Overview

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

IBISWorld’s Industry Market Report on Payroll & Bookkeeping Services is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

REPORT SNAPSHOT

Market Share of Companies
Industry Statistics & Market Size
Revenue
$74bn
Annual Growth
12-17
5.4%
Annual Growth
17-22
Profit
Employment
1,025,173
Business
295,553

Industry Threats & Opportunities

  • A growing customer base and new technological opportunities have boosted industry performance
  • With more businesses and larger workforces, the need to engage payroll operators and bookkeepers grew, increasing industry demand
  • The national unemployment rate will remain low, creating industry demand
  • Industry Analysis & Industry Trends

    The Payroll and Bookkeeping Services industry has grown over the five years to 2017 as clients increasingly subcontracted back-office administrative activities to focus efforts on core business functions to take advantage of strengthening economic conditions. As the number of businesses in the United States has grown each year over the past five years, the industry's consumer base has grown and corporate profit expansion has given more businesses the resources to afford outsourcing their payroll. Over the five years to 2022, revenue is forecast to continue to increase, though at a slower rate compared with the previous five-year period as employment stabilizes, and companies in the industry are expected to attract customers to new cloud-based products and services.

    Industry Report - Industry Locations Chapter

    The geographic distribution of establishments in the Payroll and Bookkeeping Services industry is highly correlated with the distribution of the US population. There are a large number of small businesses in the industry that cater to small clients. These businesses are located close to large workforces, which typically are located in urban centers. Accordingly, the percentage of industry establishments is similar to the proportion of the US population in each state.

    Southeast

    The Southeast region represents the highest number of establishments, with 25.1% of industry establishments are located in the region, in line with its proportion of the US population. The

    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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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    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
  • Healthcare providers
  • Manufacturing companies
  • Individuals
  • Government agencies and nonprofits
  • Chart: Major Market Segmentation for the Payroll & Bookkeeping Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    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 competition
  • External competition

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

  • Industry Globalization
    Major Companies
    ADP LLC
  • Table: ADP LLC - financial performance

  • Operating Conditions
    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
    Key Statistics
    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
    Jargon & Glossary
    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.
  • Why buy this report?

    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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