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Payroll & Bookkeeping Services in Canada Industry Data and Analysis
The Canadian payroll and bookkeeping services industry grew at a steady pace amid positive trends in business creation, a significant automation expansion and broader sector issues with incumbent payroll systems. A key driver facilitating the industry’s success has been businesses’ propensity to outsource internal payroll operations to professional service providers, with the aim of concentrating on their core functions. This trend is particularly pronounced in vibrant economic conditions, as companies prefer devoting human resources to continuing expansion. With new business formation growing at a CAGR of 1.1% in the past five years and a broader pivot away from traditional paper payroll operations, the industry received a multipronged boost. Revenue grew at a CAGR of 5.1% to an estimated $8.0 billion over the past five years, including a 3.2% boost in 2025 alone. Profit continues to exhibit resilience and strong growth due to the mandatory nature of payroll service operations and higher new business activity expanding the potential market.
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What's included in this industry analysis
IBISWorld's research coverage on the Payroll & Bookkeeping Services industry in Canada includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released December 2025.
About this industry
What's this industry report about?
The Payroll & Bookkeeping Services industry in Canada operates under the NAICS industry code 54121bCA. The Payroll and Bookkeeping Services industry in Canada provides outsourced payroll services for clients’ employees. Basic bookkeeping services are also covered in this report. This industry does not include tax preparation firms and certified public accountants (CPAs). Related terms covered in the Payroll & Bookkeeping Services industry in Canada include outsourcing, bookkeeping, in-housing and payroll.
What's included in this industry?
Products and services covered in Payroll & Bookkeeping Services industry in Canada include Payroll administration, Bookkeeping and billing services and Other payroll services.
What companies are included in this industry?
Companies covered in the Payroll & Bookkeeping Services industry in Canada include Intuit Inc., Dayforce Inc. and Automatic Data Processing Inc.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Payroll & Bookkeeping Services industry in Canada.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Payroll & Bookkeeping Services industry in Canada.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Payroll & Bookkeeping Services industry in Canada.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Payroll & Bookkeeping Services industry in Canada. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Payroll & Bookkeeping Services industry in Canada. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Payroll & Bookkeeping Services industry in Canada. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Payroll & Bookkeeping Services industry in Canada. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Payroll & Bookkeeping Services industry in Canada.
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Frequently Asked Questions
What is the market size of the Payroll & Bookkeeping Services industry in Canada in 2026?
The market size of the Payroll & Bookkeeping Services industry in Canada is $8.0bn in 2026.
How many businesses are there in the Payroll & Bookkeeping Services industry in Canada in 2025?
There are 22,305 businesses in the Payroll & Bookkeeping Services industry in Canada, which has grown at a CAGR of 2.1 % between 2020 and 2025.
How may import tariffs affect the Payroll & Bookkeeping Services industry in Canada?
The Payroll & Bookkeeping Services industry in Canada is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Payroll & Bookkeeping Services industry in Canada?
The Payroll & Bookkeeping Services industry in Canada is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Payroll & Bookkeeping Services industry in Canada grown or declined over the past 5 years?
The market size of the Payroll & Bookkeeping Services industry in Canada has been growing at a CAGR of 5.1 % between 2020 and 2025.
What is the forecast growth of the Payroll & Bookkeeping Services industry in Canada over the next 5 years?
Over the next five years, the Payroll & Bookkeeping Services industry in Canada is expected to grow.
What are the biggest companies in the Payroll & Bookkeeping Services industry in Canada?
The biggest companies operating in the Payroll & Bookkeeping Services industry in Canada are Intuit Inc., Dayforce Inc. and Automatic Data Processing Inc.
What does the Payroll & Bookkeeping Services industry in Canada include?
Payroll administration services and Bookkeeping services are part of the Payroll & Bookkeeping Services industry in Canada.
Which companies have the highest market share in the Payroll & Bookkeeping Services industry in Canada?
The company holding the most market share in the Payroll & Bookkeeping Services industry in Canada is Intuit Inc..
How competitive is the Payroll & Bookkeeping Services industry in Canada?
The level of competition is high and increasing in the Payroll & Bookkeeping Services industry in Canada.
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