III. Industry Analysis
Tax preparation services are all about helping individuals and small businesses minimize what they pay in both state and federal taxes.
Over the past five years, the tax preparation services industry has grown at an average annual rate of 1.4% to reach nearly $11 billion. The industry is expected to continue on this growth trajectory, increasing at an expected 1.9% over the next five years.
Per capita disposable income determines an individual’s ability to purchase goods or services. Increases in per capita disposable income suggest that employment is on the rise and that, potentially, more individuals will require services to file their taxes. Furthermore, as per capita disposable income rises, consumers will have the resources necessary to hire professional services for tax filing.
Corporate profit is another driver of the tax preparation services industry. Higher profits mean businesses can pay for tax preparation expertise when they need it the most.