The Global Accounting Software Market size is expected to reach $45.3 billion by 2028, rising at a market growth of 19.6% CAGR during the forecast period.
Accounting software is a computer program that helps bookkeepers and accountants, record and reports financial transactions for a company. Larger companies may opt for a bespoke system that integrates a huge amount of data from various departments. Small firms typically choose a ready-made solution. Accounting software is a crucial tool for today's organizations. Financial transactions may be tracked in great detail, and reporting and analysis can be done almost instantly with software. These duties had to be done by hand before accounting software, utilizing massive transaction diaries.
Due to the time and effort required to consolidate the manual data, ad hoc reporting was often unfeasible. Accounting software manages these processes, lowering accounting expenses and allowing for better financial decision-making via timely reporting. Accounting software also enables the storage of large volumes of data without requiring physical space. As a result, businesses require less office space as they no longer require vast file rooms to keep data binders. With fewer office spaces, cost savings are available.
Accounting software's capacity to swiftly access accounting data makes auditing easier, notably for audits that need evaluating data from past years. This not only helps with internal audits but also helps external entities like the Internal Revenue Service (IRS) with financial investigations for tax purposes. Accounting software packages are available for all sizes of businesses, ranging from Intuit's QuickBooks for small to medium firms to Microsoft, SAP, and Oracle products for huge corporations. Expense reporting, LIFO and FIFO inventory reporting, point-of-sale connectivity, document management, batch management, and multi-currency transaction recording are some of the standout features.
Social and physical separation, full or partial lockdowns, and the development of quarantine zones are all being used to combat the COVID-19 pandemic. Various firms have closed as a result of these efforts, and several huge corporations have suffered losses. Manufacturing, retail and e-commerce, automotive, travel, hospitality, and transportation are among the industries that have been hit the worst. The growing need for innovative, efficient, and automated accounting solutions, as well as the increasing usage of cloud-based accounting software, are driving the demand for accounting software. However, due to the COVID-19 pandemic, most firms have been focusing on reducing additional costs, such as accounting software prices.
Invoicing and billing are crucial business procedures and the company's principal source of revenue. Managing to invoice on paper is inconvenient, time-consuming, and prone to mistakes, if done manually. It's impossible to create actual invoices for each time a client buys from user when a user has recurring orders. Without automated tools, tracking bills and reminding consumers of pending payments is very challenging. Accounting software efficiently addresses these concerns and provides properties that make invoicing simple. For regular client orders, users may build recurring profiles and plan invoices to be sent out instantly every time the order is placed. Users can also add payment terms and conditions to the invoices to let the customers know what to expect when it comes to payments.
As a business owner, users must monitor the company's progress on a regular basis and make the appropriate decisions to make sure its long-term viability. Accounting reports assist users in deciphering financial trends and analyzing growth patterns in the company. However, creating reports with spreadsheets is time-consuming since the user must manually aggregate data and add formulas for each report. Accounting software automates the generation of reports, saving them time and effort. The profit and loss statement, cash flow statement, and balance sheet are the three most important financial statements for a company to understand.
Users run the danger of getting hacked and having their data lost or stolen if there is the use of outdated software of any kind. Few industries are more sensitive than finance, as Verizon's 2019 Data Breach Investigation Report demonstrates. The truth is that when a user utilizes a fresh system from a reputable vendor, fraudsters have less time to figure out how to defeat it. The financial and business information will be backed up using secure technologies, making them less susceptible to hacking, loss, and theft. Better software integration also decreases the system's weaknesses. The organization will be able to comply with data security regulations more simply by decreasing the need for manual entry, reducing the danger of crucial financial data being stolen or lost.
On the basis of the Component, the Accounting Software market is bifurcated into Solutions and Services. The solutions segment acquired the highest revenue share in the accounting software market in 2021. It is because they assist businesses by giving better management tools than currently available. The increasing number of technological advancements around the world will help to drive this segment's growth. The companies whether large enterprises or small and medium enterprises are progressively adopting technological advancements and solutions.
By the Deployment model, the Accounting Software market is divided into On-premise and Cloud. The on-premise segment acquired the highest revenue share in the accounting software market in 2021. On-Premise Accounting Software is installed on a local server and comes with a financial database. Because this is a one-time installation, all upgrades and updates must be done only when fresh licenses are purchased. The demand for this market is increasing because on-premise accounting software installed on company-owned servers provides customers with better stability.
Based on type, the accounting software market is bifurcated into Commercial, Enterprise, Custom, and Spreadsheets. The spreadsheet segment garnered a significant revenue share in the accounting software market in 2021. The spreadsheet is use to aid with bookkeeping, small sized organizations usually utilize spreadsheet programs like Google Sheets, Microsoft Excel, or OpenOffice. User could utilize spreadsheet programs to list sales, expenses, or other required financial data, and to manage more advanced functions of accounting.
On the basis of organization size, the accounting software market is bifurcated into Large Enterprises and Small & Medium Enterprises (SMEs). SMEs segment acquired a significant revenue share in the accounting software market in 2021. It is due to the cost effectiveness of these solutions, which is contributing to the popularity of these advanced solutions and software. Along with that, such solutions help SMEs to reduce their cost on people and automate their accounting processes and transactions.
Based on the Industry Vertical, the Accounting Software market is segmented into Healthcare & life sciences, BFSI, Manufacturing, Government and Public Sector, Telecom and IT, Retail & E-Commerce, Media & Entertainment, Energy & Utilities, and Others. The healthcare segment garnered a significant revenue share in the accounting software market in 2021. General, specialty, and government healthcare organizations utilize accounting software to keep track of their financial activities. The rising prevalence of numerous ailments, as well as the overall spread of the COVID-19 pandemic, would aid in the expansion of the accounting software industry in the healthcare sector.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 13.3 Billion |
| Market size forecast in 2028 | USD 45.3 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 19.6% from 2022 to 2028 |
| Number of Pages | 327 |
| Number of Tables | 574 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Type, Deployment Type, Organization Size, Vertical, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region-wise, the Accounting Software market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America emerged as the leading region in the accounting software market with the largest revenue share in 2021, and is expected to continue this trend over the forecast period. This is attributable to a greater understanding of business analytics solutions. Besides that, the existence of strong and influential players operating in accounting software all across the United States, as well as spending by the United States government for the provision of accounting management systems in various private and public organizations, are likely to drive growth in the region.
Free Valuable Insights: Global Accounting Software Market size to reach USD 45.3 Billion by 2028
The major strategies followed by the market participants are Partnership. Based on the Analysis presented in the Cardinal matrix; Oracle Corporation are the forerunners in the Accounting Software Market. Companies such as SAP SE, IBM Corporation and FreshBooks (2ndSite, Inc.) are some of the key innovators in Accounting Software Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include SAP SE, Infor, Inc. (Koch Industries), Oracle Corporation, IBM Corporation, Zoho Corporation Pvt. Ltd., Epicor Software Corporation, Workday, Inc, Sage Group plc (Sage Intacct, Inc.), FreshBooks (2ndSite, Inc.), and Kingdee International Software Group Co., Ltd.
By Component
By Type
By Deployment Model
By Organization Size
By Vertical
By Geography
The global accounting software market size is expected to reach $45.3 billion by 2028.
Seamless Invoicing and Billing Process are increasing are driving the market in coming years, however, problems like inaccuracy, risk of privacy breach, and security growth of the market.
SAP SE, Infor, Inc. (Koch Industries), Oracle Corporation, IBM Corporation, Zoho Corporation Pvt. Ltd., Epicor Software Corporation, Workday, Inc, Sage Group plc (Sage Intacct, Inc.), FreshBooks (2ndSite, Inc.), and Kingdee International Software Group Co., Ltd.
The Commercial segment is leading the Global Accounting Software Market by Type in 2021, thereby, achieving a market value of $21.02 billion by 2028.
The Large Enterprises segment is generating high revenue the Global Accounting Software Market by Organization Size in 2021, thereby, achieving a market value of $28.8 billion by 2028.
The North America market dominated the Global Accounting Software Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $15.60 billion by 2028.
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