Canopy, a cloud-based tax and practice management platform for small- to medium-sized accounting and tax practices, has raised $8 million in venture capital.
The new funding will be primarily geared toward staff expansion and overall product development.
Canopy is currently focused on automating much of the tax practitioner's workflow by utilizing web-based client intake surveys, tax analytics, auto-populated IRS forms, and a portal that allows the client to effortlessly exchange information and documents with their advisor.
"We are fundamentally rethinking how taxpayers currently interact with their advisors and how we can improve that experience for both parties," said Canopy Founder and CEO Kurt Avarell, a former tax attorney. âTraditionally, tax advisors send their clients a bunch of paperwork to fill out and then they manually key that client's written responses into their tax software. That's not a great experience for either person. Canopy moves the experience online and eliminates the inefficiencies.â
Canopy was launched in limited beta in March 2014 and currently has thousands of users.