Industry Analysis & Industry Trends
Tax preparation franchises mainly service individuals and small businesses. The industry players’ main advantage in gaining these customers is their ability to maximise tax returns or minimise losses for clients. Tax preparation franchisees also know the types of deductions that can be claimed without breaking any taxation laws. While the rise of online tax submissions may limit future industry growth over the next five years, the majority of people are expected to continue to engage tax experts to submit their tax returns each year.
Although the industry is less volatile than many other industries and the overall economy, its fortunes are influenced by employment conditions, average household income, and investment levels... purchase to read more
Industry Report - Industry Investment Chapter
Tax preparation franchises operate at a low capital intensity level. 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 generally require an understanding of tax law and accounting standards as this knowledge requirement represents a significant item of expense for wages. In 2015-16, wages are expected to account for 52.5% of industry revenue. Used as a proxy for capital, depreciation is estimated to account for 2.0% of industry revenue for the year.
Overall, IBISWorld expects that of every dollar required for wages in 2015-16, approximately $0.04 will be invested in computers and other capital equipment... purchase to read more