Discussion:The big 3 in tax preparation
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Discussion Forum Index --> Basic Tax Questions --> The big 3 in tax preparation
Discussion Forum Index --> Tax Questions --> The big 3 in tax preparation
| 6 March 2008 | |
| The big 3 in our field our Block, Hewett, and Liberty. Do you know what percentage of the tax prep business they control? Are they experience top line growth or is free file and cheap software taking a bite out of their business? | |
Tfortaxes@msn.com (talk|edits) said: | 6 March 2008 |
| I don't know the answers to your questions. The big three's lousy service has sent me plenty of clients. I hope they continue to screw up people's taxes. It insure growth for me! I lose clients every year to the software packages. They are usually back in a year or two with their spouses give them the "talk to the box" look while I clean up the mess they made of the taxes. I get to bump them up to the new prices. All in all a good system. I buy the cheap version of TurboTax every year. I keep it on my desk. When one of the smart alecks start spouting off about how they can do their own taxes, I toss them the TurboTax and say. "Knock yourself out!". Nobody ever takes it. Best thing to do is provide good service at fair prices for your area and don't fret about the Big Guys. | |
| 6 March 2008 | |
| Bob, you can probably see their growth figures - aren't all publicly traded (or part of publicly traded) companies? | |
Death&Taxes (talk|edits) said: | 6 March 2008 |
| "Do you know what percentage of the tax prep business they control?" Too much? | |
| 6 March 2008 | |
| it's all in their annual reports, doesn't anyone do any research anymore? | |
TheTinCook (talk|edits) said: | 6 March 2008 |
| Honestly, most of their clients are those you wouldn't want in private practice. So don't get too worried.
And yes, software is taking a chunk out of their business. Free file and VITA clinics, not as much. RAL products are their biggest competitive advantage. | |
| 6 March 2008 | |
| I don't know if all 3 are public...but I enjoy how Block's fees, at least here in NY, have really skyrocketed. I find it helps me as a sole-practicioner.
When you consider the massive advertising Block does, and that they pay rent for 12 months when only in business for 3 or 4, and I think they pay some of the preparers pretty well...along with Wall Street's demand for higher yearly profits...it really helps out sole practicioners get a better price for tax returns. I've been quite surprised at some of the fees they charge. | |
| 6 March 2008 | |
| Block http://money.cnn.com/magazines/fortune/fortune500/snapshots/595.html
Hewitt http://money.cnn.com/magazines/fortune/fortunefastestgrowing/2007/snapshots/95.html Liberty - I came up dry, but I'm sure you could find it with a little more effort. | |
Death&Taxes (talk|edits) said: | 6 March 2008 |
| Isn't Liberty privately owned? Maybe if you flap your arms you will find it? | |
| 6 March 2008 | |
| I agree about Block's fees, at least here in Atlanta. They are not dirt cheap, and that is helpful.
As far as annual reports, the question becomes: can you trust them? Keep in mind, AOL showed an increasing subscriber base as long as they could. They would include you on there even if you were a freebee. So, I would put a "fudge" factor into what these people report, they are right crafty with the English language. In my opinion, this is an age thing. I have clients 40 and above who would not think of using software/online. Not so with the younguns. | |
| March 6, 2008 | |
| "and I think they pay some of the preparers pretty well"
Laklein, as an ex-hrb tax pro i can tell you definitively... they don't! The New Tax Guy | |
Southparkcpa (talk|edits) said: | 6 March 2008 |
| C'Mon.......... are you telling me that I am not one of the big three? I'm shocked!
What's a guy need to do, stand out in front with an Abe Lincoln hat on? | |
MarkGillCPA (talk|edits) said: | 6 March 2008 |
| Jackson Hewitt (JTX) reported weak Q3 results on Tuesday. EPS down 34% from last year. Stock dropped 32% (Ouch!). Fell another 7% today. H&R Block (HRB) reported a Q3 this morning that wasn't as bad as feared, so the stock is up 5%, but the stock has been in a long slow decline for years. Berkshire sold its postion in HRB last year. I wouldn't want to own either company, and yes, I think both companies are losing business to free file and software. | |
Will "the tax guy" (talk|edits) said: | 7 March 2008 |
| Liberty is still a privately held company. | |
| 7 March 2008 | |
| I think from what I read a while back paid preparers control only 25-35% of the market if that. What funny on a side note to other comments, I worked for both H&R and JH, and I find that Jackson Hewitt, especially their franchise offices, charge a ridiculous amount of money, almost to the point of rule breaking I think. I did a simple Ez 1 w2 for $167 at JH and at HR around $100. I felt really bad at JH when I charged a few people $401 for simple return but with EIC, Dependent care and other child credits. These are some main reasons I want to open my own practice. Too many people are being ripped off. At least H&R discloses fees, Jackson Hewitt wont. All in all I think H&R is a far superior company then the other two, with knowledge and employee pay/hours. | |
| 7 March 2008 | |
| tHAT'S INTEREsting Newtaxguy...Last year I was looking for some help and the prospective employee wanted a percentage of my bill...he said H&R was offering him a good percent...but I couldn't verify....Nevertheless, it's hard for to offer someone a percent of bill...b/c I'm talking to these people most of the year long for ind'l taxes and I don't charge until end of year | |
TheTinCook (talk|edits) said: | 7 March 2008 |
| What % was he claiming? I't be interesting to know if that was inline with what I'm getting. | |
| 7 March 2008 | |
| I think I recall reading that the big three have about 25% of the paid preparer market.
I don't know about you all, but I don't lose clients to the big three (but I sometimes have a hard time getting some of them to swich from Block). I only seem to lose clients to Turbo Tax (or at least the nonbusiness filers). | |
| 7 March 2008 | |
| http://www.webcpa.com/article.cfm?articleid=4693
...rival Block has about 21 percent of the market. | |
| 7 March 2008 | |
| The share held by the Big Four (PWC, E&Y, DT, & KPMG) may be much more profitable than the share held by the "big three". | |
