$70.0bn
$X.Xbn
760k
326k
$XX.Xbn
In recent years, the Payroll and Bookkeeping Services industry has experienced a growing demand for its services, particularly among small businesses and self-employed individuals. This has led to a shortage of qualified professionals, driving up wages and increasing competition in the market.
Industry revenue has grown at a CAGR of 3.8 % over the past five years, to reach an estimated $70.0bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
Automatic Data Processing, Inc. | 9,480.8 | 1,916.9 | 20.2 | |
Intuit Inc. | 7,817.5 | 2,101.1 | 26.9 | |
Paychex, Inc. | 4,016.3 | 1,507.5 | 37.5 |
To view the market share and analysis for all 18 top companies in this industry, view purchase options.
Industry revenue is measured across several distinct product and services lines, including Full-service payroll services, Payroll services sold separately and Billing services. Full-service payroll services is the largest segment of the Payroll & Bookkeeping Services in the US.
Payroll services are adapting to the cloud
Operators in this industry provide outsourced payroll services for clients’ employees and basic bookkeeping services are also included. However, this industry does not include tax preparation companies or certified public accountants.
Purchase this report to view all 18 major companies in this industry.
NAICS 541214 - Payroll & Bookkeeping Services in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
One of the key trends in the industry over the past five years has been the increased adoption of technology. This has included the use of cloud-based software and mobile app...
Learn about an industry's products and services, markets and trends in international trade.
A push toward automation and cloud-based solutions in payroll services has resulted in greater efficiency, fewer errors and time savings. These trends have made it easier for...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
The geographic distribution of establishments in the Payroll and Bookkeeping Services industry is highly correlated with the distribution of the US population. There is a lar...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
The rise of technology is intensifying market competition. New technologies are enabling smaller players to enter the market and compete with established providers, reducing ...
Learn about the performance of the top companies in the industry.
Companies have been actively incorporating technology such as cloud computing and automation to streamline operations and improve efficiency. This has led to increased invest...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
The industry handles a large amount of sensitive data through digital systems. Any regulations regarding privacy and data security directly affect the industry.
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Profit margins have been sustained by increased selling prices, reduced labor costs and new streams of revenue. This includes creating new digital services to meet changing c...
Including values and annual change:
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Unlock comprehensive answers and precise data upon purchase. View purchase options.
The market size of the Payroll & Bookkeeping Services in the US industry in United States is $70.0bn in 2024.
There are 326k businesses in the Payroll & Bookkeeping Services in the US industry in United States, which has grown at a CAGR of 2.0 % between 2018 and 2023.
The market size of the Payroll & Bookkeeping Services in the US industry in United States has been growing at a CAGR of 3.8 % between 2018 and 2023.
Over the next five years, the Payroll & Bookkeeping Services in the US industry in United States is expected to grow.
The biggest companies operating in the Payroll & Bookkeeping Services market in United States are Automatic Data Processing, Inc., Intuit Inc. and Paychex, Inc.
Payroll services and Billing services are part of the Payroll & Bookkeeping Services in the US industry.
The company holding the most market share in United States is Automatic Data Processing, Inc..
The level of competition is high and increasing in the Payroll & Bookkeeping Services in the US industry in United States.