The global small business accounting software market size is expected to reach 13769.6 million by the end of 2023. To boost the nation’s growth, the government’s across the globe have taken initiatives to set up funding and investment for startups. This has increased the number of small companies during the past few years. Additionally, the graph of employment opportunities has relatively declined during the previous decades. This may be the driving force for people to start their venture which resulted in a higher number of small and micro firms and subsequently become the impetus for higher adoption of small business accounting software.
Moreover, these small firms are adopting small business accounting software to add functionality and replace legacy systems. To appropriately handle the operations of the accounts of a company, manpower needs to be highly skilled which demands a high pay scale. To minimize capital spend and calculations to be more precise and accurate, companies prefer small business accounting software over manpower.
Furthermore, another trend getting traction is the use of smartphones which surged demand for business accounting mobile applications. These applications manage day-to-day accounting process like planning budgets, logging expense, tracking receipts, accepting payments and sending invoices.
However, cloud-based systems are easily accessible from anywhere anytime that makes it more prone to security attacks. Hackers can hack the systems and steal important credentials which is a great threat for software suppliers and companies. This is one of the key challenges to market growth.
Based on type, small business accounting software market is bifurcated into the Cloud-based and On-Premises segment. The demand for cloud-based small business accounting software is expected to increase at a very faster pace in the coming years due to the increasing adoption of cloud technologies and growing technological adoptions throughout the globe.
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 number of small scales retail businesses is growing across the globe followed by construction and manufacturing. The demand for small business accounting software’s in small and micro-retail & wholesales business is expected to increase in coming years due to the increasing number of small retail & wholesales businesses growth across the globe.
The small business accounting software market is dominated by the Asia Pacific region in 2018 and had a value of USD 5432.9 million which is anticipated to grow during the forthcoming years as well. The presence of emerging and growing markets such as India, China, and Southeast Asian countries is one of the most prevalent reasons. China and India had the highest number of small businesses across the globe.
The market is highly competitive and dominated by companies such as Zoho Corporation Pvt. Ltd., Fresh Books, Kashoo, Intuit, Xero, Sage Group PLC, Wave Financial Inc., ScaleFactor, MYOB, FreeAgent, ZipBooks, and Reckon One. To remain on the competitive edge of the market, companies acquire, merge and partner with other companies. For instance, Xero which is a global small business platform declared partnership with GreatSoft in Australia. GreatSoft which is a scalable cloud-based practice management solution for big accounting firms. This tie-up will help prominent firms to adopt Xero’s cloud accounting tools manage thousands of jobs, clients and staff in GreatSoft.
Segment Overview of Global Small Business Accounting Software Market
Type Overview, 2015-2025 (USD Million)
Application Overview, 2015-2025 (USD Million)
- Retail & Wholesale
- Food & Beverages
Regional Overview, 2015-2025 (USD Million)
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- South East Asia
- Rest of APAC
- Middle East and Africa
- South Africa
- Rest of MEA