Codat's guide to the accounting software market July 2020 How is the accounting market changing and what does this mean? Across the world there are certainly dominant players within the accounting software market. However the market is rapidly changing and expanding. Key players are diversifying and fragmenting their offering to suit the ever changing needs of their key audience - the small business. A long tail of other accounting packages has emerged, spurred on by a huge shift in demand from desktop based packages to cloud based services which has largely been attributed to changing consumer expectations and regulation that has driven accounting and tax online. The expansion of cloud services has opened the door to more accessible and cost-saving software packages that include more automated features meaning that individuals with little to no accounting experience could navigate them. The cloud also allows for more centralised data which freely flows through APIs and integrations across platforms leading to greater insights and analysis that can be vital for a small business to survive and flourish. The accounting software market has transformed into a highly competitive, digitized and interconnected landscape which is largely driven with one customer in mind - the small business. *All data contained within this paper is based on extensive research carried out by Codat from various different sources, including both public and non-public sources. Some data has been calculated based on global figures and split across regions according to presence in the region. All data has been provided on a best-efforts basis, however Codat cannot guarantee the accuracy or completeness of this information. Codat accepts no liability which might arise from the content of this paper. Accounting platforms by region The companies with largest market share in accounting software include Intuit (Quickbooks), Xero, Sage, FreshBooks, Wave and MYOB. However, various other companies operate in the market and are coming up with new technologies and offerings which are helping the market expand rapidly in terms of revenue and users. UK Canada 9% Quickbooks desktop Quickbooks 9% online Quickbooks desktop 7% Freshbooks 47% 30% 25% 20% 16% 28% Sage 50 Quickbooks 9% Other Xero online Other Wave Australia + New Zealand USA Quickbooks self employed 9% Quickbooks online Other 4% 56% Xero 44% 32%27% 20% 17% 8% 15% MYOB Other Quickbooks Quickbooks Xero Accountright online desktop How we gathered the data Data on accounting software market share is not publicly available and difficult to gather, which is why we have written this report, entirely on a best efforts basis. We have used a combination of publicly announced numbers from annual reports, governmental statistics, press reports, public surveys and private surveys conducted by Codat in individual markets, private surveys conducted by Codat clients of their SME user bases, figures of businesses synchronising data through the Codat platform and other public and non-public data sources. The methodology of how these figures were reported may not be publicly available and therefore may not be possible to accurately combine or contrast. Based on the information available to us, we have provided our best estimate of the market share in the respective region. If you know of additional sources of data or believe that our estimates are incorrect, please do let us know - we intend to continue refining these figures and will update them as new information becomes available. *All data has been provided on a best-efforts basis, however Codat cannot guarantee the accuracy or completeness of this information. 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