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

The Payroll and Bookkeeping Services industry provides payroll and bookkeeping services on an outsourced basis. The industry has experienced steady growth over the five years to 2017 as clients increasingly subcontracted back-office administrative activities to take advantage of strengthening economic conditions, enabling them to focus efforts on core business functions. By outsourcing payroll and bookkeeping, small businesses can save time and money, freeing up resources for higher-priority pursuits. Additionally, the rising complexity of payroll and benefits payments and deductions has led businesses to increasingly outsource these functions to industry operators to ensure compliance...purchase to read more.

Industry Statistics & Market Size
Revenue
$74bn
Annual Growth 12-17
5.4%
Forecast Growth 17-22
Profit
Employment
1.1m
Businesses
303,120
Market Share of Companies

Industry Threats & Opportunities

  • A growing customer base and new technological opportunities have boosted industry performance
  • Innovation in technology has increasingly come to the forefront for most large industry operators
  • The national unemployment rate will remain low, creating industry demand
  • Industry Report - Starting a New Business Chapter

    Barriers to entry are low for the Payroll and Bookkeeping Services industry. It is relatively easy for small players to enter the industry and set up operations providing payroll, bookkeeping and certain employee benefits administration services. There are few capital requirements needed to begin operations and many small operators exist that service only local markets. Regulatory requirements provide the single largest barrier to entry, as companies are required to have a comprehensive understanding of taxation and employee relations laws to operate. Furthermore, industry operators are subject to privacy, data-security and anti-money laundering  laws...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 consumers/users
  • IBISWorld analysts also discuss how external factors such as Outsourcing to the Business Services sector and National unemployment rate 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?

    Operators in this industry provide outsourced payroll services for clients’ employees and basic bookkeeping services are also included. However, this industry does not include tax preparation companies or certified public accountants.

    Industry Products
  • Full-service payroll services
  • Payroll services sold separately
  • Billing services
  • Bookkeeping and compilation services
  • General accounting services
  • Tax planning and consulting services
  • Tax preparation and representation services
  • Other services
  • Industry Activities
  • Payroll services
  • Billing services
  • Bookkeeping services
  • General accounting services
  • Tax services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Outsourcing to the Business Services sector
  • National unemployment rate
  • Number of businesses
  • Corporate profit
  • External competition for the Payroll & Bookkeeping Services industry

  • Current Performance
  • Outsourcing growth leads to product penetration
  • New employment drives growth
  • Technological opportunities
  • Changing industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Growing customer base
  • Large companies to increase profit
  • Rising 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
  • Retail Trade
  • Finance and Insurance
  • Professional, Scientific and Technical Services
  • Healthcare and Social Assistance
  • Arts, Entertainment and Recreation

  • Key Selling Industries
  • Commercial Leasing
  • Computer Stores
  • Office Supply Stores
  • Wired Telecommunications Carriers

  • Products & Services
  • Full-service payroll services
  • Billing services
  • General accounting services
  • Tax preparation and representation services
  • Bookkeeping and compilation services
  • Payroll services sold separately
  • Tax planning and consulting services
  • Other services
  • Chart: Payroll & Bookkeeping Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other private businesses
  • Technology-producing companies
  • Manufacturing companies
  • Individuals
  • Government and nonprofit organizations
  • Healthcare providers
  • 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
  • Profit
  • Wages
  • Purchases and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Payroll & Bookkeeping Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Payroll & Bookkeeping Services Industry

  • Industry Globalization
    Automatic Data Processing,
  • Table: Automatic Data Processing - 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
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Corporate profit (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Bookkeeping
  • Keeping record of a business' financial transactions.
  • In-Housing
  • When businesses bring outsourced functions in-house to save money or improve service quality.
  • Outsourcing
  • To procure goods or services under contract with an outside supplier.
  • What Our Customers Say

    Why buy this report?

    The Payroll & Bookkeeping Services industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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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