Canopy has secured new funding, hired a new CEO and emphasized its plans to development practice management software. And the company this week said its plans for marketing a tax preparation software package are delayed, not cancelled.


It will also develop a new tax resolution product aimed at a broader market and a client tax organizer.

The news follows two rounds of deep layoffs and the departure of CEO and founder Kurt Avarell. The company declined to specify the size of the latest layoffs but said it has at least100 employees

This week, Canopy said it had secured $13 million in funding—$8 million in funding from NewView Capital, Pelion Venture Partners and Tenaya Capital and $5 million in debt financings

At the same time, the software company said it had hired Davis Bell. In a conference call this week, Bell said among his goals “the big thing is to focus on practice management.” He joins Canopy from, where he was VP of operations for the Utah office from April 2018 until taking the new position.

However, Canopy has not abandoned plans for a tax prep package and for the moment has moved that into a private beta. Information about the overall plans for the tax software are still on the company web site on a page labelled “See What the Next Generation of Tax Software Looks Like”.

“We are going to keep the lights on.  We have taken it off from pubic consumption while we work on further breadth and depth of the product,” said chief revenue officer Jordan Ray.

 A client organizer is also on the horizon in the next six months. Ray said the product will be accessible initially on the desktop through the company’s client portal.

Plans are for adding features such as time tracking to practice management over the next six to 12 months. The company will bolster project management to show working on what, who is hitting deadline,” says Ray.

Also planned is another tax resolution product. The first was designed more for firms specializing in collections and offers-in-compromise. The next product will offer a streamlined applications to meet the needs of a market which is seeing an increasing volume of notices as the Internal Revenue Service grapples with funding woes.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Wednesday, 11 December 2019
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