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 2018 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
$79bn
Annual Growth 13-18
5.6%
Forecast Growth 18-23
Profit
Employment
929,256
Businesses
304,226
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, supporting industry demand
  • 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.SoutheastThe Southeast region contains the largest number of establishments for this industry. An estimated 25.1% of industry establishments are located in the Southeast, which is in line with its proportion of the US population. 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 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
  • Tax preparation and representation services
  • Billing services
  • Bookkeeping and compilation services
  • General accounting services
  • Tax planning and consulting services
  • Payroll services sold separately
  • 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
    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., Intuit Inc.,
  • Table: Automatic Data Processing Inc. - financial performance
  • Table: Intuit 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Corporate profit (2009-2023)

  • 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
  • The procurement of goods or services under contract with an outside supplier.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Payroll & Bookkeeping Services Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Payroll & Bookkeeping Services industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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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