Accounting, Administrative Hurdles Solved By Software SolutionsBy Miriam Bello | Thu, 11/26/2020 - 17:32
Q: How does CONTPAQi innovate traditional processes for companies?
A: We have 36 years of experience in the market. CONTPAQi’s core is innovation and that is how our accounting software was born. We developed software to support and improve accountants’ operations through online transaction options with a date structure that enabled the efficient use of information. The success of this product drove us to develop other innovative products for SMEs’ administrative processes. We have incorporated cloud services and have worked alongside clients to help them join the digital transformation.
Technology is a tool that helps a company join the digital transformation but a true transformation needs to come from a cultural shift among consumers. Before the COVID-19 pandemic, e-commerce transactions were around 20 percent of total sales. Following the outbreak, this market grew to 60 percent for some players. This demonstrates a profound change in consumer behavior, making companies question the strength of their digital presence. Clients are now looking for stores online and if they do not find one, they turn to competitors. Digitalization has created different business models. Amazon, for example, went from selling books to becoming an integral online platform.
Q: How does CONTPAQi adapt to the needs of companies of different sizes?
A: Our primary market is made up of SMEs but we do have larger clients as we offer a robust accounting software. Aside from software services, we support the internal processes of our clients to comply with changes from SAT. This has been an advantage over our competitors because they have been slower in adapting to Mexican legislation. Companies of every size can benefit from digitalization. We have adapted our services to support each client during their transition.
CONTPAQi is present across the country. We have more than 7,000 distributors and 12 offices from Tijuana to Mérida. Our commercial process involves face-to-face and virtual events focused on the digital solution that CONTPAQi provides. Even if a company does not end up buying, we are satisfied to contribute to the evolution of the digital business mindset in Mexico.
Mexico has many entrepreneurs who have grown their businesses to a family company but they are self-taught because our education system does not offer many tools for self-employment. According to the Ministry of Economy, 95 percent of the new companies in Mexico close within the first five years. After the pandemic, that number will be much more pronounced. Banxico estimates that our economy will shrink by almost 10 percent in 2020. For each percentage point that our economy contracts, the country loses around 100,000 jobs.
CONTPAQi conducted a survey of 257 companies from Jalisco, Mexico City and Nuevo Leon and found that 80 percent of those companies have been negatively impacted by the pandemic. Seventeen percent of those companies have maintained their sales and 3 percent have increased their sales. Technology adoption was a common factor among that 3 percent because it enabled companies to transform their sales processes. Eight out of every 10 SMEs were not ready to join the digital transformation and it shows in their negative results.
Q: How do CONTPAQi products increase client productivity?
A: We created the product “CONTPAQi Decide” which is focused on the effectiveness of decision-making. Companies are able to upload their documents to the cloud and create digital dashboards to measure the state of the business. It is an anytime, anywhere solution for phones, tablets and computers. SAT has facilitated digital information and we have taken advantage of that to build dashboards that portray opportunities for each company. The information from CONTPAQi Decide allows companies to monitor KPIs, from best-selling products to where they sell best, in what ways and to which clients.
We have a 2x2 matrix to classify companies, with the vertical axis measuring the level of a company’s power of execution to achieve a digital transformation. The horizontal axis determines the extent of their vision for this transformation. We sort companies depending on where they fall on the matrix. Amateurs do not have an idea or vision to take their business to the digital environment. Digital explorers are companies that have an idea of digitalization but do not know how to materialize it. Digital transformers are those with a high level of execution but no clear vision. Lastly, we have mature companies that have high levels of execution and a clear vision. We have found that just 23 percent of the companies in Mexico are in the mature stage of digitalization.
Q: How do you protect the data you collect from cyberattacks?
A: In Mexico, companies are very naive about their information. I have seen information taken from companies by hackers asking for a bitcoin ransom totaling a million dollars. Cybersecurity is a necessity for companies and also people because identity theft is also very common. People in Mexico are not cautious when giving out personal information through phone or email, which often results in bank fraud. To protect our information and that of our clients, we have the ISO 27000-1 certification. We also comply with additional SAT requirements because we are authorized certification providers.
Q: What other services is CONTPAQi planning to introduce?
A: Aside from CONTPAQi Decide, we are launching a program called COBRA, which is a collection application to support companies in this process. COBRA tackles the most important process of a sale. We found a way to depersonalize collection through mail and SMS texts to remind clients about invoices or contract stipulations.
Q: What are the company’s near-term goals?
A: Amid the COVID-19 pandemic, we have increased our sales volume. The investment companies are willing to make in 2021 to join the digital transformation is around MX$102,000 (US$5,000), which creates more opportunities to grow in the market.
CONTPAQi is a pioneer in accounting and administrative software. It manages tools to support a company’s accounting and commercial divisions through productivity and cloud products.