Industry Analysis & Industry Trends
The Tax Preparation Franchises industry will not diminish in significance; however, the rise of tax submissions via the internet may dampen industry participants' exuberance. The global financial crisis, which resulted in the loss of jobs and income led to fewer tax returns being lodged. Of those lodged, nearly 70,000 more were lodged via e-tax while those submitted through agents and various means fell by 400,000. The weaker demand for tax preparation services in tough conditions reflects individuals' lower capacity and willingness to pay for tax services. Although the industry experiences less swings compared with the overall economy, its fortunes are undoubtedly tied to employment conditions... purchase to read more
Industry Report - Industry Investment Chapter
Tax preparation franchises are expected to operate at a low level of capital intensity. The industry is highly labour intensive as a large amount of work must be completed manually, such as the assessment of tax deductible items and preparation of tax lodgements. Employees in the industry must also possess an understanding of tax law and accounting standards; this knowledge requirement represents a significant item of expense for wages. In 2012-13, wages are expected to account for 54.7% of industry revenue.
IBISWorld expects that of every dollar required to be paid as wages to labour, only $0.04 is required as a capital investment, leading to a low level of capital utilisation and dependency... purchase to read more