Base value: The improving labour market will boost demand for industry services

The Payroll and Bookkeeping Services industry in Canada is expected to experience solid expansion over the five years to 2019. The act of outsourcing business functions has become increasingly common over the past five years, which has increased demand for the industry's services. Additionally, favourable macroeconomic trends have spurred demand and supported revenue growth. Over the five years to 2024, the industry is expected to experience steady growth, as the number of businesses and corporate profit trend upward. In the absence of any major downturns, industry volatility should decline with the industry expanding in line with the overall more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Industry revenue is expected to grow as the number of businesses and corporate profit trend upward
  • The industry will adapt and continue to provide value-added services to employers
  • Demand for outsourced payroll services will grow as the number of US businesses rises
  • Industry Report - Industry Key Buyers Chapter

    The Payroll and Bookkeeping Services industry in Canada is highly fragmented, with the majority of players operating as small nonemployers. According to Canadian Industry Statistics, 75.8% of establishments are nonemploying companies, with close to 95.5% of all companies staffing less than five people. In 2019, the two largest companies in the industry are estimated to account for 6.9% of industry revenue. The majority of the industry is composed of small companies that provide services to local areas of the community. Payroll and bookkeeping services follow business creation trends and aim to provide services so that companies can focus on their core functions. Over the past five years, the industry has remained consistent in its level of concentration. The...purchase to read more.

    Additional Insights for the Payroll & Bookkeeping Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Payroll & Bookkeeping Services Industry are

  • Access to quality personnel management
  • Ability to quickly adopt new technology
  • Accessibility to clients
  • IBISWorld analysts also discuss how external factors such as Number of businesses and Corporate profit in the Payroll & Bookkeeping Services industry impact industry performance..

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    What's in this report

    What is the Payroll & Bookkeeping Services Industry?

    This industry provides outsourced payroll services for clients’ employees. Basic bookkeeping services are also covered in this report. This industry does not include tax preparation firms and certified public accountants (CPAs).

    Industry Products
  • Payroll administration
  • Bookkeeping and billing services
  • Other payroll services
  • Industry Activities
  • Payroll administration services
  • Bookkeeping services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of businesses
  • Corporate profit
  • National unemployment rate
  • Number of households earning $100K or more

  • Current Performance
  • The choice to outsource
  • Technology and economic indicators
  • Industry expansion
  • Regulatory easing
  • Chart: Revenue Growth

  • Industry Outlook
  • Business growth drives industry
  • Technological opportunities
  • Industry structure
  • Rising external competition
  • Table: Payroll & Bookkeeping Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Payroll & Bookkeeping Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing In Canada
  • Retail Trade In Canada
  • Finance and Insurance In Canada
  • Professional, Scientific and Technical Services In Canada
  • Healthcare and Social Assistance In Canada
  • Arts, Entertainment and Recreation In Canada

  • Key Selling Industries
  • Commercial Leasing in Canada
  • Computer & Packaged Software Wholesaling in Canada
  • Office Supply Stores in Canada
  • Telecommunications Resellers in Canada
  • Wired Telecommunications Carriers in Canada

  • Products & Services
  • Payroll administration
  • Bookkeeping and billing services
  • Other payroll services
  • Chart: Payroll & Bookkeeping Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses
  • Households
  • Government
  • Chart: Major Market Segmentation for the Payroll & Bookkeeping Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and depreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Payroll & Bookkeeping Services

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Payroll & Bookkeeping Services Industry

  • Industry Globalization
    Automatic Data Processing Inc.,
  • Table: Automatic Data Processing Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Payroll & Bookkeeping 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 Payroll & Bookkeeping Services Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Number of businesses (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Keeping record of a business' financial transactions.
  • In-Housing
  • When businesses bring outsourced functions in-house to save money or improve service quality.
  • Outsourcing
  • When businesses use outside service providers to perform non-core functions.
  • Payroll
  • Company records of salaries and wages paid out to its employees.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Payroll & Bookkeeping Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Payroll & Bookkeeping 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 Payroll & Bookkeeping 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 Payroll & Bookkeeping Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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