Tax and Accounting Software Market Research Report - Global Forecast till 2027

Global Tax and Accounting Software Market Research Report: By Software Type (Accounting Software, Tax Software), Deployment Mode ( Cloud, On-Premise), Vertical (BFSI, IT and Telecommunications, Healthcare, Manufacturing others) - Forecast till 2027

ID: MRFR/ICT/7222-CR | January 2020 | Region: Global | 140 pages

Market Analysis 


Global Tax Accounting Software Market is predicted to develop at a 7.9% CAGR between 2019- 2025, reveals the current Market Research Future’s (MRFR) tax and accounting software market forecast report. The strong growth is due to the growing demand for automated solutions in different industry verticals across the world


COVID-19 Analysis 


The on-going COVID-19 pandemic has compelled people to stay at home and live with the basics. With factories being closed and businesses being shut, and the adoption of work from home trends, the worldwide economy has been walloped. It is during these times of crisis, technology is being used at its best. Due to the need for physical distancing, tax and accounting experts are making the most of technology to complete their work sans the need to meet their clients in person. This urgency has led accountants into 24/7 Zoom calls with clients to communicate everything right from cash flow, keeping the business afloat among others, along with ways of keeping people employed. Such conversations offered new visibility both into the cultures and people that define the businesses of their clients. The accounting systems are empowering people working from home, effectively managing demand patterns, and keeping production at the facility on track. It is one key benefit during COVID-19. Moving the accounting process into the cloud will allow people to save everything easily in the online database, which they can access from anywhere, thus making it simpler for teams in collaborating across the world. This is likely to have a positive impact on the global accounting software market size.


Turbo Tax, for instance, is offering online CPAs and EAs on demand to solve clients’ queries.


Market Dynamics



  • Drivers


Use of Electronic Accounting to Bolster Market Growth 


The increasing adoption of electronic accounting is likely to bolster the cloud accounting software market growth over the forecast period.


Additional factors adding to the global tax and accounting software industry growth include the different benefits such as effective planning and management of financial data in an affordable way, growing adoption in BFSI, retail and consumer goods, manufacturing, and others, the growing trend of SMEs collaborating with e-commerce companies as well as integration with other applications, like automated billing features and automated bank feeds, rise in financial transactions, digitalization, increased vigilance of tax administrators, complex nature of existing tax system, and use of block technology.



  • Opportunities


Shift to Accounting Information System to Offer Robust Opportunities 


The ongoing shift to using an accounting information system from conventional means of manually storing financial records may offer robust opportunities to market players in the future.



  • Restraints 


Data Security Concerns May Act as a Market Restraint 


Rising dependency on ePayment methods and digital communication is causing data security concerns that may act as a market restraint in the forecast period.



  • Challenges


Networking Issues to Act as a Market Challenge 


The concerns related to networking issues may act as a market challenge for key players in the future.


Market Segmentation 


The Tax and Accounting Software Market has been bifurcated based on Vertical, Organization Size, Deployment Mode, and Software Type.


Accounting Software Segment to Lead Tax and Accounting Software Market 


By software type, the global tax and accounting software market is segmented into tax software, accounting software, and tax and accounting software. The accounting software is again bifurcated into ERP system, payroll management software, billing/invoice software, and others. Of these, the accounting software segment will lead the market over the forecast period and is likely to develop at a 7.6% CAGR by 2025.


On-Premise Segment to Dominate Tax and Accounting Software Market 


By deployment mode, the global tax and accounting software market is segmented into on-premise and cloud. Of these, the on-premise segment will dominate the market over the forecast period and is likely to grow at a 5.0% CAGR by 2025.


SMEs Segment to Have Lions Share in Tax and Accounting Software Market 


By organization size, the global tax and accounting software market is segmented into large enterprises and SMEs. Of these, the SMEs segment will have the lions share in the market over the forecast period and is likely to grow at an 8.1% CAGR by 2025.


Manufacturing Segment to Spearhead Tax and Accounting Software Market 


By vertical, the global tax and accounting software market is segmented into healthcare, manufacturing, retail and consumer goods, IT and telecommunications, BFSI, and others. Of these, the manufacturing segment will spearhead the market over the forecast period and is likely to grow at an 8.4% CAGR by 2025.


Regional Analysis


North America to Sway Tax and Accounting Software Market


Geographically, the global tax and accounting software market is segmented into Europe, North America, South America, the Asia Pacific, & the Middle East and Africa. Of these, North America will sway the market over the forecast period. Constant reforms in tax regulations and rules, presence of many large scale companies, increasing industrialization, rise in IT offices, the presence of prominent accounting software players in the US, increasing investments by the US government to provide accounting management systems in different private and public organizations, the complexity of the tax system, differences between employment law and tax, development of API-based software for the smooth functioning of the taxation system, and adoption of advanced technologies & channels are adding to the global tax and accounting software market growth in the region.


APAC to Have Fastest Growth in Tax and Accounting Software Market 


In the APAC region, the global tax and accounting software market is predicted to have the fastest growth over the forecast period. Rising penetration of business accounting mobile applications, increasing use of cloud computing solutions and technologies, the emergence of small businesses, growing investments in the SaaS and cloud market by SMEs, growing population, the establishment of different taxation strategies in India like VAT and GST, developing financial and banking sector, presence of emerging economies of Singapore, India, and China, growing demand for tax management software, and the constantly evolving taxation environment, are adding to the global accounting and tax software market share in the region.


Competitive Landscape


The global tax reporting platform is highly fragmented and competitive in nature for the presence of several key players. These key players have encompassed several strategies to strengthen their position in the market, such as acquisitions and mergers, partnerships and collaborations, new product launches, and others.


Key Players 


Prominent players profiled in the global tax and accounting software market report include KPMG International, Dezan Shira & Associates, Kingston & Knight Accountants, Wolters Kluwer, Tally Solutions Private Limited, Red Wing Software, Inc., Unit4, Epicor, FreshBooks, TeamSystem SpA, Xero Limited, Microsoft Corporation, Oracle Corporation, SAP SE, The Sage Group, and Intuit Inc.


Recent Developments



  • January 2021- Cygnet Infotech, a business software maker, has updated its Financial Accounting Comprehensive and Easy (FACE) accounting software platform. 

  • Avalara has acquired Inposia Solutions, a leading invoicing & tax reporting software company.


Report Scope 


The tax and accounting software market report by Market Research Future throws light on the current trends and niches in the industry. The report also lays emphasis on the various market drivers, opportunities, market restraints, and challenges, as well as offers insights for the forecast period. It also throws light on the different market segments for a comprehensive understanding of the reader.


By Software Type 



  • Tax and Accounting Software 

  • Accounting Software 

  • Tax Software


By Deployment 



  • Cloud 

  • On-premise


By Organization Size 



  • Small and Medium Enterprise 

  • Large Enterprise


By Vertical 



  • BFSI

  • IT and Telecommunications 

  • Retail and Consumer Goods 

  • Manufacturing 

  • Healthcare


By Region



  • North America

  • Europe

  • The Asia Pacific (APAC)

  • South America

  • The Middle East and Africa (MEA)



Report Scope:
Report Attribute/Metric Details
  Market Size   2027: Significant Value
  CAGR    7.9% (2019-2025)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units    Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Software Type, Deployment Mode
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   KPMG International, Dezan Shira & Associates, Kingston & Knight Accountants, Wolters Kluwer, Tally Solutions Private Limited, Red Wing Software, Inc., Unit4, Epicor, FreshBooks, TeamSystem SpA, Xero Limited, Microsoft Corporation, Oracle Corporation, SAP SE, The Sage Group, and Intuit Inc.
  Key Market Opportunities   The report also lays emphasis on the various market drivers, opportunities, market restraints, and challenges, as well as offers insights for the forecast period. It also throws light on the different market segments for a comprehensive understanding of the reader.
  Key Market Drivers   The tax and accounting software market report by Market Research Future throws light on the current trends and niches in the industry.


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Frequently Asked Questions (FAQ) :


The Tax and Accounting Software Market is going to record a CAGR of 7.9%.

2020–2027 is the Tax and Accounting Software Market’s expansion period as research

Microsoft Corporation region is supposed to lead the global Tax and Accounting Software Market in 2020–2027

Intuit Inc., The Sage Group, SAP SE are the top 3 key players.

Building and strengthening relationship with channel partners to enhance its distribution capabilities to boost its consumer base and strengthen its market position is the factor.