Preparing financial statements can be a daunting task, even for those without an accounting background. The intricate nature of this process is evident to anyone who has reviewed documents like 10-K or 10-Q reports.
While established platforms such as Workiva and Donnelley Financial Solutions strive to simplify financial reporting, seasoned accountants Mary Antony and Kelsey Gootnick encountered persistent manual challenges within these systems.
The two professionals first crossed paths at Flexport seven years ago, where Gootnick held the position of controller and Antony was the assistant controller. Despite moving on to different companies--Antony to Miro and Gootnick to Hopin and Thrive Global--they maintained their connection.
Throughout their careers, they consistently faced the same manual obstacles. "Financial statements often come together through a patchwork of spreadsheets and Word documents, shared via email," Antony explained.
In 2023, the duo launched InScope, an innovative AI-driven platform designed to automate numerous aspects of the financial reporting process for companies and accounting firms. Recently, InScope successfully raised $14.5 million in Series A funding, led by Norwest, with contributions from Storm Ventures and existing supporters Better Tomorrow Ventures and Lightspeed Venture Partners.
While InScope is not yet fully automating the creation of income statements and balance sheets, it significantly reduces manual tasks, such as math verification and formatting. Antony, the CEO, noted that ensuring consistent placement of dollar signs and commas can save accountants up to 20% of their time.
Over the past year, InScope has expanded its customer base fivefold, attracting major accounting firms like CohnReznick, which ranks among the top 15 firms nationally.
Although it may take time for accountants--who typically exhibit a risk-averse nature--to embrace full AI automation in financial statement preparation, this remains InScope's long-term vision.
Sean Jacobsohn, a partner at Norwest, shared that his investment in InScope stemmed from hearing feedback from multiple clients about the time-saving benefits of the platform. He believes InScope is unique, as few founders possess the necessary expertise to innovate in the financial reporting sector.
"This is a complex field, and understanding the buyer's perspective is crucial," he remarked. Antony concurs, acknowledging that accountants are not typically inclined to start their own ventures. However, she and Gootnick have honed their entrepreneurial skills through years in dynamic, high-growth startup environments.
