PUBLISHER: The Business Research Company | PRODUCT CODE: 1847307
PUBLISHER: The Business Research Company | PRODUCT CODE: 1847307
Business accounting software refers to computer programs or applications specifically crafted for overseeing financial operations within a business entity. These software solutions are tailored to ensure compliance with regulations while offering valuable insights to support business growth and success. They are equipped to handle a multitude of accounting functions, including but not limited to invoicing, billing, payroll processing, expense tracking, financial reporting, and tax preparation.
The primary types of business accounting software include commercial accounting software, enterprise accounting software, and custom accounting software. Commercial accounting software refers to off-the-shelf solutions designed for general accounting tasks and typically available for purchase from software vendors. These solutions can be deployed either through cloud-based platforms or on-premises installations, catering to organizations of varying sizes, including small, medium, and large enterprises.
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 significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
The business accounting software market research report is one of a series of new reports from The Business Research Company that provides business accounting software market statistics, including business accounting software industry global market size, regional shares, competitors with a business accounting software market share, detailed business accounting software market segments, market trends and opportunities, and any further data you may need to thrive in the business accounting software industry. This business accounting 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 business accounting software market size has grown rapidly in recent years. It will grow from $24.48 billion in 2024 to $26.95 billion in 2025 at a compound annual growth rate (CAGR) of 10.1%. The growth in the historic period can be attributed to manual accounting processes, growth of small and medium enterprises (SMEs), cost and time savings, globalization, regulatory compliance requirements.
The business accounting software market size is expected to see strong growth in the next few years. It will grow to $39.02 billion in 2029 at a compound annual growth rate (CAGR) of 9.7%. The growth in the forecast period can be attributed to focus on user experience and customer support, focus on data security and compliance, integration with third-party applications, growing emphasis on automation. Major trends in the forecast period include shift towards subscription-based pricing models, enhanced user experience (UX) and user interface (UI), integration with business intelligence (bi) tools, expansion of cloud-based solutions.
The forecast of 9.7% growth over the next five years reflects a modest reduction of 0.5% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. The U.S. business accounting software market could be impacted by tariffs that increase subscription fees for imported data security modules and encrypted server hosting. 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 projected increase in automation within accounting processes is poised to catalyze the expansion of the business accounting software market in the foreseeable future. Automation in accounting entails the utilization of software applications to execute fundamental functions involved in maintaining a business's financial records. This trend towards heightened automation is propelled by the imperative for efficiency, accuracy, and streamlined operations, ultimately mitigating manual labor and human error. Leveraging business accounting software, automation in accounting endeavors to streamline processes, augment data accuracy, and facilitate real-time financial management. Notably, in June 2022, a survey conducted by Sage Group plc, a UK-based enterprise software company, revealed a significant uptake in technology adoption among surveyed companies for the closing process, with 40% embracing new technology in 2022 compared to 21% in 2021. Additionally, 87% of respondents reported using either cloud-based or hybrid accounting solutions, marking a substantial increase of 29% compared to the preceding year, underscoring the driving force behind the growth of the business accounting software market.
Prominent players in the business accounting software market are strategically inclined towards developing innovative software solutions, exemplified by Axway Financial Accounting Hub, to spearhead the digital transformation of business finance departments. Axway Financial Accounting Hub (FAH) stands as a software solution meticulously crafted to streamline and automate financial accounting processes within organizations and enterprises. For instance, in June 2022, Axway Software Solutions, a France-based enterprise integration company, unveiled Axway Financial Accounting Hub, designed to furnish pertinent, high-quality data to business units, thereby bolstering operational excellence, agility, and trust in financial data. This groundbreaking platform is tailored to drive the digital metamorphosis of finance departments within companies, addressing pertinent challenges and leveraging advanced features to achieve operational excellence, agility, and data trust.
In January 2022, IndiaMART Intermesh Ltd., an India-based e-commerce entity, finalized the acquisition of Busy Infotech Pvt. Ltd. for an undisclosed sum. This strategic acquisition is poised to enrich IndiaMART Intermesh Ltd.'s value proposition, rendering business operations more accessible for Indian enterprises. Busy Infotech Pvt. Ltd. specializes in accounting software solutions, aligning with IndiaMART Intermesh Ltd.'s strategic objectives and complementing its existing offerings.
Major companies operating in the business accounting software market are Microsoft Corp., International Business Machine Corporation, Oracle Corp., SAP SE., Salesforce Inc., NatWest Group plc, Intuit Inc., Roper Technologies Inc., Workday Inc., H and R Block Inc., Sage Group plc, Xero Limited, Epicor Software Corporation, Infor Inc., Zoho Corporation Pvt. Ltd., Verint Systems Inc., Priority Software Ltd., deLaski Technologies Inc., Red Wing Software Inc., FinancialForce.com Inc., ZipBooks Software solutions Pvt. Ltd., KashFlow Software Ltd., Wave Financial Inc., Yendo Inc., Gridlex Inc.
North America was the largest region in the business accounting software market in 2024. The regions covered in the business accounting software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the business accounting software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The business accounting software market includes revenues earned by entities providing services such as financial reporting tools, enterprise resource planning (ERP) systems, small business accounting software, cloud-based accounting software, and accounting software suites. 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.
Business Accounting 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 business accounting 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 business accounting 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 business accounting 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.