Accounting Software Market: Current Analysis and Forecast (2022-2028)

Accounting Software Market: Current Analysis and Forecast (2022-2028)

Accounting software is used to keep track of accounts on computers, including logging transactions and account balances. The software can also generate financial reports, handle payroll, manage client relationships, do accounting activities for several currencies, and manage budgets. The growing adoption of accounting software is attributed to the growing industries around the world coupled with the growing number of industrial transactions.

The Accounting Software Market is expected to grow at a steady rate of around 8% owing to the increasing number of small and medium businesses coupled with the growing trend of digitization of organizations. The growing demand for accounting software is mainly attributed to the increasing need for computerized accounting for efficiency and accuracy is expected to drive the market during the forecast period. Moreover, the increasing adoption of technologies to increase business productivity is expected to drive the market during the analysis time period. Furthermore, accounting software solutions help organizations to streamline the accounting process and save significant time.

• On the basis of component, the market is segmented into software and services. The software segment is expected to grow significantly during the forecast period. The growth of the segment is mainly attributed to the numerous benefits that accounting software solution offer to an organization, such as streamlining the business process, eliminating manual processes, and also helping in the reduction of extra costs.
• Based on deployment, the market is bifurcated into on-premises and cloud. The on-premises segment held the largest share in 2021 and is expected to showcase a similar trend during the forecast period. The growth of the segment is mainly attributed to the security that on-premises solutions offer. Accounts and finances are very confidential to every organization and to maintain the confidentiality of the accounts on-premises deployment is used. In the on-premises form of deployment, the application is deployed on the server hubs of the organization, which is a much safer and more secure option than the public cloud.
• Based on organization size, the market is segmented into small and medium enterprises and large enterprises. The SME segment held a significant share in 2021 and is expected to showcase a similar trend during the forecast period. The growing adoption of accounting software in SMEs is mainly attributed to the growing number of SMEs around the world. Furthermore, SMEs are implementing accounting software because of its features such as centralized accounting.
• For a better understanding of the market adoption of the accounting software industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. APAC is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the increasing internet penetration in the countries such as India and China. Moreover, the growing number of SMEs in the region is expected to significantly influence the market growth during the forecast period. Furthermore, the increasing use of accounting software in the banking and finance sector in the region is expected to drive the market during the analysis time period.
• Some of the major players operating in the market include Intuit Inc; Sage Group plc; SAP SE, Microsoft; Infor; Epicor Software Corporation; Unit4; Xero Limited; Zoho Corporation Pvt. Ltd; and Red Wing Software Inc.