Future of Accounting Software: 4 Expert Predictions for 2019

The accounting software market has a long legacy that dates back to the late 1970s. It has several major players that include Peachtree Software, Microsoft Dynamics and Quickbooks. The market’s revenue was $5.7 billion in 2017, and is forecast to grow to $11.8 billion by 2026.

 

While accounting software is traditionally deployed on-premise, vendors have aggressively been marketing cloud-based deployment during the past several years. Other trends in this market include increased focus on mobile functionality, a greater key role of artificial intelligence (AI) and more advanced features, such as business intelligence.

So, what will be the new accounting software market trends going into 2019? We’ve asked four industry experts to weigh in on the question.  

With more businesses selling online, fully integrated accounting software with the inventory tools they need are a must 

As the capabilities of internet sales and online stores continue to evolve, the need for a multi-channel ecommerce/inventory system will grow exponentially. We’ve seen the growth of product-based business blossom in the last 5 to 6 years and it’s getting harder and harder for accounting partners to ignore inventory clients and online sellers. Fully integrated solutions that tie accounting, inventory and ecommerce together will be essential for firms with fix-based pricing in the upcoming year. Accounting software that doesn’t rely on add-ons will be the key to success, as well as not affecting firm margins.  

Ted McRae
Director of Marketing and Growth
AccountingSuite

Adoption of purpose-built and vertical-specific cloud-based accounting software increases

In 2019, tech-savvy organizations will look to cloud financial management technology as a way to drive revenue growth. Today, every CFO knows that effective and reliable accounting automation is key to cost control. But true sector leaders will differentiate themselves by the degree to which their accounting technology helps them to understand and support opportunities to increase revenue into their organization. Increased revenue means increased impact.      

Within the social good ecosystem that Blackbaud Financial Edge NXTTM serves, organizations that have the ability to quickly produce the detailed financial reporting required by major funding providers will apply for and win more grants. Reporting effectively on the connection between dollars invested and outcomes achieved will build constituent support and donor retention. Purpose-built and vertical-specific, cloud-based accounting software is already the preferred method for leading organizations to achieve their cost control and revenue growth goals. Its adoption will only increase in 2019. The pace of innovation will continue to be set by companies like Blackbaud, the world’s leading cloud software company powering social good, which invests in providing comprehensive cloud solutions that merge innovative payment processing, deep analytics, and robust cloud accounting.           

David Loring
Vice President, Financial Solutions Team
Blackbaud 

Accounting Systems Will Never Be the Same Again 

As someone who’s been working on the information systems industry for the last 14 years, I’ve witnessed an enormous change in the way customers are using their accounting systems and, with it, a wave of expectations that are fast becoming the new standard.  

Once upon a time, we used to see customers purchasing basic accounting software packages to their AP and AR, plus some basic accounting functionality. Fast forward, and today, the new customer is expecting much more from their accounting system. We live in a time where the technology around us is moving so fast on computers and smartphones’ super robust functionalities, we’ll be seeing more and more customers expecting this same level of sophistication from their accounting systems. It will all be about this: “I want to access my data directly from my smartphone, iPad or tablet.” With enough customer demand, a brand new standard is set, and accounting systems will just have to become fully compliant with mobile devices.  

Here’s another common scenario. I see a lot of customers who have accounting systems in place, and yet, they’re still using reams of spreadsheets. It’s only because they lack the capability for advanced reporting that would give company management direct access to the system. We’ll soon be seeing accounting systems that will incorporate report generators and BI (Business Intelligence) modules, embedded right into the software. These and other features are primed for 2019, all part of the new expectations that will set the pace for accounting software vendors to invest more in development. They’ll have to add these tools into their systems. If they don’t, we’ll end up seeing small-sized customers moving towards more advanced business management systems, such as Enterprise Resource Planning (ERP), which today, is widely popular with small organizations as well. 

Eran Rozenfeld
VP Sales and Operations
Priority Software US

 

Cloud Systems and Paperless Workflows Will Drive Productivity

Experts say that the economic boom is likely to continue in 2019. Organizations will grow through acquisition and launch new ventures but will struggle to hire workers to handle the increased workload. One way to address the shortage of workers on your accounting team is to implement software that lets them be more productive.

Review your organization’s financial management software. Is there room for improvement?  Focusing on the following areas could help jump start productivity: Moving to a cloud-based accounting system; adding paperless workflows for approvals; or leveraging the knowledge and expertise of your current vendor’s software Support team.

Curt Cerf
CEO
Software Business Systems (SBS)

Speak Your Mind

*