Market Analysis and Insights:
The market for online accounting software is anticipated to increase at a CAGR of XXX% from US$ XXX million in 2021 to US$ XXX million by 2031.
The online accounting software market is expanding quickly due to a number of factors, including a surge in online retail cloud transportation and a desire for online accounting systems.
Online Accounting Software Market Scope :
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2031 |
| Study Period | 2018-2031 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2031 | NA |
| Growth Rate | CAGR of NA during 2021-2031 |
| Segment Covered | by Organization Size,By Application,by Region. |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | Oracle, Sage Group, Microsoft Corporation, SAP SE, Intuit, Infor, Zeta Software LLC, Epicor Software Corporation, Xero Ltd., Acumatica, |
Market Definition
Online accounting software is a sort of accounting software that operates on the cloud.
This implies that it may be accessible to anyone with an internet connection. Online accounting software is often more inexpensive than traditional accounting software, and it is also easier to use.
Online accounting software is a wonderful alternative for organizations of all sizes. It is inexpensive, easy to use, and scalable. If you are seeking a strategy to improve your business's financial management, online accounting software is a wonderful choice to investigate.
Key Market Segmentation:
Insights on Organization Size:
The Small & Medium Sized Segment is growing at the fastest growth rate
The small and Medium-sized Enterprises (SMEs) sector is predicted to increase at a quicker rate than the Large Enterprises category throughout the projection period. This is due to the following factors:
• The increasing number of SMEs: The number of SMEs is expanding quickly, as more and more people establish their own firms.
• The growing need for accounting software among SMEs: SMEs are increasingly employing accounting software to manage their finances and increase their productivity.
• The affordability of online accounting software: Online accounting software is cheaper than traditional accounting software, making it a more attractive alternative for SMEs.
• The ease of use of online accounting software: Online accounting software is often easier to use than traditional accounting software, making it a viable alternative for SMEs with less accounting knowledge
Insights on Application:
The BFSI Segment is boosting
The BFSI (Banking, Financial Services, and Insurance) category is predicted to increase at the quickest rate throughout the projection period. This is due to the following factors:
• The rising digitalization of the financial services business: The financial services industry is progressively digitizing its operations, and this is boosting the need for online accounting software.
• The growing requirement for compliance: Online accounting software can assist businesses in adhering to the many laws that apply to the financial services sector.
• The need for real-time data: The financial services sector needs to be able to access real-time data to make educated choices, and online accounting software can help organizations achieve this.
• The necessity for automation: The financial services sector is seeking methods to automate activities and enhance efficiency, and online accounting software may help organizations achieve this.
Insights on Region Analysis:
The Asia-Pacific area is predicted to expand at the quickest rate over the projection period. This is due to the following factors:
• The expanding popularity of cloud computing in the Asia-Pacific region: Cloud computing is gaining popularity in the Asia-Pacific region, as organizations try to decrease costs and enhance productivity. This is boosting the need for cloud-based accounting software in the area.
• The rising number of small and medium-sized enterprises (SMBs) in the Asia-Pacific region: The SMB sector is developing fast in the Asia-Pacific area, and small organizations are increasingly seeking economical and easy-to-use accounting software solutions.
• The increased requirement for compliance with accounting laws in the Asia-Pacific region: Governments in the Asia-Pacific region are rapidly adopting tough accounting laws, which is boosting the need for accounting software that can help firms comply with these regulations.
• The rising popularity of e-commerce in the Asia-Pacific region: E-commerce is increasing fast in the Asia-Pacific area, and this is fueling the demand for accounting software that can help firms manage their online transactions.
Company Profiles:
Oracle, Sage Group, Microsoft Corporation, SAP SE, Intuit, Infor, Zeta Software LLC, Epicor Software Corporation, Xero Ltd., Acumatica, and others are some of the key players in this market.
COVID-19 Impact and Market Status
Increase in demand of the market
The transition to remote work: The pandemic prompted many firms to migrate to remote work, which raised the need for cloud-based accounting software that could be accessed from anywhere.
• The need for real-time data: The epidemic also ened the demand for real-time data, as businesses needed to be able to track their financial performance in real-time to make educated choices. This led to increasing demand for accounting software with capabilities like dashboards and analytics.
• The requirement for compliance: The epidemic also led to higher restrictions, which put further pressure on firms to comply with accounting standards. This led to increasing demand for accounting software that might assist organizations in handling their compliance duties.
• The need for automation: The epidemic also spurred the use of automation in accounting, as firms sought for methods to decrease costs and enhance efficiency. This led to increasing demand for accounting software with automation features.
Overall, the COVID-19 epidemic has had a favorable influence on the online accounting software business. The trend to remote work, the need for real-time data, the need for compliance, and the need for automation have all contributed to the rising demand for online accounting software.
Latest Trends and Innovation:
• Intuit purchased bill.com in 2021 for $12.7 billion. This purchase will help Intuit extend its cloud-based accounting software services and compete with other prominent suppliers such as Sage Intacct and Workday.
• Sage announced the introduction of its new cloud-based accounting software platform, Sage 300cloud, in 2022. The software is meant to assist businesses of all sizes in automating their accounting operations and enhancing their financial reporting.
• Xero purchased the accounting software business Deputy for $1.2 billion in 2023. This purchase will help Xero extend its capabilities for organizations with field-based personnel.
• FreshBooks announced the debut of its new feature, Time Tracking, in 2023.
Significant Growth Factors:
Cloud-based accounting software is more scalable and secure than on-premise software, and it is also more accessible to organizations of all sizes. This tendency is projected to continue in the future years.
• The increased need for real-time data and analytics: Businesses need to be able to track their financial performance in real-time to make educated decisions. This is fueling the need for accounting software with capabilities like dashboards and analytics.
• The rising requirement for compliance: Businesses are confronting increased restrictions, which is boosting the need for accounting software that can assist them in managing their compliance duties.
• The rising popularity of automation: Automation may help firms decrease expenses and enhance efficiency. This tendency is projected to continue in the future years.
• The rising popularity of e-commerce: E-commerce is developing quickly, and this is fueling the demand for accounting software that can help firms manage their online transactions.
• The growth of artificial intelligence (AI) and machine learning (ML): AI and ML are being used to automate accounting operations and enhance accuracy. This tendency is projected to continue in the following years
Restraining Factors:
Accounting software generally handles sensitive financial data, therefore security is a big concern. Cloud-based accounting software suppliers have spent considerably on security measures, such as encryption and data backups.
• Complexity: Accounting software can be complex and difficult to use, especially for firms with sophisticated financial demands. Vendors are streamlining their products and giving more training and support to help consumers get the most out of their software.
• Cost: Accounting software may be expensive, especially for firms with a large number of users. Vendors are giving more modest pricing choices, such as subscription-based pricing and freemium models.
• Data integration: Accounting software has to be able to interface with other company software, such as CRM and ERP systems. Vendors are introducing APIs and other integration tools to make it easier for firms to integrate their accounting software with other systems.
Key Segments Online Accounting Software Market Insights
by Organization Size
• Small & Medium Enterprises
• Large Enterprises
By Application
• BFSI
• IT and Telecom
• Healthcare
• Government
• Retail
• Automotive
• Manufacturing
• Others
Regional Overview
North America
• U.S
• Canada
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of South America
Frequently Asked Questions (FAQ) :
The market value of online accounting software market in 2031 was US$ XXX million.
The online accounting software market is growing at a CAGR of NA over the forecast period.
The base year for the report is 2022 in online accounting software market.
Asia-Pacifi dominated the market for online accounting software and accounted for the largest revenue share.
The top companies that hold the market share in online accounting software market are Oracle, Sage Group, Microsoft Corporation, SAP SE, Intuit, Infor, Zeta Software LLC, Epicor Software Corporation, Xero Ltd., Acumatica, and others are some of the key players in this market.