Reach Accountant targets 15K paid users in three years | SupportBiz

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Reach Accountant targets 15K paid users in three years

One crore small to midsize companies file tax returns in India and 80 percent employ fewer than 10 people. Filing returns is not easy and eight out of ten firms miss deadlines for service tax, income tax and value added tax every month. Online accounting software maker Reach Process Outsourcing’s flagship product can solve their problem, said founder Robin Moses.

Reach Accountant has 1,000 paid users as on date, most of whom are founders and CEOs of smaller companies. “Our software-as-a-service (SAAS) doubly entry accounting platform eliminates the need for an in-house accountant and desktop accounting software, especially if you run a small company,” Moses said.  

The company is targeting 15,000 paid users in three years and plans to raise funds to market the product, Moses said. Venture capital firms interested in Internet, mobile or SAAS businesses would be ideal investors, he said. Excerpts from the interview:

On potential customers…

Smaller firms in India can be categorized into three groups – firms with 100 employees or more who use a customized enterprise resource planning (ERP) software; firms with around 25 employees who use a paid-version of Tally and employ an accountant; firms that employ fewer than 10 people and use a pirated version of Tally or maintain records on Excel sheets and send the same to a tax consultant every month.

The third group is a huge potential customer base for us.

On pricing…

Reach Accountant comes with three price plans. The lowest priced plan gives users access to the application only; while at the higher end users can touch base with a tax consultant and chartered accountant while using the application.

On their USP…

The application connects to customers bank accounts and downloads transactions in real time. Accounting entries are passed automatically. The application allows an auditor to view a company’s accounts in real-time.

On data safety…

Data is backed up every 24 hours. Firm would not loose data older than one day.

On challenges in their business…

We bank on renewals. In India, you are not allowed to automatically charge existing customers’ credit cards every month. We are forced to collect money from customers annually, as opposed to doing the same monthly.

Any SAAS business in India depends more, up to 80 percent, on services for revenue. Users, and not just customers, are key to growing the business here. It is the inverse outside India. Getting customers to adopt a SAAS product and training them to use it are challenges here.

Advice to entrepreneurs…

India is a huge market and there is a lot of room for competition. Any SAAS business has to solve a ‘simple’ problem and companies have to be persistent to do this.