Tax time: As incomes, households and computer use rise, demand will increase

Operators that provide tax services typically generate a steady flow of revenue due to the necessary nature of filing taxes. However, a growing share of consumers and businesses are opting to file their taxes through software as they become attracted by online offerings. This has accelerated industry demand over the past five years, and enabled the industry to outpace growth for other tax-filing services. The industry is expected to continue its upward trend, as revenue is set to rise over the five years to 2018. Revenue for the Tax Preparation Software Developers industry will continue to rise over the five years to 2023, albeit at a slower rate, as price-based competition limits gains...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • The industry has benefited from consumers’ increasing use of computer software to file taxes
  • Brand recognition is a key success factor for operators in this industry
  • The mobile market will likely capture a rising share of tax filings in coming years
  • Industry Report - Industry SWOT Analysis Chapter

    The Tax Preparation Software Developers industry is in the growth phase of its life cycle. Over the 10 years to 2023, industry value added (IVA), which measures the industry's contribution to the overall economy, is expected to increase at an annualized rate of 6.9%. Industry IVA is expected to outpace annualized GDP growth of 2.1% over the same period.Companies in the industry are innovating new ways of delivering their products to consumers (e.g. over a web browser, through a software-as-a-service model or through professional tax preparation firms). Although few innovations are occurring for the actual software product, the availability of online software has encouraged growth in the use of software for filing tax returns...purchase to read more.

    Additional Insights for the Tax Preparation Software Developers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tax Preparation Software Developers Industry are

  • Having brand name recognition
  • Providing customer support features
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Percentage of services conducted online and Number of households in the Tax Preparation Software Developers industry impact industry performance..

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    What's in this report

    What is the Tax Preparation Software Developers Industry?

    This industry provides software, usually hosted online, that enables individuals to file federal and state tax returns. The software is designed to guide users through their tax returns step-by-step. Additionally, operators in the industry provide software for small businesses. This industry excludes tax preparation software used by professional accountants.

    Industry Products
  • Online tax software
  • Desktop software
  • Free file alliance
  • Industry Activities
  • Providing federal income tax preparation software
  • Providing state income tax preparation software
  • Providing small business tax preparation software
  • Providing professional tax preparation software
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Percentage of services conducted online
  • Number of households
  • Poverty rate
  • Number of businesses
  • Regulation

  • Current Performance
  • Tax goes online
  • Industry structure
  • Banking on business
  • Chart: Revenue Growth

  • Industry Outlook
  • Demographic and mobile trends
  • Persistent shift in business models
  • Profit remains high
  • Table: Tax Preparation Software Developers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tax Preparation Software Developers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Retail Trade
  • Law Firms
  • Tax Preparation Services
  • Consumers

  • Key Selling Industries
  • Computer Manufacturing

  • Products & Services
  • Online tax software
  • Desktop software
  • Free file alliance
  • Chart: Tax Preparation Software Developers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 25-34
  • Consumers aged 35-44
  • Consumers aged 45-54
  • Consumers aged 65+
  • Consumers aged 55-64
  • Consumers aged 18-24
  • Businesses
  • Chart: Major Market Segmentation for the Tax Preparation Software Developers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchases and laborDepreciation and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Tax Preparation Software Developers

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tax Preparation Software Developers Industry

  • Industry Globalization
    Intuit Inc., H&R Block Inc.,
  • Table: Intuit Inc. - financial performance
  • Table: H&R Block Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tax Preparation Software Developers 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 Software Developers Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Percentage of services conducted online (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Sending a federal or state income tax return from tax software via the internet to federal or state tax authorities.
  • Free File Alliance
  • A private-public alliance between tax preparation software firms and the IRS. Firms provide free federal tax return services to consumers who make less than $57,000 a year.
  • Internal Revenue Service
  • The department of the federal government responsible for collecting federal taxes.
  • Tax Deduction
  • A tax benefit offered by the IRS or a state tax authority that reduces the amount of income on which tax liability is calculated.
  • What Our Customers Say

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    This report on Tax Preparation Software Developers:
    • 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 Software Developers 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

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