Tax time: The growth of the labour force and decline in unemployment fuelled industry demand

The Tax Preparation Services industry in Canada has steadily grown over the five years to 2019, driven by increasing employment and consumer disposable income. The industry provides assistance to individuals and small businesses in completing, reviewing and filing tax returns. Industry operators review consumer financial documents, nominate appropriate deductions and claims, review files and send documents to the Canada Revenue Agency (CRA). As disposable income grew, more consumers became able to pay for industry services. The introduction of online tax preparation services has been the most prominent industry trend over the past five years...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 14-19
3.4%
Forecast Growth 19-24
Profit
Employment
19,614
Businesses
3,766

Industry Threats & Opportunities

  • The introduction of online tax preparation services has been the most prominent industry trend over the past five years
  • The industry has benefited from a strong labour market
  • Potential changes to tax laws could be beneficial to the industry
  • Industry Report - Industry Key Buyers Chapter

    The Tax Preparation Services industry in Canada exhibits a low level of market share concentration. The two largest industry operators, H&R Block Inc. (H&R Block) and Intuit Inc. (Intuit), are estimated to account for 34.3% of the market in 2019. Over the past five years, H&R Block has been a consistent industry leader due to its large number of tax offices assisting consumers and small businesses across Canada. Conversely, Intuit’s industry-relevant operations have expanded rapidly due to the success of the company’s TurboTax product, which enables consumers to complete their tax returns online for free, or at a low price for certain returns.Although the industry comprises two major players of note, many small operators participate in the industry. Sev...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
  • Business tax preparation services
  • Assisted software tax preparation 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
  • Number of households earning $100K or more
  • Number of businesses

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

  • Industry Outlook
  • More tax returns
  • Growth of software
  • 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
  • Assisted software tax preparation services
  • Business tax preparation services
  • Chart: Tax Preparation Services Industry Products and Services Segmentation

  • Demand Determinants
  • Seasonality
  • Employment
  • Laws and regulation

  • Major Markets
  • Consumers with incomes of $50,000 or more
  • Consumers with incomes less than $29,999
  • Consumers with incomes between $30,000 and $49,999
  • Businesses
  • 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
    WagesProfitDepreciationMarketingRentUtilitiesOther
  • 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
    H&R Block Inc., Intuit Inc.,
  • Table: H&R Block Inc. - financial performance
  • Table: Intuit Inc. - 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Number of businesses (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cra
  • The CRA refers to the Canada Revenue Agency, which is Canada's administration body for tax laws.
  • 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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