The tax software market in North America was valued US$ 3,536.7 million in 2019 and is projected to reach US$ 7,878.6 million by 2027; it is expected to grow at a CAGR of 10.8% from 2020 to 2027.
The tax software quickly ascertains a client?s overall financial situation and suggests insurance or investment products, or other services, such as auditing, bookkeeping, or even comprehensive financial plans, that may be needed. The additional revenue that can be generated from this approach can be substantial in many cases. Also, the tax preparation process has become faster and more efficient as vast information is now available in digital format, which would, in turn, help accountants preparing tax to import their client data from personal finance software directly onto their tax returns with a single click as a substitute of entering all of those numbers manually. Also, electronic signatures have been entered with the client?s permission, which often eliminates the need for clients to be physically present in the accountant?s office. Thus, digitization in the tax-paying system is expected to propel the growth of the tax software market.
Based on end-user, the North American tax software market was led by a commercial segment in 2019 with a decent share and is expected to continue its dominance during the forecast period. However, the individual segment is expected to grow at a high CAGR in the tax software market. Commercial enterprises consist of small and medium (SMEs) enterprises and large enterprises. Large enterprises deal with a large volume of data; thus, the tax software is mostly adopted by them. However, the growing awareness regarding tax software among SMEs is further supporting the growth of the market for SMEs. As the tax software simplifies the tax filing process, it is meant to increase productivity by automating and integrating ERP systems. They also help enhance profitability and operational efficiency and mitigate costs. Therefore, the growing focus of SMEs towards improving the efficiencies is supporting the growth of the tax software market in the region.
Overall, North America's tax software market size has been derived using both primary and secondary sources. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the North American tax software market. It also provides an overview and forecast for the tax software based on all the segmentation provided with respect to the North America region. Also, primary interviews were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the tax software industry. Some of the players present in the North America tax software market are Avalara Inc.; Chetu, Inc.; H & R Block; Intuit Inc.; Sage Group PLC; Thomson Reuters Corporation; Vertex, Inc.; Wolters Kluwer N.V.; and Xero Limited, among several other players.