Accounting & Budgeting Software Market Research, 2031
The global accounting & budgeting software market was valued at $16.85 billion in 2021, and is projected to reach $47.97 billion by 2031, growing at a CAGR of 11.4% from 2022 to 2031.
A computer program known as accounting and budget software automates the accounting process and business transactions with additional services including account payable, account receivable, billing, and payment process which is also known as personal bookkeeping software. The financial capital resources that businesses are projected to require to sustain their operations in the future can be prepared with the use of accounting and budgeting software. Moreover, accounting and budgeting software offer data required for internal and external evaluations, annual financial reviews, and financial analyses of the business, but more sophisticated software versions also assist in reducing debt, managing budgets, or even providing financial advice as an additional tool. Moreover, it can be also used as personal finances software by the users for personal businesses.
Accounting and budgeting software enhances the quality of data, assisting the operator in developing a sustainable business model to meet the demands that have increased the need for accounting and budgeting software. In addition, increase in adoption of nonprofit budgeting software for improving the efficiency of the business is benefiting the growth of accounting & budgeting software market. This factor notably promotes the growth of accounting & budgeting software market. However, the possibility of losing crucial accounting data and the expensive initial cost of software are the issues that are limiting industry expansion. On the contrary, opportunity to access unexplored markets and the availability of trained professionals are expected to create lucrative opportunities for the market in upcoming years. Moreover, rise in developments & initiatives toward accounting & budgeting software is anticipated to provide a potential growth opportunity for the market.
The report focuses on growth prospects, restraints, and trends of the accounting & budgeting software market forecast. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the accounting & budgeting software market outlook.
The accounting & budgeting software market is segmented into Offering, Type, Application, Enterprise Size and Industry Vertical.
Segment review
The accounting & budgeting software market is segmented into offering, type, application, enterprise size, industry vertical, and region. By offering, the market is differentiated into solution and services. Depending on type, it is fragmented into accounting software and budgeting software. The accounting software is further segmented into spreadsheets, commercial accounting software, enterprise accounting software, custom accounting software and others. The enterprise accounting software is further segregated into on-premise and cloud. The applications covered in the study includes personal money management and business money management. The enterprise size segment is segregated into large enterprises and small and medium sized enterprises. Depending on industry vertical, it is segmented into BFSI, retail and e-commerce, manufacturing, IT and telecom, healthcare, government and public sector, energy and utilities and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Application
Business Money Management segment accounted for the highest market share in 2021.
By application, the business money management segment acquired a major share. The demand for business money management have increased due to the use of automation in accounting and budgeting process integrating business intelligence (BI) and predictive analytics with budget planning, which allows businesses to promote actionable planning and see different pathways toward financial success, leading to better business performance and ultimately growth.
By Region
Asia-Pacific would exhibit the highest CAGR of 16.3% during 2022-2031.
Region wise, North America dominated the market in accounting & budgeting software market analysis in 2021. This was attributed to the fact that users in the region are seeking accounting systems tailored to their specific needs, as opposed to generic accounting applications.
The key players operating in the global accounting & budgeting software market include Coupa Software, Inc., FreshBooks, Intuit Inc., Microsoft, MIP Fund Accounting, Oracle, Planful, Prophix, QuickBooks, Quicken, The Sage Group plc, SAP SE, Scoro Software, Vena Solutions, Wave Financial Inc., Xero Limited and Zoho Corporation Pvt. Ltd. These players have adopted various strategies to increase their market penetration and strengthen their position in the accounting & budgeting software industry.
COVID-19 Impact Analysis
COVID-19 pandemic has a significant impact on the accounting & budgeting software industry, owing to increase in usage and adoption of online & digitalized platforms for the financial operations globally. Accounting & budgeting software are experiencing massive growth as various businesses and banking industry are increasingly relying on the software to execute their financial operations. Moreover, the need for more dynamic and remote access to corporate financial records and systems by people who primarily need to access financial accounts regularly, correct information to make choices and manage financial affairs has risen as a result of remote working. This, in turn, has become one of the major growth factors for the accounting & budgeting software market during the global health crisis.
Top Impacting Factors
Growth in adoption of automation in daily business-related operations
Automation is increasingly adopted among large enterprises that help firms to reduce expenses and increase productivity. In addition, automation has been a necessary part of doing business efficiently and its adoption is growing tremendously as it can be performed on desktops, laptops, tablets, and even smart phones. Automation in accounting aids bookkeepers and accountants in recording and reporting a firm's financial activities. It also helps in understanding income and spending in order to maintain optimal financial control. Accounting & budgeting software differs in capability from one product to the other. Large-scale companies can opt for customized systems that integrate large volumes of data generated from various departments. Accounting & budgeting software can help with debt reduction, budget management, and financial consultancy, as well as provide data for external and internal assessments, annual financial audits, and financial analysis of the firm. Thus, these factors augment the growth of accounting & budgeting software market.
Reduction of error in books of accounting & budgeting
With advanced accounting software becoming more affordable, customers and enterprises continue to demand well-produced and high-quality automation services. Moreover, there is an increased demand for online accounting software services for accounting & budgeting management, which further enhances the quality of accounting. With online accounting software, companies can reduce most of the typical errors. Online accounting software are expected to make sure that accounting records are organized in a proper and accurate manner, every single time. When using cloud accounting software, if newly created journal entries don’t balance, the system will notify immediately and highlight the potential error. This is just a very simple example of how accounting software can help to maintain more accurate accounting and financial data for business. So, due to above features of accounting software, the demand for accounting & budgeting software market has increased driving the growth of accounting & budgeting software.
Growth in use of advanced technologies such as AI & ML
Key players in the market are continuously enhancing their product offerings to get a competitive edge and cater to changes in requirement of end users. Hence, they are utilizing advanced technologies such as AI, deep learning, and machine learning integrated with accounting and budgeting process. Demand for software that can easily integrate with existing systems, and focus on implementing Artificial Intelligence (AI), Robotic Process Automation (RPA), and Robo-advisors for budgeting & forecasting and for offering operational assistance are factors that are expected to generate lucrative business opportunities for major players and new entrants in the global market. In addition, availability of skilled professionals and opportunities to tap untapped markets are expected to continue to drive the accounting & budgeting software market growth in the future.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the accounting & budgeting software market analysis from 2021 to 2031 to identify the prevailing accounting & budgeting software market share.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the accounting & budgeting software market size segmentation assists to determine the prevailing accounting & budgeting software market opportunity.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global accounting & budgeting software market trends, key players, market segments, application areas, and market growth strategies.
Accounting & Budgeting Software Market Report Highlights
| Aspects | Details |
 By Offering |
|
 By Type |
|
 By Application |
|
 By Enterprise Size |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | MIP Fund Accounting, Vena Solutions, Xero Limited, Oracle, Planful, SAP SE, Prophix, FreshBooks, Microsoft, Intuit Inc., Coupa Software, Inc., Wave Financial Inc., The Sage Group plc, Zoho Corporation Pvt. Ltd, Quicken, QuickBooks, Scoro Software |
Analyst Review
The market for accounting and budgeting software is witnessing a rise, owing to increased demand for automated accounting software, growth in internet of things (IoT) & cloud-based service use, and increase in acceptance of these technologies. In addition, the benefits of the software including quick data input procedure, high accuracy, lower operating costs, and increased tax compliances are anticipated to drive the market in the future. In addition, organizations can now use less human resources owing to the most recent accounting software. This has resulted in more effective use of capital and better management of the existing resources.
The COVID-19 outbreak has a significant impact on the accounting & budgeting software market, and has accelerated the usage & adoption owing to the trend of remote working globally. Moreover, during this global health crisis, the adoption of accounting & budgeting software technology increased among large & small retailers. This, as a result promoted the demand for accounting & budgeting software, thereby accelerating the revenue growth.
The accounting & budgeting software market is fragmented with the presence of regional vendors such as Coupa Software, Inc., FreshBooks, Intuit Inc., Microsoft, MIP Fund Accounting, Oracle, Planful, Prophix, QuickBooks, Quicken, The Sage Group plc, SAP SE, Scoro Software, Vena Solutions, Wave Financial Inc., Xero Limited and Zoho Corporation Pvt. Ltd. Major players operating in this market have witnessed significant adoption of strategies that include business expansion and partnership to reduce supply and demand gap. With increase in awareness & demand for accounting & budgeting software across the globe, major players are collaborating their product portfolio to provide differentiated and innovative products.
The accounting & budgeting software market is estimated to grow at a CAGR of 11.4% from 2022 to 2031.
The accounting & budgeting software market is projected to reach $47.96 billion by 2031.
Increases adoption of accounting & budgeting software, reduction in error in books of accounting & budgeting and growth in use of advanced technologies such as AI & ML majorly contribute toward the growth of the market.
The key players profiled in the report include Coupa Software, Inc., FreshBooks, Intuit Inc., Microsoft, MIP Fund Accounting, Oracle, Planful, Prophix, QuickBooks, Quicken, The Sage Group plc, SAP SE, Scoro Software, Vena Solutions, Wave Financial Inc., Xero Limited and Zoho Corporation Pvt. Ltd.
The key growth strategies of accounting & budgeting software market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
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