Tax and Accounting Software Market Size, Share & Trends 2031

Report Description

The global tax and accounting software market size was USD 21.1 Bn in 2022 and is likely to reach USD 42.9 Bn by 2031, expanding at a CAGR of 8.2% during 2023–2031. The market growth is attributed to the increased automation of tax and accounting processes and the elimination of manual tasks through electronic accounting.

Tax and accounting software consolidate transactional data for in-depth tracking of financial data. Detailed reporting and ad-hoc analysis are possible through the implementation of tax and accounting software in the financial processes of businesses.

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Tax and accounting software aid in financial decision-making through detailed reporting and analysis reducing accounting expenses for businesses. Before the introduction of software and technology, accounting, and taxation procedures were manually recorded which led to the utilization of several record-keeping books and huge storage spaces.

The market report finds that the COVID-19 pandemic acted as a restraint on the tax and accounting software market due to government-imposed lockdowns around the world. Abrupt shutting down businesses led to decreased demand for professional services for tax and accounting functions. International trade came to a halt during the pandemic period reducing business operations that adversely affected the tax and accounting software market.

Tax and Accounting Software Market Dynamics

The global tax and accounting software market report has up-to-date insights that help formulate a strategic roadmap about the estimated market scenario and performance from 2023 to 2031.

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What Drivers the Tax and Accounting Software Market?

The increasing popularity of electronic accounting is driving market growth. Several advantages such as the provision of electronic evidence of transactions, aid in decision-making, and in-depth information display are expected in boosting the market growth.

What are the Restraints of the Tax and Accounting Software Market?

Developing software systems for protecting data and analytics operations against cyberattacks and data thefts need huge financial investments. BFSI security measures call for heavy financial investments which may hamper market growth.

What are the Opportunities in the Tax and Accounting Software Market?

The transition from manual to software-based accounting is a major opportunity for market growth. Computerized accounting saves precious business hours and allows for efficient documentation in creating purchase orders. Faster report preparations and data entry are major benefits of tax and accounting software that are creating opportunities for market expansion.

Scope of the Tax and Accounting Software Market Report           

The global tax and accounting software market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Tax and Accounting Software Market Segment Insights

What are the Main Aspects for Boosting the Web-based Segment?

Based on the product segment, the tax and accounting software market is bifurcated into web-based and mobile-based products. The mobile-based products are further bifurcated into iOS and android platform-based products.

The web-based segment is anticipated to grow at a rapid pace during the projected period due to easy accessibility for users directly through authorized websites of service providers. The low cost of operations with no maintenance are major advantages that are expected to drive the segment growth.

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What Key Factors Contribute to the Rapid Expansion of the Accounting Software Segment?

On the basis of the type segment, the tax and accounting software market is subdivided into tax software and accounting software.

The accounting software segment is anticipated to grow at a rapid pace during the forecast period due to several functions the software provides such as ERP, billing/invoice, payroll management, and others. Eliminating manual processes and streamlining business processes are major functions provided by accounting software that aid the accounting processes that are expected to bolster segment growth.

Which Major Factors Influence the Significant Growth of the Small & Medium Enterprises (SMEs) Segment?

On the basis of the organization size segment, the tax and accounting software market is divided into small & medium enterprises and large enterprises.

The small & medium enterprises (SMEs) segment is expected to emerge as the largest market contributor during the forecasted period owing to the growing collaborations of small enterprises with e-commerce players. The integration of online services such as automated billing and bank feeds provided by tax and accounting software is expected to boost segment growth.

Which Key Factors Influence the Significant Growth of the Cloud Segment?

Based on deployment mode, the global market is bifurcated into cloud-based and on-premise deployment modes.

The cloud-based segment is expected to lead the market due to the high level of data safety and security offered by this deployment mode. The cloud-based segment mode facilitates the mass storage of data with the organization having complete control over the data through multilayered security formats.

Increasing applications of cloud-based accounting software such as cloud billing aid the blend of electronic billing with cloud computing boosting the segment growth. Real-time tracking of the financial situations with detailed information and forecasts is a major advantage expected to propel segment growth in the forecast period.

What Key Factors Contribute to the Rapid Expansion of the BFSI Segment?

On the basis of the industry segment, the tax and accounting software market is subdivided into BFSI, retail & consumer goods, IT & telecommunications, healthcare, manufacturing, and others.

The BFSI segment is anticipated to grow at a rapid pace during the forecast period due to the wide applications of tax and accounting software. Functions for tax reporting and budgeting, sales tracking, inventory management, and payroll management in banking and related financial services are efficiently handled using tax and accounting software that is expected to drive segment growth.

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Why is North America Dominating the Tax and Accounting Software Market?

In terms of region, the global tax and accounting software market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

North America is expected to dominate the market during the forecast due to rapid industrialization and the growing number of organizations of information and technology in the region. Regular updates in tax rules and regulations and the presence of prominent tax and accounting players in the US are expected to boost market growth.

The tax and accounting software market of Asia Pacific is anticipated to expand at a rapid pace during the forecast period. The expansion is expected owing to the increased usage of technology for cloud data storage in accounting processes in emerging small businesses and the rapidly expanding banking sector in the Asia Pacific.

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