57 Critical Accounting Software Statistics: 2024 Data Analysis & Market Share

The world moves fast, and the accounting industry is no exception. Market demands and intelligent technology are driving the growth of the global accounting services market, and more organizations are now recognizing the potential of accounting software in the business.

In the past few years, the adoption of cloud accounting technology has changed the way businesses carry out their accounting and finance management tasks. Through cloud-hosted accounting software, businesses acquire a faster and more efficient way to manage audits, tax preparation, banking, and payroll.

To best understand the current state of the accounting software industry, we compiled the most relevant data and reports on accounting in general and accounting software statistics in particular. The article also discusses in detail the pros and cons of businesses adopting cloud accounting technology and its impact on their productivity and efficiency.

General Accounting Statistics

Accounting is more than just keeping tabs on credits and debits and crunching numbers on ledgers. Bookkeeping, auditing, payroll, tax preparation, and finance management—all these are only part of what makes the entire accounting and finance sector. For SMEs and other macro organizations, accounting plays a vital role in monitoring expenditures and income, as well as ensuring statutory compliance and providing financial insights.

Over the years, accounting has evolved into a more dynamic field, and the use of sophisticated data and new accounting techniques continually drives the growth of accounting services. Spurred by the growing tendency of small to large businesses and the expansion of consulting business firms, the accounting industry continuously witnesses a significant growth year after year.

Here are some of the latest statistics for accounting and finance that you should know.

• At a CAGR of 9.1%, the global accounting services market value is set to reach $868 billion by the year 2022. (The Business Research Company, 2022)
• 79% of accounting firms offer booking and accounting services. (Capital Counselor, 2021)
• In 2020, Deloitte, PwC, Ernst & Young, and KPMG—the Big Four accounting firms—made $66.55 billion in combined gross revenue. (Balancing Everything, 2021)
• According to 21% of accountants, market demand is the key driver of the growth of the accounting industry. (Sage Practice of Now, 2020)
• In 2022, the market size of accounting services is $120.6 billion. (IBIS World, 2021)
• The growth rate of the accounting services industry is expected to increase by 0.9% in the year 2022. (IBIS World, 2021)
• From 2017 to 2022, the accounting services industry has grown by 1.3% per year on average. (IBIS World, 2021)

COVID-19 Impact on Accounting Statistics

The measures taken to battle the COVID-19 crisis, such as lockdowns and physical and social distancing, led to the shutdown of many organizations and profit losses for most enterprises. Businesses in travel, manufacturing, transportation, automotive, hospitality and retail, and ecommerce are among those that were severely affected by the pandemic. As enterprises from these industries work on decreasing additional expenses to continue their operations, costs associated with accounting services are also reduced.

By utilizing the latest technological developments in the accounting sector and adopting a remote work setup, accounting firms have found ways to bounce back and continue their operations. The increased adoption of modern accounting tools has allowed the accounting and finance sectors to offer better and more efficient services to their clients. Despite the considerable challenges posed by the pandemic, the accounting industry continues to explore various opportunities for growth through powerful digital tools and strategic partnerships.

The recent accounting statistics 2020 below reveal the impact of the pandemic on the accounting services market.

• According to 36% of accounting firms, pandemic-related issues were the biggest challenges that affected their business during the COVID-19 crisis. (Accounting Today, 2020)
• 54% of mid-sized firms and 31% of large firms were severely affected by the challenges posed by the COVID-19 pandemic. (Accounting Today, 2020)
• In 2020, 67% of firms started offering pandemic-related services. (Accounting Today, 2020)
• Meanwhile, 12% of firms are planning to expand their business by offering Coronavirus-related services. (Accounting Today, 2020)
• During the pandemic, 89% of small firms had employees who worked remotely. (Accounting Today, 2020)

Small Business Accounting Statistics

For small businesses, accounting is a necessary task that helps them track and manage financial matters more efficiently. Without it, there is no way to record and locate business transactions and maintain inventory records. Accounting also enables small businesses to handle statutory compliance and complex sales tax processes.

Many businesses hire accounting professionals who can handle all their finances and bookkeeping needs. Some small businesses, however, cannot afford to hire their own accounting teams. As an alternative, small business owners resort to cloud-based accounting solutions that cover the basics of accounting. These include payments, invoicing, and payroll. Most accounting solutions also assist businesses in creating basic financial statements, keeping accurate records, and avoiding financial disasters.

To best understand how accounting solutions benefit small businesses, take a look at some of the most recent small business accounting statistics compiled below.

• Almost half, or 41%, of small business owners in the United States prefer to take care of their own accounting and finance processes. (OnPay, 2021)
• Meanwhile, 20% of small business owners hire an employee who takes care of the necessary accounting and finance issues in the company. (OnPay, 2021)
• 17% of SMBs have external and internal accountants, while 13% rely only on external accountants. (OnPay, 2021)
• 61% of small business owners are satisfied with their accounting service providers. (OnPay, 2021)
• 72% of self-employed contractors did not use professional bookkeeping services. (Balancing Everything, 2021)
• 62% of small businesses believe that their accountants are not responsible for their taxes. (Balancing Everything, 2021)
• 78% of small companies were using cloud accounting in 2020. (Accountancy Age, 2020)
• 58% of businesses used accounting software to meet the needs of their clients. (Sage Practice of Now, 2020)
• 82% – small businesses who used cloud accounting. (Sage Practice of Now, 2020)
• 52% – enterprises who used cloud accounting. (Sage Practice of Now, 2020)

Accounting Software Statistics

Basically, an accounting software is a piece of technology that helps businesses record and manage their financial transactions. It comes with a wide range of features that make accounting easier for businesses and accounting professionals. An accounting platform often includes accounts receivable, accounts payable, general ledger, payroll, journal, and trial balance features.

Bookkeepers and professional accountants also benefit from accounting solutions by having an efficient tool that makes their job easier, especially when it comes to recording and reporting their clients’ and firms’ financial transactions. Generally, accounting platforms cover various accounting and bookkeeping tasks, such as bills payment, invoicing, and financial reporting. A cloud-hosted accounting solution also simplifies data entry and improves the accuracy of financial reports.

As more businesses adopt accounting solutions for their bookkeeping demand, the accounting software industry continues to witness significant growth with each passing year. Below, you’ll find the latest accounting statistics 2021 that can give you a better idea of where the accounting software industry is headed.

• By 2026, the global accounting software market will be worth $11.7 million. (Accounting Today, 2021)
• The estimated value of the US accounting software market in 2024 is forecast to be $416.23 million. (Capital Counselor, 2021)
• The cloud accounting market is expected to reach $4.25 million by 2023. (Flexi, 2021)
• 67% of accountants preferred cloud-hosted accounting solutions over on-premise accounting software. (Flexi, 2021)
• Cloud-hosted accounting software reduced operating expenses by up to 50%. (Flexi, 2021)
• Latest accounting software statistics reveal that 58% of enterprises were using cloud accounting solutions. (Flexi, 2021)
• Businesses that switched to cloud accounting have experienced a 15% boost in revenue. (Flexi, 2021)
• In 2020, 78% of small businesses depend on cloud-hosted accounting solutions. (Sage Practice of Now, 2020)

Jobs in Accounting Statistics

Professional accountants, whether in tax, forensic, or managerial positions, can find a wide range of jobs in various industries. Depending on their location and job type, accountants typically earn a lucrative salary and are highly in demand. Compared to other occupations, professional accountants have the potential to earn above the national median salary average.

Aside from their financial expertise, accounting professionals are highly sought out by employers because of their potential as strategic business partners. As the role of statistics in accounting also become more prominent, graduates of accounting data analytics or accounting statistics course are widely sought by employers in a wide range of industries.

Known for their analytical skills, precision, and strong ethics, licensed CPAs can expect to find jobs in small and large enterprises, as well as nonprofit organizations and government agencies. Their abilities in analyzing and interpreting complex financial data are valuable assets and can bring value to many businesses.

To this day, accounting remains an in-demand profession in organizations in any type of industry. For a better glance at the job outlook for the accounting industry, below is a compilation of up-to-date accounting jobs statistics.

• In 2020, the median pay for accountants and auditors was $73,560 per year. (Bureau of Labor Statistics, 2020)
• In the United States, the average salary of accountants is $55,974 per year. (Indeed, 2022)
• For accountants with more than 10 years of experience, the average salary is $64,445. (Indeed, 2022)
• 55% of accountants in the US believe that their salaries are enough to cover the costs of living in their area. (Indeed, 2022)
• The top company for accountants in the United States is the United States Department Of Defense, which offers $98,076 per year. (Indeed, 2022)
• New York remains the highest-paying city for accountants in the United States, with accountants earning $65,690 per year in the city. (Indeed, 2022)
• Finance and insurance were the highest-paying industries for accountants in 2020, with accountants reporting a median annual salary of $78,600. (Bureau of Labor Statistics, 2020)
• This is followed by management of companies and enterprises, where accountants earn a median annual salary of $76,230. (Bureau of Labor Statistics, 2020)
• Offering around $165,000 per year, the United Kingdom is one of the best places for accountants. (Naibuzz, 2020)
• In SMBs, the most common accounting positions are CFO, general bookkeeper, and accounting manager. (Wasp Barcode, 2020)

Accountants in the Modern Era Statistics

Accounting is a competitive profession that requires critical thinking and strong analytical and problem-solving skills. In nearly every business, accountants play a vital role as chief financial officers in charge of the company’s overall financial health. Most organizations rely on accounting teams to consolidate their finances, including taxes, wages, client payments, investments, and profits.

Aside from expertise in mathematics, business law, and finance, the growing importance of technology to the accounting sector calls for another skill set that newly hired accountants must possess. Technological skills, such as the ability to digitally integrate and analyze financial data,are often required in modern workplaces. Since the scope of accounting continues to expand in today’s digital era, familiarity with cloud computing and automation is also a valuable skill for accounting professionals today.

The market demand for accounting professionals remains constant to this day and spans multiple industries. The demand for accountants in the future, especially in the primary jobs in the accounting sector, such as public accountants, internal auditors, management accountants, and government accountants, are generally on the rise as more businesses recognize the necessity of accounting and finance services.

Here is a list of the most up-to-date statistics about accountants today:

• In the United States, 62.6% of all accountants were all women. (Capital Counselor, 2021)
• In the first quarter of 2021, the CPA exam pass rate rose from 46.64% to 59.29%. (Capital Counselor, 2021)
• As of 2020, there are about 1.27 million auditors and accountants in the United States. (Capital Counselor, 2021)
• The average employee age for accountants is 43.7 years old. (Data USA, 2021)
• The average salary for male accountants is $101,147. (Data USA, 2021)
• Meanwhile, female accountants earned an average of $101,075. (Data USA, 2021)
• As of 2020, 741,000 people have worked in tax preparation, payroll services, bookkeeping, and accounting. (Capital Counselor, 2021)
• 36% of accountants say that they are satisfied with their jobs. (Monster, 2021)

Technology in Accounting Statistics

In today’s digital era, newer technologies are elevating businesses in new and empowering ways. Driven by emerging accounting technologies, the traditional role of accountants in businesses has now shifted to that of a business advisor. The productivity optimization and automation functions of modern accounting tools have made the jobs of accountants a lot easier. At the same time, they gave birth to new skill sets that professional accountants must have—critical thinking, accurate judgment, and professional skepticism.

Thanks to technologies such as artificial intelligence, big data, cloud computing, accounting statistics software, and innovations in accounting and tax solutions, businesses can now have more efficient ways to access and interpret financial data. In turn, accountants bring in more value to businesses by keeping every organization’s financial goals on track. The accounting profession has also moved far beyond mere bookkeeping and payroll. As a matter of fact, accounting today now plays a strategic role in forward-thinking businesses.

Most popular accounting software

1. Freshbooks is a cloud-based accounting solution that offers client invoicing and time tracking tools. It’s perfect for small business owners who need to automate invoicing tasks and organize expenses. You can find out its full features in our Freshbooks review.
2. Sage50cloud is an accounting solution for credit card processing, payroll, and real-time tracking of sales and receipts. It uses industry best practices in tracking your finances. Know more of its features in our Sage50cloud review.
3. NetSuite ERP has billing and expense management features, giving you real-time visibility into the financial performance of your business. You’ll find out more about its accounting tools in our NetSuite ERP review.
4. Zoho Books is an accounting solution that allows you to send invoices and receive online payments. Aside from being packed with financial control features, it also has collaboration tools for better communication with your clients. You can find out more about its features in our Zoho Books review.
5. QuickBooks Enterprise is an end-to-end accounting platform that automates payroll tasks, payables, and inventory tracking. You can find out more details about its features in our QuickBooks Enterprise review.

Here are some of the most relevant accounting technology statistics.

• 57% – accountants who believed that technology literacy is the most critical skill for future accountants. (Sage Practice of Now, 2020)
• 46% – accountants who believed that relationship building is the most critical skill for future accountants. (Sage Practice of Now, 2020)
• 44% – accountants who believed that business advisory is the most critical skill for future accountants. (Sage Practice of Now, 2020)
• 43% – accountants who believed that experience outside accounting is the most critical skill for future accountants. (Sage Practice of Now, 2020)
• 46% – accountants who believed that project management is the most critical skill for future accountants. (Sage Practice of Now, 2020)
• Digitization was one of the key drivers for the growth of the accounting industry, according to 15% of accountants. (Sage Practice of Now, 2020)
• According to 56% of accountants, accounting technology increased their productivity. (Sage Practice of Now, 2020)
• Accounting automation returns the investment in up to 18 months and saves up to $16 per invoice. (Vanguard Systems, 2020)
• AI improved business operations and helps in automating tasks, according to 22% of accounting firms. (Sage Practice of Now, 2020)
• 50% of accountants plan to use accounting automation solutions. (Sage Practice of Now, 2020)
• 45% – accountants who want to automate data entry and number-crunching tasks. (Sage Practice of Now, 2020)
• 40% – accountants who want to automate accounts payable processes and invoicing.(Sage Practice of Now, 2020)
• For 35% of accountants, upgrading their accounting technology helps in increasing retention rates and keeping pace with their clients’ needs and expectations. (Sage Practice of Now, 2020)

Challenges to Accounting Statistics

The rapid technological changes and market demands are oftentimes the main challenges faced by any industry, and the accounting sector is no exception. As accounting becomes more dynamic and technical in the digital era, businesses today get overwhelmed by the challenges brought by technology trends, such as the implementation of newer technologies and modeling techniques.

On top of the usual demands of tax compliance and auditing processes, the accounting industry also has to constantly adhere to major changes in tax laws and the global, lingering impact of COVID-19. To battle these challenges and minimize risks, businesses and professional accountants are constantly on the move in preparation for what lies ahead.

For instance, many large accounting firms and public companies are leveraging increased information and data analytics to make better decisions and stay on top of their clients’ financial goals. Staying up-to-date on emerging technologies impacting the accounting profession is also a crucial move for many firms. In doing so, accounting teams bring in efficiency to their clients’ organizations in the most cost-effective manner.

Here are some of the most relevant challenges in accounting statistics 2021 that you should look out for.

• 82% of accountants say that their clients are more demanding today. (Sage Practice of Now, 2020)
• 74% of small businesses believe that ghost assets do not affect their accounting books and taxes. (Wasp Barcode, 2020)
• 41% of small business owners complain about their accounts being reactive instead of proactive. (Wasp Barcode, 2020)
• Meanwhile, 27% complain about their accountants not providing financial advice. (Wasp Barcode, 2020)

Future of Accounting Software

The future of accounting software is poised for significant transformation, driven by technological advancements and changing business needs. Here are key trends shaping its evolution:

• Increased Automation: The rise of artificial intelligence (AI) and machine learning will lead to more automation in accounting tasks. Routine processes such as data entry, invoice processing, and reconciliation will become increasingly automated, allowing accountants to focus on strategic decision-making rather than repetitive tasks.
• Integration with Other Business Tools: Future accounting software will likely offer seamless integration with various business applications, such as customer relationship management (CRM), inventory management, and e-commerce platforms. This interconnectedness will provide a holistic view of business operations and streamline workflows.
• Enhanced Data Analytics: As businesses seek deeper insights into their financial data, accounting software will evolve to incorporate advanced analytics features. Users will benefit from real-time reporting, predictive analytics, and visualization tools that help them make data-driven decisions.
• Cloud-Based Solutions: The trend toward cloud computing will continue to dominate the accounting software landscape. Cloud-based solutions offer flexibility, accessibility, and real-time collaboration, allowing businesses to manage their finances from anywhere and at any time.
• Focus on Cybersecurity: As reliance on digital solutions grows, so does the need for robust cybersecurity measures. Future accounting software will prioritize data protection and compliance, ensuring that sensitive financial information remains secure against cyber threats.
• Mobile Accessibility: The demand for mobile solutions will increase as businesses adopt remote and hybrid work models. Accounting software will increasingly offer mobile applications that enable users to manage finances on the go, making it easier to stay connected to financial data.
• User Experience Enhancement: As competition increases, software developers will focus on creating more user-friendly interfaces. Improved navigation, customizable dashboards, and enhanced customer support will help ensure that users of all skill levels can effectively utilize the software.

The Digital Age of Accounting

The accounting software statistics you have read above imply only one thing: the accounting sector is now leaning towards a more digital approach. Failure to keep up with industry changes or ignoring the latest technological trends could lead to serious risks for your business. To stay ahead of the curve, you need to be fully aware of how the accounting industry is shaping up and how it affects your organization and your clients.

Leveraging the right resources and modern tools can also give you a competitive advantage in the market. After all, these solutions exist to lessen manual work for accountants and introduce preemptive problem-solving in the business. Given the importance of accounting in every part of the business, investing in the right accounting software could do wonders for your organization.

In case you are looking for more product choices on accounting solutions, you can check out our guide to the best accounting platforms.

Key Insights

• Growth of the Global Accounting Market: The accounting services market is set to reach $868 billion by 2022, driven by technological advancements and increased market demands.
• Impact of COVID-19: The pandemic significantly affected accounting firms, with 36% citing pandemic-related challenges as their biggest issue. However, the increased adoption of digital tools has allowed many firms to continue operations and even expand their services.
• Adoption of Cloud Accounting: Cloud-hosted accounting solutions are preferred by 67% of accountants, helping to reduce operating expenses by up to 50%. Cloud accounting adoption is particularly high among small businesses, with 78% relying on these solutions.
• Importance of Technology in Accounting: Accountants recognize technology literacy as a critical skill, with 57% considering it essential for future professionals. Automation and AI are also improving productivity and efficiency within the industry.
• Demand for Accounting Professionals: The accounting profession remains in high demand across various industries, with accountants earning a median annual salary of $73,560. The sector continues to offer lucrative opportunities, especially for those with advanced technological skills.
• Challenges Faced by Accountants: Accountants are encountering increased demands from clients and the need to adapt to rapid technological changes. Additionally, maintaining compliance and managing evolving tax laws are ongoing challenges.

FAQ

1. How has the accounting industry grown in recent years?The global accounting services market is experiencing significant growth, with an expected market value of $868 billion by 2022, driven by technological advancements and increased market demands.
2. What impact has COVID-19 had on the accounting sector?The pandemic posed considerable challenges, with 36% of firms citing pandemic-related issues as their biggest challenge. Despite this, the adoption of modern accounting tools and remote work setups has allowed firms to continue operations and expand services.
3. Why are cloud-hosted accounting solutions popular among businesses?Cloud-hosted accounting solutions are preferred by 67% of accountants due to their ability to reduce operating expenses by up to 50%. They offer flexibility, scalability, and improved data accuracy, making them ideal for businesses of all sizes.
4. What skills are essential for future accountants in the digital era?Technology literacy is considered the most critical skill for future accountants, followed by relationship building, project management, business advisory, and experience outside traditional accounting roles.
5. What is the job outlook for accounting professionals?The accounting profession remains in high demand, with a median annual salary of $73,560. The sector offers numerous opportunities, particularly for those with advanced technological skills and expertise in areas such as tax preparation, auditing, and financial management.
6. What are the main challenges faced by accountants today?Accountants face increased demands from clients, the need to stay updated with rapid technological changes, and the challenge of maintaining compliance with evolving tax laws. Additionally, managing client expectations and providing proactive financial advice are ongoing issues.
7. How is technology transforming the accounting industry?Technology, including automation and AI, is significantly enhancing productivity and efficiency in accounting. Modern tools help accountants streamline processes, reduce manual work, and provide better financial insights, thereby adding more value to businesses.
8. What role does accounting play in small businesses?Accounting is crucial for small businesses to track and manage financial transactions, ensure statutory compliance, and avoid financial pitfalls. Many small businesses use cloud-based accounting solutions to handle tasks such as invoicing, payroll, and financial reporting.
9. How are accounting firms adapting to the digital age?Accounting firms are leveraging digital tools and technologies to stay competitive. This includes adopting cloud-based solutions, automating routine tasks, and using advanced analytics to provide strategic business advice to clients.
10. What is the future outlook for the accounting software market?
    The accounting software market is poised for continued growth, with the global market expected to reach $11.7 million by 2026. The increasing adoption of cloud accounting solutions and the integration of advanced technologies will drive this growth.

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By Nestor Gilbert

Nestor Gilbert is a senior B2B and SaaS analyst and a core contributor at FinancesOnline for over 5 years. With his experience in software development and extensive knowledge of SaaS management, he writes mostly about emerging B2B technologies and their impact on the current business landscape. However, he also provides in-depth reviews on a wide range of software solutions to help businesses find suitable options for them. Through his work, he aims to help companies develop a more tech-forward approach to their operations and overcome their SaaS-related challenges.