Industry Analysis & Industry Trends
The Tax Preparation Services industry experienced a slight downturn during the recession due to falling national employment and a decrease in disposable income. However, the industry rebounded in 2011 as the national unemployment rate fell, and revenue increased as more Americans were required to file tax returns. Still, the industry landscape has begun to change, with consumer preferences increasingly trending toward operators that provide online filing options. Although improving economic conditions are expected to support industry revenue growth over the next five years, some operators' performance will be stunted, as online providers threaten traditional brick-and-mortar establishments... purchase to read more
Industry Report - Industry Investment Chapter
The Tax Preparation Services industry is highly labor intensive, as much of the work must be completed manually. Comprising an estimated 38.7% of revenue in 2015, wages represent the industry's largest expense. Employees in this industry generally have an understanding of tax law and accounting. Furthermore, specialist skills and knowledge are required, including awareness of legislative changes and tax-related decisions made by the Internal Revenue Service (IRS).
Most ongoing capital expenses are related to the upgrade and maintenance of office and computer equipment, including specialized software packages and telecommunications equipment. Over the past decade, the industry has become increasingly capital intensive, as more tax filing is completed online using computer software... purchase to read more