Tax time: A growing economy will sustain demand for industry services

Over the past five years, the Tax Preparation Services industry has grown. Operators have experienced an uptick in demand for industry services as new businesses enter the Canadian economy and the national unemployment rate falls. As more individuals earn income and disposable incomes rise, demand for tax preparation services increases. However, industry growth has been constrained by rising internet penetration and more online offerings, which offer inexpensive substitutes for industry services. Macroeconomic conditions will be more favourable to the industry over the next five years, as rising unemployment and higher disposable incomes increase demand for professional tax advice...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
3.4%
Forecast Growth 18-23
Profit
Employment
16,810
Businesses
3,418
Market Share of Companies

Industry Threats & Opportunities

  • The introduction of online tax preparation services has been the most prominent industry trend over the past five years
  • Industry demand is strongly linked to the employment rate
  • The volume of tax returns filed with the help of industry services is expected to be inhibited
  • Industry Report - Industry Locations Chapter

    The geographic distribution of operators in the Tax Preparation Services industry in Canada is highly correlated with the overall population distribution of Canada. More than 90.0% of tax preparation services are offered to consumers; consequently, businesses are set up to cater to consumer convenience. As a result, Ontario, British Columbia, Alberta and Quebec attract the most industry operations.OntarioOntario is the most saturated of all Canadian provinces, with an estimated 46.5% of total industry establishments. Ontario also comprises 38.3% of the Canadian population, attracting many businesses to the region. An estimated 61.3% of establishments in the region are nonemployers that mainly service the urban hub of Toronto. The...purchase to read more.

    Additional Insights for the Tax Preparation Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tax Preparation Services Industry are

  • Experienced work force
  • Being part of a franchising chain
  • Provision of personalized services
  • IBISWorld analysts also discuss how external factors such as National unemployment rate and External competition for the Tax Preparation Services industry in the Tax Preparation Services industry impact industry performance..

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    What's in this report

    What is the Tax Preparation Services Industry?

    This industry provides tax return preparation services to individuals without also providing accounting, bookkeeping, billing or payroll process services. Although the offices of CPAs are excluded from this industry, basic knowledge of tax law and filing requirements is required.

    Industry Products
  • Client income and tax return preparation services
  • Client tax return review services
  • Corporate tax preparation services
  • Tax planning and consulting services
  • Financial document compilation services
  • Industry Activities
  • Client income and tax return preparation services
  • Client tax return reviewing services
  • Corporate tax preparation services
  • Tax planning and consulting services
  • Financial document compilation services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • National unemployment rate
  • External competition for the Tax Preparation Services industry
  • Per capita disposable income
  • Number of businesses

  • Current Performance
  • Increasing employment supports growth
  • Online offerings expand
  • Competing services
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • More tax returns
  • Free services online
  • Persistent competition
  • Growth in operations
  • Table: Tax Preparation Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tax Preparation Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Accounting Services in Canada
  • Advertising Agencies in Canada
  • Commercial Leasing in Canada
  • Employment & Recruiting Agencies in Canada
  • Law Firms in Canada
  • Software Publishing in Canada

  • Products & Services
  • Client income and tax return preparation services
  • Client tax return review services
  • Corporate tax preparation services
  • Other
  • Tax planning and consulting services
  • Financial document compilation services
  • Chart: Tax Preparation Services Industry Products and Services Segmentation

  • Demand Determinants
  • Seasonality
  • Employment
  • Laws and regulation

  • Major Markets
  • Consumers with income of $50,000 or more
  • Consumers with income less than $30,000
  • Consumers with income from $30,000 to $49,999
  • Businesses
  • Other
  • Chart: Major Market Segmentation for the Tax Preparation Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Tax Preparation Services

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tax Preparation Services Industry

  • Industry Globalization
    Intuit Inc., H&R Block,
  • Table: Intuit Inc. - financial performance
  • Table: H&R Block - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tax Preparation Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tax Preparation Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • National unemployment rate (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cra
  • The CRA refers to the Canada Revenue Agency, Canada's administration body for tax laws in Canada.
  • Netfile
  • NETFILE is an electronic tax filing option that enables consumers to file their personal income taxes directly to the CRA.
  • Pad
  • Pre-authorized debt (PAD) is an online self-service option that permits users to authorize the CRA to periodically withdraw tax.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tax Preparation Services market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tax Preparation Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tax Preparation Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tax Preparation Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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