File away: Revenue has risen due to greater investment by households and rising business numbers

Firms in the Tax Preparation Franchises industry mainly service individuals and small businesses. Industry players distinguish themselves by holding the knowledge to maximise clients' tax returns while not breaking any taxation laws. While the rise of online tax submissions has limited industry growth over the past five years, individuals with complex tax returns and small businesses will likely continue using tax experts to submit their tax returns.Although the industry experiences low volatility due to the mandatory nature of tax lodgements, factors such as employment conditions, household discretionary income and investment levels still influence industry revenue. When individuals have more complex tax matters, they tend to be more inclined to engage industry more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Tax preparation specialists are increasingly targeting small enterprises over individuals
  • Increases in self-lodgement through myTax have forced players to diversify business offerings
  • Industry firms are projected to benefit from the rising number of businesses
  • Industry Report - Industry SWOT Analysis Chapter

    The Tax Preparation Franchises industry is in the mature stage of its economic life cycle. Industry value added, a measure of the industry's contribution to the overall economy, is forecast to grow at an annualised 2.6% over the 10 years through 2023-24. This represents a slight underperformance relative to growth in real GDP, which is projected to rise at an annualised 2.7% over the same period. This is indicative of a mature industry.Services provided by industry players have been around for many decades and hence have wholehearted market acceptance. However, growth opportunities remain for industry players. For example, franchisors can bring existing independent operators into their brand and expand into growing regional cities. Add...purchase to read more.

    Additional Insights for the Tax Preparation Franchises Industry

    IBISWorld has determined the most important Key Success Factors for the Tax Preparation Franchises are:

  • Being part of a franchising chain
  • Access to highly skilled workforce
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Demand from auxiliary finance and investment services and Number of businesses in the Tax Preparation Franchises industry impact industry performance..

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    What's in this report

    What is the Tax Preparation Franchises Industry?

    Industry participants provide tax-return preparation services as part of a franchise business structure. The industry includes businesses that are owned directly by the franchisor. Operators do not provide accounting, bookkeeping, billing or payroll processing services.

    Industry Products
  • Personal tax-return services
  • Investment tax-return services
  • Small business tax-return services
  • Other tax services
  • Industry Activities
  • Tax consultation services
  • Tax return preparation services
  • Tax review services
  • Other taxation services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from auxiliary finance and investment services
  • Number of businesses
  • Real household discretionary income
  • National unemployment rate
  • Total full-time workforce
  • High income earners

  • Current Performance
  • Industry drivers and growth
  • Agents vs myTax
  • Spreading the net
  • Competition and the franchise model
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry drivers and threats
  • Franchise arrangements
  • Superannuation boom
  • Table: Tax Preparation Franchises Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Advertising Services
  • Education and Training
  • Internet Service Providers
  • Software Publishing

  • Products & Services
  • Small business tax-return services
  • Personal tax-return services
  • Investment tax-return services
  • Other tax services
  • Chart: Tax Preparation Franchises Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals
  • Small business owners
  • Other sectors
  • Chart: Major Market Segmentation for the Tax Preparation Franchises Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Rent
  • Royalty expenses
  • Marketing
  • Depreciation, utilities and other
  • Chart: Cost Structure Benchmarking – Sector vs Tax Preparation Franchises

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    H&R Block Limited, ITP Australia,
  • Table: H&R Block Limited - financial performance
  • Table: ITP Australia - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tax Preparation Franchises 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 Franchises Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Above-The-Line Advertising
  • Includes traditional mass media advertising through newspapers, magazines, radio, TV, the internet and billboards. This is often targeted to reach expected key demographic groups and online audiences.
  • Below-The-Line Advertising
  • An advertising strategy that uses direct means of communication, such as direct mail or email, and incentives such as coupons, competitions and price discounts, rather than using mass media.
  • Self-Managed Superannuation Fund (Smsf)
  • A retirement account in which the members must be directors or trustees of the fund
  • Tax Preparation
  • The process of preparing and lodging tax for compensation, and is usually either income tax or investment tax.
  • Taxpayer
  • Any individual earning an income above the tax-free threshold in Australia must pay tax to the Australian government.
  • What Our Customers Say

    Why buy this report?

    The Tax Preparation Franchises market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Tax Preparation Franchises:
    • 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 Franchises 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 Tax Preparation Franchises, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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