The accounting software market - Brazil

Accounting is an integral part of any organization - its activities involve cash management - whether it is a company, a government or a non-profit organization. Although SMEs choose precise software to perform a specific mission (human resources, sales, accounting, finance, etc.), large companies are equipped with ERP (Enterprise Resource Planning) software that allows them to manage all operational activities, including accounting. The global accounting software market is growing rapidly and is largely dominated by the United States. In addition to management software, new operators now offer cloud computing solutions. They also take advantage of new practices and expectations from SMEs and developing companies to develop new, increasingly appropriate, state-of-the-art solutions. Market growth is driven by innovation; for example, high potential is seen for increased automation in reporting and accounting processes. Accounting management via software is increasingly vital for Brazilian companies, be it a large multinational or an SME. Besides the accounting chaos that is the tax system in Brazil, software is essential to meet the requirements of the Public System of Digital Bookkeeping (SPED), which has made Brazilian electronic bookkeeping definitive. The software is also necessary to unify the reception, validation, storage and authentication of books and documents integrating the accounting and fiscal deeds of legal entities. In this context, the quality of the software becomes a decisive factor when choosing the product, which intensifies the competition. Currently, some of the main players are: Nasajon, SCI, Fortes Contábil and Alterdata. In Brazil, the accounting software market is still fairly small. However, it is growing, as the awareness of these systems by Brazilian companies increases. Moreover, the Covid-19 pandemic has worked as an accelerating factor for the development of of this sector, given how it has shown companies how important it is to have new technology systems integrated in their operations.