InScope Raises $14.5M to Revolutionize Financial Reporting Automation

Are you struggling with the complexities of financial reporting? This is a common pain point in organizations, where accountants spend countless hours preparing financial statements manually. InScope, a startup founded by accountants from companies like Flexport, Miro, Hopin, and Thrive Global, aims to solve this problem through automation. Recently, they closed a $14.5 million funding round to accelerate their mission.

Financial reporting isn’t just a routine task; it is critical for transparent business operations, compliance, and decision making. Yet, the process remains rife with inefficiencies and room for error. This article unpacks why financial statement preparation is such a challenge and how InScope’s platform addresses it with cutting-edge automation.

Why Is Financial Reporting Such a Challenge?

Financial reporting involves collecting, verifying, and presenting data from various sources to create accurate statements like balance sheets, income statements, and cash flow reports. These tasks often require cross-functional coordination, repetitive data entry, and rigorous adherence to accounting standards.

Many organizations still rely on manual methods or disjointed tools, akin to patching together a complex jigsaw puzzle with pieces scattered across different rooms. The outcome? Delays, mistakes, and frustrated finance teams.

What Makes Preparing Financial Statements So Painful?

The problem lies in the mixture of data complexity, compliance rules, and the intensive human labor involved. Accountants frequently wrestle with:

• Data inconsistencies from multiple financial systems, requiring manual reconciliation
• Changing regulatory and accounting standards that demand constant updates
• Time pressure to close books monthly or quarterly
• A need for error-free financial disclosures

This combination creates a bottleneck where productivity drops and risks climb.

How Does InScope’s Solution Work?

InScope’s platform leverages automation to simplify these challenges. Founded by accountants who faced these issues firsthand at tech-forward companies, they designed their software to streamline financial statement preparation by:

• Automatically aggregating and reconciling data from multiple sources, reducing manual entry
• Ensuring compliance by embedding up-to-date accounting standards directly into workflows
• Minimizing error through automated checks and validation
• Providing an intuitive interface that guides finance teams through the reporting cycle

By automating repetitive and error-prone steps, the platform frees accountants to focus on analysis rather than data wrangling.

When Should You Consider Using Automated Financial Reporting Tools?

If your finance team is overwhelmed by manual tasks, or if closing books is a prolonged, stressful event, automation can make a meaningful difference. InScope targets organizations at the inflection point where manual methods become unsustainable.

Consider this analogy: manual financial reporting is like cooking a complicated meal without a recipe or timers—you might pull it off, but it’s stressful, error-prone, and time-consuming. Automation acts like having a step-by-step guide and smart kitchen appliances to streamline the process.

What Are the Real-World Results From Implementing InScope?

Though still early in its growth phase, InScope’s solution has demonstrated tangible benefits, such as:

• Faster closing cycles, reducing the financial reporting time by days or weeks
• Improved accuracy, lowering the risk of compliance issues or restatements
• Greater visibility and control for CFOs and finance managers
• Reduced burnout among accounting staff through elimination of repetitive work

The involvement of experienced accountants who designed the product ensures practical and relevant features that meet actual user needs.

What Are the Trade-Offs of Financial Reporting Automation?

While automation boosts efficiency, it requires a commitment to integrating new tools and possibly adjusting existing workflows. Finance teams must balance the upfront implementation effort against long-term gains.

Moreover, automation doesn’t replace the critical judgment needed for financial analysis—it augments it. Organizations should ensure their teams remain engaged with data insights rather than becoming overly dependent on black-box outputs.

How Can You Quickly Evaluate If InScope Fits Your Needs?

Set aside 15 to 20 minutes to assess your current financial reporting process with this checklist:

• Identify repetitive manual tasks consuming time during close cycles
• Check for frequent data inconsistencies that require manual reconciliation
• Review how often compliance issues delay or complicate reporting
• Consider staff feedback: is burnout or frustration high around financial close?

If you answered “yes” to multiple points, evaluating InScope or similar automation tools deserves immediate priority.

InScope’s recent $14.5M funding round underlines the growing demand for smarter financial reporting solutions. For accounting teams ready to reduce friction and focus on strategic value, their approach offers a promising path forward.