A rising number of businesses has driven demand for tax accounting services, pushing prices up
Los Angeles, CA (PRWEB) January 02, 2015
Tax accounting services have a buyer power score of 3.2 out of 5, reflecting a relatively favorable purchasing environment for buyers. Buying power has been strengthened by low market share concentration and price volatility but moderated by a lack of practical substitutes. There are an estimated 200,000 suppliers providing tax accounting services, and no vendors generate a significant percentage of market share. As such, “competition among suppliers is high, pressuring suppliers to offer reduced pricing and incentives to attract and retain clients,” says IBISWorld research analyst Ian Buchanan. “This high competition, thus, boosts buyer power.” Major vendors include Deloitte, Ernst & Young, H&R Block, KPMG International and PricewaterhouseCoopers.
Somewhat offsetting the favorable purchasing conditions is the fact that tax accounting services require knowledgeable and experienced workers to ensure taxes are filed legally. As a result, there are few substitutes for market services for buyers to choose from. Services can be performed in-house by a dedicated finance employee or by using tax software. Unfortunately, these methods are not always the most cost efficient or practical depending on the size and complexity of the buyer's operations. Knowing that buyers have a limited range of alternative options, suppliers gain stronger pricing leverage, slightly offsetting the buyer power gained by high market competition.
Although buyers have been negatively affected by the increasing price of tax accounting services during the past three years, the purchasing environment has been improved by the low volatility in the price of these services. “As the economy has improved, the number of businesses has steadily risen, providing tax accounting service suppliers with stable demand,” says Buchanan. “This stable demand has contributed to steady price growth during the past three years, allowing buyers to make more accurate budgets and cost estimations.” As new businesses continue to steadily enter the market, the price of tax accounting services is forecast to remain low in volatility in the three years to 2017, providing buyers with a more stable purchasing environment during the period. For more information, visit IBISWorld’s Tax Accounting Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of tax accounting services. While traditional accounting services focus on the assemblage of public financial statements, tax accounting services focus on tax advising, preparation and filing. Specifically, vendors help buyers adhere to the Internal Revenue Code and minimize taxes paid. This report does not include audit services, bookkeeping, payroll accounting, financial accounting or billing services.
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IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.