Online Accounting Market Size, Share, Growth, and Industry Growth by Type (Private Cloud, Public Cloud, and Hybrid Cloud), By Application (Manufacturing, Services, Retail, and Others), and Regional Forecast to 2027

Updated On: 13 November 2023

REPORT OVERVIEW

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The global online accounting market size was USD 3229.63 million in 2021. As per our research, the market is expected to generate USD 6056.28 million by 2027, at a CAGR of 11.05% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the online accounting market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Online accounting refers to the use of cloud-based software applications to manage financial transactions and accounting processes over the internet. With online accounting, businesses can store and access their financial information and documents from anywhere and on any device, as long as they have an internet connection. Online accounting software typically includes features such as invoicing, expense tracking, bank reconciliation, financial reporting, and tax preparation.

These tools automate many of the manual tasks associated with accounting, which saves businesses time and reduces the risk of errors. Online accounting can be particularly beneficial for small businesses and startups that may not have the resources to hire a dedicated accounting team. The software is typically affordable and easy to use, even for those without extensive accounting knowledge.

COVID-19 Impact: Cloud Based Accounting Boosted Market Demand.

COVID-19 had a life changing impact globally. The global online accounting market share was significantly affected. The virus had various impacts on different markets. Lockdowns were imposed in several nations. This erratic pandemic caused disruptions on all sorts of businesses. Restrictions tightened during the pandemic due to increasing number of cases. Numerous Industries were affected. However, the market for online accounting experienced an increased demand.

One of the primary impacts of COVID-19 on online accounting has been the increased adoption of cloud-based accounting software. With employees working from home, businesses need software that can be accessed from anywhere, and cloud-based solutions have become a popular choice. These solutions enable remote teams to collaborate on financial tasks in real-time, share documents securely, and maintain accurate financial records.

Another impact of COVID-19 on online accounting has been the need for more advanced reporting and analysis features. Many businesses have had to pivot their operations or adjust their financial strategies to respond to the pandemic's economic impact. As a result, online accounting software providers have added more advanced reporting and analysis tools to help businesses track their financial performance and make informed decisions. The global online accounting market size is anticipated to grow following the pandemic.

LATEST TRENDS

"Integration with Software’s to Benefit Market Prospects"

Online accounting software is becoming more integrated with other business software applications, such as customer relationship management (CRM), project management, and inventory management software. This integration provides a more comprehensive view of a business's financial health and helps automate the flow of data between different software applications.

Some online accounting software providers are exploring the use of blockchain technology to improve the security and transparency of financial transactions. Blockchain can create a decentralized and secure ledger of financial transactions, which can improve the accuracy and security of financial data. These latest developments are anticipated to boost the global online accounting market share.

SEGMENTATION

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• By Type

Based on type, the market is divided into Private Cloud, Public Cloud, and Hybrid Cloud.

• By Application

Based on application, the market is bifurcated into Manufacturing, Services, Retail, and Others.

DRIVING FACTORS

"Accessibility & Convenience to Boost Market Share "

Online accounting software and tools make it easy for businesses of all sizes to access accounting services from anywhere, at any time. This accessibility and convenience have made online accounting an attractive option for small businesses, startups, and entrepreneurs who may not have the resources to hire a full-time accountant. Online accounting software typically offers robust security features to protect sensitive financial data.

"Automation & Efficiency to Boost Market Size"

Online accounting software is designed to automate many of the time-consuming and repetitive tasks associated with accounting, such as bookkeeping, invoicing, and financial reporting. This automation can save businesses a significant amount of time and reduce the risk of errors. Compared to traditional accounting services, online accounting is often more cost-effective. Hence these factors might impediment the growth of the global online accounting market share.

RESTRAINING FACTORS

"Internet Dependency to Hamper Market Share"

Online accounting software requires an internet connection to function, which could be a problem for businesses operating in areas with limited or unreliable internet connectivity. This dependence on internet connectivity could also lead to potential downtime or service disruptions. While online accounting software offers robust security features to protect sensitive financial data, there is still a risk of data breaches and cyberattacks. Hence these factors might impediment the growth of the global ergothioneine market share.

REGIONAL INSIGHTS

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"North America Dominates the Online Accounting Market"

North America is the major shareholder for the global online accounting market share. Factors such as the region's high level of technological adoption, strong financial and accounting standards, and a large number of small and medium-sized businesses contribute to the growth of the online accounting market in North America. Europe is the second major shareholder for global online accounting market share.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.

List of Market Players Profiled

• Sage Group [U.K.]
• Epicor [U.S.]
• NetSuite [U.S.]
• Shenzhen Kingdee Software [China]
• KashFlow [U.K.]
• Workday, Inc. [U.S.]
• Intuit [U.S.]
• Reckon [Australia]
• Xero [New Zealand]
• Yonyou [China]
• FreshBooks [Canada]
• MEGI [China]
• Infor [U.S.]
• Unit4 [Netherlands]
• Zoho Corporation [India]
• Assit Cornerstone [U.S.]
• Acclivity Group LLC [U.S.]
• SAP [Germany]
• Microsoft [U.S.]

REPORT COVERAGE

This research profiles a report with extensive studies that take into description of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.