About Keeper Tax
Keeper Tax is a San Francisco-based startup company that offers tax filing software specifically designed for people working in the gig and creator economies. The app created by the business connects directly to a person’s bank account and monitors purchases that can be considered tax write-offs.
When using the service, customers are assigned a “Keeper” to monitor their purchases, who confirms a few times a week with the customer if those purchases were work-related. At the end of the year, people are then able to use their 1099 income to file their taxes directly through the app.
The startup company claims that the app helps average freelancers save more than $6,000 in tax deductions per year. All tax filings are audited by a tax professional before being submitted.
Series A Financing
In a company press release, Keeper Tax announced the business raised $13 million in a Series A financing round with participation from investors like e.ventures, Matrix Partners, Foundation Capital, and other independent investors.
Paul Koulick, founder and CEO of the app business, said in a statement, “With more people taking on gig, creator, and freelance roles as their sole source of income, and for those taking on a side gig or monetizing a personal passion, we felt it was important that they have access to the same tax advice and write-offs that those that could afford accountants did.”
With the new capital, the startup company plans to continue building on its app’s capabilities to support more 1099 job roles. In addition, the business will grow its team by hiring more Keepers, as well as expanding its user base in the United States (US) and internationally. Furthermore, Mathias Schilling from e.ventures and Jake Jolis from Matrix Partners will join the Board of Directors at the startup company.
The Gig Economy
While the gig and creator economies have been around for quite some time, advancements in technology have led to more people pursuing freelance work in place of a traditional 9 to 5 job. In 2018, Forbes reported that 36% of US workers worked in the gig economy, which approximately worked out to a total of 57 million people.
Apps like YouTube, Etsy, and Twitch provide a space for everyone to make a profit on their creative passions. Other companies like Uber, DoorDash, and Shipt are more traditional methods of “gig” work as people are hired on as independent contractors to fulfill specific purposes and can make their own work schedule.
The gig economy might see some changes in the future. Startup Savant reported that the United Kingdom (UK) Supreme Court ruled that Uber drivers are employees, not independent contractors, meaning Uber drivers are entitled to a minimum wage and paid holidays. While this ruling may have occurred overseas, it is not completely unrealistic that the changes Uber has had to make may affect other businesses involved in the gig economy, and could be implemented in the US.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.