NEW DELHI: Gurugram-based fintech startup HostBooks has seen a significant growth in its financial management services during the ongoing COVID-19 pandemic. The introduction of GST has made easy, simplified account-keeping a critical must for most entrepreneurs, observes Kapil Rana, founder and chairman, HostBooks in an interview with The New Indian Express. Digital account-keeping and storage are crucial tools in this new system and SMEs have to take advantage of that, he adds.
What are the problems faced by small businesses with regards to filings. Especially GST returns?
With the introduction of GST, the taxation system has evolved significantly, everything has now moved to online system including return filing, reconciliation and assessment. The billing and invoicing system has changed with the concept of e-invoice and digitally backtracking of transactions. The mapping & matching concept and online GST regime made it impossible to be compliant in old paper filing and here the role comes for an efficient all-in-one solution like HostBooks.
For SME business, HostBooks automates everything like billing, purchases recording, matching, filing single click GST returns, pooling all bank accounts, handles books of accounts, reports inventory, income tax, TDS, point-of-sale so on and so forth. The Inbuilt document management system, the Business intelligence tool and its ability to process & manage data on the fly anywhere anytime empowers a business to be self- driven. It automates banked business processes, reduces compliance burdens hence saves time and money for the business.
SMEs are facing serious financial issues because of the COVID-19 pandemic...
SME’s have been the most affected in their business during this COVID pandemic. They are trying hard to bring back the efficiency in the 4P’s i.e. Product (service), Profitability, Placement, Positioning which has been severely disrupted due to this pandemic. Quick adoption of a strong, agile, sophisticated and automated digital backbone system will accelerate the recovery and possibly growth. With the informal cash business drying out, the only option left with the SMEs is to be compliant and bank on the formal institutional lending option from banks and FII for their working capital needs.
How big is the market and how is HostBooks doing?
The SME market is huge and a significant part of them are digitally unserved. Hence, the market is huge and we see immense business potential. Presently,we are serving ~51,000 users through the platform, ~30% of which we added during this pandemic. We have grown strongly in terms of our monthly run-rate and have a strong business plan to serve 2 million in the next 3 years.