Cloud tax practice management platform startup Canopy Tax Inc. today announced it has raised $35 million in new funding to accelerate its mission to become the default operating system for accounting firms.

Ten Coves Capital led the Series BB round. Also participating in the round were NewView Capital, Pelion Partners, Tenaya Capital and Ankona Capital.

Including the new funding, Canopy has raised $147.5 million to date, including a previous round of $11 million in June. Previous investors include Nyca Partners, New Enterprise Associates, University Growth Fund and EPIC Ventures.

Founded in 2014, Canopy offers cloud-based software designed to manage tax practitioners’ tax workflow. The company’s software is designed to streamline tax resolution for tax professionals with easy-to-use software that cuts out “tax practice busywork” and enables efficient client experience.

The software offers a practice management suite that includes modules for client management, document management, workflow and time and billing, particularly with larger firms. Services include the ability to respond quickly to every U.S. Internal Revenue Service notice sent, with step-by-step task lists to make sure they are responded to actively. The software also includes integrations with Quickbooks, Office 365, Google G Suite, Zapier, Open API and Desktop Assistant.

Canopy says that its offering helps address a growing talent shortage where certified practicing accounts must do the same amount of work with fewer people. The company notes that a recent study from the National Association of State Treasurers Foundation found online job postings for accounting and finance positions surged 84% between 2016 and 2020. At the same time, accountants are greying, with an estimated 31% of the finance and accounting workforce over the age of 55 and 60% over the age of 45. As such, the industry is likely to face waves of retirement over the coming years.

“Canopy is focused on providing accounting firms a better way to manage their clients, their work and optimize the productivity of their practices,” Davis Bell, chief executive officer of Canopy, said in a statement. “Modern accounting firms need cloud-based, user-friendly, mobile-accessible software that provides an integrated and holistic approach to managing their clients and work.”

Image: Canopy