Accounting software market to reach $11.8B by 2026

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The accounting software market will have a global value of $11.8 billion by 2026, according to new market research, at an expansion rate of 8.6 percent per year starting from 2018. Unsurprisingly, North America is the largest contributor to this growth in terms of revenue, according to 2017 numbers, and this is mainly due to the integration of accounting software with mobile devices and movement to the cloud. The market was valued at $5.7 billion last year.

Accountants themselves see the importance of accounting software today, especially those professionals who have been in the field long enough to see how software capabilities have advanced over the years. A recent survey by BlackLine found that industry accountants saw accounting software and online bookkeeping software as the technologies that will have the greatest impact on the profession in the next five years.

Most accounting software and systems currently in use are becoming obsolete now, according to the company conducting the study, Transparency Market Research. The reason for this is they lack technological competitiveness when compared to the new, comprehensive models that can take care of various operations simultaneously. This is what creates a favorable environment for the overall expansion of the accounting software market, in terms of an upgrade.

Modern, robust accounting software can analyze business practices, and it helps rapidly identify cash flows in an operation. There are now software systems available that can manage all financial transactions and have extensive data at its disposal in order to generate various reports. The reporting options are virtually unlimited, depending on the type of software that is used. Using accounting software also helps save money and time, and offers valuable insights into the business via analytics.

A key customer expectation today is that the user interfaces of accounting software needs to be improved to match a consumer-like experience, similar to what people are used to using in their personal lives with social media and other web platforms. According to Transparency, this expectation is expected to boost the accounting software market.

Between software as a service (SaaS), which is a subscription-based, cloud model; on-premise; and hybrid accounting software, SaaS is expected to hold a prominent share of the accounting software market by the end of this year. While on-premise software is still alive and well, its share of the market continues to shrink while cloud-based software’s share grows.

The enterprise accounting software, tax management and time and expense management segment is expected to grow quickly, while payroll management, billing and invoice, enterprise resource management (ERP) will grow at a slower rate.

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