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Tax Preparation Services Industry Analysis

Identify industry changes, evaluate the market size, market outlook, trends, key players, and growth opportunities.

Contents Standard Report Premium Report
Industry Overview & Outlook . .
- Market Size
(industry trends)
. .
- Market Forecast   .
- Products/Services Breakdown   .
- Revenue per State . .
$ Financial Metrics . .
$ Salary & Compensation Benchmarks . .
@ Key Companies   .
- Industry News & Innovators   .
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2018 Market Analysis & Industry Outlook: Tax Preparation Services


Overview: the U.S. Tax Preparation Services Industry

This section provides answers to key questions about the industry:

  1. What is the total market size (industry revenue)?
  2. What is the industry outlook?
  3. Market Analysis: Is the market growing or declining, and how quickly?
  4. Are long-term forecasts positive or negative?
  5. What is the average company size in the industry?
  6. How many companies are in the industry?


Market Size & Industry Statistics

The total U.S. industry market size for Tax Preparation Services: Industry statistics cover all companies in the United States, both public and private, ranging in size from small businesses to market leaders. In addition to revenue, the industry market analysis shows information on employees, companies, and average firm size.

Investors, banks, and business executives use growth rates and industry trends to understand the market outlook and opportunity.

market size 2018
Charts and graphs can be copied to Microsoft Word and Powerpoint presentations.

Statistics 2012        2013        2014        2015        2016        2017
Market Size
(Total Sales/Revenue)


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Total Firms
Total Employees
Average Revenue Per Firm
Average Employees Per Firm
Statistics Source: U.S. Census, AnythingResearch Market Analysis



Market Forecast

Market forecasts show the long term industry outlook and future growth trends. The following five-year demand forecast projects both short-term and long-term trends.



market forecast

Forecast / Industry Outlook 2017 2018 2019 2020 2021 2022
Market Forecast ($ millions)
Projected Industry Growth Rate (%)
Source: AnythingResearch Economic Analysis

Product & Services Breakdown

Research products and services in the Tax Preparation Services industry generating sales. Note that products are broken into categories with different levels of classification.

Product DescriptionNumber of Companies Sales ($ millions) Percent of Total Sales

Industry Total

Bookkeeping And Compilation Services

Tax Planning And Consulting Services

Tax Planning And Consulting Service - Individuals And Unincorporated Businesses

Tax Preparation And Representation Services - Individuals And Unincorporated Businesses

Tax Preparation And Representation Services - Corporate And Other Clients



U.S. Geographic Distribution: Revenue Statistics by State

Market Size by State ($ millions) indicates how the industry's competition is distributed throughout the country. State-level information can identify areas with higher and lower industry market share than average.

U.S. map by state

Income Statement (Average Financial Metrics)

Financial metrics provide a snapshot view of a benchmark "average" company. Key business metrics show revenue and operating costs. The data collected covers both public and private companies.

Industry AveragePercent of Sales
(Industry Benchmark)
Total Revenue

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Operating Revenue
Cost of Goods Sold
Gross Profit

Operating Expenses
Pension, profit sharing plans, stock, annuity
Repairs
Rent paid on business property
Charitable Contributions
Depletion
Domestic production activities deduction
Advertising
Compensation of officers
Salaries and wages
Employee benefit programs
Taxes and Licenses
Bad Debts
Depreciation
Amortization
Other Operating Expenses
Total Operating Expenses
Operating Income
Non-Operating Income
EBIT (Earnings Before Interest and Taxes)
Interest Expense
Earnings Before Taxes
Income Tax
Net Profit
 
Source: AnythingResearch Analysis of U.S. federal statistics




Financial Ratio Analysis

Financial ratio information can be used to benchmark how a Tax Preparation Services company compares to its peers. Accounting statistics are calculated from the industry-average for income statements and balance sheets.

Profitability & Valuation RatiosIndustry Average
Company valuation can be measured based on the firm's own performance, as well as in comparison against its industry competitors. These metrics show how the average company in the Tax Preparation Services industry is performing.
Profit Margin
Gross Profit Margin, Operating Profit Margin, and Net Profit Margin. Show company earnings relative to revenues.
Return on Equity (ROE)
Return on Equity (ROE) is net income as a percentage of shareholders' equity. Shareholders' Equity is defined as the company's total assets minus total liabilities. ROE shows how much profits a company generates with the money shareholders invested (or with retained earnings).
Return on Assets (ROA)
Return on Assets (ROA) is net income relative to total assets. The market research on Tax Preparation Services measures how efficiently the company leverages its assets to generate profit. ROA is calculated as Net Income divided by Total Assets.


Liquidity RatiosIndustry Average
Bankers and suppliers use liquidity to determine creditworthiness and identify potential threats to a company's financial viability.
Current Ratio
Measures a firm's ability to pay its debts over the next 12 months.
Quick Ratio (Acid Test)
Calculates liquid assets relative to liabilities, excluding inventories.


Efficiency Ratios - Key Performance IndicatorsIndustry Average
Measure how quickly products and services sell, and effectively collections policies are implemented.
Receivables Turnover Ratio
If this number is low in your business when compared to the industry average in the research report, it may mean your payment terms are too lenient or that you are not doing a good enough job on collections.
Average Collection Period
Based on the Receivables Turnover, this estimates the collection period in days. Calculated as 365 divided by the Receivables Turnover
Inventory Turnover
A low turnover rate may point to overstocking, obsolescence, or deficiencies in the product line or marketing effort.
Fixed-Asset Turnover
Generally, higher is better, since it indicates the business has less money tied up in fixed assets for each dollar of sales revenue.



Compensation & Salary Surveys for Employees

Compensation statistics provides an accurate assessment of industry-specific jobs and national salary averages. This information can be used to identify which positions are most common, and high, low, and average annual wages.

TitlePercent of WorkforceBottom Quartile Average (Median) SalaryUpper Quartile
Management Occupations 6%

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Chief Executives0%
General and Operations Managers2%
Business and Financial Operations Occupations 49%
Financial Specialists 46%
Accountants and Auditors 37%
Accountants and Auditors 37%
Tax Examiners, Collectors and Preparers, and Revenue Agents 7%
Tax Preparers 7%
Office and Administrative Support Occupations 37%
Financial Clerks 17%
Bookkeeping, Accounting, and Auditing Clerks 10%
Bookkeeping, Accounting, and Auditing Clerks 10%
Secretaries and Administrative Assistants 7%
Secretaries and Administrative Assistants 7%
Secretaries and Administrative Assistants, Except Legal, Medical, and Executive 5%
Other Office and Administrative Support Workers 6%
Source: Bureau of Labor Statistics


Tax Preparation Services Industry Market Share [PREMIUM]

Largest companies in the industry and related industries, with private company revenue estimates.

CompanyAddressRevenue Estimate









Innovation News

  • Rhodes Financial Services trademarks "TAXSLAYER CENTER" - Entertainment services - 01/31/2018
  • Sovos Compliance trademarks "INTELLIGENT COMPLIANCE" - Business process outsourcing services related to compliance with direct tax information reporting, sales tax, use tax and value added tax statutory provisions; computerized database management services related to sales taxes, use taxes and value added taxes - 11/14/2017
  • JTH Tax Inc. Dba Liberty Tax Service trademarks "KONNECTED" - Home and office automation systems comprising wireless and wired controllers, controlled devices, and software for lighting, HVAC, security, safety and other home and office monitoring and control applications - 09/29/2017
  • Exactor raises $3 million in funding. - 11/25/2016




  • Top Innovators

    CompanyInnovation Score
    JTH Tax Inc. Dba Liberty Tax Service
    Rhodes Financial Services

    Additional companies, details and innovation scoring in the full report.

    Latest Industry News

    • Crypto Tax Tips To Start 2018 Right - The Internal Revenue Service, the US tax collection agency ... And it requires you to file a gift tax return since the gift is worth more than $15,000. For 2018, $15,000 is the amount of so-called “annual exclusion” gifts you can give to any number ... (01/10/2018)
    • Houston Tax Preparer Jailed For Tax Fraud - HOUSTON, TX — A tax return preparer who operated a local business under the name "Postal Tax Services" has been ordered to federal prison for willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return. (01/10/2018)
    • Tax self-assessment deadline: What you need to know - First, taxpayers need to be registered for HMRC online services. It can take up to 10 working days ... If you used to send a tax return but do not need to send one for the last tax year, you can contact HMRC to close your self assessment account. (01/10/2018)
    • Tax law has changed, and so has tax advice - The tax experts can either answer individual questions or review your return before filing ... which has moved everything from shopping to financial services online. People still want individualized attention from experts, and now they can get it from ... (01/10/2018)
    • Why states may get away with creative income tax maneuvers - Fearing that the new tax law will make it harder for them to raise enough revenue for public schools and other vital services, high-tax states such ... notwithstanding the state tax credit you get in return. For someone in the 37 percent federal income ... (01/10/2018)
    • LifeSpan Center and VITA program offering free tax return preparation - CHARLESTON -- LifeSpan Center’s VITA program will be offering an IRS tax return service for 2018. VITA is designed to help taxpayers complete their basic tax returns at no cost. Certified LSVP Volunteers that have received training from the IRS will be ... (01/10/2018)
    • Nation's Best Tax Preparers Can Now Reach New Clients Through Free Online Directory - ... tax consultation and even write reviews of the services they receive, further bolstering the potential for a tax preparer to cultivate new clients. "Consumers, including those looking for tax preparation services, have moved online to do research and ... (01/09/2018)
    • BBB: Ten tips for choosing a tax preparer - The BBB says each year they receive thousands of complaints from consumers against tax preparers. Complaints include customer service, billing and return errors. The organization's recommends checking the preparer's qualifications and history, never sign a ... (01/09/2018)
    • Free tax preparation available - Quad Cities residents with a household income of $57,000 or less are eligible for free tax preparation services offered through the Volunteer Income Tax Assistance (VITA) program of United Way of the Quad Cities Area at 14 different sites. IRS-certified ... (01/09/2018)
    • How does a pitch for a $3,000 advance on your tax refund turn into $500? - you'd need an expected federal income tax refund — minus authorized fees for tax preparation services — that amounts to at least $5,095. The available loan amounts at Liberty Tax are $500, $800, $1,300, and $3,250. The actual loan amount will vary ... (01/09/2018)


    Government Contracts

    In 2016, the federal government spent a total of $623,647 on Tax Preparation Services. It has awarded 30 contracts to 6 companies, with an average value of $103,941 per company.   

    Top government vendors:

    CompanyFederal ContractsTotal Award Amount



    Growth Opportunities / Competitive Threats

    Companies in other industries may also sell similar products. Since there is an overlap in the customer base, there may be an opportunity for companies in Tax Preparation Services to sell additional products/services offered by these adjacent industries. Alternatively, these industries may identify further products in this industry to target. Products most at risk are those with the highest profit margins and lowest barriers to entry.

    The following industries are competing channels for sales of similar products/services.

    Bookkeeping & Compilation Services
    Competing IndustrySales Relative to Tax Preparation ServicesOpportunity/Threat
    Offices of Certified Public Accountants
    Management Consulting Services Competing industry
    Administrative Management & General Management Consulting Services Competing industry
    Payroll Services Competing industry

    Sales from other industries of Bookkeeping & Compilation Services are less than those from Tax Preparation Services. This may mean that other channels are a competitive risk of increasing their Bookkeeping & Compilation Services sales, taking market share from this industry.
    Bookkeeping & Compilation Services Product Sales Report





    Segments classified within this market research report

    This industry market research report includes companies whose primary business is any of the following:
    Income tax compilation services, Income tax return preparation services, Tax return preparation services, etc.



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