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 Peek.com, 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.