Global Accounting Software Market Size, Share & Industry Trends Analysis Report By Component (Solution and Services), By Type, By Deployment Model, By Organization Size, By Vertical, By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the Accounting Software Market
Market Report Description
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.
COVID-19 Impact Analysis
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.
Market Growth Factors
Seamless Invoicing And Billing Process
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.
An Easy Method Of Report Generation
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.
Market Restraining Factors
Problems Like Inaccuracy, Risk Of Privacy Breach, And Security
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.
Deployment model Outlook
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.
Organization Size Outlook
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.
|Market size value in 2021||USD 13.3 Billion|
|Market size forecast in 2028||USD 45.3 Billion|
|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|
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
KBV Cardinal Matrix - Accounting Software Market Competition Analysis
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.
Recent Strategies Deployed in Accounting Software Market
Partnerships, Collaborations and Agreements:
- Jan-2022: SAP SE came into a partnership with Icertis, a software company that provides contract management software. This partnership aimed to provide enterprise-wide value, comprising of quicker negotiations, greater compliance, and AI-powered business automation and insights.
- Dec-2021: FRESHBOOKS came into a partnership with Sensibill, a customer data platform designed notably for the financial services industry. This partnership aimed to give small business owners enhanced expense management using optical character recognition OCR technology.
- Nov-2021: IBM Corporation joined hands with Infosys Finacle, a wholly-owned subsidiary of Infosys. This collaboration aimed to aid banks to scale business transformation, power their growth, and become more agile with an on-demand portfolio of products and services.
- Nov-2021: FRESHBOOKS joined hands with Chargezoom, a leading platform for billing and integrated payments. This collaboration aimed to enable Chargezoom to emphasize the time on tasks that are important to running and growing the businesses. Delivering invoices and recording payments manually is expensive for businesses and raises the risk of error.
- Sep-2021: SAP SE formed a partnership with Amazon Business, an American multinational technology company. This partnership aimed to enter into numerous items on Amazon Business directly from within SAP Ariba solutions and help with compliance with corporate purchasing policies.
- Mar-2021: Oracle Corporation came into a partnership with Red Bull Racing Honda, the four-time Formula 1 World Champion team. This partnership aimed to improve the way data is used in its business. The OCI-powered capabilities would aid the team to enhance its already formidable competitive edge.
- Feb-2021: WORKDAY came into a partnership with Zumiez, a leading specialty retailer of apparel, equipment, footwear, and accessories. This partnership aimed to aid fastens its digital finance transformation to better anticipate and react to dynamic market conditions. In addition, Zumiez selected WORKDAY's Adaptive Planning, Financial Management, and Workday Prism Analytics.
- Jan-2021: SAP SE joined hands with Microsoft, an American multinational technology corporation. This collaboration aimed to drive joint innovation to unify Microsoft Teams and SAP’s business software applications to simplify processes and enable collaboration without switching applications.
- Nov-2020: Zoho Corporation came into a partnership with Tata consultancy service, an Indian multinational information technology services and consulting company. This partnership aimed to deliver unmatchable IT Service Management, Customer Relationship Management, and e-Commerce solutions to solve the concerns of large businesses.
- Mar-2020: Sage Intacct formed a partnership with Plumb, a premier Sage construction software value-added reseller. This partnership aimed to provide a new native cloud solution that is created on proven technology for the construction sector. Further, Plumb expanded their suite of software selection within the Sage family.
Product Launches and Product Expansions:
- Aug-2020: Zoho Corporation expanded its product line of GST-compliant online accounting software, with Zoho Books Ultimate. This product expansion aimed companies to provide e-invoices for every sales transaction and report them to the Invoice Registration Portal (IRP). Zoho Books gives a flexible, single, scalable accounting platform that is made to manage compliance automatically.
Acquisitions and Mergers:
- Apr-2022: Sage Intacct took over Mateo cloud savings and loan software from MAS Integrated Solutions, an Information Technology Services company. This acquisition aimed to aid nonprofit and faith-based organizations handle programs that consist of a revolving loan fund.
- Mar-2022: SAP SE took over Taulia, a leading provider of working capital management solutions. This acquisition aimed to expand SAP's business network and strengthen SAP’s solutions for the CFO office. Under this acquisition, Taulia’s solutions would be closely unified into SAP software and continue to be available standalone.
- Oct-2021: FRESHBOOKS took over FastBill, one of Germany's leading cloud accounting and invoicing software solutions. This acquisition aimed to expand the offering and better support the requirements of small business owners in Germany and Europe.
- Jun-2021: IBM Corporation took over an Application Resource Management (ARM) and Network Performance Management (NPM) software provider. This acquisition aimed to provide artificial intelligence for IT operations capabilities.
- May-2021: Epicor Software Corporation took over KBMax, a provider of a configured price quote and visualization software. This acquisition aimed to aid customers, allowing them to make an immersive and information-rich online buying experience. The unification of next-gen CPQ tools with the ERP system would allow vital connectivity points to the customers over costs, inventory, pricing, and customer data.
- Sep-2020: FRESHBOOKS took over Facturama, a Mexican digital invoice startup. This acquisition aimed to enhance the ability to serve Mexico’s growing small business and startup market in a better way.
- Mar-2020: FRESHBOOKS expanded its geographical footprints in the United Kingdom by launching a new offering of features, especially for UK business requirements. This geographical expansion aimed to raise focus and investment in the UK region, after witnessing significant customer growth in the recent period.
Scope of the Study
Market Segments Covered in the Report:
By Deployment Model
By Organization Size
- Large Enterprises
- Small & Medium-sized Enterprises (SMEs)
- Government & Public Sector
- Telecom & IT
- Media & Entertainment
- Healthcare & Life Sciences
- Energy & Utilities
- Retail & Ecommerce
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- 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.)
- Kingdee International Software Group Co., Ltd.
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