Procurement Market Intelligence Report
Accounting Software
Sourcing Guide & Market Intelligence
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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
Global Accounting Software Procurement Trends
Discover the top international trends affecting procurement in the global Accounting Software market.
Warning Trends
Fed holds rates steady, citing the possibility of rising inflation due to tariffs
- On March 19, the Federal Reserve (Fed) voted to hold interest rates steady at a range of 4.25% to 4.5% for the second consecutive meeting.
- Fed Chairman Jerome Powell noted during the announcement of this decision that the possibility of higher inflation caused by tariffs was a key factor in the decision to hold interest rates steady.
- While the Fed has maintained its projection of two interest rate cuts in 2025, similar to the three cuts imposed in 2024, an increasing share of the committee now projects only a single rate cut in 2025. This trend indicates that ongoing rate cuts may be slower than initially expected.
- With rate cuts paused in the first quarter of the year and uncertain for the rest of the year, interest rates are likely to remain elevated in the short term, increasing the cost and risk associated with lending and borrowing money.
- Additionally, the Fed cut its 2025 US economic growth projections by about a fifth due to stalling consumer demand that may be exacerbated by tariffs. This stagnation in growth poses further risks to the financial industry on top of elevated interest rates.
Neutral
Labor markets tighten slightly following interest rate cuts
- In recent months, the unemployment rate has remained stable at 4.1%, a still relatively low mark, though higher than it was in prior years. This trend indicates sustained competitiveness in the overall labor market, though certain industries have experienced waning labor demand.
- The latest jobs report indicates that major industries, such as construction, retail, leisure & hospitality, and transportation & warehousing, no longer face hiring shortfalls.
- However, worker shortages persist in the manufacturing and healthcare sectors, as 29.9% and 50.0% of job openings in each sector remained unfilled in August, respectively.
- In blue-collar fields, 33.9%, 70.1%, and 49.9% of job openings for information, finance, and professional service roles remained unfilled in September, though unfilled positions in these occupations can also be partially attributed to the longer average hiring times in these industries.
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 |
|---|---|
| #1United States | 300 |
| #2Europe | 205 |
| #3China | 195 |
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Geography Drilldown - US
Average Cost of Accounting Software
United States
2025 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 NaN0.1%.
United States (2022-2025)
0.8%
Compound Annual Growth RateCanada (2019-2022)
0.1%
Compound Annual Growth RateWondering where prices are heading?
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 2025, buyer power amounts to -0.2 in the United States. Buyer power is most positively impacted by Switching Costs. 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
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- 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, US | >10,000 | 5-10 | ||||
| Sap Se | Global | WALLDORF | >10,000 | 5-10 | ||||
| Sage Group Plc | Global | Newcastle, UK | >10,001 | 5-10 | ||||
| Infor, Inc. | Global | New York, NY | >10,000 | 5-10 | ||||
| Workday, Inc. | Global | PLEASANTON, CA | >10,000 | < 5 | ||||
| 2NDSITE Inc. | Global | Toronto, CA | 101-1000 | < 5 | ||||
| Epicor Software Corporation | Global | Austin, TX | 1,001-10,000 | < 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 24.8% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is stagnating, when considering movement between 2024 and 2025. To understand cost forecasts for 2026 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 public company operating globally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include warehouse management systems, network attached storage devices, computer servers, database management systems, load balancing... 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 and risk management software. Founded in 2002, the company is currently headquartered in New York, New York,... Subscribe to learn more
Sage Group Plc
Sage Group Plc is a public company operating globally in the information and professional, scientific and technical services sectors. The company's offerings include order tracking software, human resources software, grants management software, erp software, financial analysis software. Founded in 1988, the... Subscribe to learn more
Sap Se
Sap Se is a public company operating globally in the information, professional, scientific and 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
Microsoft Corporation
Microsoft Corporation is a public company operating globally in the manufacturing, information, professional, scientific and technical services, administration, business support and waste management services and educational services sectors. The company's offerings include smartphones, phone headsets, tablet... 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
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
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
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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. | |
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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We display average pricing information, trends and market data.
Our Reports include:
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- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
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