InScope Raises $14.5 Million to Make Financial Reporting Easier
Every year, finance teams around the world face a period of high stress. This time is often called “audit season.” During these months, accountants work long hours to make sure every penny is accounted for. However, the tools they use are often old and slow. This is exactly why a startup called InScope has stepped in. Recently, InScope announced that it raised $14.5 million in a new round of funding. Their goal is simple: they want to solve the big pain of financial reporting using smart technology.
In this article, we will look at how InScope plans to change the world of accounting. We will explore why financial reporting is so hard today and how this new investment will help the company grow. More importantly, we will see how artificial intelligence (AI) is finally coming to the back office of big businesses.
The Huge Problem with Old-School Accounting
For many people, accounting seems like it should be easy in the digital age. We have computers, spreadsheets, and the internet. Nevertheless, the reality for a Chief Financial Officer (CFO) is very different. Most large companies use many different systems to track their money. For example, they might use one system for sales, another for payroll, and a third for bank records. Because these systems do not always talk to each other, the finance team has to move data by hand.
This manual work causes several problems. First of all, it is very slow. It can take weeks or even months to close the books at the end of the year. Secondly, it is easy to make mistakes. When a human has to type numbers from one spreadsheet into another, errors happen. Finally, it is very expensive. Companies spend millions of dollars on outside auditors and consultants just to check their work. Because of these issues, finance teams are often stuck looking at the past instead of planning for the future.
Why Manual Reporting Is a Pain
- It takes too much time away from important strategy work.
- Human errors can lead to big financial penalties.
- The stress often leads to “burnout” for talented accountants.
- Data is usually out of date by the time the report is finished.
InScope saw these problems and decided there had to be a better way. Instead of relying on people to move data, they built a platform that does it automatically. Consequently, the finance team can focus on what the numbers actually mean rather than just trying to find them.
Enter InScope: A Smarter Way to Handle Numbers
InScope is a platform designed to automate the creation of financial statements. Think of it as a smart brain that sits on top of all a company’s financial data. It connects to various sources, pulls the information together, and organizes it according to accounting rules. This process is known as “financial reporting,” and it is required for every major company to stay in business.
In addition to just moving data, InScope uses artificial intelligence to understand it. For instance, the software can look at a transaction and know exactly where it should go on a balance sheet. Furthermore, it can flag things that look wrong. If a number seems out of place, the system alerts the user before the report is even finished. This proactive approach saves a huge amount of time during the audit process.
How the Technology Works
The core of InScope’s technology is its ability to handle “unstructured data.” In simple terms, not all financial information looks the same. Some data might be in a PDF, while other data is in a messy Excel file. InScope’s AI can read these different formats and turn them into a clean, standard report. Because of this, companies do not have to change how they work to use the platform. InScope fits into their existing workflow and makes it better.
Another great feature is real-time updates. Traditionally, a company only knows its full financial health once a month or once a quarter. However, with InScope, the reports can be updated almost instantly. This gives leaders the power to make decisions based on what is happening right now, not what happened six weeks ago.
Where the $14.5 Million Funding Will Go
Raising $14.5 million is a big milestone for any startup. This Series A round was led by Lightspeed Venture Partners, a well-known investment firm. But what will InScope do with all that money? According to the company leaders, the funds will be used for three main things.
First, they plan to hire more experts. This includes both software engineers and accounting specialists. By combining these two types of talent, InScope can ensure their software is both technically advanced and legally accurate. Secondly, they want to expand their sales and marketing efforts. They want more companies to know that there is an alternative to the “manual nightmare” of traditional reporting.
Lastly, the money will go toward research and development. The world of AI is moving very fast. InScope wants to stay ahead by adding new features, such as better forecasting tools and more integrations with popular business software. As a result, they hope to become the primary tool for every modern finance department.
The Benefits for Finance Teams
When a company starts using InScope, the change is often felt immediately. One of the biggest benefits is the reduction in “audit friction.” When external auditors come to check a company’s books, they ask hundreds of questions. They want to see the “source” of every number. InScope keeps a clear digital trail of every transaction. Therefore, when the auditors arrive, the finance team can simply give them access to the platform. This can turn a process that used to take months into something that takes just a few days.
Another benefit is employee happiness. Most accountants did not go to school just to copy and paste data into spreadsheets. They want to help businesses grow. By taking away the boring tasks, InScope allows these professionals to do more meaningful work. In turn, this helps companies keep their best employees for longer.
Key Advantages of Automation
- Higher accuracy in financial disclosures.
- Significant reduction in audit fees and consultant costs.
- Faster closing of monthly and yearly books.
- Better compliance with complex accounting standards like GAAP.
The Future of AI in the Finance Office
For a long time, the “Front Office” (sales and marketing) got all the best technology. Meanwhile, the “Back Office” (accounting and HR) was left behind. But now, that is changing. We are seeing a new wave of startups like InScope that focus on the “unsexy” parts of business. While these parts might not be as flashy as a new social media app, they are the foundation of the global economy.
In the future, we can expect financial reporting to become almost invisible. Instead of being a “project” that happens at the end of the year, it will be a continuous process that happens in the background. AI will handle the routine tasks, and humans will only step in to handle the most complex and subjective decisions. Because InScope is at the forefront of this movement, they are well-positioned to lead the market for years to come.
Moreover, as more companies go global, the rules of accounting become even more complicated. Different countries have different laws. AI is perfect for this because it can learn all the different rules and apply them correctly every time. This reduces the risk for companies expanding into new markets.
Conclusion
To sum up, InScope’s $14.5 million funding is a clear sign that the world is ready for a change in financial reporting. The old way of doing things is simply too slow and too risky for the modern world. By using AI to automate the painful parts of accounting, InScope is giving time and confidence back to finance teams everywhere.
While the transition to AI might seem scary to some, it is actually a huge opportunity. It allows accountants to move from being “historians” to being “strategic partners.” As InScope continues to grow and improve its platform, we can expect to see more companies saying goodbye to the stress of audit season and hello to a more efficient, accurate future. In the end, solving the pain of financial reporting isn’t just about the numbers—it is about helping businesses run better so they can focus on their mission.
Whether you are a CFO looking for a better way to manage your books or an investor watching the next big thing in fintech, InScope is definitely a company to watch. With fresh capital and a clear vision, they are well on their way to making manual financial reporting a thing of the past.
Meta Description: InScope raises $14.5M to automate financial reporting. Learn how this AI platform solves accounting pain, speeds up audits, and helps finance teams.