Procurement Market Intelligence Report
Accounting Software
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Accounting Software Global Overview
Definition
Summary
Accounting software automates the processing, recording, storage and access of financial transactions to improve the efficiency of finance and accounting operations. The software includes a range of modules and can be sold separately or as part of a broader enterprise resource planning (ERP) system. Buyers include manufacturers, retailers and wholesalers, financial institutions and healthcare providers.
This Report Includes:
- Cloud-Based Accounting Software
- On-Premises Accounting Software
Not in this Report:
- Open-Source Accounting Software
- Traditional Accounting Services
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Explore live samples of price trend forecasts, price driver projections, forward-looking cost structure data and more.
Global Accounting Software Procurement Trends
Discover the top international trends affecting procurement in the global Accounting Software market.
Warning Trends
Fed lowers rates for the first time in 2025
- On September 17, the Federal Reserve’s Federal Open Market Committee (FOMC) voted to lower interest rates to a target range of 4.0% to 4.25%, down 0.25% from the rate it had been holding since November of last year.
- Despite indications at the start of the year that steady reductions to the relatively high 4.25% to 4.5% rate were on the horizon, the Fed held off on rate cuts for much of the year due to concerns that the combination of higher tariffs and a reduction in borrowing costs could cause rebounding inflation.
- The September cut to Fed interest rates signals a shift in this strategy, indicating that the Fed now considers weakening employment figures a greater threat than inflation. As a result, FOMC officials have also signaled that two additional rate cuts are likely before the end of the year in an effort to fight unemployment and stimulate the economy.
- Declining Fed funds rates will provide relief to borrowers by lowering the market interest rates for consumer and business loans. This reduction in the cost of borrowing will reduce the cost of many banking and financial services, and may spur increases in demand across the economy.
The European Union’s Artificial Intelligence (AI) Act enters into force
- In August 2024, the European Union (EU) began enforcing its new regulation on artificial intelligence. Although EU legislation, the act will have a major effect on global technological companies operating in the AI space, similar to the General Data Protection regulation.
- The legislation aims to apply a risk-based framework to AI regulation, meaning different AI applications will be treated differently. The law applies a general ban for “unacceptable” uses, such as social scoring and predictive policing.
- For general-purpose AI models, companies will be required to comply with EU copyright law and intellectual property provisions, carry out regular testing, issue transparency disclosures, and implement adequate cybersecurity protections. For “high-risk” AI applications, such as autonomous vehicles, medical devices, financial services, and biometric identification systems, companies must meet stricter requirements in terms of risk-mitigation systems, documentation, human oversight, and cybersecurity.
- Companies that breach the AI Act may face fines ranging from 7.5 million euros or 1.5% of global annual revenues to 35.0 million euros or 7.0% of global annual revenues, whichever amount is higher.
- While the blanket ban on unacceptable systems entered into force in February 2025, most of the obligations do not take effect for a full year. In August 2025, requirements for general-purpose AI will come into effect, and in August 2026, obligations for high-risk AI systems will be enforced.
Positive Trends
The DOJ proposes Google breakup in latest tech antitrust action
- In August, Google was found guilty of operating as a monopoly and engaging in anti-competitive practices through the operation of its search engine business.
- In response to this ruling the Department of Justice (DOJ) has stated it will seek a breakup of Google’s business segments, among other similarly harsh penalties. While the actual penalty Google receives must be approved by the judge, the DOJ’s proposed penalties signal a zero-tolerance policy toward tech monopolies.
- During the last few years, the Federal government has significantly increased its enforcement actions against major technology companies in an effort to contest the high level of market share concentration in this sector.
- These actions include high-profile anti-trust lawsuits against Amazon, Apple, and Meta, in addition to the case against Google. Consequently, the results of these lawsuits could significantly affect the structure of a wide range of tech markets.
Global Accounting Software Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 United States | 300 |
| #2 Europe | 205 |
| #3 China | 195 |
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Geography Drilldown - US
Average Cost of Accounting Software
United States
2026 Market Pricing$0.00 to $X,XXX.XX
per user per monthAverage Price
Prices in the Accounting Software market range from $0.00 to $X,XXX.XX, depending on Deployment Model, Size of Buyer's Operations, Software Complexity and Level of Customization. For example, lower prices are associated with Web-based solutions ($0.00 to $450 per user per month), whereas higher prices are associated with On-premises software ($250 to $1,500 per user per month).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Accounting Software Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Accounting Software market, prices in the US have grown 0.8% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Canada is +0.1%.
United States (2022-2025)
Canada (2019-2022)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Accounting Software
Total cost of ownership is High in the Accounting Software market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Downtime may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Implementation
Billed During
Upgrades
Unforeseen
Downtime
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 0.3 in the United States. Buyer power is most positively impacted by Market Share Concentration. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Software Publishers
- Computer & Packaged Software Wholesalers
- IT Consultants
2nd
Tier Suppliers
- Intellectual Property Licensors
- Computer Manufacturers
- Colleges & Univerisites
Biggest Accounting Software Suppliers in the US by Revenue
The largest Accounting Software vendors by revenue in the US are Intuit Inc., Sage Group Plc and Microsoft Corporation. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Oracle Corporation | Global | AUSTIN, CA | >10,000 | 10-15 | ||||
| Intuit Inc. | Global | Mountain View | >10,000 | 25+ | ||||
| Microsoft Corporation | Global | Redmond | >10,000 | 5-10 | ||||
| Sap Se | Global | WALLDORF | >10,000 | 5-10 | ||||
| Infor, Inc. | Global | New York, NY | >10,000 | 5-10 | ||||
| Sage Group Plc | Global | Newcastle, UK | >10,001 | 5-10 | ||||
| Workday, Inc. | Global | PLEASANTON, CA | >10,000 | < 5 | ||||
| Epicor Software Corporation | Global | Austin, TX | 1,001-10,000 | < 5 | ||||
| 2NDSITE Inc. | Global | Toronto, CA | 101-1000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Accounting Software market is 24.6% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Market share concentration is high, with the top four vendors accounting for over 50.0% of revenue. This level of market share concentration detracts from buyer power by limiting buyer's options as the larger firms crowd smaller suppliers out of the market.
Average vendor risk in the market is low, as vendors have healthy, high profit margins that have been rising over the previous three years. This high profit level reduces bankruptcy risk for suppliers, and limits the risk of service disruption as a result of financial stress.
Supply chain risk in the market is low as supplier primary input costs, such as labor and research and development, are determined internally and not subject to outside forces, which limits the likelihood of extreme price fluctuation or service disruptions.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.
Supplier Information
Oracle Corporation
Oracle Corporation is a global technology company that provides enterprise information technology (IT) products and services. It comprises three businesses: the Cloud and License business, which offers Oracle Applications, Oracle Database, and Oracle Middleware software offerings, among others, deployed using... Subscribe to learn more
Intuit Inc.
Intuit Inc. is a software company that develops platforms delivering financial management, compliance, and marketing products and services. It organizes its business into four reportable segments: the Small Business & Self-Employed segment, which offers accounting services through QuickBooks and marketing... Subscribe to learn more
Infor, Inc.
Infor, Inc. is a private company operating globally in the information sector. The company's offerings include erp software, accounting software, expense management software, spend analytics software, maintenance management software. Founded in 2002, the company is currently headquartered in New York, New... Subscribe to learn more
Microsoft Corporation
Microsoft Corporation is a technology company offering digital technology and artificial intelligence (AI) to businesses and individuals worldwide. It develops cloud-based solutions that deliver customers with software, services, platforms, and content and provides solution support and consulting services.... Subscribe to learn more
Sage Group Plc
Sage Group Plc is a public company operating globally in the information and professional, scientific & technical services sectors. The company's offerings include order tracking software, grants management software, erp software, financial analysis software, accounting software. Founded in 1988, the company... Subscribe to learn more
Sap Se
Sap Se is a public company operating globally in the information, professional, scientific & technical services and educational services sectors. The company's offerings include warehouse management systems, travel management software, recruitment software, order tracking software, contract management software.... Subscribe to learn more
2NDSITE Inc.
2NDSITE Inc. is a private company operating globally in the information sector. The company's offerings include accounting software. Founded in 2003, the company is currently headquartered in Toronto, Ontario, Canada with an estimated 550 employees. Subscribe to learn more
Epicor Software Corporation
Epicor Software Corporation is a private company operating globally in the information sector. The company's offerings include warehouse management systems, retail planning software, erp software, accounting software, digital transaction management software. Founded in 1972, the company is currently headquartered... Subscribe to learn more
FinancialForce.com Inc.
FinancialForce.com Inc. is a private company operating globally in the information sector. The company's offerings include accounting software. Founded in 2009, the company is currently headquartered in San Francisco, California, United States of America with an estimated 750 employees. Subscribe to learn more
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Procurement Management KPIs for the Accounting Software Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Response Time and Employee Training Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Uptime and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Response Time |
|
Total number of inquiries or tickets submitted in a period. Total time to response to these inquiries or tickets. |
The average response time measures the amount of time it takes for customer or technical support to respond to inquiries from the buyer. The average response time can be used to measure the supplier's timeliness in response, as long periods of delay between submission and response can lead to downtime for the buyer while awaiting further instruction or clarification. |
| Employee Training Rate |
|
Number of employees that undergo evaluation. Number of employees that have passed evaluation. |
The employee training rate represents the share of employees that the supplier has been able to successfully train. A highly trained staff will be able to respond and correct issues with service more quickly, which can help limit the amount of downtime with software. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Technology
To what extent can your accounting software be customized, and will those customizations be compatible with future upgrades?
What improvements, if any, are you currently planning? Do you have a calendar for future enhancements?
Vendor Lock-In
What proprietary software or technology do you use? How will that affect the ability to troubleshoot the software in-house?
To what extent can accounting data be extracted from your software in a raw format? Can data be removed if licenses are not renewed?
Security
How often is accounting data backed up on your servers? What are your continuity processes for business interruption?
What encryption standards do you use for data storage and transmission? Has your clients' private data ever been compromised? What is your data protection strategy?
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Accounting Software RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization and operations in terms of annual revenue and number of locations.
Buyers should provide details on the size of their organization and the number of expected accounting software users.
Statement Of Need
Buyers should include the number of accounting software licenses needed and the type of users.
Buyers should detail the software features they require (e.g. security features, financial statement generator, report writer feature, project and endowment tracker) and whether the system must meet any compatibility requirements with existing infrastructure.
Project Budget
Buyers should state their accounting software budget, both in terms of the license price and the total cost of ownership.
Buyers should detail the contract term for annual ongoing costs (e.g. system support, upgrade and maintenance charges and license fees).
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Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
