Accounting and Budgeting Software Market Size - By Type (Accounting, Budgeting), Organization Size (Large Organization, SME), End-user (IT & Telecom, BFSI, Government, Healthcare, Retail & E-commerce, Manufacturing), Deployment Model & Forecast, 2024 - 2032

Accounting and Budgeting Software Market Size - By Type (Accounting, Budgeting), Organization Size (Large Organization, SME), End-user (IT & Telecom, BFSI, Government, Healthcare, Retail & E-commerce, Manufacturing), Deployment Model & Forecast, 2024 - 2032

Accounting and Budgeting Software Market Size

Accounting and Budgeting Software Market size was valued at USD 18.7 billion in 2023 and is estimated to register a CAGR of over 12% between 2024 and 2032. Increasing seed funding for accounting platforms is propelling growth in the market. This surge in financial support enables the development and expansion of innovative solutions, fostering advancements in bookkeeping, budgeting & financial management.

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For instance, in June 2023, Omnevue secured USD 3.1 million in seed funding to bolster the growth and enhancement of its ESG accounting platform. The funding was spearheaded by venture capital entities, Elbow Beach Capital and Pi Labs accompanied by support from Zone2boost, an open innovation initiative and investor established by CaixaBank, Global Payments & Ingenico along with contributions from various angel investors.

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The accounting and budgeting software market is propelled by continual technological progress, particularly in cloud computing, artificial intelligence, and automation. These advancements empower accounting software with enhanced features, improved scalability, and increased accessibility. Cloud-based solutions enable real-time collaboration and data access from diverse locations, catering to the evolving needs of businesses in an increasingly digital & interconnected world. The integration of cutting-edge technologies enhances the efficiency and effectiveness of financial management processes, driving market growth.

Cybersecurity concerns pose a significant challenge to the accounting and budgeting software industry. Many small businesses and home offices lack robust cybersecurity measures, making them susceptible to cyber threats. Limited awareness, budget constraints, and the absence of dedicated IT staff contribute to vulnerabilities. Addressing these challenges requires focused efforts to enhance cybersecurity education, provide affordable & user-friendly security solutions, and promote best practices to safeguard sensitive data in the evolving landscape of remote work & small office operations.

Accounting and Budgeting Software Market Trends

Technological advancements in budgeting software are driving growth in the accounting and budgeting software industry. Innovations such as artificial intelligence, automation, and improved data analytics enhance the functionality & efficiency of these software solutions. For instance, in September 2023, Euna Solutions introduced Budget Book Studio, a novel feature integrated into Euna Budget and powered by Questica. This addition empowers finance professionals in the public sector to effortlessly generate visually appealing online budget books, providing a convenient means to share comprehensive budget information with their community.

One of the significant trends propelling the accounting and budgeting software market is the increasing emphasis on Environmental, Social, and Governance (ESG) reporting. Organizations are adopting software solutions that support ESG accounting practices, reflecting a growing awareness of sustainability and responsible business practices. This trend aligns with global efforts toward corporate responsibility, influencing the development and adoption of software features that facilitate accurate tracking & reporting of ESG metrics within financial management processes.

Accounting and Budgeting Software Market Analysis

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Based on deployment model, the on-premises segment held over 60% of the market share in 2023. The dominance of this deployment model in the market is driven by the desire for enhanced control over server hardware and data configurations. Organizations opting for on-premises solutions prioritize the ability to manage and customize their server infrastructure, ensuring a tailored environment for data storage & configuration. This heightened control appeals to businesses with specific security, regulatory, or customization needs, influencing their preference for on-premises deployment in the accounting software landscape.

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Based on organization size, the large organization segment recorded around 67% of the accounting and budgeting software market share in 2023. Large enterprises gravitate toward accounting & budgeting software due to their intricate financial operations and scalability needs. These solutions streamline complex processes, handling multi-currency transactions and diverse revenue streams while ensuring scalability to manage the growing volume of transactions.

With comprehensive reporting capabilities, these tools provide insights for strategic decision-making, supporting the global operations of large enterprises by managing multi-country tax regulations and complying with international accounting standards. Moreover, the software's automation features enhance efficiency, helping organizations maintain accuracy and productivity amidst high transaction volumes.

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North America accounting and budgeting software market with a major share of over 35% in 2023. The proliferation of cloud-based accounting software is driving growth in the North America market. Cloud solutions offer enhanced accessibility, scalability, and collaboration capabilities. For instance, in October 2023, Software Technology, LLC, the creator of the renowned Tabs3 Software for legal practice management, unveiled Tabs3 Cloud for billing and accounting. Offering the full capabilities and adaptability of Tabs3 Billing and Financials, this release is tailored to meet the needs of firms that opt for a cloud-hosted environment.

Accounting and Budgeting Software Market Share

The Intuit Inc. and Xero dominate the market with over 15% of the revenue share. The competitive landscape for accounting and budgeting software is dynamic, marked by numerous providers offering diverse solutions. Intuit consistently invests in research and development to enhance the features and capabilities of QuickBooks. Regular updates and new releases ensure that their software remains competitive and aligned with evolving industry standards.

Xero emphasizes its cloud-based accounting solutions, offering users the flexibility of accessing financial data from anywhere. This approach aligns with the trend towards cloud computing, providing scalability and ease of use for businesses. Other market players are also focusing on customization options, integration capabilities, and advanced analytics to meet the evolving needs of businesses. The market's competitiveness fosters continuous innovation, driving improvements in automation, security, and scalability.

Accounting and Budgeting Software Market Companies

Major companies operating in the accounting and budgeting software industry are

• Acumatica
• FreshBooks
• Intuit Inc.
• Microsoft Corporation
• NetSuite (Oracle)
• Sage Group
• SAP SE
• Wave Financial Inc.
• Xero
• Zoho Corporation

Accounting and Budgeting Software Industry News

• In November 2023, Zoho unveiled Zoho Practice, a comprehensive practice management solution designed specifically for Chartered Accountants (CAs). This free software is crafted to offer CAs a unified platform, streamlining workflows within their firms and facilitating seamless collaboration both internally & with clients.
• In June 2023, ShareFile, a secure collaborative client experience solution, introduced ShareFile for Accounting, tailored to address the distinct requirements of accounting professionals. This latest offering from ShareFile, a business unit of Cloud Software Group, enhances client experiences by providing straightforward, seamless interactions. It also boosts the efficiency of document-centric workflows for accounting and tax professionals.

The accounting and budgeting software market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Type

• Accounting software
• Budgeting software

Market, By Organization Size

• Large organization
• SME’s

Market, By Deployment Model

• On-premises
• Cloud

Market, By Application

• Personal money management
• Business money management

Market, By End-user

• IT and Telecom
• BFSI 
• Government
• Healthcare
• Retail & e-commerce
• Manufacturing
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Southeast Asia
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • South Africa
  • UAE
  • Saudi Arabia

Frequently Asked Questions (FAQ)

What is the size of the accounting and budgeting software market?

The market size of accounting and budgeting software reached USD 18.7 billion in revenue in 2023 and is set to observe 12% CAGR from 2024 to 2032, propelled by the rising seed funding for accounting platforms.

Why is the demand for on-premise accounting and budgeting software growing?

The on-premises segment accounted for more than 60% of the market share in 2023, owing to the rising need for enhanced control over server hardware and data configurations.

How big is the North America accounting and budgeting software industry?

North America held more than 35% of the market share in 2023, due to the proliferation of cloud-based accounting software in the region.

Who are the major participants operating in the accounting and budgeting software market?

The competitive landscape of the market includes prominent companies, such as Acumatica, FreshBooks, Wave Financial Inc., Intuit Inc., Microsoft Corporation NetSuite (Oracle), Sage Group, SAP SE, Xero, and Zoho Corporation.