Online Accounting Software firm Reachaccountant.com has raised an undisclosed amount in its initial round of funding from angel investors Rajan Anandan and Rehan Yar Khan. The startup intends to use the money to expand its operations.

Reachaccountant.com offers an online accounting software which imports transactions from bank current accounts, and categorizes transactions automatically. It also offers access to a team of accountants to assist small and medium businesses with tax and accounting related processes and legal compliances.

Pricing Model: Reachaccountant.com currently offers three different pricing models – One can buy the application alone for Rs 1000/month, hire an accountant with the application for Rs 2000/month to file returns (Service Tax, TDS, VAT) or hire a chartered accountant to file Income Tax returns and annual accounts with the Registrar of Companies (RoC), along with an accountant and the application for Rs 3000/month.

The company claims that over 1000 small and medium businesses in Chennai and Bangalore are currently using Reachaccountant.com and over 5000 transactions are being handled by it, per day .

Competition: Incubated by the Morpheus Venture Partners in July 2009, ReachAccountant competes with the likes of Zoho Books, FreshBooks, Outright, Intuit’s QuickBooks and traditional accounting software like Tally.