Threats related to data security, especially on personal finance software, continue to threaten the tax preparation market’s growth. However, the tax preparation market is still expected to grow exponentially in the upcoming months owing to an increasing number of businesses being conducted online. Moreover, the easing concerns over the severity of the omicron coronavirus variant lead to a rise in employment, benefiting the tax preparation industry. So, both Intuit Inc. (INTU) and H&R Block, Inc. (HRB) should benefit.
INTU provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals worldwide. The company operates in four segments: Small Business & Self-Employed; Consumer; Credit Karma; and ProConnect. HRB provides assisted income tax return preparation and do-it-yourself tax return preparation services and products to the general public, primarily in the United States, Canada, and Australia. In addition, the company offers Refund Transfers and H&R Block Emerald Prepaid Mastercard, which enables clients to receive their tax refunds.
