Dublin, April 19, 2021 (GLOBE NEWSWIRE) — The “Accounting Software Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.
The Accounting Software Market was valued at USD 12.01 billion in 2020 and is expected to reach USD 19.59 billion by 2026, at a CAGR of 8.5% over the forecast period 2021 – 2026. 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.
The accounting software solutions are used to streamline the accounting process, save time, and ensure an error-free transaction between the companies and clients. These systems are designed to increase productivity by archiving, automating, and integrating human resource systems. Implementing accounting software across SMEs helps to reduce errors out of dealings with clients and companies, thereby improving relationships and reputations, while ensuring time to focus on the core business idea.
The increasing trend of small and medium enterprises collaborating with e-commerce players and integration with other online applications, such as automated bank feeds, automated billing features, among others, is expected to further drive the adoption of accounting software during the forecast period. It helps increase efficiency, as it is used to keep track of all the accounting transactions and manage the money flowing in and out of business. The software has also emerged as a better solution for managing a company’s accounts, as it can easily manage account payables, account receivables, business payroll, and general ledger, along with other business modules.
The market has seen a significant share of vendors with accounting at the core and has been leveraging the cloud’s cost benefits. Additionally, they have been targeting the ever niche “micro and small and medium” businesses. One of the notable strategies exhibited by these accounting software new entrants is the inclusion of advanced features, such as artificial intelligence, for applications, such as planning, learning, problem-solving, and speech recognition.
For instance, an Australia-based tax, accounting, and other business services software provider’s solution, MYOB Advisor, gives natural language descriptions of a business’s financial position. Accountants and bookkeepers can customize the description based on their SME client’s knowledge and experience. Moreover, the insights provided by MYOB Advisor include visualization of cash flow that enables the advisor to help their client see where their cash is going or provide a view of top customers and help clients better manage their high-value relationships.
Moreover, as multiple countries worldwide have been facing the challenge of dealing with the coronavirus outbreak and lockdown, more businesses, especially small businesses, have been working remotely. This has increased the demand for more dynamic and remote access to the business financial records and systems by the individuals who need to work on them and those who majorly need to access this timely information accurately to make decisions to manage the financial affairs.
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 the company’s accurate financials, such as time-saving, cost-effective operation, and higher overall productivity, are expected to drive the demand. Besides, these factors make this software more deployable for small businesses.
- Businesses purchase accounting based software to increase their functionality and replace the dated system. The reason being, in accounting calculation, is tedious and complex. It will require manpower to complete things. But accounting software can do the calculation precisely and accurately without manpower.
- Moreover, automation in the accounting industry is also an ongoing trend driven by software advancement. Accounting has been made highly automated without the need for a significant physical intervention. The latest accounting software has enabled organizations to minimize their human resources. This has led to efficient utilization of capital and better management of the available resources
Asia-Pacific to Witness the Highest Growth
- The Asia-Pacific is expected to grow faster for accounting software, primarily due to factors such as increasing penetration of business accounting mobile applications and higher adoption of cloud computing technologies and solutions across the region. Moreover, the emergence of small businesses and rising investments by SME’s in the cloud and the SaaS market are likely to boost the market’s growth.
- By implementing various initiatives to build more business confidence in the cloud, the local governments play a significant role in the development of the cloud integration services market across the region, hence, developing more opportunities for the studied market.
- Also, the governments’ growing focus in the region to ease organizational payments, transactions, and generate a track of debt, liabilities, and assets increases the demand for the market studied.
- For instance, the Australian Government’s focus on improving larger enterprises’ payment times could be vital over the coming months. Recently in April 2020, Minister for Small Business Stuart Nash told Parliament’s Epidemic Response Committee that he intended to write to more substantial businesses to encourage them to pay their bills to local SMEs as fast as possible.
The accounting software market is moderately consolidated. The top players occupy the major share of the market. Moreover, existing players already have 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.
- February 2020 — Intuit, the maker of TurboTax, QuickBooks, and Mint, also announced that it has agreed to acquire Credit Karma, which is a consumer technology platform with more than 100 million members in the United States, Canada, and the U.K., for approximately USD 7.1 billion in cash and stock. The acquisition will bring together both the technology leaders with a shared goal to help solve the personal finance problems that the consumers face today, regardless of their financial situation.
- 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.
- February 2020 Intuit, the maker of TurboTax, QuickBooks, and Mint, also announced that it has agreed to acquire Credit Karma, which is a consumer technology platform with more than 100 million members in the United States, Canada, and the U.K., for approximately USD 7.1 billion in cash and stock. The acquisition will bring together both the technology leaders with a shared goal to help solve the personal finance problems that the consumers face today, regardless of their financial situation.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
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Key Topics Covered:
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness – Porter’s Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitute Products
4.4 Technology Snapshot
4.5 Assessment of COVID-19 Impact on the Market
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Trend of Accounting Automation
5.2 Market Restraints
5.2.1 Lack of Awareness
6 MARKET SEGMENTATION
6.1 By Deployment Type
6.2 Organization Size
6.2.1 Small and Medium Enterprises
6.2.2 Large Enterprises
6.3.1 North America
6.3.3 Asia Pacific
6.3.4 Latin America
6.3.5 Middle East and Africa
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Intuit Inc.
7.1.2 Sage Software Inc.
7.1.3 SAP SE
7.1.4 Oracle Corporation
7.1.5 Microsoft Corporation
7.1.6 Infor Inc.
7.1.7 Epicor Software Corporation
7.1.8 Unit4 Business Software Limited
7.1.9 Xero Ltd
7.1.10 Zoho Corp
7.1.11 Red Wing Software Inc.
7.1.12 MYOB Group Pty Ltd
7.1.13 Reckon Ltd.
7.1.14 Saasu Pty Ltd
8 VENDOR MARKET SHARE ANALYSIS
9 INVESTMENT ANALYSIS
10 FUTURE OF THE MARKET
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