B2B Accounting Software Industry: Tech Trends
Leading tech trends defining the B2B accounting software industry include cloud computing, automation, integration, block chain, and cloud computing,
- Cloud computing created a new channel for the distribution of accounting software, over the internet.
- Cloud computing has had a significant impact on accounting software already with 1 in 4 accountants already working on the cloud.
- In 2017, Quickbooks Online had 2 million subscribers representing 20% of the total user base of Quickbooks, with the rest being offline (Quickbooks Desktop). Importantly, 80% of Quickbooks Online customers were first-time users of accounting software, indicative of the impact of cloud computing in attracting a new user base.
- Machine learning and artificial intelligence will improve the framework of accounting software leading to the full automation of tax accounting, payroll accounting, audits, and banking by 2020.
- In Robotic Process Automation (RPA), virtual actions of software users are mimicked using artificial intelligence and machine learning leading to users not having to repeat similar tasks in the future as the software can undertake it with one click. In 2018, Gartner expects that 60% of organizations with revenues exceeding $1 billion will begin testing and deploying RPA in their software.
- Despite RPA disrupting accounting in the future, other elements of automation have already started to be implemented in B2B accounting software such as in analytics. Notably, accountants have access to large swathes of data but lack substantive insights that guide decision-making.
- Xero provides its customers with integration to multiple analytics tools from Zoho, Microsoft Power BI, and Xavier Analytics.
- The block chain will deliver increased security and privacy of information. It will be instrumental in the transfer and verification of information in real-time.
- Smart contracts created by block chain technology will require accounting software to launch and account for payments.
- According to IBM, 51% of leading global banks will deploy block-chain for their banking and accounting systems at scale between 2018 to 2020.
- PayPie is a block-chain accounting platform that provides lenders, investors, banks and financial institutions with data on credit risk assessment. Other accounting software companies working on block chain development KS Connect.
- The growth of SaaS in B2B software contributed to the emergence of new entrants that had limited integration with established B2B accounting software companies. Currently, established accounting software vendors are working closely with startups, developers, and competitors to create digital ecosystems for their accounting software.
- Quickbooks integrates with over 600 business apps and has an established ecosystem that supports developers. As such, Quickbooks customers enjoy seamless app integrations that eliminate the complexity of accounting, use of accounting software, and software integration IT expertise.
- Mobile is the dominant internet access point rather than desktop devices. Businesses have already embraced the trend and are increasingly mobile to promote increased flexibility for employees as well as to ease the management of their businesses.
- Accounting software is catching on the trend of going mobile with accounting software such as Xero having mobile accounting for management of business finance on the move.
In order to determine, your research team undertook an extensive review of news sources, industry reports, and company websites such as Xero and Forbes. Importantly, your research team validated top trends by corroboration across credible trends. Further, we provided insights, statistics, and examples to back up our identified top trends.