Market Analysis and Insights:
With a predicted CAGR of 19.8% from 2021 to 2030, the market for accounting software, which was valued at $11.11 billion globally in 2020, is expected to expand to $70.3 billion by 2030.
The creation required to modernize financial activities should push the Accounting Software Market. In addition to this bank-to-bank portion system, which connects buyers with more than 140 banks so that components may be easily identified or supplied and marked into the bank section.
Accounting Software Market Scope :
|Revenue forecast in 2030
|CAGR of 19.8% during 2021-2030
|by Type ,By Application ,by Region.
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Microsoft Corporation, Xerp, Infor, SAP SE, Sage Epicor Software Corporation, Intuit Inc, Oracle Corporation, Xero, Software, Unit4 Busines Software, Among others
Accounting software is a computer programme that assists businesses in monitoring their financial activities. It may be used to create reports, track expenses and income, and manage taxes. Numerous accounting software systems are available, each with unique features and advantages. Financial software is sometimes utilized for tracking all of a business's monetary activities, involving sales, purchases, payments, and expenditures. This data may then be utilized to produce reports and track the company's financial success.
Key Market Segmentation:
Insights on Type:
The Solution Segment is growing at the fastest growth rate
The solution segment of the accounting software market is predicted to increase at a quicker rate than the service segment during the forecast period. This is owing to the increased demand for cloud-based accounting software solutions, which give organizations a variety of advantages, such as:
• Lower cost: Cloud-based software is often less expensive than on-premise software, as firms do not need to acquire and maintain their own hardware and software.
• Ease of use: Since cloud-based software does not need businesses to install and set up the programme themselves, it is usually easier to use than on-premise software.
• Scalability: Cloud-based software allows businesses to easily add or remove users and features as needed since it is scalable.
• Security: Cloud-based software is often more secure than on-premise software, as the data is kept in the cloud and is backed up periodically.
Insights on Application:
The Cloud-Based Segment is boosting
The cloud-based sector of the accounting software market is predicted to increase at a higher rate than the on-premise segment during the forecast period. This is due to the following factors:
The rising usage of cloud computing by enterprises of all sizes: Cloud computing provides a variety of advantages over on-premise computing, such as cheaper costs, scalability, and flexibility. As more firms use cloud computing, the need for cloud-based accounting software will also expand.
The increased need for mobile-friendly accounting software solutions: Cloud-based accounting software can be used from anywhere with an internet connection, making it suitable for firms with remote staff or mobile workers.
Insights on Region Analysis:
The Asia-Pacific Ample Financing Opportunities
The Asia-Pacific area is anticipated to increase at the fastest rate throughout the forecast period. This is caused by the following factors:
• The rising popularity of cloud computing in the Asia-Pacific region: Cloud computing is gaining popularity in the Asia-Pacific region, as organizations try to decrease costs and enhance productivity. This is boosting the need for cloud-based accounting software in the area.
• The rising number of small and medium-sized enterprises (SMBs) in the Asia-Pacific region: The SMB sector is developing fast in the Asia-Pacific area, and small organizations are increasingly seeking economical and easy-to-use accounting software solutions.
• The increased need for compliance with accounting rules in the Asia-Pacific area: Governments in the Asia-Pacific region are progressively enforcing severe accounting requirements, which is driving the demand for accounting software that can help firms comply with these regulations.
• The rising popularity of e-commerce in the Asia-Pacific region: E-commerce is increasing fast in the Asia-Pacific area, and this is fueling the demand for accounting software that can help firms manage their online transactions.
Some of the key players in this market are Microsoft Corporation, Xerp, Infor, SAP SE, Sage Epicor Software Corporation, Intuit Inc, Oracle Corporation, Xero, Software, Unit4 Busines Software, Among others
COVID-19 Impact and Market Status
Increase in demand of the market
The COVID-19 epidemic has had a huge influence on the accounting software market. The following are some of the significant impacts:
• The transition to remote work: The pandemic prompted many firms to migrate to remote work, which raised the need for cloud-based accounting software that could be accessed from anywhere.
• The need for real-time data: The epidemic also ened the demand for real-time data, as businesses needed to be able to track their financial performance in real-time to make educated choices. This led to increasing demand for accounting software with capabilities like dashboards and analytics.
• The requirement for compliance: The epidemic also led to higher restrictions, which put further pressure on firms to comply with accounting standards. This led to increasing demand for accounting software that might assist organizations in handling their compliance duties.
• The need for automation: The epidemic also spurred the use of automation in accounting, as firms sought for methods to decrease costs and enhance efficiency. This led to increasing demand for accounting software with automation features.
Overall, the COVID-19 epidemic has had a favorable influence on the accounting software market. The move to remote work, the need for real-time data, the need for compliance, and the need for automation have all contributed to the growing demand for accounting software.
Latest Trends and Innovation:
• In 2021, Intuit purchased the bill payment business Bill.com for $12.7 billion. This purchase will help Intuit extend its cloud-based accounting software services and compete with other prominent suppliers such as Sage Intacct and Workday.
• In 2022, Sage announced the launch of their new cloud-based accounting software platform, Sage 300cloud. The software is meant to assist businesses of all sizes in automating their accounting operations and enhancing their financial reporting.
• In 2023, Xero purchased the accounting software startup Deputy for $1.2 billion. This purchase will help Xero extend its capabilities for organizations with field-based personnel.
Significant Growth Factors:
Cloud-based accounting software is more scalable and secure than on-premise software, and it is also more accessible to organizations of all sizes. This tendency is projected to continue in the future years.
• The increased need for real-time data and analytics: Businesses need to be able to track their financial performance in real-time to make educated decisions. This is fueling the need for accounting software with capabilities like dashboards and analytics.
• The rising requirement for compliance: Businesses are confronting increased restrictions, which is boosting the need for accounting software that can assist them in managing their compliance duties.
• The rising popularity of automation: Automation may help firms decrease expenses and enhance efficiency. This tendency is projected to continue in the future years.
• The rising popularity of e-commerce: E-commerce is developing quickly, and this is fueling the demand for accounting software that can help firms manage their online transactions.
• The growth of artificial intelligence (AI) and machine learning (ML): AI and ML are being used to automate accounting operations and enhance accuracy. This tendency is projected to continue in the future years
Accounting software generally handles sensitive financial data; therefore, security is a big concern. Cloud-based accounting software suppliers have spent considerably in security measures, such as encryption and data backups.
• Complexity: Accounting software can be complex and difficult to use, especially for firms with sophisticated financial demands. Vendors are streamlining their products and giving more training and support to help consumers get the most out of their software.
• Cost: Accounting software may be expensive, especially for firms with a large number of users. Vendors are giving more modest pricing choices, such as subscription-based pricing and freemium models.
• Data integration: Accounting software has to be able to interface with other company software, such as CRM and ERP systems. Vendors are introducing APIs and other integration tools to make it easier for firms to integrate their accounting software with other systems.
• Compliance: Accounting software needs to be able to assist organizations in complying with government rules. Vendors are working with authorities to ensure that their software satisfies the current compliance standards.
• The accounting software business is solving these issues by investing in security, streamlining their solutions, giving more reasonable price alternatives, developing integration tools, and engaging with regulators.
Key SegmentsAccounting Software Market Insights Insights
• On Premise
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America