Global Accounting Software Market 2022: Overview

Accounting software processes and records financial transactions with exceptional in-built capabilities such as accounts payable, accounts receivable, payroll, and trial balance.

The Global Market of Accounting software recorded USD 12.01 Billion in 2020 and will continue to grow at a CAGR of 8.5%. It is estimated to cross the USD 19.59 Billion mark by 2026.

Businesses who transact daily with the help of accounting software must understand the current state of the Global accounting software. Here is the complete overview of the market, including the top players ruling the industry.

Table of Contents:

• Market Overview
  • Some Quick Points

• Key Market Players
  • Intuit
  • FreshBooks
  • SAP
  • Microsoft
  • Sage

• Key Market Trends
  • Improvised Accounting Software Efficiency
  • Geographical Dominance of Asian Region
  • Cloud Technology is the New Trend
  • Magnified Competition

• Key Highlights for 2022-2026

• Conclusion

Market Overview:

Over the past few years, conventional accounting shifted to a more advanced and digital stage. Due to the abrupt switch from manual to automated data storage, computerized accounting has seen a sharp increase in demand.

In this context, earlier applications were once limited to mere data recording, now are doing much more than that. Today you will come across accounting software with almost exceptional features such as CRM (Customer Relationship Management), Human Resource, Reporting, and analytics.

Some Quick Points are:

• Now, along with large and medium scale businesses, even the small players are reaping the benefits of the implementation of digital financial software.

• SMEs can reduce errors, improve relationships and reputations with clients and companies via accounting software. Plus, concentrate on the core business idea by saving more time.

• Since the coronavirus pandemic has hit the global economy, the need for remote software has seen a surge. It, in turn, has accelerated the accounting software developers to incorporate more comprehensive features and tools to manage the home-based working process.

• Small and Medium businesses have started integrating with multiple online applications that increase their financial management process efficiency. It has further attracted the adoption of more accounting software.

• Software developers are now creating more small business-centric applications. The inclusion of Artificial Intelligence (AI), automation, analytics capabilities have fastened the finance applications demand in the market.

Key Market Players

1. Intuit

The company creates financial software for consumers, including independent contractors and small business owners. QuickBooks, TurboTax, Lacerte, and Mint are among the company’s products, as well as Credit Karma and TurboTax.

Customer growth, higher effective prices, and a mix-shift resulted in a 32 percent growth in Quickbooks Online Accounting revenue in the quarter.QuickBooks Online Payroll and QuickBooks Online payments accounted for 42 percent of Online Services revenue.

2. FreshBooks

Invoice, expenses, payments, payroll, and financial reporting are made easier with FreshBooks, a cloud-based accounting software platform for small business owners and independent contractors.

Freelancers and small business owners can use FreshBooks as their cloud accounting solution. Create professional invoices, track expenses, and create professional invoices with an intuitive interface.

During its first decade of existence, the company served more than 30 million people in over 160 countries.

3. SAP

SAP software provides tracking, managing, and reporting capabilities for any size business enterprise organization. SAP software is the best, most popular ERP software available today.

Founded by five former IBM employees in 1972, SAP AG is one of the world’s biggest software companies. Its headquarters is located in Walldorf, Germany, and SAP is listed on several stock exchanges.

4. Microsoft

Microsoft is involved in several business activities, including software, computers, and consumer electronics development, manufacturing, and licensing. The most notable product of Microsoft is Office. With the recent development of online-based cloud services, Microsoft has drastically changed its revenue.

Microsoft has started more investments in cloud-based accounting software to expand and strengthen its business. That is why it still manages to remain amongst the top key players in the global accounting software market.

5. Sage

Accounting, enterprise resource planning, and payroll software are among the services offered by Sage Group Plc. North America, Central, and Southern Europe, and Northern Europe are the company’s business segments.

Sage online software has created a benchmark in the accounting software market due to its effective low-cost cloud setup setting.

Key Market Trends

1. Improvised Accounting Software Efficiency

Accounting software efficiency is a key growth driver. By tracking accounting transactions and managing the flow of money in and out of a business, accounting software offers increased efficiency.

It has become a better solution for managing a business’s accounts because of its ability to control accounts payable, receivables, payroll, general ledger, and other business functions.

Demand is expected to be driven by capabilities that assure accurate financial statements, such as time-saving, cost-effective tasks, and leveraged productivity.

2. Geographical Dominance of Asian Region

As a result of factors including increasing penetration of mobile business accounting applications and increased adoption of cloud computing technologies, the Asia-Pacific is expected to grow faster for accounting software.

Additionally, the growing popularity of small businesses and investments in cloud-based software and SaaS are expected to boost the market.

3. Cloud Technology is the New Trend

In today’s world, cloud computing technology has increased dramatically. The accounting industry relies heavily on the cloud because it offers enhanced data protection and unlimited storage. Not only do you reduce administrative costs, but your software productivity is increased to an unmatched level, as well.

4. Magnified Competition

Moderate consolidation exists in the accounting software market. Market share is dominated by the top players. Furthermore, existing players have existing clients that don’t want to switch to new players.

Besides this, new players are less likely to sustain the market as they get acquired by the top players in the long run.

There are many players in the accounting software market, including Intuit Inc., Oracle, Microsoft, SAP SE, Sage Inc., Infor Inc., Epicor Software, Xero Ltd., among others.

Key Highlights for 2022-2026:

1. Assisting software for enhancing cloud performance will see a sharp increase.
2. Cloud Accounting software key players will remain dominant for coming years.
3. Upcoming trends and changes in the accounting software industry rely on consumer behavior.
4. The rapid growth in the Cloud-Based Accounting Software market
5. Market’s competitive landscape will comprise the current year top players including Microsoft, SAP, Intuit, and FreshBooks
6. Vendors will shift to the development of cloud-based software from traditional desktop solutions.

Conclusion

According to a Forbes study, 2021 will usher in a new wave of automation in accounting. Tax preparation, payroll, banking, and audits will continue to be automated in this industry.

Practical knowledge of tax management is gaining in importance, as well as spreadsheet management software.

Businesses are likely to incline towards tech-based solutions due to the rising demand for computerized accounting.

An accounting software can streamline the financial management process, saves your time, and ensures that all the transactions among the clients and companies are mistake-free.

Automating, integrating, and archiving these systems will enhance productivity. C-level executives are more than 50% likely to believe automated accounting systems will be the norm in the coming years, according to a new ACCA study.

Stay updated with our latest bookkeeping, accounts receivable, accounts payable, payroll and accounting articles at SugerMint.