USD 15.07 billion
Accounting Software Market Size, Share, Growth Analysis, By Type(Spreadsheets, Payroll Management, Billing & Invoice, Commercial Accounting, Enterprise Accounting, Custom Accounting Software), Deployment Mode, Component (Solution, Services), End User and Region - Industry Forecast 2024-2031
Report ID:
SQMIG45A2014 |
Region:
Global |
Published Date: June, 2024
Pages:
157
|Tables:
123
|Figures:
77
Accounting Software Market Insights
Accounting Software Market size was valued at USD 15.07 billion in 2022 and is poised to grow from USD 16.28 billion in 2023 to USD 30.18 billion by 2031, growing at a CAGR of 8.02% during the forecast period (2024-2031).
The accounting software solutions facilitate the accounting processes, enable reduced time in the accounting processes, and ensure accuracy in the transactions between the companies and the clients. These systems are intended to improve organizational efficiency through the Human Records storage, automation & integration of Human Resource systems. The use of accounting software in SMEs discourages incorrection stemming from dealing with clients and companies; and spending significant time in achieving the ideal image that is vital in impressing potential and existing clients while at the same time allowing focus on the on SMEs’ special business plan. The growing tendency of SMEs outsourcing their solutions to e-commerce goliaths and other elements, including integrated accounting software, automation of bank feeds, and automated billing options, is expected to significantly contribute to the higher utilization of accounting software over the assessment period. It aids in reducing costs and overseeing every account transaction besides the cash going and coming to the company business. Software has also undergone improvements in terms of being a suitable means for managing the accounts of a given company. The solution is quite versatile in handling account payables, account receivables, business payroll, general ledgers, and other business unit.
It appears that the market has experienced a high level of both vendors with a focus on accounting and those which use cloud’s cost leadership. Furthermore, they have also focused on the even more refined “micro, small and medium” business clients. One of the important trends demonstrated by these new entrants into the accounting software market is the integrating higher functionalities, for instance artificial intelligence functionality into accounting software applications like planning, learning, problem solving and speech recognition capabilities. For instance, an Australia-based tax accounting and other business services software provider provides a solution named MYOB Advisor that provides natural-language descriptions of a firm’s financial context. SME clients of the accountants and bookkeepers can provide input regarding their experience and knowledge of the company to render a specific report. In the same way, it has MYOB Advisor which includes features such as Live updating visualization of cash flow where the advisor can show the client where the cash is going or a view of the top customers which will assist the client in organizing their relations with important clients.
Furthermore, there is the case of many companies creating long term partnership programs with an aim of expanding their market share. in March 2022, GTreasury announced a partnership with Infor. Built on the Azure platform, GTreasury will provide Infor customers with a comprehensive Treasury solution that includes cash management, payments, debt and investment management, risk and exposure management, hedge accounting, and reporting functionality that includes dashboards. The acquisition will merging valuable information of Infor into features of GTreasury thus helping Infor customers to manage cash better. However, for really many nations around the globe have experienced the problem of combating the coronavirus and quarantine and more precise the increased quantity of remote businesses, tiny businesses. This has necessitated the use of more dynamic as well as remote mode of access to the business financial records and systems by the substantive business individuals who are tasked with the responsibility of working on the records as well as those who require the update, timely and accurate financial information to enable them make decision that would enable them manage the financial affairs of the business.
US Accounting Software Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Commercial accounting software
Fastest Growth
Billing & invoice software
Growth Rate
8.02% CAGR
Global Accounting Software Market ($ Bn)
Country Share for North America Region (%)
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Accounting Software Market Segmental Analysis
Global Accounting Software market is segmented by type, deployment mode, component, end user, and region. Based on type, the market is segmented into spreadsheets, payroll management software, billing & invoicing processing software, commercial accounting software, enterprise accounting software, custom accounting software. Based on deployment mode, the market is segmented into on-premise, and cloud-based. Based on component, the market is segmented into solution, and services. Based on End User, the market is segmented into Retail, BFSI, manufacturing, IT & Telecom, government & public sector, energy & utilities, media & entertainment, pharmaceutical & healthcare, others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Accounting Software Market Analysis by Type
The largest segment is the commercial accounting software segment, accounting for the higher percentage of the market share of the accounting software. Certain of these merchandize include integrated financial applications for managing financial data of various businesses, including features like general ledger, accounts payable and receivable, expenditure, and financial statements. The reason for this segment control is based on their availability in many industries and the possibility of easy connection with other organizational systems. The solidity of commercial accounting software and possible expansion provide a sound choice for businesses in need of improving their financial requirements as well as addressing legal norms and requirements.
Cloud-based billing and invoice software is also increasing in popularity and is a rapidly growing segment of the accounting software market. This growth is as a result of more and more cloud technology being integrated into various businesses because it enables real-time working from almost anywhere at comparatively lesser costs. These solutions bring about automation of the invoicing activity, minimize manual error occurrence, and also fasten the cycle of payments, all very essential for assisting the cash flow. This is especially so when you consider the target audience, which comprises small and medium-sized enterprises (SMEs); several of which operations can scale effectively through the use of the cloud-based software that comes with less overhead costs on IT needs. Further to this, as a result of COVID-19 pandemic which forced most companies to adopt the new culture of working from home has seen the need for cloud-based billing and invoicing software, making it essential in the modern business world.
Accounting Software Market Analysis by End User
Banking, Financial Services, and Insurance (BFSI) sector is the largest segment in the accounting software market. The BFSI sector depends heavily on advanced accounting software for managing vast amounts of financial data, confirming regulatory compliance, and showing detailed financial analysis. The need for robust risk management, accurate financial reporting, and seamless transaction processing drives the demand for accounting solutions. Additionally, the BFSI sector’s focus on increasing operational efficiency and improving customer service further bolsters the adoption of sophisticated accounting software.
Retail and e-commerce sector are the fastest growing segment in the accounting software market. This growth is fueled by the rapid expansion of online shopping and the need for efficient inventory management, sales tracking, and real-time financial reporting. Retailers and e-commerce businesses require dynamic accounting solutions to handle high transaction volumes, manage multiple sales channels, and optimize supply chain operations. The integration of accounting software with other business systems such as point-of-sale (POS) and Customer Relationship Management (CRM) enhances data accuracy and decision-making, driving the rapid adoption of these solutions in the retail and e-commerce sector.
Global Accounting Software Market Size By Type (%)
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Accounting Software Market Regional Insights
North America dominated the global market. This high percentage can be explained by the authorities’ increased focus on accepting and implementing various technologies, a strong economy, and the availability of key market players, including QuickBooks, NetSuite, and Microsoft Dynamics 365. Being an integral territory with well-established material infrastructures and increasing emphasis on digital initiatives, it is not surprising that the application of accounting software by various enterprises has become rather popular in the region. Further, the North American business’s keenness on compliance & regulation is an influence for the accurate accounting solutions through which it can ensure compliance with the standards.
However, the Asia Pacific region is estimated to emerge as the most potential market for accounting software during the forecast period. This has been mostly accelerated by the growth of the SMEs in the region as mentioned above. APEC report in 2023 revealed that SMEs account for around 97% of businesses while approximately 50% accounts for employments In the Asia Pacific region. Besides, SMEs contribute about 40-60% of GDP in most Asia-Pacific economies. That is why the results shown here indicate that SMEs have a great opportunity for further development, which will naturally increase the popularity among businesses of applications for accounting. And as these businesses look forward to attaining higher efficiency of operations alongside compliance with rules, standards, and regulations, it is expected that uptake of accounting software will continue to soar thereby fueling the market growth in the Asia Pacific region.
Global Accounting Software Market Size By Geography
- Largest
- Fastest
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Accounting Software Market Dynamics
Accounting Software Market Drivers
Digitization and Automation
- Among the top trends presently boosting the adoption of accounting software is the continuing evolution of the financial industry from paper-based capabilities to software-driven analytical tools. Organizations today have incorporated accounting software in their daily operations for enhanced efficiency due to the limited need for manual entry in tasks such as billing and consolidation. Some of the benefits of cloud-based accounting include; One can obtain real time information about the financial status of the company from any place hence making it easier to make informative decisions. The implementation of cloud accounting also enhance communication as the various stakeholders can view the financial data at any one particular time. Furthermore, the introduction of artificial intelligence and machine learning in the accounting tools also improved the functionality of the accounting software that includes, repertoire of analytics, fraud detection, and tailored financial information.
Globalization and Regulatory Compliance
- In the middle of business globalization, regulation disparities require interpretations and implementation of the laws. To meet this challenge accounting software providers are now quick to represent solutions which can address the various codes governing the diverse region as well as business industries. Companies depend on accurateaccounting to meet all tax laws, financial reporting standards and different regulations from countries around the world; all these complexities are eased by accounting software to minimize the risks of penalties for non-adherence to set regulations. This driver is highly relevant to global companies and organizations across international borders that operate in the sectors that are rigidly regulated including finance, health, and manufacturing industries.
Accounting Software Market Restraints
Data Security and Privacy Concerns
- There are deficiencies which are important and should be addressed such as security and privacy of account details which remains a challenge to account software. This is because cloud-based accounting systems work as a hub of detailed financial data and, hence, can be easily attacked by hackers and data thieves. Security is a very sensitiveaspect especially when dealing with accountancy software solutions hence vendors need to incorporate this by implementing software features that include encryption and multi-factor authentication with proper frequency of security audits. Additionally, the understanding and applying of the legal requirements of data protection standards like GDPR as well as CCPA is critical in developing a sense of trust and confidence among the users.
Cost and Complexity of Implementation
- The primary benefits of accounting software are worth their long-term cost because the investment is recovered bythe time and money saved in the future. However, for some organizations, including SMEs, the initial costs requiredto set up the accounting software, as well as the complications involved in doing so, present major challenges. The lost license fees, customizations costs, and the cost of training is not negligible and may become a problem for small and mid-sized business. Also, converting a company’s data from old systems used for accounting purposes to new, more advanced software, is not an easy task which has to be planned well and such a transition may interrupt the business flow if not performed well. To effectively overcome these implementation challenges, accounting software providers should ensure that they can adapt various pricing strategies, create friendly software interfaces, and ensure appropriate training and support for organizations to use the software efficiently.
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Accounting Software Market Competitive Landscape
The competition in global accounting software market is both intense and complex which looks for innovative, customers and advanced technologies. Currently, it is hard to imagine an SMES without QuickBooks, Xero, FreshBooks, and Zoho Books, primarily because all of them offer impressive platforms designed for efficient use by SMEs. They always build up their products with extended cloud solutions, artificial intelligence and analytics to keep improving the competitive advantages. SAP Business One, Microsoft Dynamics 365, Oracle NetSuite ERP are a few of the solutions that are designed for Enterprise level organizations as they provide a full menu of ERP services integrating with other business systems. These platforms are specifically preferred due to their capacity for expanding and the high degree of alterability possible with them along with the availability of comprehensive help.
The market is also occupied by some less giants but highly specialized and competitive market players such as FreeAgent, KashFlow or MYOB, suppliers targeted at certain geographic areas or niches, offering integrated services that meet definite local needs or requirements of small businesses in some particular branch of the economy. The application of cloud-based accounting systems is becoming increasingly popular because they can be accessed anytime, anywhere, with little or no setup and installation fees. This trend is being capitalized on by the Wave Accounting and Odoo and others to capture available market share especially the startup and small businesses.
Accounting Software Market Top Player's Company Profiles
- QuickBooks (US)
- Xero (New Zealand)
- FreshBooks (Canada)
- Zoho Books (India)
- Sage Intacct (US)
- NetSuite (US)
- Wave Accounting (Canada)
- KashFlow (UK)
- MYOB (Australia)
- FreeAgent (UK)
- Sage 50cloud (UK)
- Odoo (Belgium)
- Acumatica Cloud ERP (US)
- Microsoft Dynamics 365 (US)
- SAP Business One (Germany)
- Oracle (US)
- Epicor ERP (US)
- Infor ERP (US)
- SYSPRO ERP (South Africa)
- Workday Financial Management (US)
Accounting Software Market Recent Developments
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In May 2024, Kerridge Commercial Systems (KCS), is the ERP and business management software for distribution, servicing, and rental businesses, recently acquired Omni Accounts Software. Omni Accounts Software is based in Kwa Zulu Natal and the acquisition was one of the strategic investments by KCS in South Africa which was in line with the company’s continuing strategy of delivering vertical focused leading cloud ERP and business management software solutions.
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In February 2024, Black Mountain Software declared that it had engaged in an acquisition deal with Cascade Software Systems which was well-known for providing integrated cost and project accounting solutions. There were no details regarding the revenue generating aspect of the deal revealed. This strategic acquisition sought to help grow Black Mountain’s line of solutions and further solidify its relationships as a go-to-provider to municipalities, counties, special districts, and school entities in the United States.
Accounting Software Key Market Trends
- Adoption of Cloud-Based Solutions: The move to cloud accounting as a software application is among the most significant innovations in accounting industry. There is a flexibility and portability that comes with using a cloud system since users are able to perform accounting functions remotely from wherever they are with an internet connection. Organizations and especially those that have people who work from home or are situated in different establishments stand to benefit from this greatly. Application on cloud have automatic pricing model that is, usage based in nature and hence the cost reduction for huge investments initially in IT infrastructures and Software’s license. This increases the adoption of advanced tools in accounting departments of SMEs that otherwise could not afford the cost that accrues from on-premise solutions. When a firm starts to expand, it becomes increasingly important to have the ability to properly track their accounts. The use of computerized accounting via cloud applications provides the business with a scalable solution that can change as the business evolves. Another benefit concerns scalability, as with most solutions embraced by the cloud, the existing platforms are able to fit changing needs for added users or added function, without much of drawback in way of elaborate tweaking and hardware swapping.
Accounting Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global accounting software market Analysis, in terms of Component, Solution segment held the largest market share. The market is segmented into On-premise and Cloud based on deployment model. In the market, the on-premise segment acquired the largest revenue share. According to projections, North America has dominated the market and Europe comes in second in the market in terms of revenue contribution share.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 15.07 billion |
| Market size value in 2031 | USD 30.18 billion |
| Growth Rate | 8.02% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Accounting Software Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Accounting Software Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Accounting Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Accounting Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Accounting Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Accounting Software Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Accounting Software Market Report Snapshots
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