The accounting software market size has grown rapidly in recent years. It will grow from $16.98 billion in 2023 to $18.82 billion in 2024 at a compound annual growth rate (CAGR) of 10.8%. The growth observed in the historical period can be attributed to the adoption of small and medium-sized enterprises (SMEs), adherence to tax compliance requirements, and integration with business systems.
The accounting software market size is expected to see rapid growth in the next few years. It will grow to $29.36 billion in 2028 at a compound annual growth rate (CAGR) of 11.8%. The anticipated growth in the forecast period can be attributed to advancements in analytics and reporting, increased mobile accessibility, globalization with multi-currency support, and the provision of industry-specific solutions. Key trends expected in the forecast period include the integration of artificial intelligence (AI) and machine learning (ML), the development of mobile accounting apps, integration with fintech services, a heightened focus on user experience (UX) and design, and the implementation of blockchain for enhanced security.
The growth of the accounting software market is being propelled by the rising demand for automation in accounting processes. Finance and accounting professionals worldwide are increasingly seeking ways to enhance the efficiency of their accounting processes, leading to a heightened demand for accounting software solutions. According to a 2022 survey conducted by Airbase, a spend management platform, involving nearly 200 finance and accounting professionals in the US, 78% of the respondents expressed that automation would have a positive impact on their growth. Additionally, 47% stated that the absence of automation was causing them to lose both time and money. Hence, the growing emphasis on automation in accounting processes is a key driver fueling the expansion of the accounting software market.
The surge in the uptake of cloud-based accounting solutions is a key driver propelling the expansion of the accounting software market. These solutions, which deliver accounting functionalities exclusively over the internet without the need for local installation or storage, offer enhanced scalability, accessibility, and cost-effectiveness. Notably, in September 2023, as reported by Xero, a prominent New Zealand-based provider of cloud-based accounting software, practices leveraging cloud accounting witnessed a notable uptick in revenues, with 74% experiencing growth, compared to only 41% among non-cloud users. Furthermore, 32% of these practices directly attributed their revenue growth to the adoption of cloud technology. Consequently, the growing embrace of cloud-based accounting solutions is a significant catalyst for the advancement of the accounting software market.
The accounting software market is currently witnessing a prominent trend driven by technological advancements. Leading companies in this sector are incorporating cutting-edge technologies, with a particular focus on artificial intelligence (AI), to introduce groundbreaking solutions. A notable example is Xero, a prominent accounting software company based in New Zealand, which unveiled Analytics Plus, a new planning, insights, and reporting tool for small and medium-sized businesses in July 2021. This tool seamlessly integrates cash flow forecasting with advanced predictive capabilities powered by AI, providing businesses with valuable insights across various financial parameters. This strategic integration of AI showcases a broader industry trend towards leveraging sophisticated technologies to enhance the functionality and value proposition of accounting software solutions.
Key players in the accounting software market are strategically emphasizing innovative solutions, particularly the development of new cloud-based software, to cater to evolving client needs, enhance accessibility, and bolster data security. Cloud-based software, characterized by applications or programs hosted on remote servers and accessed through the internet, eliminates the need for local installation on individual devices. An illustrative example is Focus Softnet, an India-based software company, which introduced FocusLyte, its latest accounting software, in March 2023. This cloud-based system is adept at managing invoices and company payments, designed to meet the requirements of small and medium enterprises while also proving effective for enterprises with intricate financial accounting processes. Renowned for its user-friendly interface and comprehensive reporting capabilities, FocusLyte exemplifies the industry's commitment to leveraging cloud-based solutions for improved efficiency and client satisfaction.
In October 2021, FreshBooks, a Canadian company specializing in invoice and accounting software, completed the acquisition of FastBill for an undisclosed sum. This strategic acquisition provided FreshBooks with access to FastBill's specialized knowledge in European Union tax filing regulations and advanced accounting technologies. With this integration, FreshBooks aims to venture into new markets and broaden its platform's capabilities significantly. FastBill, headquartered in Germany, is a provider of accounting software solutions.
Major companies operating in the accounting software market report are Microsoft Corporation, Oracle Corporation, SAP SE, Intuit Inc., Infor Inc., The Sage Group PLC, BKE Solutions LLC, Epicor Software Corporation, Xero Limited, Zoho Corporation Pvt. Ltd., Blackbaud Inc., Unit4 Business Software Limited, MYOB Group Pty Ltd., FreshBooks Inc., Wave Financial Inc., Tipalti Inc., FreeAgent Central Ltd., Reckon Limited, Red Wing Software Inc., Deskera Holdings Limited, Cougar Mountain Software Inc., Aplos Software LLC, AccountMate Software Corporation, Patriot Software LLC, Multiview Financial Software Inc., Acclivity Group LLC, Saasu Pty Ltd., Billy Solutions Inc., Kashoo Cloud Accounting Inc., ZarMoney Inc., Plooto Inc., 2ndsite Inc.
North America was the largest region in the accounting software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the accounting software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the accounting software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The core elements of accounting software encompass solutions and services. These software solutions play a vital role in streamlining financial accounting processes within businesses and managing day-to-day transactions to facilitate efficient bookkeeping. Accounting software types vary, including spreadsheets, commercial accounting software, enterprise accounting software, and customized accounting solutions. Deployment options for accounting software encompass both on-premise and cloud-based models, catering to enterprises of various sizes, from large corporations to small and medium-sized enterprises (SMEs). The diverse industry sectors utilizing accounting software span across BFSI, retail and e-commerce, manufacturing, IT and telecom, healthcare, government and public sectors, energy and utilities, media and entertainment, and other specialized verticals.
The accounting software market research report is one of a series of new reports that provides accounting software market statistics, including accounting software industry global market size, regional shares, competitors with an accounting software market share, detailed accounting software market segments, market trends and opportunities, and any further data you may need to thrive in the accounting software industry. This accounting software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The accounting software market consists of revenues earned by entities by providing online accounting software. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
The accounting software market size is expected to see rapid growth in the next few years. It will grow to $29.36 billion in 2028 at a compound annual growth rate (CAGR) of 11.8%. The anticipated growth in the forecast period can be attributed to advancements in analytics and reporting, increased mobile accessibility, globalization with multi-currency support, and the provision of industry-specific solutions. Key trends expected in the forecast period include the integration of artificial intelligence (AI) and machine learning (ML), the development of mobile accounting apps, integration with fintech services, a heightened focus on user experience (UX) and design, and the implementation of blockchain for enhanced security.
The growth of the accounting software market is being propelled by the rising demand for automation in accounting processes. Finance and accounting professionals worldwide are increasingly seeking ways to enhance the efficiency of their accounting processes, leading to a heightened demand for accounting software solutions. According to a 2022 survey conducted by Airbase, a spend management platform, involving nearly 200 finance and accounting professionals in the US, 78% of the respondents expressed that automation would have a positive impact on their growth. Additionally, 47% stated that the absence of automation was causing them to lose both time and money. Hence, the growing emphasis on automation in accounting processes is a key driver fueling the expansion of the accounting software market.
The surge in the uptake of cloud-based accounting solutions is a key driver propelling the expansion of the accounting software market. These solutions, which deliver accounting functionalities exclusively over the internet without the need for local installation or storage, offer enhanced scalability, accessibility, and cost-effectiveness. Notably, in September 2023, as reported by Xero, a prominent New Zealand-based provider of cloud-based accounting software, practices leveraging cloud accounting witnessed a notable uptick in revenues, with 74% experiencing growth, compared to only 41% among non-cloud users. Furthermore, 32% of these practices directly attributed their revenue growth to the adoption of cloud technology. Consequently, the growing embrace of cloud-based accounting solutions is a significant catalyst for the advancement of the accounting software market.
The accounting software market is currently witnessing a prominent trend driven by technological advancements. Leading companies in this sector are incorporating cutting-edge technologies, with a particular focus on artificial intelligence (AI), to introduce groundbreaking solutions. A notable example is Xero, a prominent accounting software company based in New Zealand, which unveiled Analytics Plus, a new planning, insights, and reporting tool for small and medium-sized businesses in July 2021. This tool seamlessly integrates cash flow forecasting with advanced predictive capabilities powered by AI, providing businesses with valuable insights across various financial parameters. This strategic integration of AI showcases a broader industry trend towards leveraging sophisticated technologies to enhance the functionality and value proposition of accounting software solutions.
Key players in the accounting software market are strategically emphasizing innovative solutions, particularly the development of new cloud-based software, to cater to evolving client needs, enhance accessibility, and bolster data security. Cloud-based software, characterized by applications or programs hosted on remote servers and accessed through the internet, eliminates the need for local installation on individual devices. An illustrative example is Focus Softnet, an India-based software company, which introduced FocusLyte, its latest accounting software, in March 2023. This cloud-based system is adept at managing invoices and company payments, designed to meet the requirements of small and medium enterprises while also proving effective for enterprises with intricate financial accounting processes. Renowned for its user-friendly interface and comprehensive reporting capabilities, FocusLyte exemplifies the industry's commitment to leveraging cloud-based solutions for improved efficiency and client satisfaction.
In October 2021, FreshBooks, a Canadian company specializing in invoice and accounting software, completed the acquisition of FastBill for an undisclosed sum. This strategic acquisition provided FreshBooks with access to FastBill's specialized knowledge in European Union tax filing regulations and advanced accounting technologies. With this integration, FreshBooks aims to venture into new markets and broaden its platform's capabilities significantly. FastBill, headquartered in Germany, is a provider of accounting software solutions.
Major companies operating in the accounting software market report are Microsoft Corporation, Oracle Corporation, SAP SE, Intuit Inc., Infor Inc., The Sage Group PLC, BKE Solutions LLC, Epicor Software Corporation, Xero Limited, Zoho Corporation Pvt. Ltd., Blackbaud Inc., Unit4 Business Software Limited, MYOB Group Pty Ltd., FreshBooks Inc., Wave Financial Inc., Tipalti Inc., FreeAgent Central Ltd., Reckon Limited, Red Wing Software Inc., Deskera Holdings Limited, Cougar Mountain Software Inc., Aplos Software LLC, AccountMate Software Corporation, Patriot Software LLC, Multiview Financial Software Inc., Acclivity Group LLC, Saasu Pty Ltd., Billy Solutions Inc., Kashoo Cloud Accounting Inc., ZarMoney Inc., Plooto Inc., 2ndsite Inc.
North America was the largest region in the accounting software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the accounting software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the accounting software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The core elements of accounting software encompass solutions and services. These software solutions play a vital role in streamlining financial accounting processes within businesses and managing day-to-day transactions to facilitate efficient bookkeeping. Accounting software types vary, including spreadsheets, commercial accounting software, enterprise accounting software, and customized accounting solutions. Deployment options for accounting software encompass both on-premise and cloud-based models, catering to enterprises of various sizes, from large corporations to small and medium-sized enterprises (SMEs). The diverse industry sectors utilizing accounting software span across BFSI, retail and e-commerce, manufacturing, IT and telecom, healthcare, government and public sectors, energy and utilities, media and entertainment, and other specialized verticals.
The accounting software market research report is one of a series of new reports that provides accounting software market statistics, including accounting software industry global market size, regional shares, competitors with an accounting software market share, detailed accounting software market segments, market trends and opportunities, and any further data you may need to thrive in the accounting software industry. This accounting software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The accounting software market consists of revenues earned by entities by providing online accounting software. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Accounting Software Market Characteristics3. Accounting Software Market Trends and Strategies32. Global Accounting Software Market Competitive Benchmarking33. Global Accounting Software Market Competitive Dashboard34. Key Mergers and Acquisitions in the Accounting Software Market
4. Accounting Software Market - Macro Economic Scenario
5. Global Accounting Software Market Size and Growth
6. Accounting Software Market Segmentation
7. Accounting Software Market Regional and Country Analysis
8. Asia-Pacific Accounting Software Market
9. China Accounting Software Market
10. India Accounting Software Market
11. Japan Accounting Software Market
12. Australia Accounting Software Market
13. Indonesia Accounting Software Market
14. South Korea Accounting Software Market
15. Western Europe Accounting Software Market
16. UK Accounting Software Market
17. Germany Accounting Software Market
18. France Accounting Software Market
19. Italy Accounting Software Market
20. Spain Accounting Software Market
21. Eastern Europe Accounting Software Market
22. Russia Accounting Software Market
23. North America Accounting Software Market
24. USA Accounting Software Market
25. Canada Accounting Software Market
26. South America Accounting Software Market
27. Brazil Accounting Software Market
28. Middle East Accounting Software Market
29. Africa Accounting Software Market
30. Accounting Software Market Competitive Landscape and Company Profiles
31. Accounting Software Market Other Major and Innovative Companies
35. Accounting Software Market Future Outlook and Potential Analysis
36. Appendix
Executive Summary
Accounting Software Global Market Report 2024 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on accounting software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Reasons to Purchase
- Gain a truly global perspective with the most comprehensive report available on this market covering 50+ geographies.
- Understand how the market has been affected by the coronavirus and how it is responding as the impact of the virus abates.
- Assess the Russia-Ukraine war’s impact on agriculture, energy and mineral commodity supply and its direct and indirect impact on the market.
- Measure the impact of high global inflation on market growth.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market shares.
- Benchmark performance against key competitors.
- Suitable for supporting your internal and external presentations with reliable high quality data and analysis.
- Report will be updated with the latest data and delivered to you with an Excel data sheet for easy data extraction and analysis.
- All data from the report will also be delivered in an excel dashboard format.
Where is the largest and fastest growing market for accounting software? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? This report answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
- The impact of higher inflation in many countries and the resulting spike in interest rates.
- The continued but declining impact of COVID-19 on supply chains and consumption patterns.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Report Scope
Markets Covered:1) By Component: Solution; Services
2) By Type: Spreadsheets; Commercial Accounting Software; Enterprise Accounting Software; Custom Accounting Software
3) By Deployment Mode: On-Premise; Cloud
4) By Enterprise Size: Large Enterprises; SMEs
5) By Industry Vertical: BFSI; Retail and Ecommerce; Manufacturing; IT and Telecom; Healthcare; Government and Public Sector; Energy and Utilities; Media and Entertainment; Other Verticals
Key Companies Mentioned: Microsoft Corporation; Oracle Corporation; SAP SE; Intuit Inc.; Infor Inc.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes
Delivery Format: PDF, Word and Excel Data Dashboard
Companies Mentioned
- Microsoft Corporation
- Oracle Corporation
- SAP SE
- Intuit Inc.
- Infor Inc.
- The Sage Group plc
- BKE Solutions LLC
- Epicor Software Corporation
- Xero Limited
- Zoho Corporation Pvt. Ltd.
- Blackbaud Inc.
- Unit4 Business Software Limited
- MYOB Group Pty Ltd
- FreshBooks Inc.
- Wave Financial Inc.
- Tipalti Inc.
- FreeAgent Central Ltd.
- Reckon Limited
- Red Wing Software Inc
- Deskera Holdings Limited
- Cougar Mountain Software Inc.
- Aplos Software LLC
- AccountMate Software Corporation
- Patriot Software LLC
- Multiview Financial Software Inc.
- Acclivity Group LLC
- Saasu Pty Ltd.
- Billy Solutions Inc.
- Kashoo Cloud Accounting Inc.
- ZarMoney Inc.
- Plooto Inc.
- 2ndsite Inc.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | February 2024 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value ( USD | $ 18.82 Billion |
| Forecasted Market Value ( USD | $ 29.36 Billion |
| Compound Annual Growth Rate | 11.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 32 |
