In 2018, the global cloud accounting software market size was valued at USD xx million. It is estimated to project a value of USD xx million in 2025, registering a CAGR of x.x% during the forecast period.
The accounting and financial software has underwent a lot of changes since the last two decades. The biggest change faced by accounting software solutions is the cloud based offering. The use of cloud based solutions benefits with Agility, lower set up cost and faster deployment.
Accounting software are proving to be beneficial for a company as it is increasing the efficiency, as it keeps a track of the transactions, the flow of the money in and out of the business. It is benefiting as it easily manages the general ledger, business payroll, account receivables, account payables and other business modules. Additionally, it also takes care of the key configurations that ensure accurate financials of the organization such as higher overall productivity, time-management, cost-effective which are majorly expected to drive the demand in the industry. All of these benefits makes it more approachable even for a small business.
The cloud based solutions address even the most typical problems of tradition accounting software and thus, the cloud accounting services , both the online accessible and via software, are being opted by the small and medium scale businesses. When it comes to the sharing the financial and customer details with the team, the single user access becomes a tad ineffective. Also, the customer service of a particular accounting software is slow and thus affects the companies accounting requirements. The accounting and financial software solutions have seen many changes in the market like the SaaS based and cloud based accounting solutions in the last 3 decades. These changes are expected to strengthen the demand for cloud-based software.
Rising penetration of business accounting mobile applications and higher adoption of modern technologies in the region are the factors to which the Asia- Pacific business accounting software market’s growth can be attributed to. Moreover, factors, such as emergence of small businesses and growing investment in the business sector are likely to bolster the growth of the market. Also, in India, where the country has shifted to GST scheme since July 2017, the demand for accounting software is on a rise. Further, deployment of the cloud system in the region is expected to grow the need of the regional accounting software market.
Leading players of the global cloud accounting software market include Intuit, Sage, SAP, Microsoft, Oracle (NetSuite), Infor, Epicor, Workday, Unit4, Xero, Yonyou, Kingdee, Acclivity, FreshBooks, Zoho, Assit Cornerstone, MEGI, Reckon, KashFlow, Dropbox, Carbonite, Apptivo, FinancialForce, Wave Accounting Inc., and more others.
The global cloud accounting software market share is segmented to several classification such as types, applications, and regional outlook. Based on the type the market is categorized by browser-based, Saas, and application service providers (ASPs). Furthermore, on the basis of applications the market is divided into SMEs, Large Enterprises, and other users. Looping on to the regional outlook the market widely ranges through Asia-Pacific, North America, Europe, South America, and Middle East & Africa.
In past four years, the Cloud Accounting Software market size has expanded with average growth of x.xx% annually from USD xxxx million in 2014 to USD xxxx million in 2018. According to the market forecasts, in coming four years, Cloud Accounting Software market size will expand to over USD xxxxx million.
The number of companies moving to the cloud accounting software to manage their small businesses accounting needs. To start with cloud accounting applications, that is any computer software which can assist you. This might be simple like a sales ledger application.
The cloud accounting software is basically a software application which records and processes all the business transactions such as account payable, account receivable, general ledger, and trial balance. This accounting software could be developed within the organization or purchased from the any software suppliers. It can be cloud-based and accessible from any device which is connected to the internet.
In terms of regions, North America is one of the largest consumption regions of Cloud Accounting Software across the globe, and it will maintain its position in the coming years. The U.S. market accounted for xx.x% of the global market share in 2017, whereas EU was near around xx.x%.
The increasing demand for SaaS models is likely to fuel the accounting software market into the coming years. The SaaS model is an expert solution for eliminating the manual process of business. The cloud accounting software is an ideal solution for industries with number of distributed operations. Users of the supply chain or the remote system of the associated system may connect with the system securely. In addition to that, in the SaaS model, the supplier distributes the high rates of software, hardware and data center operation between consumers, letting them to advantage from the high-level infrastructure of the original cost.
The cloud accounting software market growth in Asia Pacific region can be attributed to various factors such as the rising diffusion of mobile business accounting software’s and the gained adoption of the technological advancements in the region. Furthermore, other factors such as, appearance of small business and the rising investments in the business segment are expected to support the cloud accounting software market in the future.
Cloud accounting is executed using software which is operated remotely on the cloud. The landscape of cloud accounting software includes the number of solutions which are specially designed to serve various accounting or bookkeeping functions.