German Startup Skalar Secures €12 Million to Reinvent Tax Advisory with AI
Artificial intelligence continues to reshape the professional services market, with Munich-based Skalar announcing a €12 million funding round to develop an AI-first tax and accounting practice.
The investment reflects growing confidence that the next wave of innovation in tax may come not only from software providers, but from firms that redesign the delivery of professional services around AI from the outset.
Moving Beyond Tax Software
While many technology companies develop tools to support accountants and tax advisers, Skalar is pursuing a fundamentally different strategy.
Rather than licensing software to existing firms, the company intends to deliver tax and accounting services directly. Its operating model combines AI systems that perform routine compliance work with qualified professionals who review outputs, exercise judgement and remain responsible for client advice.
The objective is to reduce manual workloads while enabling tax specialists to devote more time to complex advisory matters and client relationships.
Responding to Structural Workforce Challenges
The company’s launch comes against the backdrop of mounting labour shortages across the accounting profession.
Several long-term trends continue to reshape the market:
- More than 300,000 accountants and auditors have reportedly left the US profession over the past three years.
- Around 74% of accounting firms indicate they have been forced to turn away new business because of capacity constraints.
- In Germany, over 30% of tax advisers are aged above 61, highlighting a significant demographic challenge as experienced practitioners approach retirement.
These pressures have accelerated interest in technologies capable of increasing productivity without proportionally increasing headcount.
A New Operating Model for Tax Advisory
Skalar argues that embedding artificial intelligence into day-to-day operations can substantially increase the number of clients served by each tax professional.
According to the company, advisers working in highly automated service areas are already able to support more than 100 clients, considerably above traditional industry benchmarks.
Rather than positioning AI as a productivity tool alone, the company is building its business around automation as a core operational capability.
What This Means for the Market
The emergence of AI-native advisory firms could mark the beginning of a new competitive dynamic within the tax profession.
Established firms continue investing heavily in artificial intelligence to improve efficiency and enhance client services. At the same time, new entrants are attempting to build organisations designed around AI from inception, rather than adapting existing operating models.
Whether the market ultimately favours incumbent firms enhanced by AI or a new generation of AI-first advisory businesses remains uncertain. What is becoming increasingly clear, however, is that artificial intelligence is evolving from a supporting technology into a central component of how tax services may be delivered in the years ahead.