Due to the increasing demand for computerized accounting, the global market for accounting software is projected to grow significantly over the predicted period. The continuous transformation from the traditional method of manually storing financial documents to utilizing an accounting information system has become a noticeable trend in the accounting software sector. Accounting software concentrates on basic accounting functions like general ledger, accounts receivable, accounts payable, payroll, and occasionally inventory.
Presently accounting software can incorporate CRM, supply chain management, human resource management, and dashboard and reporting applications. The software is applied to process and record every financial transaction within functional modules like accounts payable, receivable, payroll, and trial balance. Additionally, it tracks transactions and cash flows, conducts calculations, and produces dashboards and reports. Accounting software is widely used by both large corporations and small and medium-sized businesses to track financial activities.
Today top solutions provide real-time business visibility through simple dashboards and reporting. Financial consolidation, reporting, and analysis among numerous giant corporations are becoming increasingly important. Accounting software is being used by corporations to manage their finances.
The Global Accounting Software Market was estimated at $11.9 billion in 2020 and is expected to reach $70.2 billion by 2030, increasing at a 19.6% CAGR between 2021 and 2030.
The Increasing Demand of Accounting Software Market
Account receivable and payable, tax compliance, cash flow analysis, trial balance, balance sheet, invoicing, income and expense statements, and payroll are the different type of benefits provided by accounting software. Furthermore, automation of processes saves time and money while reducing the amount of errors, offering the market with profitable growth opportunities. Additionally, increased investment in industries like BFSI, healthcare, retail, and e-commerce, along with increased implementation of cloud-based accounting systems, is also driving the market growth.
The use of new technology to raise corporate efficiency and the advent of virtual chief financial officer (CFO) to improve business operations in the small-scale to medium-scale (SMEs) industry is influencing the account software market growth. Furthermore, the increasing trend of automation in accounting processes to improve efficacy and decrease manual tasks also supports market growth. Additionally, the accessibility of innovative and dependable IT infrastructure brings up a plethora of opportunities for accounting software. The increased usage of mobile and app-based accounting software by businesses and consumers is likely to present the market with lucrative growth possibilities in the near future. An increase in investment in artificial intelligence (AI)-oriented accounting software is expected to create multiple prospects for the market growth. But, data security and privacy issues, along with the extra expenses involved with accounting software can restrict the market growth.
What are the Market Drivers?
- The development of Cloud-Based software solutions has considerably assisted medium and large organizations. As medium and large organizations have multiple systems in their offices, it is difficult to install software in each one. Independent maintenance imposes additional costs. In comparison to on-premise software solutions, cloud-based software solutions provide characteristics such as real-time reporting to each account linked to the company. The adoption of cloud-based software solutions allows for visibility throughout the entire organization.
- As controlling operations is time-consuming and complicated, the old system is being upgraded with a business buy accounting software solution. Accounting officials are highly depending on technological solutions for accurate computations and data creation.
- Customized accounting software is excellent for business-oriented accounting needs covering all records, payables, and receivables. It can also be utilized in the firm's finance and tax analyses, in addition to invoice preparation and processing. To summarize and evaluate financial data, a traditional and a cloud-based technique can be employed. A customized accounting system may be used in collaboration with business software like customer relationship management (HRMS), stock administration, asset management, financial planning, and analysis.
The Major Market Trends of Accounting Software
- Financial institutions are increasingly relying on big data analytics, and it has become one of the primary market trend. When combined with commercial software, big data technologies such as Amazon Kinesis and Amazon Redshift help businesses streamline their data management processes. Furthermore, it improves the effectiveness of data analysis for firms. The advancement of big data and analytics tools has made it straightforward for organizations to transform unstructured data into useful structured data.
- Another key trend that has recently proved to be popular in the business software market is the increasing demand for business accounting mobile applications. These applications can handle typical accounting operations such as taking payments, sending invoices, locating receipts, setting budgets, and maintaining track of spending.
- Users must evaluate the firm's growth as a business owner on a frequently and take the required steps to guarantee its long-term viability. Accounting reports assist users in comprehending financial trends and analyzing the company's growth patterns. But, as every report requires the user to manually combine data and add calculations, preparing reports with spreadsheets is time consuming. Accounting software automates report preparation, thereby saving time and effort. The balance sheet, cash flow statement, and profit and loss statement are the three most important financial statements that a corporation needs to understand.
Accounting Software Market
The North America area led the entire accounting software business in 2020 and is likely to maintain this trend during the projected period. Companies in North America are investing in developing technology to improve labor procedures. Furthermore, because of the region's strong IT infrastructure, cloud-based accounting software has gained significant popularity. Additionally, the increased use of the software in banking and finance to enhance business and consumer experience would present profitable growth prospects for this region's accounting software market.
Key Players of the Accounting Software Market
The accounting software sector has seen some competition. The biggest competitors dominates the major portion of the market. Furthermore, because new players are gradually acquired by the market leaders, they cannot sustain the market for an extended length of time. Current players already have a customer base that is unwilling to switch to new players. Key players include Oracle Corporation, Microsoft Corporation, Intuit Inc., SAP SE, Sage Software Inc., Infor Inc., Epicor Software Corporation, Xero Ltd., and Unit4 Business Software Limited.
Surabhi Bhaiyya, LinkedIn
Senior Research Analyst at Cognitive Market Research
Surabhi Bhaiyya is an experienced market researcher focused on the Pharma & Healthcare industry. With over 7+ years of experience, She has worked with major pharmaceutical companies and healthcare providers, helping them to understand market trends, identify new business opportunities, and develop effective sales & marketing strategies. Her expertise lies in the ability to analyze complex data sets and deliver insights that drive business decisions. At Cognitive Market Research, she handles the market research related to Pharma and healthcare industry. To get in touch and access the above report book an apointment at https://calendly.com/speak-to-analyst.
Senior Research Analyst at Cognitive Market Research
Surabhi Bhaiyya is an experienced market researcher focused on the Pharma & Healthcare industry. With over 7+ years of experience, She has worked with major pharmaceutical companies and healthcare providers, helping them to understand market trends, identify new business opportunities, and develop effective sales & marketing strategies. Her expertise lies in the ability to analyze complex data sets and deliver insights that drive business decisions. At Cognitive Market Research, she handles the market research related to Pharma and healthcare industry.