Online Accounting Systems Market Size, Share, Growth, and Industry Analysis by Type (Browser-based, SaaS and Application Service Providers (ASPs)) By Application (SMEs, Large Enterprises and Other Users), Regional Insights, and Forecast To 2031

Updated On: 15 April 2024

Online Accounting Systems Market REPORT OVERVIEW

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global online accounting systems market size was USD 3403.3  million in 2021 and market is projected to touch USD 10260.37 million by 2031 at CAGR 12.1%.

The online accounting systems market refers to the industry that provides cloud-based software solutions for accounting and financial management purposes. These systems are designed to help businesses and individuals manage their financial transactions, track income and expenses, generate financial reports, and streamline overall accounting processes.

The market for online accounting systems has experienced significant growth in recent years due to several factors. Firstly, the shift towards cloud computing and Software-as-a-Service (SaaS) models has made online accounting systems more accessible and affordable for businesses of all sizes. This has eliminated the need for expensive on-premises software installations and hardware infrastructure.

Additionally, online accounting systems offer several advantages over traditional accounting software. They provide real-time access to financial data from anywhere with an internet connection, allowing businesses to collaborate and work remotely. These systems also offer automated features such as bank feeds, invoicing, and expense tracking, which help reduce manual data entry and improve efficiency.

COVID-19 Impact: Focus on Cost Reduction to Accelerate the Market Demands

The pandemic acted as a catalyst for digital transformation across industries. Many businesses, especially small and medium-sized enterprises (SMEs), realized the importance of adopting online accounting systems to streamline their financial operations. This increased the adoption rate of cloud-based accounting software as companies sought more efficient and automated solutions. The economic impact of the pandemic prompted businesses to closely manage their finances and cut costs. Online accounting systems provided an opportunity to reduce expenses associated with traditional accounting methods, such as physical paperwork and manual processes. These systems offer automation, better data management, and cost-effective subscription models, making them attractive options for cost-conscious businesses.

LATEST TRENDS

"Cloud Based Solutions, Automation and Artificial Intelligence to Augment the Market Growth"

The accounting software market has been shifting towards cloud-based solutions. Cloud accounting systems offer several benefits, including remote access, scalability, automatic updates, data security, and cost-effectiveness. This trend is likely to continue as businesses increasingly recognize the advantages of cloud-based accounting systems. Automation and AI have been transforming the accounting industry, and this trend extends to online accounting systems as well. Features such as automated data entry, bank reconciliation, invoice processing, expense tracking, and financial reporting help streamline accounting processes and improve accuracy. AI-powered systems can analyze large volumes of financial data and provide valuable insights for decision-making.

Online Accounting Systems Market Segmentation

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• By Type Analysis

By type, market is segmented into browser-based, SaaS and application service providers (ASPs). The browser-based type segment will dominate the market in the coming years.

• By Application Analysis

Based on applications, the market is classified into SMEs, large enterprises and other users. The SMEs segment will lead the global share through 2028.

DRIVING FACTORS

"Need for Real-Time Financial Information to Push the Market"

The widespread adoption of cloud computing has fueled the growth of online accounting systems. Cloud-based solutions offer several benefits such as scalability, accessibility, data security, and cost-effectiveness. Businesses are increasingly recognizing the advantages of moving their accounting systems to the cloud, leading to the growing demand for online accounting solutions. In today's fast-paced business environment, organizations require real-time access to their financial information to make informed decisions. Online accounting systems provide real-time updates, allowing businesses to monitor their financial performance, track expenses, generate reports, and make timely decisions. The need for instant access to financial data has driven the adoption of online accounting systems. Online accounting systems can significantly reduce the costs associated with traditional accounting software. They eliminate the need for expensive hardware infrastructure and software licenses, as well as the cost of maintaining and updating the software. Additionally, online accounting systems automate various accounting processes, such as data entry, reconciliation, and report generation, saving time and improving overall efficiency.

"Integration with Other Business Applications to Boost the Market Demands"

The increasing use of mobile devices has transformed the way businesses operate. Online accounting systems offer mobile applications that allow users to access their financial information anytime, anywhere, using smartphones and tablets. This mobility and flexibility have made online accounting systems more appealing to businesses, particularly small and medium-sized enterprises (SMEs) and on-the-go professionals. Online accounting systems often provide integration capabilities with other business applications such as customer relationship management (CRM), inventory management, and e-commerce platforms. This integration streamlines data flow between different systems, reduces manual data entry, and improves overall operational efficiency. The ability to integrate with other software and tools has become a critical factor in the adoption of online accounting systems. Data security is a top concern for businesses, especially when it comes to financial information. Online accounting systems employ robust security measures, such as encryption, secure data centers, and regular data backups, to protect sensitive financial data. This heightened security has boosted confidence among businesses and encouraged the adoption of online accounting systems.

RESTRAINING FACTORS

"Connectivity and Infrastructure Limitations to Slow the Market Growth "

Businesses operating in certain industries or countries may face specific regulatory requirements and compliance standards related to financial data management and storage. The complexity of these requirements and the need to ensure compliance can pose challenges for online accounting system providers and users alike. Reliable internet connectivity and adequate IT infrastructure are essential for using online accounting systems effectively. In regions or areas with poor internet connectivity or limited technological infrastructure, businesses may face challenges in accessing and utilizing online accounting systems efficiently.

Online Accounting Systems Market REGIONAL INSIGHTS

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"North American Market to Grow Exponentially with the Forecasted Period"

The online accounting systems market is a rapidly growing industry that provides businesses with cloud-based accounting software solutions. These systems offer various features such as financial reporting, invoicing, payroll management, expense tracking, and more. While the market is global in nature, certain regions have experienced significant growth and have become key players in the online accounting systems industry. North America, particularly the United States, has been a leading market for online accounting systems. The region is home to numerous established software providers and a large number of businesses adopting cloud-based accounting solutions. Factors driving the growth in this region include the high adoption rate of technology, the need for efficient financial management, and the presence of a robust small and medium-sized enterprise (SME) sector.

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

• Intuit (U.S.)
• Sage (UK.)
• SAP (Germany)
• Oracle (NetSuite) (U.S.)
• Microsoft (U.S.)
• Infor (U.S.)
• Epicor (U.S.)
• Workday (U.S.)
• Unit4 (Netherlands)
• Xero (New Zealand)
• Yonyou (China)
• Kingdee (China)
• Acclivity (U.S.)
• FreshBooks (Canada)
• Zoho (India)
• Assit Cornerstone (U.S.)
• MEGI (Japan)
• Reckon (Australia)
• KashFlow (UK.)

REPORT COVERAGE

The market research study examines the worldwide market in detail, focusing on important elements such as leading players, product/services or type, and leading end-use applications. Aside from that, the research analyses major advancements and provides insights into lighting market trends. In addition to the causes indicated above, the paper includes a number of other factors that have contributed to recent growth.