories and suggests categories for transactions with missing categories.

Welcome to Q2. Now, with the click of a button, you can generate beautiful, immersive quarterly reports packed with all the intelligent executive summaries and actionable insights you get from standard, monthly Digits Reports. Quarterly Reports pack all the same power: infinitely explore your data through elegantly presented numbers and popular features like Hover to Discover.

Today's finance tools fall far short of what accountants and finance teams deserve—immersive storytelling backed by intelligent analysis, powerful visuals, and instant answers. It's time to bid farewell to stale, black and white reports, tedious Excel models, and unsecured email attachments.

Definitely one for the books! Digits kicked off the 2021 Digital CPA conference in style for attendees from the top tech-forward firms at an exclusive, invite-only evening full of magic where we took over the Dream Hotel in Nashville!

We recently launched Digits Search, bringing fast, beautiful, full-depth search to business financial data. We've received a ton of customer feedback, and one question just keeps coming up...

Our recent launch of Digits Search represented the culmination of over 30 human-years of software engineering work, from a team with hundreds of years of combined experience. All to make a financial search box... work.

Understanding banking transactions as they happen, in real-time, is core to our mission with Digits Search. You can't answer important finance questions with bad data.

Today's finance software falls far short of what business leaders need—intelligent, powerful analysis and instant answers. No longer.

Through the travails, uncertainty, and drama of 2020, we have done our best to stay heads-down building, fully-remotely, and in focused pursuit of our mission to bring business finance into the modern, real-time era.

Back in early March, before the full extent of this pandemic set in, I kicked off our introduction to remote work at Digits with 'To be sure, working remotely is not for every business, and not for every individual.' Little did I know how soon so many businesses and individuals would be forced to make do, and how quickly fully-remote work would become mainstream.

At Digits, we have been strong and ongoing proponents of modern, secure connections between financial institutions. As part of our mission to give businesses real-time visibility into their finances, we believe in the need for common, open, interoperable standards for businesses to seamlessly transmit financial data.

At Digits, we strive to push the bounds of technology in order to deliver radically more useful, delightful software experiences for our customers.

After two years of heavy development, we've announced Digits for Expenses! We couldn't be more humbled by the support and excitement we've seen from countless business owners and accountants across the country and around the globe, and we're working tirelessly to get them into our Early Access program.

We are obsessed with the vision that business finance should be immediately accessible and intuitive. It should learn, in real-time, as the business evolves, and it should empower business owners and operators everywhere, without requiring any prior financial training.

Remarkably, we're now at the point where most software/digital/service-based businesses, and most knowledge-based employees, are well-suited to going fully-remote, and many will be better off if they do! In fact, remote work has already jumped 159% in the past 12 years, but that's just the tip of the iceberg.

Six months ago we shared a preview of our next adventure, and of our obsession with building modern, intuitive, intelligent, delightful financial software. And the response has left us overjoyed and even more focused.

As builders, there is nothing more gratifying than crafting a product that is used by millions. That saves them countless hours of effort. That turns something complex and frustrating into something accessible, intuitive, even delightful.