AI In The Bookkeeping Market Size, Share, Opportunities, And Trends By Organizational Size (Small-size organization, Medium-size organization, Large-size organization), By Deployment (Cloud, On-Premise), By Application (Machine learning, Invoice Classification and Approval Source, Compare employee expense reports, Track changes in prices, Others), And By Geography - Forecasts From 2024 To 2029

The AI in the bookkeeping market is expected to grow at a CAGR of 43.26%, reaching a market size of US$24.645 billion in 2029 from US$8.463 billion in 2024.

Artificial intelligence (AI) in bookkeeping is referred to as the employment of AI technology to streamline and enhance many aspects of accounting and bookkeeping work by removing human involvement. These technologies leverage machine learning (ML), natural language processing (NLP), and other AI technologies for financial data analysis, transaction categorization, account reconciliation, report generation, and other routine bookkeeping functions. Moreover, AI can be of help in modern bookkeeping practices: automated data entry, transaction screening, reconciliation, and generation of financial statements. AI-equipped programs are capable of receiving and processing costs-related documents such as receipts or invoices, thus eliminating the need to input such data manually.

In universities, AI can provide insight into transaction data to classify expenditure, income, and any other entries into their appropriate categories for easy financial management. AI systems that carry out reconciliations can compare transactions in billing records, bank statements, and general ledgers to find differences and resolve them. AI can also prepare and customize financial or business activity reports according to the user’s specifications by forecasting cash flow, net income, or other essential ratios.

What are AI in the bookkeeping market drivers?

• Increasing automation demand is contributing to AI in the bookkeeping market growth

Automation optimizes entry and bookkeeping procedures by reducing the extent of involvement by personnel in registering, sorting, and matching operations. AI-driven systems may perform repetitive tasks faster and more accurately than humans, saving time and increasing production. AP AUTONOMY increases team efficiency by enabling faster and more accurate invoice processing than traditional accounting automation products based on templates and rules. AI-based AP Autonomy transforms outdated Optical Character Recognition systems and rule-based methods to automate processes with a quicker and more precise solution.

In general, the increasing need for automation is leading to more applications of Artificial Intelligence in accounting as companies are looking for efficiency in processes, cost reduction, improved precision, and effective utilization of financial data.

• The emergence of cloud-based solutions is contributing to AI in the bookkeeping market growth

AI-powered accounting software in the cloud enables users to access and utilize advanced features without the need for costly IT architecture, thus making higher-order bookkeeping functions within reach of a wider range of businesses.

One of the products is Zoho Books, which is an all-rounder platform for managing all accounting processes and transactions. This is where one can find all their company’s bills and invoices in one safe place, along with the tasks of bank reconciliation, tracking expenses, and managing project works.

Moreover, the emergence of cloud-based solutions has changed how organizations conduct bookkeeping and accounting practices, enabling them to have more flexibility, scalability, cost-efficiency, security, and integration options. Thus, cloud-based AI accounting solutions have experienced an upward trend in uptake by all types of corporations, aiding the sector's growth.

• Rising deployment of on-premise and cloud services is contributing to AI in the bookkeeping market growth

Outsourced Accounting Services Software as a Service (SaaS) is generally hosted and managed by an external provider and accessed by users via the web. This policy encourages growth, adjusting the system's parameters to the firm’s requirements and lowering initial costs, as firms incur expenses for the services they use on a subscription basis. It also enables access from any location and updates without intervention.

When the AI-based accounting software is installed and run within a company’s servers and infrastructure, it is called on-premises deployment. It gives organizations more governance over their information and possibilities for customization, but it involves capital expenditure on purchasing hardware and ICT personnel. 

Major challenges hindering AI in the bookkeeping market:

• Data privacy concerns is anticipated to hamper the market growth

Modern machine learning-focused accounting solutions utilize large structured data to teach their algorithms and make precise forecasts. Nevertheless, apprehensions about the confidentiality and safety of such information could hinder organizations from adopting these solutions, especially where there is a need to share sensitive fiscal data with other outsourced entities.

Geographical outlooks of AI in the bookkeeping market:

• North America is witnessing exponential growth during the forecast period

The region is acclaimed for technical advancements, especially in the United States. This is because of the region's numerous digital enterprises and research centers and Vic.ai, Bill, Docyt AI, and Zoho’s subsidiaries - DORA, rent, and outsource- which provide a wide array of bookkeeping solutions.

However, most North American corporations, especially large companies and modern startups, are the first to implement the technologies including Artificial Intelligence. They understand the possible advantages of AI in attaining high efficiency, accuracy, and cost-effectiveness in bookkeeping processes, hence the increase in the investment aimed at AI-enhanced solutions. It is important to note that this region holds a significant share of the AI bookkeeping market because it effectively leverages the technology. Additionally, this area is a hub for most innovations in financial processes.

Key developments in AI in the bookkeeping market:

• In September 2024, FloQast announced the beginning of a new era of accounting operational excellence, fueled by the launch of its all-new Accounting Transformation Platform, designed by accountants for accountants. The Accounting Transformation Platform introduces new AI workflows to provide value at every stage of the accounting process by integrating the full FloQastTM solution portfolio, which includes FloQast Close, FloQast Compliance Management, and FloQast Ops. 
• In August 2024, ReInvestWealth launched AI accounting software in the USA. They are offering American entrepreneurs, small business owners, independent contractors, and solopreneurs their user-friendly and reasonably priced accounting solutions. Their software maximizes tax credits, reduces errors, and saves time by automating repetitive accounting tasks using unique AI algorithms. Their platform, which was created with the modern entrepreneur in mind, is simple to use and intuitive, even for people who don't know much about accounting.

AI In The Bookkeeping Market Scope:

Report Metric	Details
AI In The Bookkeeping Market Size in 2024	US$8.463 billion
AI In The Bookkeeping Market Size in 2029	US$24.645 billion
Growth Rate	CAGR of 43.26%
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segmentation	Organizational Size Deployment Application Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in AI In The Bookkeeping Market	Zeni Book.ai Clickup Vic.ai Bill
Customization Scope	Free report customization with purchase

 

The AI in the bookkeeping market is analyzed into the following segments:

• By Organizational Size
  • Small-size organization
  • Medium-size organization
  • Large-size organization
• By Deployment
  • Cloud
  • On-Premise
• By Application
  • Machine learning
  • Invoice Classification and Approval Source
  • Compare employee expense reports
  • Track changes in prices
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • UK
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. AI IN THE BOOKKEEPING MARKET BY ORGANIZATIONAL SIZE

5.1. Introduction

5.2. Small-size organization

5.3. Medium-size organization

5.4. Large-size organization

6. AI IN THE BOOKKEEPING MARKET BY DEPLOYMENT

6.1. Introduction

6.2. Cloud

6.3. On-Premise

7. AI IN THE BOOKKEEPING MARKET BY APPLICATION

7.1. Introduction

7.2. Machine learning

7.3. Invoice Classification and Approval Source

7.4. Compare employee expense reports

7.5. Track changes in prices

7.6. Others

8. AI IN THE BOOKKEEPING MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Organizational Size

8.2.2. By Deployment 

8.2.3. By Application

8.2.4. By Country

8.2.4.1. USA

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Organizational Size

8.3.2. By Deployment 

8.3.3. By Application

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Organizational Size

8.4.2. By Deployment 

8.4.3. By Application

8.4.4. By Country

8.4.4.1. Germany

8.4.4.2. France

8.4.4.3. UK

8.4.4.4. Spain

8.4.4.5. Others

8.5. Middle East and Africa

8.5.1. By Organizational Size

8.5.2. By Deployment 

8.5.3. By Application

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. UAE

8.5.4.3. Israel

8.5.4.4. Others

8.6. Asia Pacific

8.6.1. By Organizational Size

8.6.2. By Deployment 

8.6.3. By Application

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. India

8.6.4.4. South Korea

8.6.4.5. Indonesia

8.6.4.6. Taiwan

8.6.4.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Zeni

10.2. Book.ai

10.3. Clickup

10.4. Vic.ai

10.5. Bill

10.6. Docyt AI

10.7. Zoho

10.8. QuickBooks 

10.9. Truewind

10.10.  Blue dot VATBox Ltd.

Zeni

Book.ai

Clickup

Vic.ai

Bill

Docyt AI

Zoho

QuickBooks 

Truewind

 Blue dot VATBox Ltd.