What Fueled The Previous Growth In The Online Bookkeeping And Accounting Software Market?
The online bookkeeping and accounting software market has seen considerable growth due to a variety of factors.
• The online accounting and bookkeeping software industry has seen swift expansion in the past few years, going from $3.97 billion in 2024 to $4.51 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 13.9%.
This growth in the historic period is due to increased demands for efficiency, regulatory adjustments, expanding globalization, the need for mobile-compatible accounting software, inventory supervision, and customer relationship management.
What Can Be Expected from the Online Bookkeeping And Accounting Software Market Size?
The online bookkeeping and accounting software market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, a significant increase is anticipated in the market size of online bookkeeping and accounting software, with the value expected to reach $7.58 billion in 2029, reflecting a compound annual growth rate (CAGR) of 13.8%.
Various factors driving this growth in the projected period include an increased focus on user experience, heightened security needs, active use of predictive analytics, a growing need for sophisticated reporting and analytics, mandatory regulatory norms, and better collaboration tools. Other notable trends during this period will include the inclusion of artificial intelligence and automation technologies, machine learning algorithms, blockchain technology, real-time financial reporting, compatibility with IoT devices, plus customizable and scalable solutions.
What Are the Critical Driver Fuelling The Online Bookkeeping And Accounting Software Market's Growth?
The online bookkeeping and accounting software market is set to expand due to the anticipated rise in accounting automation. Accounting automation involves the use of software tools to manage a company's financial records, boosting efficiency, precision, and simplifying processes, thereby reducing manual workload and the possibility of errors. This kind of automation harnesses online bookkeeping and accounting software to improve data reliability, streamline procedures, and allow for real-time financial management. For example, a Sage Group plc survey conducted in June 2022 involving 1,400 company respondents revealed that 40% of the surveyed companies adopted new technology to facilitate the closing process in 2022, compared to 21% in 2021. Moreover, 87% of participants were utilizing either a hybrid or cloud-based accounting solution, marking a significant 29% increase from the preceding year. Hence, the rise in accounting automation is fueling the online bookkeeping and accounting software market's growth.
How Is The Online Bookkeeping And Accounting Software Market segmented?
The online bookkeeping and accounting software market covered in this report is segmented –
1) By Type: Cloud-Based, On-Premises
2) By Pricing Model: Subscription-Based, Pay-As-You-Go
3) By Application: Small And Medium Enterprises (SMEs), Large Enterprises
Subsegments:
1) By Cloud-Based: Saas (Software-As-A-Service) Solutions, Subscription-Based Models, Cloud Hosting And Maintenance Services
2) By On-Premises: Licensed Software, Perpetual Licensing Models, On-Site Deployment And Support
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What Emerging Trends Are Influencing The Growth Of The Online Bookkeeping And Accounting Software Market?
Leading businesses in the online accounting and bookkeeping software market are directing their focus on the creation of innovative solutions, such as QuickBooks Online Accountant, to cater to the dynamic requirements of businesses. QuickBooks Online Accountant makes financial processes more efficient, reduces mistakes and facilitates organizations to concentrate on critical operations. For example, in May 2023, a premier company known for its financial software, Intuit Inc. from the US, introduced QuickBooks Online Accountant on a global scale, offering free accessibility to accounting professionals in more than 170 nations. The software encompasses features like a singular login and panel for accessing client data in real-time, automatic transactions, task automation workflows, apps integrated for different functions, and AI-powered tax predictions.
Who Are the Key Players In The Online Bookkeeping And Accounting Software Market?
Major companies operating in the online bookkeeping and accounting software market are:
• NetSuite Inc.
• SAP SE
• Intuit Inc.
• Workday Inc.
• Baker Tilly International Ltd.
• The Sage Group plc
• Zoho Corporation
• Epicor Software Corporation
• Xero Limited
• Workiva Inc.
• Kingdee International Software Group Limited
• Ramp Business Corporation
• Reckon Limited
• The Neat Company
• Botkeeper Inc.
• Wave Financial Inc.
• Dext
• Hubdoc Inc.
• Pandle Accounting Software
• TaxSlayer Pro LLC
• LessAccounting LLC
• Accountzontrack LLC
• FreshBooks Inc.
• Cougar Mountain Software Inc.
• FreeAgent Central Limited
• KashFlow Software Ltd.\
What Is The Most Dominant Region In The Online Bookkeeping And Accounting Software Market?
North America was the largest region in the online bookkeeping and accounting software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the online bookkeeping and accounting software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
