Accounting Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

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.

Scope of the Report

Accounting software is a software that processes and records accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It mainly functions as an accounting information system. Moreover, the accounting software also keeps track of cash flows, transactions, perform calculations, and generates reports. Eventually, accounting software may help improve profitability, efficiency, operations, and reduces costs.

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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

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