Anushruti Singh
In an era where efficiency and compliance are paramount, many Micro, Small, and Medium Enterprises (MSMEs) still rely on outdated pen-and-paper methods for billing and inventory management. These traditional methods are slow, error-prone, and inadequate in today’s fast-paced business landscape. According to a survey by Borzo, 11 per cent of MSMEs see inventory management as a challenge. However, due to government initiatives like Atmanirbhar Bharat, Vocal for Local, Start-up India, and Digital India, there’s a significant push to empower small businesses to improve their market access and modernise their operations. Additionally, the adoption of GST, e-invoicing, and e-way bills highlights the push for a more compliant ecosystem.
CaptainBiz is at the forefront of this transformation. The company, founded in 2018 offers an all-in-one fintech SaaS platform specifically designed for GST billing, tailored to the unique needs of MSMEs. This revolutionary solution aims to streamline financial operations, manage inventory efficiently, ensure prompt payments, and keep operations running smoothly.
In this exclusive interview with SME Futures, Yashraj Vakil, CEO of CaptainBiz, shares his insights on how the platform is helping MSMEs break free from tedious paperwork and compliance issues. He explains how digital solutions can change the growth path for Indian MSMEs.
Edited excerpts:
How does digital billing software help MSMEs?
When it comes to billing, creating a bill on a Word document or Excel sheet is not truly digital — it is simply replicating the paper-based process in a digital format. This approach limits you to basic bill creation without leveraging the full potential of digital tools.
This is where dedicated billing software makes a significant difference. Digital billing software not only generates bills but also maintains comprehensive transaction records and helps manage inventory efficiently. It provides businesses with a clear view of their financial health, enabling them to monitor cash flows, track payments, and stay informed about inventory levels.
With all data digitally recorded, transparency within the financial system is enhanced. CaptainBiz automatically updates GSTN reports based on recorded transactions, minimising manual errors in reporting. Users can easily download sales reports, cash-in/cash-out reports, and GSTN reports as needed and file taxes promptly, ensuring compliance and avoiding penalties. Additionally, having organised financial records simplifies responding to GST notices related to past transactions.
By structuring financial records through digital billing software, MSMEs gain improved access to formal finance sources, reducing reliance on informal lenders or family support to meet credit needs.
Since you also aid MSMEs with solutions to manage their billing and inventories, how are you different from others in the market?
Many small businesses struggle to find suitable billing software, as most enterprise and professional-level solutions are geared towards larger companies and CAs. This leaves smaller players feeling lost, especially since many of these MSMEs lack technical expertise and may not even own a computer.
CaptainBiz addresses these challenges with easy-to-use software accessible via web browsers and mobile devices (Android and iOS). Being a cloud-based product, it ensures real-time synchronisation across devices, empowering entrepreneurs to manage billing, assess sales performance, and handle inventory remotely.
Our subscription options are tailored to diverse business needs, offering flexibility from three-month plans for seasonal businesses to longer commitments of five or ten years. For just Rs 10 per day, businesses gain access to features like customisable invoices, e-invoicing, WhatsApp integration, and real-time inventory tracking for optimised stock management, along with essential reports for tax, financial, and sales management.
To enhance accessibility and support, we have established an on-ground sales and onboarding team that covers 600+ locations, assisting businesses in selecting the right plan for their digital transition. Our multilingual customer service team, fluent in eight major Indian languages besides English and Hindi, provides remote guidance on setup and platform usage post-onboarding. Our goal is to expand our reach to over 5,000 locations by March 2025, aiming for a tenfold growth next year. This expansion goes beyond numbers—it reflects our dedication to optimising the financial operations of underserved MSMEs and preparing them for the future across India.
Lastly, CaptainBiz is distinguished as one of the few platforms recommended by GSTN and is recognised for maintaining the highest compliance standards for MSMEs.
What are the major challenges you face when you ask businesses to digitise their billing and inventory?
The major challenges we encounter when encouraging businesses to digitise their billing and inventory processes often stem from deeply ingrained traditional practices. Many small businesses have relied on pen-and-paper methods for generations, which makes embracing digital tools a significant mindset shift. Our primary task is to effectively communicate the transformative benefits of digitisation.
Once businesses understand the advantages—such as increased efficiency, streamlined operations, improved scalability, and enhanced accuracy—it becomes a game-changer for them. However, bridging this gap requires personalised support and guidance.
Our sales and customer service teams provide hands-on assistance, ensuring businesses feel supported and empowered throughout their digital transition. This relationship-driven sales strategy helps us build trust and facilitate successful onboarding onto our digital platform.
How can digitisation help MSMEs streamline operations and enhance productivity?
According to FICCI, digitisation can significantly reduce operational costs by up to 20% while enhancing overall productivity. However, with 64 million MSMEs, mainly micro, adopting digital payments represents the tip of the iceberg in their digital journey. Hence, digitisation is no longer optional. It is a need to thrive in today’s dynamic ecosystem.
MSMEs can leverage smart billing management and inventory management tools, such as CaptainBiz to streamline financial processes and optimise stock management for sustainable growth. However, digital tools extend beyond billing management—they encompass cloud-based collaboration platforms, CRM systems, HRMS, and supply chain management tools to improve efficiency and foster meaningful customer interactions.
To expand their digital footprint, MSMEs can tap into e-commerce platforms or sign up on the Open Network for Digital Commerce (ONDC) platforms to broaden market reach and enhance online visibility. These platforms not only provide scalable e-commerce solutions but also offer valuable upskilling programmes, empowering MSMEs to thrive in the digital economy.
Furthermore, exploring diverse funding avenues beyond traditional sources is pivotal for sustained growth. Options like invoice discounting through TReDs, PoS-based financing, and supply-chain financing offer flexible solutions for short-term needs. Initiatives such as the Ubharte Sitaare Fund play a critical role in supporting MSMEs with sustainable and scalable business models, fostering long-term success.
What are the challenges MSMEs face when opting to start their digital journey?
Many perceive cost as the primary barrier preventing MSMEs from digitising. However, the true challenge lies in the ‘lack of know-how,’ which drives up costs. In most cases, MSME entrepreneurs wear multiple hats and juggle various roles. However, they are not necessarily tech experts. For instance, consider a small business in a tier-3 town that signs up for an advanced ERP system. They not only need to invest in the system itself but also in human resources to operate it effectively, along with tax professionals to manage tax filings.
The critical question MSMEs must ask themselves is whether they require a feature-rich ERP system for overall financial management or if a smart invoicing system that tracks receivables, payables, and inventory status would suffice. Once businesses identify their specific goals and requirements, selecting the right digital tools becomes much easier. Opting for tools that align with their needs minimises the necessity for additional human resources and ensures a more efficient digital transition.
In an evolutionary regulatory environment, how can MSMEs stay ahead of the game?
The key to staying ahead of the game for MSMEs lies in leveraging technology—a timeless solution that continues to drive innovation and efficiency. At CaptainBiz, we are committed to empowering MSMEs with cutting-edge tools and support to thrive in this dynamic landscape.
Firstly, as a GSTN-empanelled product, we provide MSMEs with the flexibility to obtain critical reports such as GSTR1, GSTR3B, and GSTR4 in Excel format. This ensures convenience and compatibility with their preferred workflow, allowing them to manage GST filings independently or seamlessly collaborate with tax professionals.
Secondly, our platform is designed to evolve alongside the ever-changing GST landscape. By continuously updating and enhancing our features, we ensure that MSMEs can maintain compliance effortlessly, without the need for constant adjustments or external assistance. Lastly, we leverage in-app notifications to keep our users informed about the latest regulatory updates. These proactive notifications serve as real-time alerts, enabling MSMEs to stay abreast of any changes that may impact their operations. This empowers them to make informed decisions promptly and adapt their strategies accordingly.
By embracing technology-driven solutions, MSMEs can not only navigate regulatory complexities but also leverage them as opportunities for growth and innovation. It is about equipping businesses with the tools and insights they need to stay ahead in an ever-evolving regulatory landscape. Together, we can empower MSMEs to thrive and succeed in the digital era.
