Dublin, March 20, 2024 (GLOBE NEWSWIRE) -- The "Tax Management Software Global Market Report 2024" report has been added to ResearchAndMarkets.com's offering.
The tax management software market size is expected to see rapid growth in the next few years. It will grow to $35.1 billion in 2028 at a compound annual growth rate (CAGR) of 12.2%. The anticipated growth in the forecast period can be attributed to factors such as heightened security measures, a focus on customization and scalability, seamless integration with existing systems, and a commitment to ensuring data accuracy and integrity. Major trends expected during this period include an emphasis on collaboration and workflow efficiency, an increased focus on data security, continued emphasis on customization and scalability, integration with ERP and accounting systems, and the incorporation of user-friendly interfaces and user experience (UX) design.
Tax management software is a computer program designed for centralized tax configuration, management, and reporting within enterprises. It works in conjunction with other financial modules to aggregate tax information from diverse financial documents into a unified repository, facilitating the generation of tax-related reports. This software also interfaces with financial management modules to accurately calculate taxes for every transaction, aiding in the control and mitigation of tax-related transactions.
The main components of tax management software comprise software and professional services. In the realm of computing, software encompasses instructions, data, or programs used to operate computers and execute specific tasks, contrasting with hardware, which pertains to the physical aspects of a computer. The term 'software' is broad and encompasses applications, scripts, and programs that run on devices. Tax management software addresses various tax types, including both direct and indirect taxes. Deployment options include on-premises and cloud-based solutions, catering to enterprises of different sizes, such as large enterprises and small-medium enterprises. Its applications span various verticals, including BFSI, healthcare, retail, manufacturing, energy and utilities, among others.
The anticipated increase in online digital transactions is set to drive the growth of the tax management software market in the future. Governments, aiming to enhance tax compliance and revenue collection for public goods and services, are increasingly digitizing their operations and embracing online transactions. This approach ensures the effectiveness and sustainability of tax reforms, facilitating proper taxation of the digital economy and reducing compliance barriers. For example, in the financial year 2021-2022, digital payments in India witnessed a 33% year-on-year increase, totaling 7,422 crores ($933 million), compared to 5,554 crores ($698.24 million) recorded in FY 2020-21. Consequently, the surge in online digital transactions is fostering the demand for tax management software, driving market growth.
The rise in automation and digitization within tax processing is expected to be a key driver for the growth of tax management software. Automation streamlines tax-related procedures, boosting accuracy and efficiency, leading to resource and time savings and cost reductions. Real-time updates ensure compliance with evolving tax regulations, and data analytics empower businesses with valuable insights to optimize tax strategies, identify credits, and maximize deductions. Integration with other financial systems facilitates seamless data sharing, simplifying tax filing and report generation. For example, the Internal Revenue Service (IRS) collaborated with IBM to digitize the paper tax return intake process for tax years 2020 and 2021. This initiative allowed for remote scanning, validation, and processing, showcasing the role of automation and digitization in tax processing and driving the growth of the tax management software market.
Technological advancement stands out as a prominent trend gaining traction in the tax management software market. Key companies in this sector are actively developing technologically advanced products to solidify their market positions.
A selection of companies mentioned in this report includes
- Avalara Inc.
- GoDaddy Operating Company LLC.
- Shoeboxed Inc.
- SAXTAX Inc.
- H&R Block Inc.
- CrowdReason LLC
- Drake Software
- Bolt
- Beanstalk Data LLC
- Avantax Wealth Management
- TaxSlayer LLC
- Wolters Kluwer N. V.
- Intuit Inc.
- Sovos Compliance LLC
- Sailotech Private Limited
- Vertex Inc.
- Paychex Inc.
- TPS Unlimited Inc.
- Thomson Reuters Holdings Inc.
- Automatic Data Processing Inc.
- AccurateTax Inc.
- Bloomberg Industry Group
- Corptax Inc.
- Taxware Systems Inc.
- Xero Limited.
- The Sage Group plc.
- TaxCloud LLC.
For more information about this report visit https://www.researchandmarkets.com/r/t25d30
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
