III. Industry Analysis

The global accounting software market had a value of $11.9 billion in 2020 and is forecasted to grow at a CAGR of 19.6% from 2021 to 2030, reaching $70.2 billion¹. The growth of the market is expected to be driven by the rising adoption of advanced technology to enhance business productivity, the emergence of virtual CFOs to improve the operations of small to medium-sized industries, and the trend of automating the accounting process to increase efficiency and eliminate manual tasks. The market also presents several opportunities for growth, particularly in AI-based accounting software, with increased investment in this area. North America was the market leader in 2020, and this trend is expected to continue². The demand for cloud-based accounting software is rising, primarily due to better security and real-time updates. With cloud-based accounting software, businesses can receive accounting services anytime, anywhere, and on any device.

One of the significant trends in the accounting software market is the transition from the traditional manual method of maintaining financial records to the adoption of an accounting information system. Accounting software has evolved and now integrates with other business functions like CRM, supply chain management, human resource management, and dashboard and reporting systems. Accounting software functions and records all financial activities in modules such as accounts payable, accounts receivable, payroll, and trial balance. It tracks transactions, cash flows, performs computations, and generates dashboards and reports. The accounting software market is widely used by both small and large businesses to keep track of financial transactions, and increasing adoption by these businesses is expected to drive market growth.

Furthermore, the demand for cloud-based accounting software is expected to offer profitable growth opportunities for players in the accounting software market. The leading accounting solutions available today provide real-time business visibility through easy-to-build dashboards and reports. Financial aggregation, reporting, and analysis across multiple corporate units are increasingly important. Businesses use accounting software to manage their finances, and end-use sectors are progressively adopting cloud-based accounting software due to the increasing demand for cloud computing, which saves processing time and costs.

1.https://www.alliedmarketresearch.com/accounting-software-market-A16018#:~:text=The%20global%20accounting%20software%20market,19.6%25%20from%202021%20to%202030.
2.https://www.alliedmarketresearch.com/accounting-software-market-A16018#:~:text=The%20global%20accounting%20software%20market,19.6%25%20from%202021%20to%202030.