Accounting Finance Market Analysis

Accounting Finance Market Analysis

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Based on service, the market is divided into bookkeeping and accounting services, auditing and assurance services, taxation services, financial advisory services, payroll services, and others. The bookkeeping and accounting services segment was valued at over USD 150 billion in 2023. Bookkeeping services undergo digital transformation, leveraging cloud-based software and automation tools for streamlined data management and reporting. Real-time access to financial information enables more accurate decision-making and improved client communication. Bookkeepers increasingly offer value-added advisory services, guiding clients on financial planning and business strategy for sustainable growth.

For instance, in September 2022, LPL Financial introduced a specialized bookkeeping service tailored for financial advisors. This service is crafted to offer LPL-affiliated advisors with personalized assistance, precise financial reporting, and current records and classification of their financial information. The bookkeeping service connects advisors with seasoned bookkeepers well-versed in wealth management standards, with the goal of streamlining advisors' workflows and maintaining accuracy in their financial reporting.

Based on organization size, the accounting finance market is categorized into large enterprises, and SME. The large enterprises segment is anticipated to register a CAGR of over 6.5% from 2024 to 2032. Large enterprises increasingly outsource specialized accounting functions to third-party service providers. This strategic move allows them to access expertise, scalability, and cost efficiency while focusing on core business activities. Outsourcing accounting services also ensures compliance with evolving regulations and standards, thereby mitigating risks, enhancing financial transparency, and reporting accuracy.

In September 2023, FloQast, a company specializing in accounting workflow automation software, revealed a strategic consulting collaboration with PwC Germany. This partnership is geared toward improving financial close solutions within the region. The alliance seeks to revolutionize financial close processes for businesses across German-speaking countries by merging FloQast's technology with PwC Germany's industry knowledge and expertise.

North America dominated the global accounting finance market with a major share of over 35% in 2023. In North America, the markets witness increasing adoption of cloud-based accounting software, driven by remote work trends and the need for flexible, scalable solutions. This shift toward digital platforms enhances collaboration, data accessibility, and efficiency, enabling businesses to adapt to evolving market dynamics effectively and sustainably.

For instance, in April 2024, M3, a prominent provider of financial and operational management solutions for the hospitality sector, announced an extension of its collaboration with Paymerang, a company specializing in payment automation. This extended partnership is set to expedite payment automation for hotel finance teams. Its goal is to furnish M3's clientele with upgraded payment automation functionalities, enabling them to streamline their accounts payable procedures, mitigate fraud risks, and enhance overall efficiency.

In the countries in Europe, including France, Spain, the UK, and Germany, there is a growing emphasis on sustainability reporting and compliance with ESG standards. Regulatory frameworks are evolving to incorporate ESG criteria into financial reporting, driving the demand for specialized accounting services. The firms in these countries are increasingly integrating ESG considerations into their financial strategies to meet investor expectations and regulatory requirements.

In the Asia Pacific region, including countries such as China, Japan, and India, there is a rapid adoption of digital payment systems and fintech solutions. This trend is reshaping traditional banking & financial services, driving the need for advanced accounting and financial management tools to adapt to the evolving digital landscape.