Accounting software is a type of software that processes and records accounting transactions within functional modules such as accounts receivable, accounts payable, payroll, and trial balance. It primarily functions as an accounting information system. Additionally, the accounting software also keeps track of cash flows, transactions, performs calculations, and generates reports; however, its functionality is not only limited to the processes mentioned above. In the long run, accounting software helps improve operations, profitability, efficiency, and also reduces costs. For instance, filing business taxes is a complex process, which requires one to keep close track of all business transactions. The accounting software helps make this process easier by ensuring that all business financial details are in one place.
Accounting software refers to a type of application software used to perform accounting activities and keep the record of all accounting transactions within functional modules including accounts receivable, accounts payable, general ledger, journal, trial balance, and payroll. Increased inclination among various organizations from diverse industrial sectors toward digitalization scenario is creating promising sales opportunities for vendors working in the global accounting software market.
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Accounting software systems are gaining traction across various end-users owing to plethora of advantages. With the help of these systems, the data entry and processes become simple and fast. Apart from this, the accounting software systems are widely accepted due to their ability to assist in improving efficiency, operations, and profitability of organizations. They are employed as an accounting information system as they assist in keeping all business financial details at one place.
All the processes performed in accounting software are automated. As a result, the system works as a helpful tool in minimizing the possibilities of manual errors. Apart from offering all these advantages, accounting software help in reducing costs on additional staff. In recent period, many large-scale organizations are increasing inclination toward adopting centralized accounting software systems. This scenario highlights potential expansion avenues for players working in the global accounting software market.
With the remarkable growth in digitalization all across the globe, the threat of data frauds is at its peak. The companies working in the global accounting software market need to focus on this aspect. They need to increase research and development activities to prevent data-related frauds and offer end-user safe accounting software services.
The COVID-19 pandemic has forced many countries from all across the globe for lockdowns. This scenario has impacted badly on the financial status of many worldwide sectors. The companies engaged in the global accounting software market are increasing focus toward making strategic moves to come out of the critical situation and return to the normal business activities.
Rise in demand for SaaS-based models is anticipated to drive the accounting software market during the forecast period.The SaaS-based model eliminates the need to manually upgrade the system, as it is taken care of by the vendors themselves. For instance, the software is ideal for companies with distributed business operations. System users at remote divisions or supply chain partner sites can log into the system safely and securely from wherever they access the Internet. Furthermore, SaaS technology helps consolidate various accounting solutions under one single package. Moreover, in the SaaS-based model, the high cost of hardware, software, and data center operations are divided among customers by the vendor, thus allowing the customers to avail top-of-the-line infrastructure at a fraction of the initial cost. There is no large investment or long-term commitment. The subscription-based model minimizes the need for a prolonged, in-depth system search and evaluation process. This is a key factor that is expected to boost the accounting software market during the forecast period.
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The accounting software market can be segmented based on deployment, software type, application, enterprise size, industry, and geography. In terms of deployment, the market can beclassified into Software as a Service (SaaS), on-premise, and hybrid. The Software as a Service (SaaS) segment is anticipated to expand at a prominent CAGR during the forecast period. Based on software type, the global accounting software market can be divided into commercial off-the-shelf, enterprise accounting software, custom accounting software, reconciliation, and tax management. The enterprise accounting software segment is estimated to hold a prominent share of the market by the end of 2018. However, the tax management segment is estimated to expand at a considerable pace during the forecast period, as the software can easily generate the tax filing reports that are required for the business. Furthermore, based on application, the global accounting software market can be segregated into payroll management systems, billing & invoice system, enterprise resource planning systems, time & expense management systems, and others. The time & expense management systems segment is expected to expand at a significant pace in the near future. In terms of enterprise size, the global accounting software market can be classified into small and medium, and large enterprises. The large enterprise segment is expected to hold a considerable share of the market during the forecast period. Based on industry, the global accounting software market can be split into banking, financial services, and insurance, telecom and information and technology (IT), manufacturing, construction, wholesale distribution, non-profit organizations, chemicals, food and beverage, and others. The banking, financial services, and insurance segment is expected to hold a prominent share of the market during the forecast period due to the fact that it will help in improving operations and efficiencies of the employees in the BFSI sector.
The research study includes profiles of leading companies operating in the global accounting software market. Key players profiled in the market include Oracle (NetSuite), Sage Group Plc., Workday, Inc., Zeta Software LLC, Infor, Inc., Microsoft Corporation, SAP SE, Intuit Inc., Epicor Software Corporation, Xero Ltd., Red Wing Software Inc.,Zoho Corporation, MRI Software, AccountMate Software Corporation, and Acumatica Inc.
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