The Accounting Software Market was valued at USD 12.01?billion in 2019?and is expected to reach USD 19.59 billion by 2025, at a CAGR of 8.5% over the forecast period 2020?- 2025. Over the past two decades, the financial and accounting software solution market has witnessed numerous changes. One of the biggest changes is the cloud-based offering of accounting software solutions.
- A recent survey shows that, among the enterprises that are planning to opt for an enterprise resource planning solution, more than 50% are expected to choose cloud as the deployment model. Agility, lower startup cost, and faster deployment are the major benefits of cloud-based solutions.
- Accounting software solutions are used to streamline the accounting process, in order to save time, as well as to ensure an error-free transaction between the companies and clients. These systems are also designed to increase productivity, by archiving, automating, and integrating human resource systems.
- Additionally, the advent of digital commerce and technological advancements, like integration with other online applications, such as automated bank feeds, automated billing features, etc., and small medium enterprises collaborating with e-commerce player are expected to drive the accounting software market.
- However, data security and privacy concern may hinder the growth of the accounting software market.
Scope of the Report
Accounting software is a software that processes and records accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It mainly functions as an accounting information system. Moreover, the accounting software also keeps track of cash flows, transactions, perform calculations, and generates reports. Eventually, accounting software will help improve profitability, efficiency, operations, and reduces costs. For instance, filing business taxes which is a complex process, that requires one to keep close track of all business transactions, the accounting software helps make this process easier by ensuring that all business financial details are in one place.
Key Market Trends
Increased Efficiency Offered by Accounting Software to Drive the Market Growth
- Accounting software increases efficiency, as it is used to keep track of accounting transactions or to manage the money flowing in and out of business. It has emerged as a better solution for managing the accounts of a business, as it can easily manage account payables, account receivables, business payroll, general ledger, and other business modules.
- Additionally, features that ensure accurate financials of the company, such as time-saving, cost-effective operation and higher overall productivity, are expected to drive the demand. In addition, these factors make this software more deployable for small businesses.
- Moreover, most of the business purchase accounting based software to increase their functionality and replace the dated system. The reason being, in accounting calculation, are tedious and complex. It will require manpower to complete the things. But accounting software can do the calculation precisely and accurately without manpower.
Asia-Pacific to Witness the Highest Growth
- The growth of the Asia-Pacific business accounting software market can be attributed to factors, such as rising penetration of business accounting mobile applications and higher adoption of modern technologies in the region.
- Moreover, factors, such as the emergence of small businesses and growing investment in the cloud and SaaS market are likely to bolster the growth of the market.
- China is the biggest spender on the public cloud, in the region. Cloud services and IaaS, in particular, are fully embraced by the domestic enterprise users. The local IaaS market is the first choice for small and medium enterprises for IT resources construction in the fields of games, video, and mobile internet.
- In India, where the country has switched to a GST scheme, the demand for accounting software is expected to increase. In addition, the growth in the deployment of cloud technology in the region is further expected to drive the regional accounting software market.
The accounting software market is moderately consolidated. The major share of the market is occupied by the top players. Moreover, existing players have already their client base which doesn’t want to switch to new players and new players cannot sustain the market for a longer period as they get acquired by the top players in the long run. Some of the key players include Oracle Corporation, Microsoft Corporation, Intuit Inc., SAP SE, Sage Software Inc., Infor Inc., Epicor Software Corporation, Xero Ltd., Unit4 Business Software Limited, among others.
- April 2019 - Infor, a global leader in business cloud software specialized by industry, announced the completed acquisition of Efficient Frontiers, Inc. dba ReServe Interactive., headquartered in Livermore, Calif., ReServe Interactive is a leading provider of cloud-based sales and catering, restaurant reservations, and floor management software that serves the restaurant, sports and entertainment, event center, golf and country club, and hotel markets in the U.S. and Canada. ReServe Interactive’s highly scalable, dynamic, and intuitive sales and catering solution will enable Infor to offer more functionality through Infor CloudSuite Hospitality, and increase Infor’s presence in non-hotel hospitality venues such as entertainment centers, stadiums, wineries and conference, and convention centers.
- April 2019 - Xero, the global small business platform, launched a new Payroll Only subscription plan in a bid to help small businesses with up to four employees comply with new Single Touch Payroll (STP) reporting obligations.
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