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Procurement Market Intelligence Report

Tax Preparation Software
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Tax Preparation Software?

What is the average price of Tax Preparation Software?

This procurement report includes pricing information to help you purchase Tax Preparation Software. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Tax Preparation Software been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Tax Preparation Software yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Tax Preparation Software?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Tax Preparation Software with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase Tax Preparation Software?

There are about 70 tax preparation software suppliers in the United States. Collectively, the top four suppliers account for an estimated 62.5% of the market, indicating that there is a high level of concentration. High barriers to entry have kept new suppliers from flooding the market in response to rising... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Cost Structure

How much of your revenue is set aside for ongoing research and development? Has this investment increased or decreased in recent years?

What is your process for recruiting and maintaining your skilled software developers? Is there ongoing training for employees?

Have any informal partnerships been formed with your company? Has this improved profitability? How does this affect buyers?

Have you been transitioning away from the traditional tax preparation model? How has this shift towards software tools affected your financial performance?

Competition

If you only provide tax preparation software, how do you compete effectively against traditional tax preparation service providers?

How do you assess your reputation within the market? How do you compare your reputation with other firms?

Has your company made any major acquisitions during the past three years? Are any planned in the future?

What risks do you face operating in a highly concentrated market? What steps have you taken to improve your competitive position?

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Key elements for every RFP

What should my Tax Preparation Software RFP include?

Project Budget

Buyers should specify the expected number of returns.

Buyers should detail the contract term for annual ongoing costs (e.g. system support, upgrade and maintenance charges and license fees).

Selection Criteria

Buyers should consider vendors that offer software solutions that meet the requirements of the RFP.

Buyers should review the experience of vendors based on client references and the quality of their customer service.

Buyers should evaluate providers based on the estimated costs of the tax preparation software and services.

For a detailed list of key selection criteria, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should provide the timeline of the RFP and project.

Buyers must include the date of when proposals are due and when the award information will be available.

Evaluate major factors to mitigate risk

How risky is the Tax Preparation Software supply chain?

Buyers do not face significant risk from the supply chain for tax preparation software. The inputs that vendors require include data processing and hosting services, intellectual property licensing, legal services, telecommunications equipment and other related IT goods used to create and maintain tax preparation software. The fast rate of change... Subscribe to learn more.

HIGH

MEDIUM

LOW