Tax & Accounting Software Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Tax & Accounting Software Market is projected to expand from USD 14.23 Billion in 2025 to USD 24.12 Billion by 2031, reflecting a compound annual growth rate (CAGR) of 9.19%. This market encompasses digital solutions tailored to automate financial reporting, ensure regulatory compliance, and streamline tax preparation for both organizations and individuals. Growth is largely fueled by the rising complexity of international tax frameworks and the necessity for real-time financial visibility, which requires automated precision over manual data entry. Furthermore, the digitization of government tax authorities acts as a core driver, compelling businesses to adopt compatible systems to satisfy electronic invoicing and reporting mandates.

Continued investment in these tools highlights the sector's strong momentum. As noted in the CPA.com and AICPA PCPS Client Advisory Services Benchmark Survey, 51% of client advisory practices reported in 2024 that they are continually investing in technology to enhance their service delivery. However, a significant challenge that could hinder market expansion is the prevailing talent shortage, as firms encounter difficulties recruiting professionals who possess both the technical accounting expertise and the digital proficiency needed to leverage these sophisticated platforms.

Market Drivers

The integration of Artificial Intelligence and Machine Learning for process automation is fundamentally transforming the Global Tax & Accounting Software Market. These technologies are shifting the industry from manual data entry toward predictive advisory by automating complex tasks such as tax code interpretation, anomaly detection, and reconciliation. By minimizing human error and processing time, firms can dedicate resources to higher-value strategic services. This industry-wide shift toward high-tech adoption is evidenced by strategic priorities; according to the '2024 State of Tax Professionals Report' by Thomson Reuters in May 2024, 35% of survey respondents indicated that their firms plan to invest in generative AI or new AI-powered technology over the next two years.

The accelerated adoption of cloud-based and SaaS delivery models serves as the second primary driver, enabling real-time financial visibility and seamless ecosystem connectivity. Cloud architectures allow organizations to integrate tax software directly with banking and ERP systems, creating a data environment that supports remote collaboration and scalability. This connectivity drives measurable business growth for practitioners; according to Xero's February 2024 report, 'State of the industry special report: Leveraging the app advantage', accounting firms using at least one cloud-based practice app added an average of 24 new clients in the past 12 months, compared to only 15 for non-users. Reflecting this broader sector momentum, Intuit's 'First Quarter Fiscal 2025 Financial Results' from November 2024 showed that QuickBooks Online Accounting revenue grew 21% year-over-year.

Market Challenges

The prevailing talent shortage constitutes a substantial barrier to the expansion of the Global Tax & Accounting Software Market. While the demand for automated financial solutions continues to rise, the industry is constrained by a scarcity of professionals who possess the necessary dual capability in traditional accounting principles and modern digital workflows. This deficiency in human capital directly limits the addressable market for software vendors, as organizations cannot effectively implement or utilize complex platforms without a skilled workforce to operate them. Consequently, firms are frequently forced to delay digital transformation initiatives or limit the scope of their software investments solely because they lack the qualified personnel required to manage these systems.

This constriction of the talent pipeline is evidenced by recent industry data highlighting a decline in new entrants to the profession. According to the American Institute of CPAs, in 2025, the number of graduates earning degrees in accounting fell by 6.6% during the 2023-2024 academic year compared to the previous cycle. This sustained reduction in available candidates exacerbates hiring difficulties for firms, creating a scenario where the lack of available users imposes a natural ceiling on software adoption rates. Without a robust influx of digitally literate accountants, the market's capacity for growth remains tethered to the availability of this specialized workforce.

Market Trends

The shift toward real-time tax compliance capabilities is redefining the market as jurisdictions increasingly enforce continuous transaction controls and granular local tax adjustments. Software vendors are consequently prioritizing the development of dynamic calculation engines capable of handling high-velocity regulatory updates, moving beyond static reporting to instant, transaction-level validation. This evolution is necessitated by the rapid acceleration of decentralized tax rule modifications, which has rendered manual tracking obsolete for multi-jurisdictional businesses. According to Vertex's January 2025 '2024 End-of-Year Sales Tax Rates and Rules Report', there were 251 city-level tax rate changes in the United States during 2024, representing a 30% increase compared to 2023, a volatility that compels organizations to adopt automated solutions for immediate rate applicability.

Simultaneously, the emergence of integrated ESG reporting features is expanding the functional scope of accounting platforms beyond traditional financial metrics. As regulatory frameworks mandate stricter disclosure of non-financial performance, software providers are embedding carbon accounting and governance modules directly into general ledgers to ensure audit-grade accuracy for sustainability data. This integration addresses a critical gap in corporate readiness, as businesses struggle to align their reporting infrastructures with these new transparency standards. According to the Association of Chartered Certified Accountants (ACCA) report 'Sustainability reporting: Track your progress' from November 2025, only 53% of organizations have currently taken steps to develop or utilize sustainability information, signaling a substantial opportunity for vendors to deliver tools that unify fiscal and environmental reporting workflows.

Key Players Profiled in the Tax & Accounting Software Market

• Oracle Corporation
• Microsoft Corporation
• SAP SE
• Automatic Data Processing, Inc.
• H&R Block, Inc.
• BlackLine Systems, Inc.
• Wave Financial Inc.
• 2NDSITE Inc.
• Xero Limited
• Intuit Inc.

Report Scope

In this report, the Global Tax & Accounting Software Market has been segmented into the following categories:

Tax & Accounting Software Market, by Software Type:

• Accounting Software
• Tax Software

Tax & Accounting Software Market, by Deployment Mode:

• On-Cloud
• On-Premise

Tax & Accounting Software Market, by Vertical:

• BFSI
• IT
• Telecom
• Healthcare
• Manufacturing

Tax & Accounting Software Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Tax & Accounting Software Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.