Industry Analysis & Industry Trends
The industry's main advantage in gaining customers is the ability to maximise tax returns for clients, or minimise losses. Tax preparation franchises also know the types of deductions able to be claimed without breaking any tax 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 expects to submit their tax returns each year.
Although the industry experiences fewer swings compared with the overall economy, its fortunes are influenced by employment conditions, income levels, and investment levels. Weaker demand for tax preparation services in tough conditions reflects individuals' lower capacity and willingness to pay for tax services... 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 2014-15, wages are expected to account for 52.7% 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 invested in computers and other capital equipment, approximately $26.34 will be required for wages in 2014-15... purchase to read more