In the accounting / tax practices industry there are currently around 130,000 businesses that offer a variety of types of services to both individual clients as well as businesses. The services they provide include standard tax preparation services, basic tax preparation services, full-service tax preparation services, and tax-related financial products.
Overall Business Services Industry Trends:
Companies in the business services industry will continue to invest in the integration of digital transformation into the overall strategic road map, not only to connect sellers and buyers directly but also to keep competitive within the industry. In addition, the demand for cybersecurity has been increasing as cybercriminals have been attacking businesses and threatening their data and confidential information. Firms that are victims of cyberattacks face great cost as clients tend to search for a more secure service provider.
The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.
For every 11 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Franchise Loan Data from 2010-2019
-Non-Franchise Businesses taken into account: 55,045
There should not be major change in the current demand for accounting firms in the next several years. However, any new tax levels could greatly affect the trajectory of the accounting practice and tax industry. The overall market should remain strong for next few years because there is a larger volume of buyers in big metro areas than there are sellers. This is different in rural areas because industry trends point to there being less buyers than there are sellers. Also, due to low interest rates and the abundant access to financing for buyers is appealing for both buyers and sellers. Buyers usually need to provide high up-front payments. For example: the buyer usually puts in 10% of the purchase price and the bank will provide 70-80% and then the seller provides an advance note for 10-20% of the purchase price
Average Profit Margin: 20.4%
Revenue per employee: $35,500
Average Number of Employees: 2.3
Average Wages per Employee: $11,972
Rent & Other Utilities: 4.2%
Largest Market Share in this Industry:
Intuit Inc.: 25.1%
H&R Block Inc. 22.8%
H&R Block is a tax return preparation business and can offer bookkeeping and payroll services. Their franchise program was started in 2008. There are 9,524 H&R Block locations in the United States, of which 6388 are corporate units and 3136 are franchise units.
Initial Franchise Fee:
Total Cost of Franchise:
$31k – $149k
In the Franchise Disclosure Document, there was no earnings of franchisees presented in Item 19.
Average Business Services Franchise Industry Percentage Fees
Standard Business Services Franchise Industry Investment
This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 160 franchise concept investment breakdowns in order to calculate this figure.
The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.
For every 10 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Franchise Loan Data from 2010-2019
-Franchise Businesses taken into account: 2,390
Learn more about the Business Services Industry
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