The global financial accounting software market accounted to US$ 4.35 Bn in 2017 and is expected to grow at a CAGR of 11.7% during the forecast period 2018 – 2025, to account to US$ 10.37 Bn by 2025.
North America was the leading geographic market and it is anticipated to be the highest revenue contributor throughout the forecast period. Rapid technological developments, numerous investments and supportive Government policies in the western part of the world have favored the dominance of North America in the financial accounting software market.
Gaining prominence of the cloud based accounting software
The cloud based model empowers an organization to go for a pay-as-you-go model that could considerably reduce the amount of up-front fees. The fees charged by the vendor is proportional with the usage of the applications and would increase with the increase in its usage. Still, the fee would always be lesser when compared to the installed infrastructure on-premise model. Additionally, the concerns about the maintenance, servicing and other repairing or downtime due to failure is totally eliminated in this model. Based on the kind of application deployed, the fee may be significant if multiple integrations are required and data transfers from old legacy based systems is required for a smoother transition.
Growing demands for an efficient yet cost-effective solution for managing accounting related tasks
Financial accounting software enables automation of systematic operations to record the accounting data, measure its indicators, and report the financial activities of the company. The software is extremely vital tool for the accountants as it significantly reduces the paperwork for the accountants and brings in cost-effectiveness for the user of the software. In any business setup, where the financial accounting software has been implemented, critical bottlenecks in the accounting operations such as inaccurate audit information, or noncompliance with internal as well as legal standards and their requirements. Accounting software is always therefore viewed as an asset that cuts costs, and drives productivity.
As the conventional bookkeeping systems have been tedious for the individuals to maintain and timely notify the management regarding the drafting of tax reports, the need for a more effective solution to this problem had become much more imminent. The usage of financial accounting software eliminates the need for any human based dependence and thereby ensures in-time tax-friendly reports.
Segment by Application Insights
Globally, businesses are growing at a fastest rate which create a need for several software solutions in order to ease several business operations. Efficiently managed accounting system is important for any business to make the accounting process faster and smoother. On the basis of application, global financial accounting software market in divided into payroll management system, billing & invoice system, enterprise resource planning system, and time & expense management systems including others. The major features of billing and invoice system are creating customer records, predefined communication templates, currency setting, and invoice, payment, & tax report. The implementation of this system enables reduction in late payments, minimize missed payments, and maintain a professional image.
Segment By Enterprise Size Insights
Currently, financial accounting software is a crucial part of any enterprise system for payroll management, cash management, tax management, inter-company accounting, and currency management including many others. These software provides organizations with improved optimization, speed, business reliability, and sustainability. On the basis of enterprise size, global financial accounting software market is categorized into small & medium enterprise (SME) and large enterprise. The global financial accounting software market by enterprise size was led by the SME segment in the year 2017 and is anticipated to continue its dominance during the forecast period by the year 2025.
New market initiatives was observed as the most adopted strategy in global financial accounting software market. Few of the recent market initiatives are listed below:
2018: Microsoft and Blackbaud announced a joint investment in Integrated Cloud Initiative for Nonprofits, which will help in accelerating innovation of cloud in the areas that address critical market needs across the mission lifecycle.
2018: Leading provider of equipment, technology and services to the global oil and gas industry National Oilwell Varco and Microsoft Corp. announced an agreement to collaborate on digitally enhancing NOV’s sales platform and field service operations to deliver premier experiences by leveraging Microsoft Dynamics 365 to streamline business processes, access real-time data and insights, and revolutionize field service operations with a digital, mobile-first approach.
2018: Walmart and Microsoft announced a strategic partnership to empower Walmart’s digital transformation in retail. Walmart chose Microsoft as its strategic cloud provider tapping into the full range of Microsoft’s cloud solutions.
GLOBAL FINANCIAL ACCOUNTING SOFTWARE – MARKET SEGMENTATION
Global Financial Accounting Software Market – By Deployment
Global Financial Accounting Software Market – By Application
Global Financial Accounting Software Market – By Enterprise size
Global Financial Accounting Software Market – By Geography
Financial Accounting Software Market - Company Profiles