PUBLISHER: The Business Research Company | PRODUCT CODE: 1808707
PUBLISHER: The Business Research Company | PRODUCT CODE: 1808707
Accounting practice management software is specifically designed to assist accounting firms in efficiently handling their internal operations and client engagements. These software solutions are aimed at streamlining administrative tasks, fostering collaboration among team members, improving client communication, and ultimately boosting productivity and profitability for accounting practices.
The primary categories of accounting practice management software include on-premise and cloud-based solutions. On-premise refers to IT systems' hardware infrastructure and software applications that are maintained and operated within a company's physical location. These solutions can be deployed in integrated or standalone setups and are utilized across small and medium-sized enterprises (SMEs) as well as large enterprises. They are extensively used in sectors such as banking and finance, healthcare, manufacturing, and retail among other end-user domains.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.
The accounting practice management software market research report is one of a series of new reports from The Business Research Company that provides accounting practice management software market statistics, including accounting practice management software industry global market size, regional shares, competitors with a accounting practice management software market share, detailed accounting practice management software market segments, market trends and opportunities, and any further data you may need to thrive in the accounting practice management software industry. This accounting practice management software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The accounting practice management software market size has grown rapidly in recent years. It will grow from $0.8 billion in 2024 to $0.89 billion in 2025 at a compound annual growth rate (CAGR) of 11.3%. The growth in the historic period can be attributed to the increasing adoption of digital technologies, growing demand for automation, the rise of cloud-based solutions, the shift towards remote working environments, and increasing emphasis on secure data storage.
The accounting practice management software market size is expected to see rapid growth in the next few years. It will grow to $1.34 billion in 2029 at a compound annual growth rate (CAGR) of 10.8%. The growth in the forecast period can be attributed to the adoption of blockchain, the shift towards subscription-based pricing models, the development of niche solutions for specialized industries, increased demand for mobile-friendly accounting software solutions, and advanced cybersecurity measures. Major trends in the forecast period include integration of artificial intelligence (AI), enhanced integration capabilities, increasing focus on customizable features, implementation of real-time reporting and analytics tools, and advanced compliance management tools.
The forecast of 10.8% growth over the next five years reflects a modest reduction of 0.6% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through supply chain disruptions for client portal integrations and artificial intelligence (AI)-powered document processing application programming interface (APIs), sourced from key regions such as Canada and India, which could lead to workflow inefficiencies and increased technology adoption costs for accounting firms. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The growth of cloud-based solutions is expected to drive the expansion of the accounting practice management software market. Cloud-based solutions refer to applications, storage, on-demand services, and other resources accessed via the internet through a provider's shared cloud computing infrastructure. The increasing adoption of cloud-based solutions is driven by factors such as cost efficiency, global accessibility, business expansion, and the rise of remote work and collaboration. Accounting practice management software leverages these cloud capabilities to streamline operations by offering remote access, real-time collaboration, and scalable infrastructure, improving efficiency and flexibility for accounting firms. For example, in December 2023, according to Eurostat, a Luxembourg-based intergovernmental organization, 45.2% of EU enterprises utilized cloud computing services, marking a 4.2 percentage point increase from 2021. These services provide access to software, computing power, storage, and more over the internet. Therefore, the growth of cloud-based solutions is fueling the growth of the accounting practice management software market.
Prominent companies in the accounting practice management software market are concentrating on developing innovative technologies, such as GPT-powered artificial intelligence tools, to gain a competitive advantage. A GPT-powered artificial intelligence tool utilizes OpenAI's Generative Pre-trained Transformer (GPT) model to perform various tasks. For instance, in May 2023, Karbon Inc., a US-based software company, introduced the GPT-powered artificial intelligence tool Karbon AI. Karbon AI aims to enhance accountant efficiency and improve client experiences by optimizing email management. Its features include summarizing lengthy email threads, adjusting email tones, prioritizing inbox messages, and generating email drafts based on prompts and workflow tasks.
In February 2022, Paradigm, a US-based software company, acquired Trustbooks LLC for an undisclosed sum. With this acquisition, Paradigm intends to enhance its offerings to the legal sector by providing an attorney-friendly solution that monitors client trust account activities and automatically updates ledgers for immediate access. Trustbooks LLC is a US-based software company specializing in accounting practice management software tailored specifically for law firms.
Major companies operating in the accounting practice management software market are Intuit Inc., Thomson Reuters Corp., Sage Group plc, Xero Limited, Unit4 N.V, Canopy Pte. Ltd., MYOB Group Co Pty Ltd, IRIS Software Group, BigTime Software Inc., Dext Prepare Inc., Capterra Inc., Onvio LLC, TPS Cloud Axis Software Inc., OfficeTools Inc., Aero Workflow Inc., EasyCloud Consultants Pvt Ltd, TaxDome Inc., Pixie Labs Inc., Senta Saas Limited, Karbon Inc., Financial Cents Inc., ApprovalMax Ltd., AccountancyManager Ltd.
North America was the largest region in the accounting practice management software market in 2024. The regions covered in the accounting practice management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the accounting practice management software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The accounting practice management software market includes revenues earned by entities by providing services such as workflow management, client management, and document management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Accounting Practice Management Software Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on accounting practice management software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for accounting practice management software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The accounting practice management software market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.