The global small business accounting software market was valued at 8322.1 Million in 2018 and is likely to surge during the forecast period owing to the demand for computerized accounting. Over the previous few decades, the amount of small companies around the world has gone up. Ease in policies to start a company, pushing governments to boost their economic growth, declining employment opportunities has led to the increased development of new companies around the world. Due to a lesser number of jobs, people start their ventures to earn money and fulfill their daily needs. This has increased in the number of small and micro firms leading to increased demand for small business accounting software’s.
In addition to the aforementioned factors, increasing demand for advanced automated finance processes propelling the growth of this market. A huge amount of data present at sources like loan applications, social media, in-stores, online bank transactions need to be collected and analyzed to have relevant operational insights. Therefore, financial organizations are adopting big data analytics solutions like Amazon Redshift and Amazon Kinesis. Later it is integrated with business accounting software which improves the organization's data management processes. These benefits companies in transforming unstructured data into structured and meaningful data.
The global Small Business Accounting Software market was worth USD 4206.78 million in 2022, and it is expected to grow at a 7.87% CAGR during the forecast period, reaching USD 6625.8 million by 2028.
.jpg "The Global Small Business Accounting Software Market 2018-2028 (USD Million)")
However, some factors may hinder the market growth like, as the cloud-based systems are cheaper and accessible from anywhere and at any time at the same time it is also vulnerable to cyber-attacks. Hackers can hack the system and steal important information which is a great threat for the company and the software supplier at the same time. This is a major challenge for small business accounting software firms.
Small Business Accounting Software Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2028 |
| Study Period | 2018-2028 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2028 | USD 6625.8 million |
| Growth Rate | CAGR of 7.87 % during 2018-2028 |
| Segment Covered | Type, on Function, Geography |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | Oracle (NetSuite), Sage Group Plc., Zeta Software LLC, Microsoft Corporation, Epicor Software Corporation, Xero Ltd. (New Zealand),SAP SE (Germany), Intuit Inc., Infor, Inc., Acumatica Inc. |
Key Segments of the Global Small Business Accounting Software Market
Type Overview (USD Million)
- Cloud-Based
- On-Premises
Application Overview (USD Million)
- BFSI
- Manufacturing
- Retail & Wholesale
- Food & Beverages
- Construction
- Others
Regional Overview (USD Million)
- North America
- U.S.
- Canada
- Europe
- France
- Germany
- UK
- Italy
- Russia
- Spain
- Rest of Europe
- Asia Pacific
- India
- Japan
- China
- South Korea
- Australia
- South East Asia
- Rest of APAC
- Middle East and Africa
- Egypt
- South Africa
- Israel
- Turkey
- GCC
- Rest of MEA
- CSA
- Brazil
- Argentina
- RCSA
- Total
Frequently Asked Questions (FAQ) :
The market value of small business accounting software market in 2028 was USD 6625.8 million
The major contenders in the global small business accounting software market Oracle (NetSuite), Sage Group Plc., Zeta Software LLC, Microsoft Corporation, Epicor Software Corporation, Xero Ltd. (New Zealand),SAP SE (Germany), Intuit Inc., Infor, Inc., Acumatica Inc.
Asia Pacific dominated the market for small business accounting software market and accounted for the largest revenue share.
The global small business accounting software market is growing optimistically and is expected to do same during the forecast period. As account software increases efficiency when compared to conventional business accounting solutions as it easily manage account payables, business payroll, account receivables, general ledger and other business modules. In addition to that, features like time-saving, higher overall productivity ensure accurate financials and subsequently drive the demand of the market.
Nowadays, accounting software even interoperates with supply chain management, human resource management, Customer Relationship Management (CRM), and dashboards and reporting applications. Most of the leading solutions offer real-time business visibility through easy to create reports and dashboards. Comprehensive financial consolidation, analysis and reporting across different business entities are increasing drastically. To operate finance, organizations, therefore, embracing accounting software.
Type Segment
Based on type, small business accounting software market is bifurcated into the Cloud-based and On-Premises segment. The market size by type is dominated by the cloud-based segment. As most of the companies involved offer accounting software’s on rent. The model adopted by them is cloud-based. The cloud-based business accounting software’s market valued USD 7,386.2 million in 2018 which is further expected to grow during the forecast period. The major reason behind increased adoption of the cloud-based model as compared to the on-premise model are low investment costs, and little or no need of technical knowledge as the company who is providing the software handles all the required support activities. Data is also backed up by the software providers thus losing data is also not possible which takes the data security to the next level.
Application Segment
The small business accounting software market by application has been segmented into six different application industries which include BFSI, Manufacturing, Retail & Whole Sale, Food & Beverages, Construction, and Others. The application of small business accounting software is highest in the retail & wholesale industry followed by construction and manufacturing. The service sector saw a huge growth in the number of small businesses over the last few decades. The highest number of new small businesses came up in the professional, scientific, and technical services in North America, Europe, and the Asia Pacific as well. Hence the market size of other sub-segment is large in the application segments. The others include services, healthcare, transportation and warehousing, arts entertainment recreation along with others. The food and beverage industry is expected to grow at the fastest CAGR of 10.04% during the forecast period 2019 to 2023. The number of small business coming up in this field is high as compared to others and the adoption of small business accounting software is expected to increase in this industry.
The small business accounting software market is dominated by the Asia Pacific region in 2018 by occupying a share of 65.28% in 2018 and is expected to maintain the dominance by occupying highest share during the forecast period. Presence of emerging and growing markets such as India, China, and Southeast Asian countries is one of the most prevalent reason. China and India had the highest number of small businesses across the globe. In the year 2018, China had about 74 million and India had about 63.31 million small businesses.
.png "Small Business Accounting Software Market Size, 2013-2023 (USD Million)")
The market is highly competitive and dominated by companies such as Intuit, Xero, Sage Group PLC, Wave Financial Inc., Zoho Corporation Pvt. Ltd., Fresh Books, Kashoo, FreeAgent, ZipBooks, ScaleFactor, MYOB and Reckon One. To remain on competitive edge of market, companies acquire, merge and partners with other companies. For instance, Intuit decalared its acquisition of Origami Logic, makers of an advanced data integration, analytics platform and ingestion. Origami Logic is based out of Silicon Valley which developed technology to analyze and gain insights from different data sets. This development will benefit Intuit to become an AI driven expert platform.