The pandemic brought to the forefront a new wave of digitization which posed a unique set of survival challenges for small business owners and entrepreneurs at large. From hindered operations to accessing financial data, the absence of digital presence proved costly. The recent COVID situation has helped business owners realize that systems and software, especially for invoicing and accounting should not be location dependent. Data from a recent report by Instamojo titled, ‘Indian E-commerce Outlook Report 2021’, reported that the preference for e-invoicing and single-platform automation are emerging to be the most preferred modes for business operations by micro-businesses and new-age entrepreneurs.
The report states that around 90% of the business owners do not come from accounting backgrounds. Having realized the ease brought in by the digital shift, businesses now look for accounting software, that is not only user-friendly and feature-rich, but also affordable in terms of cost of ownership. Today, business owners want the financial data to be easily accessible especially from their smartphones or laptops. Data from the report shows close to a 125% increase in the usage of email invoices and a 150% increase in usage of invoices with payment links, indicating that businesses owners prefer integrated accounting software over isolated offline software.
The report also highlights the increasing preference for business automation which includes an integrated solutions platforms that brings in multiple applications under one roof, thus ensuring ease of use for business operations. Businesses are more focused in getting work done efficiently, with minimal duplication. Easy automations replacing the use of multiple applications with a single integrated offering will help save time, money and efforts.
Sharing his thoughts on the relevance and need for e-accounting and business automation solutions, Akash Gehani, Co-Founder & COO, Instamojo commented, “We are already seeing a major change in data collection and processing, including tech being used to establish an individual’s identity through linking of government documents. The same is mirrored in business operations too. Small businesses are increasingly becoming tech-savvy, in terms of operations, and we find this to be a positive indicator towards building a tech-capable nation. Businesses are today adopting digital modes, not just for operations, but other critical aspects such as accounting, and invoicing. Additionally, with the government’s recent announcement on the filing of e-invoices for businesses over Rs.50 crore, there will be an increase in the number of businesses taking to digital means of accounting, this in turn contributing to the larger picture of Digital India. At Instamojo, we have always worked towards supporting the growth of the MSME sector through digital solutions, from payments to e-invoicing to e-commerce”.