Organizing the paying of one’s taxes, compiling accounting information, creating expense reports have all become much easier through the real time – with or without connectivity – application of Exaccta. The CEO of Exaccta, Carlos Tapiador, shares with KITE Invest the trajectory of how his startup has found its rhythm and is showing great growth and expansion potential.
KITE Invest: Please briefly explain how Exaccta works and what was the catalyst behind the creation of Exaccta?
Carlos Tapiador: Exaccta has developed unique and innovating mobile solutions directed to SME´s and self-employed workers (Exaccta TAX) and medium and big Companies (Exaccta XPENS).
With Exaccta you take a simple picture of your invoices and tickets, with your smartphone or tablet, touch the image on the screen and your accounting and quarterly tax duties, or your expense reports, are generated automatically and in real time in your mobile device, with or without connectivity.
The main differences to highlight are that Exaccta is 100% scalable, does not need any human intervention, our Apps are extremely intuitive and very easy to use.
Exaccta is multi-device and multi-language. Data and images are always synchronized in all your devices and your private cloud.
Exaccta TAX and Exaccta XPENS are certified and approved by the Spanish Tax Agency and it is not necessary to keep the documents in paper any longer.
KITE: Exaccta’s product portfolio includes: Exaccta TAX and Exaccta XPENS. Please explain these two products and how they cater to the various needs of those who they are directed to.
CT: With Exaccta TAX the accounting and the tax duties are generated based on the user’s tax profile and circumstances, and without any human intervention.
Exaccta TAX improves management, access to information and saves costs and time, both for the accounting consultants as for the self-employed workers and SMEs.
With Exaccta TAX the traditional problems of the users and accounting advisors are solved:
1). There is no longer any need to introduce data and the figures manually. Data can be exported automatically in accounting format into any Accounting ERP in the market.
2). There is no longer any need to receive the documents in paper, manipulate them, and file them for several years. The image serves as tax proof.
3). Data is available in real time in the cloud, so both the Advisors and the SMEs can introduce all the information in real time through their private web at www.exaccta.com. Peak workloads in tax periods disappear.
Our main aim with Exaccta TAX is to lead the market of mobile solutions for SME´s, entrepreneurs and self-employed workers. There is no other App such as Exaccta TAX in the Spanish or other international Markets. The App is based on in-house developed technology, Certified by the Spanish Tax Authorities, and protected by Patents.
Our other mobile solution, our APP Exaccta XPENS, through our same technology, generates the Expense Reports of the employees of medium and large companies, just by taking pictures of their expenses, invoices and tickets. Exaccta XPENS includes an environment for the Management of the Expense Reports, cost allocation to different cost units, multicurrency, management and approval of the images captured by employees, etc. This way, a lot of time and costs are saved.
The employee can take pictures at any moment and forget about keeping the paper documents and entering the data to spreadsheets. The company, no longer needs to manage the expense reports as they receive them in real time as they are already accounted and thus, do not need to keep paper documents and store them for years.
KITE: Should we anticipate the launch of any other products in the near future? To this regard, could you highlight Exaccta’s short-term business plan.
CT: We are working on our 2.0 version that will incorporate new and useful features to our current Apps, making them even more intuitive and powerful.
Our focus for the short-term is on the Apps we already have by gaining market share, closing agreements and concentrating on the internationalization of the company.
There is a clear interest for our applications and we have to take advantage of the novelty before competitors starts to penetrate the market.
KITE: The company has recently been on a winning streak with being named the winner of the EU Startup Accelerator Award and the X Madri+d Award for Best Spanish Tech Company. Moreover, Exaccta just signed a partnership with Spanish mobile leader: Telefonica. Please shed light on Exaccta and Telefonica’s partnership. In addition to this, what else gives Exaccta a competitive advantage?
CT: Telefonica and Exaccta have signed an agreement through which Telefonica is offering Exaccta TAX to its SME’s and self-employed workers and customers (1.5 million segmented) at the best price on the market. Exaccta TAX and Telefonica have integrated the whole contracting process so that Telefonica’s customers who download Exaccta TAX are charged a monthly single invoice with the other phone services.
Also, Exaccta has signed an important agreement with the main and most prestigious professional association of the Accounting Sector, “Gestores Admisnitrativos,” with over 24,000 associates. Exaccta TAX and G.A. will provide services for the associates through the Exaccta GA App. This App will include the geo-location of the associated advisories, and from which users can hire value-added services through GA’s associates.
Additionally, we just came back from Rome as we were selected by Ernst & Young to be among the seven best startups in Europe to compete at the “Accelerating Tech Entrepreneurs Challenge”. We were one of the three startups that made it to the final stage. The audience was amazed about our technology and how we were able to convert something boring and difficult into something easy and intuitive. We made really good contacts and it was a great experience.
KITE: Where is Exaccta currently available? What markets is the company looking topenetrate, and will the application have to be altered to meet the requirements of said countries’ respective tax agencies? Will Exaccta be looking for global partners, like it has with Telefonica?
CT: Exaccta XPENS is available worldwide and can be downloaded from AppStore or Google Play and it does not need any adaptation.
Actually, we have been contacted by companies worldwide that are interested in distributing our Apps. We are developing a network of third party distributors and integrators, and strategic Partners both in Spain and internationally.
Exaccta TAX needs to be adapted to the tax system of each country. The adaptation takes between 3-4 months and this is the reason for why we just started a new funding phase for financing the adaptation to six European countries this year.
KITE: In terms of funding & financing, Exaccta has already done considerably well for a young company, and is now on to the next step, which is looking for financing for the internationalization of Exaccta. Where is Exaccta at the moment in terms of it funding phase? What are the financing parameters and what is the Return on Investment?
CT: We are looking for €2M, and part (50-70%) will be financed by European funds through a shareholder loan.
The team is formed by several “serial entrepreneurs”: Tax experts, economists, computer and IT engineers, Sales and Marketing experts etc., so we are a large multidisciplinary team with extensive experience and dedicated full time to the project. Part of the team members have created in the past online accounting platforms that provided intuitive services online. Among others, the first intuitive tax and accounting online platform later bought by a major bank.
With Exaccta, the goal was to go one step further being able to have all the information in real time in the mobile device without human intervention. The information is converted into accounting in real time, even the tax models, and the data does not have to travel to a back office. With Exaccta all is generated automatically and easily thanks to the innovative homograph algorithms we have developed and patented.
KITE: Why is Exaccta a good investment?
CT: We have developed and patented our own technology and we do not rely on third parties.
We have permanent R&D planning with development of new and powerful features.
The business opportunity is based on the need for all businesses today, to incorporate mobility technology and improve their approval and management processes of the Expense Reports.
Exaccta is an application for mobility; it does not require human intervention and is a 100% scalable business. We can grow in users without needing more human resources. The images and data are on the mobile device and in the cloud.
There is no other application like Exaccta TAX in the market at this moment, neither in Spain nor in other countries.
Exaccta XPENS has competitors but their applications are not as intuitive, do not work without connectivity and the images are received in a back office where the information is checked and manipulated and sent back to the user. With XPENS all the images are automatically processed and available in real time and without human intervention after taking the picture.
It is attractive to investors because it is 100% scalable, with low operating costs and a high return on investment (over 70% in this round).