Accounting practice management solutions help accounting firms and bookkeeping professionals to effectively manage client engagements, staff resources, billing and collections, project management, and reporting. The software offers tools for time and billing, invoicing, receipt of payments, payroll, bank reconciliation, and credit card processing. It streamlines accounting workflows and improves productivity by automating repetitive administrative tasks. The demand for accounting practice management solutions is increasing as they help accountants to provide better services to their clients in an efficient and cost-effective manner.
The global Accounting Practice Management Market is estimated to be valued at US$ 1.2 Bn in 2023 and is expected to exhibit a CAGR of 30% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Accounting tasks such as invoice generation, payment tracking, expenditure tracking, and report generation are repetitive in nature. Accounting practice management software automates such routine tasks and enables accountants to focus more on value-added activities like financial planning and advisory services. This improves the efficiency of accounting firms. Additionally, the growing complexities in business operations and taxation policies are necessitating the need for accounting practice management solutions. Sophisticated accounting software with embedded intelligence help accountants and bookkeepers to comply with changing financial regulations in a timely manner. Furthermore, the increasing adoption of cloud-based accounting solutions is propelling the market growth. Cloud-based platforms provide flexibility, scalability, and collaborative features to accounting firms for remote management of client portfolios.
The accounting practice management market is dominated by the cloud based accounting software segment. This segment holds around 60% market share as cloud based softwares offer flexibility, scalability and low upfront costs which appeals to small and medium accounting firms. The on premise software segment is the next largest segment holding around 30% share but is declining due to preference for cloud based options.
Political: The accounting practice management software market is not directly impacted by political factors. However, changes in tax laws and compliance requirements set by regulatory bodies impacts the functionality demand from these softwares.
Economic: The economic growth and business expansion drives the demand for accounting practice management softwares from increasing number of accounting firms. During recessionary periods, the market may see slower growth.
Social: With growing complexity of business operations, accounting functions are also becoming specialized. This increases the social acceptance and reliance on dedicated software to efficiently manage accounting practices.
Technological: Continuous innovations are bringing more automation, analytics and collaborative capabilities to accounting software. Technologies like AI and blockchain being introduced which is expanding their scope. However, frequent technology upgrades may increase costs for vendors.
The global accounting practice management market is expected to witness high growth over the forecast period supported by continuous rise in the number of small and medium accounting businesses. The industry consolidations and compliance requirements are also contributing to the increasing reliance on specialized software.
Regional analysis: North America accounts for the largest share currently owing to early technology adoption. However, Asia Pacific is emerging as the fastest growing regional market with countries like India and China generating significant demand from the rapidly expanding SME business sectors. Growing internet penetration and economic growth is supporting the software migration to cloud based models in Asia Pacific.
Key players operating in the accounting practice management market are Novartis, Brainstorm Cell Therapeutics, Helminth, Core stem, Q therapeutics, Helminth, Rapa Therapeutics, Brainstorm Cell Therapeutics, Neuroblast, Osteocyte, Ferrer International, Neuralstem, Ferrer International, Semeia Cell Technologies, Labella Gene Therapeutics, Sangamon Therapeutics, Hoffmann-La Roche, Longeron, Soi Gene Therapies, Prevail Therapeutics (Eli Lilly and Company), Aerogeneration, Brain Neurotherapy Bio (Ask Bio), Unique Biopharma, Neurogenic Inc., Passage Bio, AXOVANT SCIENCES GMBH, Meira Tx Limited, Asclepios Biopharmaceutical (Ask Bio), Biogen, Sarepta Therapeutics, REGENXBIO Inc., Lysogen, Voyager Therapeutics, PTC Therapeutics. The key players are focused on product innovation and expansion to remote locations to benefit from the high growth opportunities.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it